Trainsmag.com just reported that Congress,as part of negotiations on a defense appropriations bill that includes other spending, barred Amtrak from spending any of its funds for preparing a liquidation plan.
When the Amtrak Reform Council found November 9 that Amtrak would not meet the congressional deadline for reaching operational self-sufficiency,it triggered a 90-clock under which Amtrak has to prepare a liquidation plan. Simultaneously, ARC must prepare a passenger rail restructuring proposal for congress.
Assuming the president signs the bill, Amtrak won't have to prepare a liquidation plan as Congress had contemplated as part of the 1997 Amtrak Reform and Accountability Act. Amtrak was pleased with the measure, which will help smooth relationships with its creditors and suppliers.
"The Congress sent a clear message that Amtrak will not liquidated," Amtrak spokesman Bill Schulz told The Associated Press.
The defense bill also include $100 million for safety improvements in the tunnels leading to Penn Station in New York, far less than the $900 million Amtrak had sought.
Meanwhile, Amtrak critic Rep. John Mica, a Florida Republican, last week introduced a bill that would force Amtrak to spin off the Northeast Corridor and the Virginia-Florida Auto Train. It is one of several bills likely to be filed as Congress takes up debate on what to do about Amtrak and Passenger Rail.
Well guys out there what is your reaction to this.
Posted by Eric (Member # 674) on :
It was a stupid idea in the first place, and I'm glad that someone had enough brains to figure that out. And how will spinning off the NEC and Auto Train help Amtrak out of the red?
Posted by Mr. Toy (Member # 311) on :
I read that story about Rep. Mica of Florida. I don't see how his idea will get very far. He wants to turn over the NEC and Auto Train to the US Dept. of Transporatation. I don't see why DOT, a regulatory agency, would want to get into the passenger train business.
But his plan really made me laugh when I realized that he wants to save HIS long distance train to Florida, but no others. How far does he think that will get in a floor vote?
------------------ Trust God, love your neighbor, and never mistake opinion for truth. -Mr. Toy
Spinning of the NEC would just make matters worse for Amtrak.
Posted by Amtrak207 (Member # 1307) on :
WHAT??? Refresh my memory. In 1984, Amtrak took over service provided by the independently owned ("Privatized") Auto Train company after they went bankrupt. Are we implying now that Amtrak has built up the market and now that an always passenger-friendly CSX owns the rails we should turn a profitable route back to private investment? Do we have a college degree? Sorry. I quote a recording I listened to when I was younger along the "You are what you eat" topic: If you put doctor stuff in, you become a doctor. Put in nurse stuff, you become a nurse. If you don't put anything in, you go into politics.
'nuff said? Peace
------------------ In memory of F40PH #757099-8 March 29, 1976-November 18, 2001