NJ TRANSIT has agreed to operate a demonstration rail service from New York to Atlantic City, jointly sponsored by Caesar's, Harrahs and The Borgata, as well as the Casino Reinvestment Development Authority, known as CRDA. Operation of the three-year pilot, which will begin by the end of this year, requires four diesel locomotives that are certified to run in the North River Tunnels under the Hudson and in New York Penn Station as well. Amtrak has such locomotives and is willing to sell and overhaul the equipment to NJ TRANSIT'S required standards. Although NJ TRANSIT has no funding obligation for this weekend service, the agency will share in the cost of the locomotives since they will be used in general revenue service by NJ TRANSIT during the week. Authorization is requested to enter into an agreement with Amtrak to purchase four locomotives which Amtrak will overhaul for a total cost not to exceed $9,660,000.