This Week at Amtrak 2006-06-23
Volume 3 Number 27
- We start this week with a clarification of last week’s item about the comparison of employees in the Burlington Northern Santa Fe Engineering Department and Amtrak’s Engineering Department.The comparison made was that BNSF has roughly 200+ department employees, and Amtrak about the same number, 225, while BNSF operates a railroad of 32,000 route miles, and Amtrak operates roughly 600 miles of route, primarily on the Northeast Corridor and a stretch of track that is 70 miles long in Michigan.
Many interested readers demanded an answer to the question, as to whether or not this was the complete department, including thousands of maintenance of way employees, only managers, or what? The answer is, the comparison was made of professional engineers and their immediate managers. This does not include clerks, people answering the telephone, or workers along the right of way. Just professional engineers and their immediate managers.
The next point questioned was the relevance of this because it has become common practice for all railroads to out source many engineering functions and entire projects, preferring to pay for services rendered versus high payroll costs. While this is also a valid question, the comparison remains that the same number of paid employees overseeing whatever size army of out sourced professionals still oversees the gigantic route mileage and special needs of BNSF nearly transcontinental system (California to the far western edge of Florida’s panhandle) versus Amtrak’s tiny NEC for however much Amtrak may also choose to out source.
The original writer’s comparison is valid, and even more valid is why it takes so many people to oversee Amtrak maintenance operations versus those of BNSF, even, as the writer took into consideration and took pains to point out, the special needs of NEC catenary and power generation and also the many special needs of BNSF in terms of tunnels, mountainside track, and other considerations.
- The exciting news of the week comes from Atlantic City, New Jersey. Three of the larger casinos are striking a deal with New Jersey Transit to operate dedicated trains to Atlantic City from New York City and other points. The casinos are paying NJT to operate the weekend-only service for three years, and are coughing up $15 million to purchase eight new passenger cars for what is planning to be a higher level of passenger service than normally found on transit services such as NJT.In case you didn’t notice, the excitement of this comes from a group of private companies, with no ties whatsoever to the federal or state treasury, signing a contract to pay for passenger rail service.
What a concept.
This is not too far from the concept of the American Orient Express, which is also a private passenger carrier with a contract with Amtrak to operate private passenger trains for a specific purpose. It should be noted that AOE’s longevity provides ample proof the service is profitable.
This Atlantic City project, which follows Amtrak’s failed Atlantic City service in the 1980s, could prove to be an interesting “demonstration project” as the government folks say, that will provide interesting data about the profitability of operating passenger trains as part of an entertainment system, such as the carriage of passengers to and from a casino.
This could even - horrors! - lead other entrepreneurs to consider passenger rail as a viable option as part of projects when it doesn’t have the constraints of being a stepchild of government or large government funding.
- While we’re in New Jersey, it’s interesting to note that New Jersey state lawmakers are having hearings regarding the recent power failures on the NEC that have inconvenienced New Jersey passengers. The two stars of the hearings are NJT executive director George Warrington, formerly head of Amtrak, and William Crosbie, the number two man currently at Amtrak.The New Jersey lawmakers no doubt have a lot of posturing in mind, as well as huffing and puffing about the dereliction of the federal government to spend billions of dollars on the upkeep and improvement of the NEC while the rest of the country looks vainly down a lonely track looking for a passenger train - any passenger train - to come along once a day or even three times a week.
Two things about this situation are notable: 1) This situation continues to make the case that since Amtrak remains the minority user of the NEC, it is correct to transfer the ownership and upkeep of the NEC away from Amtrak’s books, and let the NEC and its funding needs be transparent and stand on merit versus hidden in part of Amtrak’s annual free federal monies. 2) This situation also points out the dirty secret that NJT, while it does contribute to the upkeep of the NEC, is one of the transit agencies grandfathered into an outdated contract with Amtrak that keeps NJT’s costs and obligations to the upkeep and use of the NEC artificially low. The New Jersey lawmakers are complaining about a situation they help exacerbate by not contributing a fair share to Amtrak for the NEC, yet still demand nearly flawless service.
- More partial good news comes along announcing the start of work on several new Amtrak trains in Illinois, California, and elsewhere. All of the new services are state supported, and unfortunately, short distance corridor trains, the most expensive types of trains to operate with the lowest return on investment, versus long distance trains, which have the most efficient costs to operate and provide the highest return on investment.
