Rail

Amtrak CEO: System funded 88% of operating costs

Posted on March 6, 2013

Amtrak President/CEO Joe Boardman told a Congressional committee that the intercity passenger train service is leveraging record ridership to reduce dependence on federal operating subsidies. He announced that in FY 2012, the federal government paid just 12% of Amtrak’s operating costs while Amtrak covered 88% with ticket sales and other revenue.

Boardman explained that while the railroad has taken actions to chip away at operating costs and increase revenue, a vital component of its success has been the federal government’s willingness to invest in the Amtrak national network. Federal capital investment helps to reduce operating costs, supports the existing system, funds solutions to reduce future costs, and provides the infrastructure and equipment to sustain ridership and revenue growth.

“Previous federal capital investment levels have sufficed to keep the system going, but they are not going to be adequate in the future,” Boardman stressed. “If we are to realize rail’s potential, we will need much higher levels of federal capital funding.”

He added that the Amtrak long distance trains are an important part of a larger national network connecting rural communities to larger cities and major urban areas. They serve passengers with disabilities, the elderly and rural populations that are losing scheduled intercity air and bus service.

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

More News

Chicago taps 3 firms to bid on first phase of rail line modernization project

The Walsh Fluor Design-Build Team, Chicago Rail Constructors, and the Kiewit Infrastructure Co. will submit design-build proposals for the project.

Bombardier to supply 333 UK trains

The overall value of the rolling stock and maintenance contracts are valued at approximately $724 million.

LA Metro rail extension project marks tunneling milestone

Angeli, the tunnel boring machine, was lowered into the ground near 1st and Central in late 2016 and began digging the tunnels in early February.

Keolis starts operation of regional train network in Germany

The TWN consists of five lines, approximately 310 miles of track and 52 stations. Its 27 trains are expected to cover a distance of approximately 3.2 million miles per year.

ABB to help Toronto light rail system cut emissions to zero

Will deliver a medium-voltage distribution and traction power system, including gas-insulated switchgear and substations.

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