Gilbert Carmichael: A Distinguished American Speaks About Amtrak Reform
Many distinguished Americans have become part of the debate on the future of Amtrak.
One of the most venerable voices in the debate is that of Gilbert Carmichael of Meridian, Mississippi, former Federal Railroad Administrator, and former Chairman of the Amtrak Reform Council. Mr. Carmichael shares his thoughts below:
November 21, 2005
An Open Letter to Amtrak Supporters
Recent actions taken by the Amtrak board of directors have given rise to an outpouring of unjustified hysteria on the part of rail passenger advocates and members of Congress. I am convinced that the board’s action to create a separate business unit for its Northeast Corridor operations is both necessary and long overdue.
What we really have here is a “culture war.” On the one side is what I call the Old Amtrak, which by any standard is failing the American people. On the other side are reformers like Amtrak Chairman David Laney who see an opportunity for a New Amtrak that could deliver modern services to the American traveler that actually would count for something in the marketplace
Unfortunately, for years the reformers have been hamstrung by a “know-nothing” culture that has prevailed in Amtrak management for at least a decade. The Government Accountability Office’s investigation has disclosed that, among other failures, Amtrak management can’t tell us which of its services are the biggest financial losers, and which represent growth opportunities.
For years, rail passenger advocates outside the Northeast have claimed that the long-distance riders are subsidizing an expensive Northeast corridor’s short-distance operations. Amtrak’s zany accounting, they contend, hides the true extent of NEC costs. These people should be applauding the board’s recent move, because the action of placing the Northeast Corridor into a separate business unit for operations and accounting purposes is the only practical way to determine the facts. This action reflects implementation of one of the Amtrak Reform Council’s core recommendations made over three years ago.
This division of responsibilities would result in a Northeast Corridor subsidiary that would consist of the NEC track structure, real estate, debt, and about 5,000 maintenance employees. The remaining entity would be the (New) Amtrak passenger operating company, which would control the locomotives and passenger cars, and about 15,000 train crew members and other service employees (no one gets fired!). The operating side of Amtrak generates about $1.1 billion annually, primarily through ticket sales. The operating company would pay the NEC subsidiary a fee to run on its tracks, just as the commuter agencies do.
Among other benefits, this arrangement would do several things:
- Allow the new passenger operating company to do what Amtrak should be doing – upgrading its train sets and concentrating on running trains and serving passengers.
- Find out exactly what it costs to run all individual trains and categories of service.
- Establish a NEC management whose priorities center on the infrastructure it controls.
- Determine a precise annual budget and capital needs that confront the Northeast Corridor, especially the amount needed for critical life safety requirements.
I believe that there is a vital role for the New Amtrak in providing rail passenger service to the traveling public at a reasonable cost. But we are at a crossroads. Will reform efforts be allowed to move forward to exploit these opportunities? Or will Congress insist upon propping up the Old Amtrak. We have an excellent chairman in David Laney. He reminds me so much of Graham Claytor’s hard-headed leadership. He’s a reformer and we need to help him.
Gil Carmichael
Federal Railroad Administrator 1989-1993
Chairman, Amtrak Reform Council 1997-2002
Senior Chairman, Intermodal Transportation Institute, University of Denver
