Bush officials had hinted they would present a long-range plan for passenger rail service in the U.S. concurrent with the unveiling of the FY2003 budget in early Feburary. Instead, the White House came back with a mere $521 million for Amtrak as a "placeholder" until the Bush administration formulates its vision for passenger trains.

Harold Rogers (R-Ky.), chairman of the House Transportation Appropriations Committee see that as a cop out. "We're not going to pour money down that sinkhole anymore," Rogers said, referring to Amtrak, in a hearing held February 27, 2002. "This train's leaving the station," he added.

Rogers then went on to tell Allan Rutter, head of the Federal Railroad Administration, that the executive branch has until the last week of April to present a plan.

"If you want a (rail passenger) system, you'd better get busy," said Rogers.

This puts the squeeze on a White House that actually does not know what to do with Amtrak, and would just as soon put the issue on hold until after the November elections. Deputy FRA Administrator Mark Yachmetz told TRAINS news wire last November that the administration would present a whole new comprehensive rail passenger proposal in late January or early Feburary and that hopefully, Congress would have a plan in place by Memorial that is Monday May 27, the start of the Tourist season.

The Administration's foot-dragging results, at least in part, from a fierce internal debate going on the the highest councils of the White House and the Bush Cabinet. TRAINS news wire has been hearing from reliable sources that the dispute is basically between Health and Human Services Secretary Tommy Thompson (a former Amtrak Board Chairman) who wants an expanded Amtrak, and White House Budget Director Mitch Daniels who does not.

Whether Congressman Rogers'April deadline puts the heat on the administration to make up its mind remains to be seen.

FREIGHT RAILROAD INVESTMENT IN PASSENGER CORRIDORS A POSSIBILITY.

Wednesday's hearing also featured Amtrak President George Warrington, DOT inspector General Kenneth Mead, and Amtrak Reform Council Chairman Gil Carmichael.

Carmichael's testimony elicited some surprise among the audience of rail professionals in the hearing room when he indicated that some of the "freight boys" (his shorthand for the class 1 freight railroads) would be willing to kick in funds to help rebuild rail infrastructure. The money would go toward upgrading rights of way to facilitate high-speed corridors around the country, as well as improving freight service.

"Two or three(of the freight carriers) are willing," the ARC chairman told TRAINS news wire after the hearing concluded.

As an example, he cited Kansas City Southern, which went to the state of Mississippi with Amtrak and tried to get a $100 million bond issue out of the legislature to pursue infrastructure upgrades. The state ultimately did not approve the plan, but Carmichael sees this effort as the wave of the future

With a modern signal system and more grade-crossing eliminations, Carmichael believes that high-speed passenger trains and fast freight trains can coexist. Graham Claytor, when he headed Amtrak, said if freight carriers can run trains at 90 mph, he could run a 125-mph passenger train in between them.

"With about a ten percent investment on their part, they (freight railroads) can leverage 90 percent bond money." said Carmichael, the chairman of the Amtrak Reform Council and onetime FRA administrator. "Their treasurers and investment bankers will kick them if they don't take that money." With that in mind, railroads are watching with interest the progress of the $71 billion high-speed rail bond bill sponsored by Don Young (R.-Alaska).

But the class 1 railroads are skittish about publicily pledging support for infrastructure upgrades. Sources say they fear that openly advocating such government-oriented cooperative efforts may lead to increased regulation and to the imposition of "open access" policies on their operations.

AMTRAK LAYS IT ON THE LINE

In his testimony before the committee, Amtrak President George D. Warrington assured lawmakers that the passenger railroad's plan to discontinue 18 long-distance trains next October if it does not get $1.2 billion in FY2003 is not a threat.

"I don't make threats," Warrington said. "We've just run out of tools in the toolbox ot hold it(Amtrak) together."

DOT Inspector General Kenneth Mead agreed. When Rogers asked him how Amtrak could get along on the $521 million the administration requested, he replied, "Not long and not well." The issue is capital funding, he told the congressman.

Faced with the possibility that the nation's intercity passenger rail service could grind to halt in October, the executive and legislative branches of government would do well to craft a solution now, before voters cast their ballots in November.
 

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F40PH #757099-8
March 29, 1976-November 18, 2001
P42DC #53063
November 18, 2001-???