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News posting December 31, 2006

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  Amtrak President Says the Right Things.

   Amtrak President Alexander Kummant
in an interviewith a New York Times reporter, published Dec 23, made a number of statements that surprised Amtrak advocates and left them wondering whether the changing politics of Congress are influencing Amtrak’s outlook on the future of the rail corporation.

   Points Kummant made:

1. The long-distance trains are “irreplaceable” and the long-distance train network is a “national asset”.

2. Long-distance trains cost Americans about $1.50 per citizen per year, an amount he seemed to consider modest.

3. Amtrak is backing away from the idea of separate ownership for the Northeast Corridor.

4. Major parts of Amtrak’s unionized work force won’t be privatized.

5. For a modest $1 billion per year for 10 years, the government could improve freight rail networks, which would also enable Amtrak to provide better service.

6. Amtrak can buy equipment more cheaply by making joint purchases with commuter railroads, thus lowering the costs.

7. Amtrak could buy equipment      through equipment trusts, with investors buying the equipment and leasing it to Amtrak.

   Mr. Kummant last month fired six top Amtrak executives. He told the Times that he did so in order to install his own management team.
 


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