Adirondack June '23 cancellation, and September restoration, state of Upstate NY service

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Yep.

The responsibility for track improvements to support services would normally fall to New York State, not Amtrak, as the sponsor of the service.

For example, the states of Oregon and Washington have paid for numerous improvements for the Cascades, including new/reopened sidings, a third main track around Kelso and rebuilt a 10 mph freight branch into a 79 mph railroad to support more service when BNSF told them they could support no more than 5 trains each way a day on the saturated Point Defiance line which has single track chokepoints. The improvements funded by Washington included a new siding at Colebrook, BC, as I have mentioned before.

What is somewhat unclear in the article is that, for services within the US, paying for work needed solely to support passenger services is required by law, the Rail Passenger Service Act of 1970. Amtrak is responsible for any avoidable costs supporting passenger service, including maintenance levels exceeding the railroad's own needs. That is the reason behind the loss of service to Phoenix. SP dropped all freight service on the Phoenix West line and required Amtrak to pay all maintenance costs if they wanted to continue to use it. BNSF was "nice" in maintaining the Raton line after discontinuing freight service on the line, but even they were done. They remained "nice" in that they struck an agreement with Amtrak and the states to continue maintenance on their own dime if the states and Amtrak paid for capital improvements (largely CWR and signal upgrades) to reduce maintenance costs. Which Anderson tried to reneg on, BTW. Granted, they were motivated to keep Amtrak off the Ellinor-Dalies portion of the Transcon.

CN is on solid ground here, although to a certain extent they are appear to be playing games. If the trackage was in the US, there is little doubt Amtrak and New York State would be pursuing Federal grants to support the clearly necessary improvements, like New Mexico, Colorado, Kansas and Amtrak did for the SW Chief.

As I have said, I was surprised the Adirondack was started back up, given the issue. Now, I think CN's play is clear. They came under pressure to allow the Adirondack to resume, and they did. But then they allowed "nature to take its course," as it were. They slapped slow orders on the line when temperatures exceed 30° C, per their apparent policy. I am pretty sure CN knew that would happen, but Amtrak apparently didn't. That allows them to rid themselves of the service while letting Amtrak and NYS take the blame.

CN's publicly announced position makes it crystal clear that New York State is going to have to pony up and find a way to spend money in Canada or lose the service. Or someone has to start serious negotiations with CP, who would have them over a barrel, too.
 
The bottom line is that unless Canada and Quebec has a stake in the service and wants it enough to fund it in Canada, it is impossible to run it, unless some private entity decides it is worth their while to run it. I don't think that will happen since it cannot be a break even operation in any sense of the phrase. So we are back to square one and work on getting some Canadian entity to fund the Canadian segment, and this is necessary irrespective of whether it is operated on CN or CP.
 
The bottom line is that unless Canada and Quebec has a stake in the service and wants it enough to fund it in Canada, it is impossible to run it, unless some private entity decides it is worth their while to run it. I don't think that will happen since it cannot be a break even operation in any sense of the phrase. So we are back to square one and work on getting some Canadian entity to fund the Canadian segment, and this is necessary irrespective of whether it is operated on CN or CP.
Canada cannot seem to find the funds to fund track improvements to support their own "remote" service that is in the same situation. And that is a much more straightforward situation for them. And Quebec just seems like a lost cause. The province is barely aware the service even exists. It certainly has no constituency there.

I still contend it stands or falls with New York State. They'll either have to find the political will to spend money in Canada, even if it requires the legislature to pass specific legislation to allow it, or lose the service. Of course, they could always decide to fund a stub train to Plattsburgh and just eat the loss of revenue from the Montreal ridership. The only real political driver for the service seems to be those northern New York communities.
 
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They can do what VIA does in northern Quebec and run overnight in the summer. Extend trains 232/243. If everyone sneers at that, forget it, the train is dead.

