New Report Shows Delays on Freight Railroad Lines Cost Amtrak and Taxpayers Millions

New Report Shows Delays on Freight Railroad Lines
Cost Amtrak and Taxpayers Millions
Report Requested by Sen. Lautenberg Highlights Need
for Improved National Rail Policy

WASHINGTON, D.C. – A new report requested by Sen. Frank R. Lautenberg (D-NJ) and released today describes how delays to Amtrak trains that operate over freight railroad lines cost the company almost $137 million in fiscal year 2006, an amount equal to 30 percent of its federal operating subsidy.

“This report puts in real dollars what these delays are costing Amtrak, taxpayers and rail travelers.  Passengers shouldn’t have to miss their meetings or family engagements because a freight train is blocking the tracks,” Sen. Lautenberg said.  “With high gas prices, widespread traffic congestion and flight delays the norm, we must ensure passenger rail is a reliable option for travelers.”

The audit was conducted by the U.S. Department of Transportation’s Inspector General (IG).  Sen. Lautenberg requested the audit in February 2007 to study how much money could be saved from Amtrak’s federal operating subsidy if Amtrak was not delayed when using railroad lines.  A full copy of the IG’s audit is located at: http://www.oig.dot.gov/item.jsp?id=2273.

More than 97 percent of Amtrak’s 21,000 miles of routes run along tracks owned and maintained by private freight railroad companies.  By law, these railroads are required to provide Amtrak with priority use of their tracks; however, this law is not often followed and the U.S. Attorney General has never pursued a case.

The IG found:
 
* Delays cost Amtrak $137 million in overtime salary for its employees, additional fuel costs, and lost revenue from passengers frustrated with not arriving at their destination on time in fiscal year 2006.  According to Amtrak, most of these delays stem from freight train interference or other freight-railroad caused delays; and

* Between fiscal years 2003 and 2007, Amtrak’s on-time performance for long-distance trains outside of the Northeast Corridor (NEC) fell from an average of 51 percent to 42 percent.  On-time performance for shorter corridor routes outside the NEC fell from an average of 76 percent to 66 percent.  By comparison, the Acela’s current on-time performance is currently 86.1 percent this year.  The Acela runs on the NEC, which is owned and operated by Amtrak.

Ultimately, the IG also concluded that that poor on-time performance undermines intercity passenger rail as an option for travelers, weakens Amtrak’s financial position by reducing its revenues and increasing its operating costs, and may undermine Amtrak’s ability to retain and grow ridership.

In October 2007, the Senate passed Sen. Lautenberg’s Passenger Rail Investment and Improvement Act of 2007 (S. 294) which would change federal rail policies for the first time in over a decade and authorize $11.6 billion in federal rail investment over 6 years.  The bill now awaits action by the House of Representatives.

The bill includes a provision to allow the federal Surface Transportation Board to investigate Amtrak delays and issue fines to freight railroad companies if the on-time performance of an individual route falls below 80 percent in two consecutive quarters due to freight train interference.  The provision is intended to improve Amtrak’s on-time performance and reduce freight railroad-related delays.
 
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