Amtrak hampered by losses, low western ridership

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http://www.newsday.com/news/local/wire/new...egion-apnewyork

Amtrak hampered by losses, low western ridership
By DEVLIN BARRETT

Associated Press Writer

February 14, 2005, 12:12 PM EST

WASHINGTON -- Amtrak loses tens of millions of dollars every year in New York, and ridership along one route has dropped 25 percent in the past four years, according to new figures from the embattled passenger service.

President Bush has proposed cutting all federal subsidies for Amtrak in next year's budget, launching a renewed fight in Congress over the fate of national rail service in the United States.

New York, with its millions of daily commuters and established rail lines, offers perhaps the best chance for rail passenger service to break even within a state. Instead, Amtrak's figures show they lost nearly $35 million last year in New York alone.

Back in 2000, Amtrak carried 469,000 passengers on its rails running west of Albany-Rensselaer toward Buffalo. By 2004, that figure had dropped to 358,000, a loss of one out of every four riders.

Amtrak officials and outside experts attribute the fall in ridership largely to the rise of low-fare airlines, which have found a market for discount flights out of upstate cities.

"The airplane is certainly more competitive in those shorter-haul markets with reduced fares, and low-fare airlines will be an ever-increasing threat to rail travel of 200 or more miles," said Brian Campbell, who leads the Virginia-based consultant firm Campbell-Hill Aviation Group.

"There aren't too many markets today where the rail system has clear and distinct competitive advantages over the airplane," said Campbell, who believes national rail service is unlikely to survive amid increasing competition.

The one area in New York where rail does still hold an edge is the corridor between Albany-Rensselaer and New York City. Ridership there has stayed fairly constant, even increasing slightly last year, when it had 903,000 riders.

Amtrak operates 13 round-trip trains a day between the two points. Four of those continue west out to Buffalo, and one runs north to Montreal.

But as crowded as the New York to Albany service may be for commuters and business travelers, it doesn't generate nearly enough revenue to pay costs of continuing the service westward and northward.

The Empire Line, which runs from New York City to Buffalo, cost $75.5 million to operate in 2004 but took in just $45.1 million in ticket sales, food sales and other revenue, according to Amtrak.

That $30.1 million annual loss is the worst of any short-distance train in the Amtrak system. Even the combined losses of the four other short-distance trains in the system don't equal the red ink of the Empire Line.

Of the $45.1 million the Empire Line does generate, the bulk of that money, some $27.4 million, came from ticket sales between Albany-Rensselaer and New York City.

An additional $12.9 million was spent on travel through Albany, with only about $2.6 million coming from ticket sales for travel west of Albany, according to Amtrak.

Despite those figures, and the drop in ridership between Albany-Rensselaer and Buffalo, Amtrak spokesman Cliff Black said the company has no plans to reduce the four trains running those routes daily.

"Status quo is our plan," said Black.

North of Albany, the Adirondack line runs once a day, along an old track that traces around rock faces above Lake Champlain. The winding course requires the train to slow to 20 miles per hour in some places, making it not just slower than airplanes, but slower than a car stuck in third gear.

That line also posts an operating loss of some $4.3 million last year that the state reimburses.

While the Montreal-Albany leg generates the lowest ridership, the state considers it important to provide a transportation link to the North Country in the winter, when snow storms can halt road traffic on I-87.

The financial losses of the Adirondack and Empire Line together cost Amtrak and New York $34.7 million.

Supporters of Amtrak say that is a small price to pay to reduce traffic and pollution, particularly when tens of billions of dollars are spent every year on highway construction. Congress is currently weighing a six-year, $284 billion plan for roads and public transit systems.

The company's financial condition would be much stronger if it hasn't been hamstrung for years by a paltry federal allowance that puts off needed repairs and track work, raising the day-to-day costs of running the system, supporters said.

Bruce Becker, president of the Empire State Passengers Association, said Amtrak would be better served by lowering its fares on rail service west of Albany, to bring in more riders and dollars.

"You don't make any money from an empty seat, and they're running the train anyway," said Becker.
 
Uhh... Aren't roads a money loser too? Cost to build+Cost to maintain When was the last time Interstate 70 or 80 or any other road made money. Articles like this are complete BS. really when you look at it dismantling Amtrak really is class warfare the Bushies et al will never step foot on a passenger train unless it was some whistle stop campaign tour. By destroying passenger rail they are hurting the average Joe Shmuck and 24,000,000 other people like me.

Tax cuts for the rich, 300 Billion in Iraq, lies about the medicare Rx drug costs. I heard a few years ago that the goal of the Neo Con movement was to spend into oblivion so there would be no money for social programs (like Amtrak which is essentially what it is.) In other words spend so much on defense that there is nothing left for Amtrak, Social Security etc. I used think whoever said that was loopy but alas I am becoming a believer.

There is nothing conservative about thsi president at least not in the tradtional sense . Sure he plays the conservative card with regards to the colloqial issues abortion, same sex unions, stem cell research etc but he most definitely NOT a fiscal conservative. To be sure take a look at Bush's proposed "budget" you'll find that payments for Bush's outlandish spending aren't scheduled to be paid for until 2008... after he is out of office. So whoever is elected next will have one H... of a mess to clean up.