- An important telephone call arrived at URPA this week with an on-the-scene update on Diner Lite from a working chef on one of the Eastern long distance trains. The chef reports some complaints at breakfast about the lack of grits and other fare, but on the train in question, nearly 500 meals are served every round trip. That is 500 meals prepared by one person in the kitchen with no help.There are also still a few bugs in the system regarding the use of the disposable plates and other dinnerware. Some plates are cracking and unusable; reports are these issues and other are being addressed by Amtrak and the supplier as actual field use continues.
Otherwise, even though the meals are not fresh prepared, passengers seem to be making use of their only choice for nourishment in the form of a meal.
- You may remember the World War II adage, “loose lips sink ships!”. Here are excerpts from an Associated Press wire service story in the Florence, Alabama Times Daily newspaper, regarding the Crescent, which is near the paper’s circulation area:
Amtrak remains an option for travelers trying to avoid high gasoline prices. But for how much longer?… Supporters of the troubled Amtrak passenger railroad in Congress have fought to save a federal subsidy for Amtrak.
Bill McFarland of Tuscaloosa is the chairman of the Southern Rapid Rail Transit Commission, a group formed by Congress to promote rail service in Alabama, Mississippi and Louisiana.
… “This is pure speculation on my part, but I don’t think the danger is really there that they would cut funding enough to shut it down,” McFarland told The Tuscaloosa News for a story Saturday.
… Amtrak comes under attack because the government provides money directly to the rail service. But airlines use municipal airports that employ government workers and buses travel on federal highways, McFarland said.
… Officials have warned for many years that the Crescent Line that travels between New York City and New Orleans, and stops in Tuscaloosa, could end because of low ridership and concerns about whether too little funding.
But there are no plans now to close the line, said Amtrak spokesman Marc Magliari. The company is reviewing routes, but he would not speculate on the future of the Crescent.
“We’re engaged in a clean sheet look at the national network, but the results of that process aren’t available yet,” he said.
How much gloom and doom can a reporter fit in one story? Take the one sentence, “Officials have warned for many years that the Crescent Line that travels between New York City and New Orleans, and stops in Tuscaloosa, could end because of low ridership and concerns about whether too little funding” and let that pass from one or two people to another in the course of usual conversation, and suddenly, there is a “confirmed rumor” Amtrak is shutting down, and the Crescent will be gone.
First, the facts are wrong, as is often the case with news reports concerning Amtrak by reporters that have little or no knowledge of the company. The Crescent is one of Amtrak’s good performing long distance trains, and has been for years. Even with the troubles of the Crescent because of last year’s Hurricane Katrina, the Crescent does not have worries of “low ridership and concerns about whether too little funding.” That is just plain incorrect. And, which “officials” are doing the warning? Mercifully departed Amtrak President and CEO David Gunn, who was supposed to be the champion of the long distance system? His predecessors? Some ill-informed spokesperson for NARP? What officials?
Amtrak senior management tells us changes are afoot, which is good. One of the biggest challenges of Amtrak senior management is to get the right story about Amtrak out to the news media and those who read newspapers or listen to broadcast news. Until silly stories like the one above coming from usually impeccable sources like the Associated Press go away, Amtrak will continue to lose passengers in droves to rumor and wrong facts.
Amtrak itself is not saying the sky is falling, only those incorrectly speaking on its behalf. It’s time for a high level public relations effort on Amtrak’s behalf to educate the traveling public that Amtrak, which has been in existence for over 35 years, is a viable transportation choice in this country.
- A new political action committee dedicated to the concept of the existence and expansion of a strong national passenger rail system has been formed. Below is information provided by supporters of the PAC, which is under the direction of Tim Gillespie, a former Amtrak executive who worked exclusively with government affairs, and is well respected in Washington:
PASSENGER RAIL … TODAY
PRT-PAC
A Political Action Committee Dedicated To Support The Existence And Expansion Of A Strong National Passenger Rail System
A new, “non-connected” Political Action Committee has filed with the Federal Elections Commission. This PAC, the Passenger Rail-TODAY PAC, has been formed for the exclusive purpose of supporting candidates for public office who are dedicated to the advancement and expansion of a national rail passenger network. The lack of a single broadly supported Political Action Committee focused on Passenger Rail Transportation, has made the political reality of a sensible, viable, and effective national passenger rail system an annual death struggle during the year to year Congressional budget battles. Prior to the formation of PASSENGER RAIL TODAY there was not one PAC in existence that addressed the public policy needs associated with the current passenger rail network, and the potential for expanded services in those markets that would support additional passenger rail opportunities.
