Rail

Fed: Refinancing Amtrak to save millions

Posted on October 18, 2010

A refinancing agreement between the U.S. government and Amtrak will save taxpayers approximately $162 million, the U.S. Departments of Transportation and Treasury announced.

"This announcement is good for taxpayers and important for the future of rail service in America," said U.S. Treasury Secretary Tim Geithner. "Refinancing these leases will save taxpayers money while continuing the President's vision of improving passenger rail service across the country at a lower cost."

Over the years, Amtrak has incurred a large amount of debt paid by the government through an annual appropriation to the railroad. The Passenger Rail Investment and Improvement Act of 2008 (PRIIA) permitted the Treasury Department to study ways to repay or restructure Amtrak's debt that would save money for the taxpayer and the railroad, and to take action on its findings if this would produce substantial savings.

Under the terms of today's Memorandum of Understanding, the government will exercise early buyout options on 13 existing high-cost leases over the next three years. The $420 million up-front cost will save approximately $582 million in future payments, saving the taxpayer approximately $162 million.      

During fiscal year 2010 the railroad's revenue was 9 percent higher than during the previous 12 months and its ridership increased 5.7 percent.

View comments or post a comment on this story. (0 Comments)

More News

FRA green lights BWI rail station rebuild

The project includes adding a fourth track to nine miles of the Northeast Corridor surrounding BWI and reconfiguring the platforms to allow boarding from all four tracks.

Bombardier, Alstom consortium celebrates new Montreal railcars

The project generates important economic benefits for Québec: more than 150 Canadian suppliers, including over a hundred long-standing Québec companies, participate in the project, whose Canadian content exceeds 60%.

Bombardier to overhaul Md. MTA's MARC railcars

Average weekday ridership on all three MARC lines is roughly 37,500 riders. The MARC III bi-level commuter railcars have been in service nearly 17 years.

Alstom completes public share buy-back offer, appoints new CEO

Alstom’s offer, aiming to return part of the proceeds of the transaction with General Electric on its energy businesses to shareholders, was successfully completed with over 230 millions of shares tendered.

Scientists map bedbug genome, follow pest through NYC subway

The new work could help combat pesticide resistance in the unwelcome parasite.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close