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Trains.com just reported that Amtrak will never generatesufficient revenues to be self-supporting and needs a larger federal subsidy, President David Gunn says.
Gunn said Amtrak will never make a profit, mainly because of the high cost of maintaining railroad ties, bridges and other infrastructure, the Connecticut Post reported.
Congress has yet to approve a budget for Amtrak for the current fiscal year, which did began Oct 1. Gunn says Amtrak needs $1.2 billion to operate this year. The Senate did approved a $1.2 billion appropriation, but the House's decision is pending.
"If they (members of Congress) ever pass a number like $800 million, it's all over," Gunn said.
He said Congress is being unrealistic in insisting Amttrak become self-sustaining. "Maybe we are sustainable, because they've tried to kill us for 30 years and we're still here," Gunn told an audience at Yale University.
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I don't know how the Pacific Electric motorman's son that "relocated away from the area" could have ever believed the profitability tripe.
If the railroads could not make a buck in that biz, how in heavens name could an organization that was first going to support its own instiitutions from the CEO on down, and honor "existing labor agreements" going to do so.
No one in the railroad industry at that time, such as myself, could believe it, but I guess some in the public, as well as their elected representatives, did. The corner bets were that Amtrak would last five years, MAX.
Oh yeah, then there is this fellow named "P.T. Barnum...."; and there is also "that Bridge in New York".
Posts: 9975 | From: Clarendon Hills, IL USA (BNSF Chicago Sub MP 18.71) | Registered: Apr 2002
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posted
Amtrak only owns and maintains tracks in the NorthEast Corridor
IIRC, Amtrak also owns about 100 miles of the corridor between Chicago and Detroit. Amtrak doesn't own the entire Northeast Corridor either.
Amtrak will never generate sufficient revenues to be self-supporting
They knew this back in 1971. No agency (or "corporation") that operates passenger train service can be expected to turn a profit. New York's MTA is getting subsidized to the tune of over $2 billion, for example (but that includes buses and subways as well as commuter rail)...what this proves is that passenger density is not a factor in generating sufficient revenue to cover costs, so they get it from the passengers (and non-passengers) via tax revenue. It also doesn't mean that such service is unnecessary...
[This message has been edited by irishchieftain (edited 02-15-2003).]
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