The following is designed to answer some basic questions about why this PAC has been established, the operation of the PAC, the form the PAC will take, and an invitation to ask further questions and join with us in making the first and only PAC dedicated to Rail Passenger service on a national basis a robust success.
Your support and participation is critical.
Q: Why a PAC?
A: As long as the existence and survival of a national rail passenger network depends on federal statutory authority and funding, there is an absolute need to be in a position to gain access to policy makers who make the decisions and control the budget process. Most successful advocacy groups that impact transportation use their PAC as a way to advance their particular interests. The establishment of this PAC will be used to help shape opinions and public policy for the sole purpose of advancing the interests of a strong and expanded national rail passenger network.
Q: Why not use existing organizations?
A: Existing groups that have an interest in national passenger rail issues are for the most part organized in a way that would make it difficult for them to continue to function if they were to engage in political activities. Even if such groups were willing to make changes for the purpose of creating a PAC, under current law and FEC rules, a PAC that is connected to an organization or association would be limited to seeking voluntary contributions from within their own membership. As a result, we need to form a “non-connected” PAC that will permit all individuals to make voluntary contributions.
Q: What does “non-connected” mean?
A: A “non-connected PAC” simply means that it is not connected with any one group, association, labor organization or corporation. This PAC will have a diverse and independent board of directors. It can receive contributions from individuals but not from corporations or labor organizations; however it will be eligible to receive contributions from other PAC’s that are affiliated with specific organizations. This format, under federal election laws and the rules of the Federal Election Commission, allows the broadest base of financial support for the PAC. The broader the base for voluntary contributions, the more successful the PAC can be in advancing the cause of a national passenger rail network.
Q: Who will run the PAC and who will be its Washington representative?
A: The PAC will be run by a 5 person board of directors. Advocacy groups will be asked to submit names for consideration by the initial organizers for inclusion on the Board. The PAC has retained Tim Gillespie as the PAC treasurer and to represent the PAC in Washington.
Q: Why now?
A: Basically for three reasons:
- The climate in Washington has become polarized over many issues and the costs of elections so high that only those who actively participate in the funding of political campaigns actually get a “seat at the table” and the chance to be heard on issues that are critical to ones particular interest.
- Whatever the reason or motivation we may have to support a national rail passenger system, having a PAC dedicated to that policy is a critical factor for the survival of a national system. It will be a vehicle that will allow us to articulate a stance on passenger rail issues that will protect our vested interests. Frankly at the current time there are only a few PAC’s that participate in this issue (rail labor and some vendors and consultants) and that may not always focus on the broad issues vital to maintaining a national system.
- This PAC will allow us, from a position of strength, to interject into the annual national passenger rail debate a policy position in support of a viable and expanded national rail passenger system.
Q: Where do I go for more information about PRT-PAC?
A: Until a website can be completed you can contact Tim Gillespie at 301-588-6635 or email him at tgille9136@aol.com
Q: What are the rules and limits on contributions to a non-connected PAC and to political campaigns?
A: The Federal Elections Commission has established some limits:
First, contributions to the PAC from individuals cannot exceed $5,000.
A non-connected committee may give a candidate up to $2,100 in campaign contributions per election. Once it qualifies as a “multi-candidate committee”, a non-connected committee may give up to $5,000 per candidate. To be a “multi-candidate committee” the PAC has to have received contributions from at least 51 individuals, been registered with FEC for at least 6 months and have made contributions to at least five federal candidates. It is desirable to be a “multi-candidate committee” for a lot of reasons, not the least of which is that policy makers know who you are and work to get your attention.
More information will be forthcoming. We are looking for fifty immediate contributors so we may actively participate in the next election cycle as a “multi-candidate committee”. Contributions are voluntary and are not tax deductible.
Please send your contributions to:
Passenger Rail Today … PAC
2321 Blaine Drive
Chevy Chase, MD 20815Contributors to the PAC need to provide their name, address, occupation, and employer with their contribution. That information is required by the FEC.