Senator Calls For Open Debate On Amtrak Future
Washington - Sen. John McCain (R-Ariz.) late yesterday called for an open debate on the future of rail passenger service following release of a report that recommended money-losing Amtrak be restructured into three entities.
The Amtrak Reform Council, which was established in 1997 to issue a restructuring plan if members determined Amtrak could not achieve operating self-sufficiency by Dec. 2, 2002, submitted its final report to Congress that calls for a new business model for Amtrak, based on competition among private companies.
The plan has three elements: The first is a new separate entity that would control the Northeast corridor infrastructure along the 366 miles of track Amtrak owns between Washington, D.C., and Boston. The second element is a new train operating company that would operate all trains throughout the country now provided by Amtrak, including the Northeast Corridor. The third element of the plan is a government oversight agency, to be called the National Railroad Passenger Corp., that would administer both of the new entities.
During a two-to-five-year transition period, the oversight agency could allow private companies to bid to operate some of the train services. If no offers are forthcoming, the federal operating company would continue to run the trains.
McCain said he is drafting legislation that would provide "a restructured, revitalized and streamlined rail passenger network."
The Bush Administration's proposed budget for fiscal year 2003 calls for a $521 million subsidy for Amtrak. However, Amtrak president George Warrington last Friday said the rail line needs $1.2 billion or it will be forced to make substantial route and personnel cutbacks.