For Immediate Release: June 5, 2003                                 Contact: Kevin Schweers (202) 224-9767

 

Sen. Hutchison Announces Plans to Make AMTRAK

 A National Rail System

Bill Would Encourage Municipal Bonds, Private Investment to Improve Service

 

WASHINGTON – Texas Sen. Kay Bailey Hutchison announced plans to introduce legislation to reauthorize Amtrak for five years and foster billions of dollars of private investment to restore and improve rail service.  Sen. Hutchison, Chairman of the Senate Commerce Subcommittee on Surface Transportation and Merchant Marine, delivered the following statement at the subcommittee’s hearing today:

 

“Today the Subcommittee will examine financing issues for intercity passenger rail.  I support Amtrak.  I believe we can have a viable national passenger rail system.  Unfortunately, we are far from realizing that goal.  Outside the Northeast Corridor, trains seldom run on time, and service is abysmal.  Lateness is often measured in days, not hours.  Several years ago, when the airlines’ on-time rate fell below 75%, it was considered a national emergency.  At Amtrak, on-time records under 50% are business as usual.  Rail critics point to low ridership as the reason why we starve the national system.  I contend that starvation is a big part of the reason for low ridership. 

 

“In the Northeast, a passenger can board a train here at Union Station and reasonably expect to be in New York City, about 225 miles away, in less than three hours.  If one of my constituents buys a ticket from Austin to Fort Worth, a trip thirty-eight miles shorter than DC to New York, the best she can expect is a ride of four and one-half hours.  Of course, the Texas Eagle meets its schedule only 35% of the time, so it will likely take my constituent even longer to make this short trip.  An Austin businessman may prefer not to deal with airport hassles for such a short flight, and he may want to avoid the traffic on I-35, but the train is not a reasonable option if he has to be at a meeting in Fort Worth at a time certain.  This problem must be addressed.

 

“Improving service on the national system will require creative thinking and innovative financing.  We cannot continue to fund Amtrak just enough to keep it going until the next crisis.  That is a road map for failure.  Private investment, state participation, and the cooperation of the freight railroads are all absolutely critical to achieving service upgrades.  We will never have a better opportunity to accomplish this goal than now, in this reauthorization cycle.  That is why I plan to introduce legislation to bring the national system up to Northeast Corridor standards. 

 

“In Texas, most trains are forced to operate at less than thirty miles per hour due to track conditions and freight operations.  The national system needs at least $40 billion in capital improvements to allow both freight and passenger trains to meet a reasonable schedule.  The Northeast Corridor requires roughly

$10 billion to avoid an increased risk of accidents and a system wide slowdown.  Passenger rail should have a commitment similar to that enjoyed by our highway and mass transit programs.

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“In the 1950s, President Eisenhower convinced the nation to pay for the construction of the National Highway System.  Fiscal realities have changed since that time, and we must find a way to creatively finance our rail infrastructure needs without draining resources from alternative modes of transportation and other federal priorities.  Several proposals for leveraging private capital have surfaced, and we are here to evaluate their merit.  Municipal bonding and private investment are necessary components of any plan to restore and improve rail infrastructure. 

 

“Making this investment will not only improve passenger service, but also upgrade freight operations throughout the country.  Outside the Northeast Corridor, freight and passenger trains must run on the same tracks.  In exchange for an investment to upgrade those tracks, the freights must agree to allow Amtrak to meet its schedule.  I realize the critical role played by freight railroads in the American economy, and I know that this industry has seen better days.  That is why I urge them to work with us to achieve a mutually beneficial solution.  If we work together, freight railroads will enjoy capital improvements that they could not otherwise hope to afford, as we secure the future of passenger rail in this country.  It could be a win-win situation. 

 

“I agree with Amtrak’s critics that the railroad’s stewardship of the national system has been inadequate.  I was deeply disappointed to see Amtrak’s proposed 5-year capital plan call for nearly all of its capital budget to be spent in the Northeast Corridor.  The national system deserves more than the crumbs left over after the needs of the NEC have been met.  Amtrak must be required to bring the national system up to an 80% on-time arrival rate.  Once a route has enjoyed reasonable on-time performance, it can be fairly evaluated from a cost-benefit perspective.  80% is a modest goal.  If Amtrak is unable to meet performance requirements on a route, that route should be opened to other operators for bidding. 

 

“We must decide whether we want to create a viable national system, or settle for a single rail corridor providing ever-deteriorating service to only one sector of the country.  I will not support any proposal that does not put the national system on par with the Northeast Corridor.  If we fail to enact real change in this reauthorization bill, we may run out of chances to obtain the intermodal transportation system we profess to seek.”

 

Sen. Hutchison said she soon would introduce legislation to:

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ing capital projects for funding by the NRTFC and administer Amtrak’s capital assets; and
  • Require Amtrak to achieve an 80% on time record for the national system.  Routes that do not meet this requirement shall be forfeited by Amtrak and opened for bidding by private operators or governmental entities, including states and transit authorities.

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