It is my understanding that because of the record deficits the Feds are issuing federal Bonds to finance our debt service. Who are buying them? The Saudis, China among others. Needless to say they are being bought by interests with money, money we don't have because we spend like a drunken sailer or a drunken national guard pilot whatever :) . We need money to pay for the corporate welfare (different from Amtrak subsidies as Amtrak is Quasi-Governmental) AND the tax cuts, AND the wars, AND the Social Security Reform, AND the precription drug coverage AND the tax cuts but we don't have it so we get it from our "enemies." I was not a fan of the former president but the 90's in retrospect are sure looking to be a whole lot better than what I'm seeing today. Remember the tough decisions Clinton had to make about being fiscally responsible? Remember how he shut down the government including mail service? Remember when we had a $230 billion budget surplus? Gone immediately with the tax cuts. Even prior to 9-11.

To pay for His tax cuts, Bush raided Social Security Trust Funds (which by the way is the Adminstrations next littel project to "fix") and made off with $500 billion. Then he borrowed another $500 billion from foreigners, putting our future in their hands. For every $100 you got back in tax cuts, $40 was borrowed from foreigners, $20 was borrowed from Americans, and $40 was taken from Social Security.

Yup fiscally conservative... what a crock.

Some will say get it back on topic but when discussions of funding Amtrak come up political ideaology cannot be seperated. Bush doesn't separate it from political idealology so why should I?. Bottom line the only reason the Bushies have for canning Amtrak is an idealogical one (ie it's much better to stop service for millions regardless of who gets hurt). Think about it for a minute where does the Amtrak subsidy go? It goes right back into our economy through jobs and a servcice that keeps people and money moving. It also employs people people to staff and run the trains, ticket agents and construction workers to maintain track. All subsidies for Amtrak stay right here in our local communities to one degree or another. That's more than be said of the funds we're infusing into the middle east.

It makes no sense to spend 300 billion in Iraq ( Latest numbers I just heard today) while domestically we allow others to suffer. Our first responsibility is to our homeland. We need to make sure we have a good educational system, decent roads and rail infrastructure, healthcare and then we can help out others in a fiscally conservative way. And to those of you that believe that the war in Iraq has put an end to terrorism I have an historically inadequately funded with aging infrastructure passenger rail system to sell you. Unfortunately, it is not a matter of if there will be terrorism in our country again but it is when. Playing cowboy and nation building in the middle east is not going to protect us from the next time, period. In reality it's our past policies with regards to the middle east that made us a target of terrorism to begin with. Think about it for a minute; what if your neighbor down the street kept coming into your house (uninvited) and butting into your business and affairs telling you how to live, what to teach your kids... we're doing the same thing and have been for years. Remember who backed Sadam in the first place? So we used an act of terrorism to "justify" a war that is supposed to make us safer, yet there is inadequate funding for Local offices of the Department of Homeland security, no money to adequately examine intermodal containers at our ports and railroads? Can anyone explain to me how paying $300 billion in Iraq is going to stop a group terrorists that may come from the Sudan, Iran, Israel, or Wisconsin? If someone wants to get us they'll get us. That doesn't mean we shouldn't try to thwart terrorism but again money would be much better spent protecting our homeland. I think the only time I ever heard Bush speak the truth was during last years campaign whe he was asked in a candid conversation on his tour bus if he thought we could win the war on terrorism and Bush in an unguarded minute said "no". There will ALWAYS be those that want to hurt us. Are we willing to give up EVERYTHING including our freedom, and our way of life (ie Amtrak, education, other infrastructure) to continually fight a war we cannot win?

An old addage in boxing (my dad was a boxer) "theres always someone bigger and badder even if they may be shorter and weaker, the only thing you can be is ready." I think what it means is you can't win all the time you can only be ready all the time, but you don't need to live in fear of the day you may lose.

Allowing the fear-mongering of this administration to co-mingle with the apathy of the general population is a dangerous combination. The belief that flushing billions in an economy of another country will make us "safer" is pure fantasy.

Bottom line fund Amtrak and other transportation, fund the CIA, FBI, Dpt Homeland Security, education, Social Security, Medicare and military in OUR country, and hope for the best. Paranoia is getting us nowhere fast.

I'll end now... this went WAY long, but I get really hot under the collar when I see our future being squandered. Give me the days of the blue stained dress again anyday.
 
Guest said:
Yeah, bring back the Clinton days when Amtrak was self-supporting!
Amtrak has never been self supporting and it never will be. No other train service in the world is self supporting and for that matter, no form of transportation is self supporting. They all get government funding in one fashion or another.

On the other hand, Clinton didn't squander 300 Billion on a war that the UN never asked us to fight!
 
What does the UN have to do with this? Maybe we should get them to run Amtrak. I didn't think things could get any worse but maybe they actually could.
 
AlanB said:
On the other hand, Clinton didn't squander 300 Billion on a war that the UN never asked us to fight!
Exactly. He was too busy getting us involved in the Balkans for a war the UN never asked us to fight. But then we're only gonna be there for a year and then get out, right?

I guess we all have our opinions of what federal money is considered squandered, don't we.
 
Guest said:
What does the UN have to do with this? Maybe we should get them to run Amtrak. I didn't think things could get any worse but maybe they actually could.
I guess we could debate how well the UN would run Amtrak, heh. I will spare the boards my thoughts on the UN but suffice it to say I don't think very highly of them.

Seriously though there is a major difference between Amtrak in the East and in the West mainly due to population density as well as a more extensive network in the east equals higher ridership. There just isn't much choice in the West as opposed to the East and as such lower ridership.

It should also be noted that Clinton was not much of a fan of Amtrak either the issue of Amtrak funding is more regional then it is one that falls along strict party lines.
 
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