We heard rumors during Covid that half the trackage was down to 10MPH. Amtrak ran qualification runs and knew this all along. Now both they and State DOT put on their surprised face and do nothing. Neither entity has an initiative to do anything. Pretty sad comentary that VIA Rail is more proactive for a 1 car remote train with a farebox recovery of 15%.
 
Yeah, the Canadian government doesn't seem like a plausible source of funds at this point, given how they starve VIA Rail and also the extent to which the highway/air folks seem to control the flow of transportation dollars there. If the Adirondack is going to be saved, New York will have to take the lead. I haven't seen any figures for the cost of track work CN is demanding, but I could imagine that, given the added ridership from Montreal, the cost could be recouped from having a lower operating subsidy compared with the cost of running a dead-end train to Plattsburgh, if that were the alternative. But it might be cheaper still to work out a deal with CP/EXO. Of course, the cheapest alternative is to do nothing and just let the service die, but I don't think the North Country folks will tolerate that.
 
We have 3rd in line of authority in the House of Representatives representing the North Country and a Senator who is Majority leader. It may be legal to spend IIJA/BIL money on this in Quebec. We have not heard Word-One from State DOT, and they pay for the trains. They have thus far appeared to be just a bunch of bookkeepers.
 
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IMO the best solution would be use CP and make a connection to the CN 4 track commuter main where CP bridges over CN. As an aside is there ever a chance that commuter rail on CP at that location could enable that connection? Have no idea the population that possible could be served.
 
A reply from my congresswoman and the local district that is effective.
Thank you for contacting me regarding the suspension of service on Amtrak’s Adirondack line north of Albany-Rensselaer. It is an honor to serve the people of New York’s 21st Congressional District, and I appreciate your thoughts on this matter.

Amtrak’s Adirondack line between Albany and Montreal is a vital economic driver for Upstate New York and the North Country. After we worked so hard to reopen the Adirondack Line this year, this news is unacceptable.

My office is working with Amtrak, local and state elected officials, as well as the North Country Chamber of Commerce to ensure that Canadian National Railroad leadership provides a written plan to reopen the line immediately.

Upstate New York and the North Country are home to rural communities with vibrant local economies. I will always fight to ensure that Upstate New York and the North Country have the resources they need for their communities to thrive.

Thank you again for reaching out to me. I am committed to serving you to the best of my abilities. I appreciate you taking the time to contact my office, and I welcome the opportunity to speak with you about any issues impacting our district.
 
A reply from my congresswoman and the local district that is effective.
Glad you got a reply that was both timely and actually responsive to the issue. So many are not.

With that said, a written response from CN will doubtless be a verbose version of "show me the money" suitable for consumption by a Congressperson. A US Representative has precisely zero pull with a Canadian railroad in Canada. Amtrak is the easiest agency to call in and beat about the head and shoulders. Amtrak doesn't have the money and could not spend it for a state supported service if it did. Being in Canada just makes that high bar higher.

The one hope is that this Representative gets the message, that somebody has to pony up and that CN is immune from being bullied into the needed improvements on its dime. Then she can work with Congress to figure out something to allow an IIJA grant or some such to be spent in Canada by a Canadian entity (CN). It's still a long, hard road but at least it has the attention of someone that can take some first steps.
 
IMO the best solution would be use CP and make a connection to the CN 4 track commuter main where CP bridges over CN. As an aside is there ever a chance that commuter rail on CP at that location could enable that connection? Have no idea the population that possible could be served.
A quick look at Google Map of what is there around that overpass, disabuses one of the possibility of building such a link. @Amtrak25 has suggested upthread, what is actually achievable with much less work to get a train from CP to CN in that area.
 
Amtrak is the easiest agency to call in and beat about the head and shoulders. Amtrak doesn't have the money and could not spend it for a state supported service if it did.

