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Trainsmag.com just reported that In a study released Friday, a Cato Institute researcher and a former Amtrak Reform Council member, Joseph Vranich, said that the Amtrak Reform Council ought to determine that Amtrak will not meet the December 2002 self-sufficiency deadline set by Congress and then launch the process of reorganization and liquidation. that means that Amtrak will have to the Legal reconstruction of a National Passenger Corporation and also they will have to settle debts or discharge obligations.
The study by the conservative Cato Institute, a Washington-based think tank, recommends privatizing Amtrak, citing succesful privatization overseas.
"It is time for the council to make this finding official and begin the mandated process of restructuring and liquidation," said the study's authors, Vranich and Edward Hudgins, director of regulatory studies at Cato.
They said that without reorganization and privatization, Amtrak would continue to run deficits. "A government-owned Amtrak whose debt is at record levels and whose costs continue to rise will never be solvent." Vranich and Higgins wrote.
They also were critical of the reform council for not pulling the so-called "sunset trigger" when it was clear that Amtrak would not meet the oopreational self-sufficiency deadline.
"The federal government does not run a national airline," the report states. "It does not ooperate a national bus company. The justification for a national passenger railroad has evaporated."
Under the Amtrak reform act, the ARC mus make a determination of whether Amtrak will meet the congressional deadline of self sufficiency. If Amtrak won't reach the deadline, then it is supposed to prepare a plan for its own demise. It then would be up to Congress to accept, reject, or modify the plan.
well guys what is your reaction to this
Eric Member # 674
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First of all, Joe Vranich shouldn't have any say about Amtrak's future. He was dropped on his head one too many times as a child, and has never recovered. And now, post-911, he still wants a plan for restructuring. What a moron. Maybe I haven't read enough about privatization, but isn't that why rail FAILED (or is failing) overseas???
[This message has been edited by Eric (edited 10-25-2001).]
20thCenturyLimited Member # 1108
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Vranich is an idiot. Succesful privatization overseas? Oh yeah, just look at what a mess Britains railroads have become. I'd like to know what succesful privitization overseas he's talking about.
Secondly, Vranich et al still can't seem to grasp the fact that the airlines and the federal highway system ARE SUBSIDIZED. I'd sure like to see Greyhound run if they had to pay for all the roads and highways they use, and I'd like to see the airlines make it if they had to build and maintain airports and runways.
As it is Vranich is a turncoat anyway. Didn't he write that book about high speed trains in the U.S.?
Mr. Toy Member # 311
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It sounds like Vranich is trying to push his personal agenda ahead of the established timetable. If he is really serious about establishing a better rail system (and not just dismantling Amtrak) he would put forth a concrete plan and try to convice us it will work better. If his ideas are valid they would probably be well recieved by rail advocates.
But that's the problem with most of Amtrak's critics. They have no real plan for a better system. All they do is complain. Any idiot can complain. It requires actual mental activity, in cooperation with all interested parites, to get past the problems and move on to solutions.
------------------ Trust God, love your neighbor, and never mistake opinion for truth. -Mr. Toy
Amtrak has been unable to tap into a burgeoning travel market over the past three decades. Americans took about 660 million airline trips last year compared with only 22.5 million trips on Amtrak.... Amtrak accounts for only three-tenths of 1 percent of intercity trips; even private aircraft carry twice as many passengers.
Either Vranich can't do math, or he can't write coherently. 22.5 million is 3.4% of 660 million, not 0.3% (bad math). If he is including other forms of transportation to get to that 0.3% he didn't bother to make that clear(sloppy writing).
------------------ Trust God, love your neighbor, and never mistake opinion for truth. -Mr. Toy
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Driving down the road the other day, I began to think of all the indirect subsidies involved in highway transportation. I saw a street sweeper, highway patrolman, signal repair crew & a street repair crew. I wonder if the trucks pay a share of these costs or is it the local taxpayer who may or may not use these roads. The airline industry does not pay for the air traffic control system, airport building & maintenance or the numerous federal, state & local agencies regulating the airlines. Imagine the lost tax revenue from these huge airports & the fact that the railroads pay exorbitent taxes on all of their properties. The dispatchers & police forces are also paid for by the railroads. OK, I've vented & feel much better now. All that wants is for these inequities to be addressed. Reggie
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Konstantin Member # 18
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Reggierail, I also share your opinion. Mr. Toy has a quote on his website that I like:
"Congress spends 2.8 times as much money to spread salt on icy roads as it spends on Amtrak‘s entire national system."
Here is another expense for automobiles that is often overlooked: Stores and shopping centers use a lot of space to provide parking. We pay for it by paying higher prices in order to offset the costs for all of that extra land that is not used for something else.
------------------ Elias Valley Railroad (N-scale) www.geocities.com/evrr
Eric Member # 674
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And what about road signs. We pay for those too, don't we? How many "speed limit" signs are on our Interstates and highways? I just got back from Phoenix on a short road trip. The signs on the side of the 4 or 5 lane highway say "55MPH." I was doing 75, and was still being passed. Why are we wasting money to put signs like these up, when people go as fast as they want?
jebradley Member # 606
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Agree with many of you. BUT - (a) recognize the auto and air do have many good points; (b) many people ARE in a (jet) hurry, or the auto's flexibility just can't be beat. Thus, Amtrak Long Distance trains will always be a 'niche market' of small-towners, 'heritage tourists', service/college people, and those for whom the train just makes sense in a particular situation. In some markets we can add business people, if trains run on time. Amtrak needs thorough, basic market research to identify the real need for it, then must be able to move to satisfy. Examples: East-West Auto-Train(s), more Midwest services, smaller places airlines handle badly. Speaking as a college transport major with 22 years in that field, I too think Vranich sounds like the west end of an eastbound horse; recall Anthony Haswell's idea of connecting corridors each having frequent service rather than a few LD trains; that might make more sense. We MUST stay alert to preserve rail as a passenger option! Sure it costs but so do highways and air control. Made 7000 mile Amtrak trip last Dec., coast/coast; 6 of 7 trains ON TIME, exception was a CSX-imposed snow cancel. Fine meals, good service! Lets us (and our kids) SEE OUR COUNTRY which we must always defend! Jim Bradley National Director Hawk Mountain Chapter National Ry. Historical Society
Konstantin Member # 18
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Jebradley, I agree with you about people wanting to get places faster (planes) or having more flexibility (cars), but I also think that if those people want the flexibility or speed, they should have to pay for it themselves. It should not be paid for by taxpayers.
MPALMER Member # 125
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Reply to the earlier posts: Maybe Amtrak does only have 0.3% of the trips. For that to be true, there would be 7500 million (7.5 billion) miles of intercity trips in the US per year. Can that be real?
I interpret the 660 million to be airlines' share of the market, not the total miles traveled by all modes.
Regardless...the highway and air folks clearly have the upper hand in obtaining taxpayer funds.
Mr. Toy Member # 311
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It looks like somebody at the ARC is taking Vranich seriously. According to a news report I got in my e-mail today (via Reuters), the ARC is "considering" the idea of drafting a resolution to declare that Amtrak won't make the deadline. However, Gil Carmichael stated that this is in no way a done deal. Stay tuned.
------------------ Trust God, love your neighbor, and never mistake opinion for truth. -Mr. Toy
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