Issue 380 August 26, 2002
Orphaned Northeast Corridor Would be Capital-Starved, Not Self-Supporting

Common wisdom about passenger rail operations in the U.S. says that trains between Boston and Washington, D.C. pay for themselves, while routes serving the country’s interior are “money losers.” 

However, an analysis in the NY Times last weekend pointed out that Northeast Corridor operating revenues do not cover the line’s considerable capital needs. According to the Times, the corridor itself, exclusive of the cost of rolling stock, needs up to $12 billion in improvements. 

Some experts say that regardless of the conditions of the Acela trains, deferred track maintenance may soon force northeast trains to reduce speed.

If the Bush administration and Congress lets Amtrak go under, it may be up to the northeast states to pick up this tab and work out the system’s problems.  The picture of a dozen-odd states negotiating over costs and service schedules is not an inspiring one.

The Acela Express’ summer of woe due to technical shortcomings underscores the continuing need for capital investment. It also raises others points.  One is that weak investment in rail has eliminated the U.S. train-manufacturing industry.  Some point to Acela’s technical flaws as the product of strict U.S. standards for crash-worthiness clashing with European design culture that emphasizes the lighter weights needed for high-speed operation.


MTR #380 portable document format (PDF) file version
(requires Adobe Acrobat).


Related Articles and Links

Amtrak Says it Beat Airlines in 4th Quarter NYC-DC Market
(March 18, 2002)

Bush to Bankrupt Amtrak?
(June 24, 2002)


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