Amtrak can contribute matching funds from the national network side of things for state supported initiatives but the state has to be the lead player. Amtrak is contributing some matching funds to a grant request MassDOT is after in my state to do capacity and speed improvements on the B&A and get service back going on the inland route which of course would be state supported. Their share is of course much smaller than the state’s - CSX is also participating in the grant as a supporter. In this case the fact that it’s Canada complicates things of course. Which grant programs and accounts would allow money to be spent in Canada by law is a big question. But if the state is leading the charge Amtrak can open its checkbook to a certain limited degree as well provided law and company policy allow them to spend money north of the border.

What many do not realize is federal funding is also critical to much of the state supported network. Contrary to how it is framed by some states are not necessarily responsible for 100% of operating losses on routes - they are responsible for contributing a payment based on a formula. Some state supported routes lose money on a fully allocated cost basis even after the state payments and fare box are factored in. The rest of the loss comes out of the national network operating subsidy like the Long distance trains and as pointed out above Amtrak can also contribute on the capital side of things to state led initiatives.
 
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It is puzzling to me that Montreal and Quebec seem to be uninterested in a train that brings in Americans ready to spend money shopping, dining, and lodging there. Perhaps they perceive the number coming by train is small compared to those that fly/drive so is chump change not worth bothering with. Of course bad service makes this a self fulfilling prophecy.
 
IIJA funds can be used for initiating service enhancement, but the state has to take over the operating funds responsibility after three or five years depending on the nature of the enhancement. There has never been a restriction on individual project-wise capital funding from the feds, subject to the restriction of support for operations in PRIIA 209. After a service has been rendered impossible due tot rack conditions, in the past an argument has been made to fund the fixing of the track as capital investment rather than expense, thus taking it out of the PRIIA 209 operating funding strictures.

Bringing it back to this case, the fundamental issue here is whether Amtrak or FRA can spend funds appropriated for spending in the US, in Canada, or would it require a separate specific appropriation for fixing things up in Canada. Same issue in its State specific form applies to NYSDOT.
 
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Might be time to contract this train out to a 3rd party.

Ok hear me out.

If NYS Dot can’t or is unwilling to spend funds in Canada. Amtrak can’t or is also unwilling to spend funds in Canada. Then we can “wink” contract this train to a 3rd party. NYS gets a better and simpler charge by using someone other than Amtrak. The funds given to the new contractor can be spent where ever the operator thinks is best. (Track improvements in Canada, better equipment.)

My understanding is the current contract with Amtrak is a complete mess with amounts to be pay ever month completely different. By contract to a new 3rd party it can be structured differently so no surprises.

You could also given all ticket revenue (or a portion) to the operator to encourage a good on-board experience. The bid would include extra cost to operate above ticket revenue (based on ridership numbers.) and a capital expense fund. This guarantee portion can be used as the winner bid determines to improve performance of the train. (Audit amounts to show it was spent to improve performance of the train, not the company’s profit.)

Since this train operates mostly in NY, any liability issues can be addressed by NYS law makers. Canada has many more private operators so not sure that there a liability problem, or what it would be.
 
Follow up I am just thinking out loud here.

Herzog Transit Services.

A company that can both run a train, and know what it cost to build and maintain track. If CN try to up-charge for the work, Herzog will know exactly how much it would cost for them to do it. So no getting ripped off.

If CN plays hardball with NYS, then a wheel tax per axle/mile on Canada trains traveling in NY. Safety first.
 
Herzog Transit Services.

It may not be that simple. This kind of goes back to my point before. Amtrak is able to lose money operating the route on behalf of the state and have it covered on the federal side. A company like Herzog wants to make a profit operating the service which isn’t always feasible. If Herzog can’t run it more efficiently then Amtrak could mean higher costs for the state (or could cause Herzog to simply not be interested). Plus one has to factor in equipment - Amtrak owns it all.
 
It may not be that simple. This kind of goes back to my point before. Amtrak is able to lose money operating the route on behalf of the state and have it covered on the federal side. A company like Herzog wants to make a profit operating the service which isn’t always feasible. If Herzog can’t run it more efficiently then Amtrak could mean higher costs for the state (or could cause Herzog to simply not be interested). Plus one has to factor in equipment - Amtrak owns it.

