Amtrak not near self-sufficiency, new report finds

Amtrak lost $1.1 billion in 2001 and has not made progress toward meeting Congress' goal of self sufficiency, according to a new government report released today by Transportation Department Inspector General Kenneth Mead. The report details Amtrak's $585 million cash loss for 2001, $24 million more than 2000. Mead said the railway would have to reduce its cash loss by more than $300 million to meet the deadline and cannot do so without the "cannibalization" of the company. Last summer, Amtrak mortgaged part of Penn Station in New York City to raise $300 million to continue operating through the end of the fiscal year. The report is the fourth issued by the inspector general under the 1997 Amtrak Reform and Accountability Act.