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

FRA issues NOFO for $272M in State of Good Repair funds

Eligible projects include those that replace existing assets in-kind; replace existing assets with those that increase capacity...

Commuter rail makes significant, substantial PTC progress: APTA

Ninety-six percent of 16,722 wayside (on track equipment) installations have been completed.

Nonprofit repurposes Amtrak Acela seating into luxury bags

People for Urban Progress is known for repurposing dated infrastructure through design and fabrication projects.

Bombardier-Alstom to supply 153 additional Montréal railcars

Through this agreement, STM will benefit from the replacement of part of its fleet at a lower cost.

Metra adds more vehicles to replace aging fleet

The F59PHs were built by the Electro-Motive Division of General Motors Corp. in 1988.

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