Privatization | |
Amtrak's Sorry Track Record |
Amtrak could face strike threats from a dozen unions in the next three to four years. The extra wage demands could cost nearly $500 million over the next five years. Amtrak's many critics say the national rail-passenger service isn't worth that cost and isn't worth saving.
Here are some of their reasons:
According to the General Accounting Office, five of Amtrak's 44 routes -- in the Northeast and Southern California -- account for more than half of all riders, 56 percent of revenues and just 40 percent of costs. Analysts frequently suggest these routes be privatized. Other regional trains -- such as Los Angeles-San Diego and Chicago-Milwaukee -- could be run locally.
Long-distance trains would disappear as scheduled services. Some experts suggest they be privatized into "rolling National Parks" which could be run profitably by private operators.
Proponents of privatization say these ideas are patterned on the rail privatization and regionalization programs now underway in 40 countries -- including Argentina, Britain, Japan and New Zealand. They would like to see Congress create an independent Amtrak Transition Board to sell or convey Amtrak assets to private companies and regional bodies.
Source: Joseph Vranich, "Amtrak: Chugging Toward Oblivion," Wall Street Journal, November 5, 1997.
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