It’s interesting how or when we started to think that Amtrak does not charge the full cost for these state routes. I get there account is very weird, but I am sure the States would go nuts if they could prove the undercharging of certain states and other states pay full amount.

Plenty of equipment to borrow if needed. However I am a big supporter of the state buying their own and then picking an operator for it. Surly someone will lease a set while new equipment is delivered. Does Brightline need ever set this year? That would be a very neat paint scheme to see shooting past during the leaf change season.
 
It’s interesting how or when we started to think that Amtrak does not charge the full cost for these state routes. I get there account is very weird, but I am sure the States would go nuts if they could prove the undercharging of certain states and other states pay full amount.

Plenty of equipment to borrow if needed. However I am a big supporter of the state buying their own and then picking an operator for it. Surly someone will lease a set while new equipment is delivered. Does Brightline need ever set this year? That would be a very neat paint scheme to see shooting past during the leaf change season.

There has been some scrutiny from a number of states on the formulas and how Amtrak comes up with the state supported payment. But like anything even if you had a private operator - the state would pay them to run the service - like Amtrak the private operator May or may not make a profit running such service - obviously a private operator is going to want to. Amtrak books state supported payments as revenue on its trains and is paid by the state for operating the service. But on many of the services Amtrak still loses money on a fully allocated cost basis. My main point is they are able to do that and use federal subsidies to cover that loss. A private contractor is not able to do that. This is different than where Amtrak has lost commuter services to private operators. Amtrak is not allowed to use federal funds for that purpose - thus as an ancillary activity they have to charge market rate and it has to be revenue even or positive. Between that and Amtrak’s statutory access to freight tracks is why I think when states threaten to kick Amtrak out of intercity routes for private operators it’s more bark than it is bite. I think on many services it simply isn’t feasible. I’ll pull the numbers specific to the Adirondack when I get home of fare box vs state payments etc.
 
So the Adirondack hasn’t been running long enough for it to make it on to the FRA’s new nifty reports that make things a bit more transparent. But in 2019, Amtrak received 12.8 million in revenue for operating the Adirondack - including both fare box and operating payments from New York State. It however expensed 13.6 million on a fully allocated cost basis on the train - a loss of around $800k. That $800k is covered by the national network operating subsidies. My point is simply - a private operator can’t do that. Now maybe in some cases they can operate it more efficiently where they can collect a similar or lesser amount for the state and make a profit due to lower labor costs or whatever other reason perhaps. But they would have to have better performance to the point where those or lesser payments would be profitable in order for it to benefit a state. There maybe some cases where that would be the case - likely not in others. Let’s take a closer look at the Empire Service in the most recent quarterly report:

For the Empire Service West and Maple Leaf Amtrak earned $5,175,591 in ticket revenue and expensed $10,000,757 on a fully allocated cost basis - a 52% fare box recovery. Amtrak received $3,864,980 in state operating payments bringing revenues to $9,040,572. The difference between that and the fully allocated expense is covered by federal dollars. My point with Al of this is not to be disagreeable more just to demonstrate the role federal dollars play in the state supported business line.
 
I think the way PRIIA-209 works is a state pays 85% of Fully Allocated Cost. IOW, Amtrak knows perfectly well that figure is inflated by allocating fixed costs that do not all go away when the train a does.
 
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It is puzzling to me that Montreal and Quebec seem to be uninterested in a train that brings in Americans ready to spend money shopping, dining, and lodging there. Perhaps they perceive the number coming by train is small compared to those that fly/drive so is chump change not worth bothering with. Of course bad service makes this a self fulfilling prophecy.

Go to Montreal sometime. It'll make you grateful for Amtrak's stellar customer service by comparison.

With a few exceptions, Americans are treated like an inconvenience. The nicest people I've encountered were the police after my partner's purse was stolen.
 
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