Amtrak and its Host Railroads
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1 Amtrak and its Host Railroads Paul Vilter, Amtrak AVP Host Railroads Northwestern University Transportation Center Sandhouse Gang April 8, 2013
2 Paul Vilter Bio 1984: Michigan State University BA in Materials and Logistics Management : Chessie, CSX Management Trainee; Metals and Intermodal Marketing 1989: Northwestern University MBA Kellogg / Transportation Center : Conrail Forest products marketing and sales; short line relations; intermodal marketing 1999-Today: Amtrak Finance and Planning; Host Railroads 2
3 Annual Riders Strong Demand for Amtrak Intercity Passenger Rail Service 32,000,000 Amtrak Ridership, million 30,000,000 28,000,000 26,000,000 24,000,000 22,000,000 20,000, Fiscal Year FY12 (October 2011-September 2012) was another great year Ridership set another record (9 th in last 10 years) 25 of our 44 routes had their best ridership year ever Ridership has increased by 44% between 2002 and 2012 Ticket revenue was also a record at $2.02 billion 3
4 Where Does Amtrak Operate? Amtrak Route System Track Ownership Excluding Terminal Railroads VANCOUVER SEATTLE Spokane PORTLAND SACRAMENTO OAKLAND SALT LAKE CITY DENVER ST. PAUL / MINNEAPOLIS KANSAS CITY MILWAUKEE Metra CHICAGO ST. LOUIS MDOT Grand Rapids INDIANAPOLIS Operated by VIA Rail Port Huron Pontiac Conrail CLEVELAND Buckingham Branch TORONTO PITTSBURGH Charlottesville Niagara Falls Harrisburg Petersburg BALTIMORE WASHINGTON Richmond VTR Hoffmans Albany Metro- North MONTREAL Springfield NEW YORK PHILADELPHIA Newport News Norfolk St. Albans Rutland NECR Brunswick Pan Am BOSTON MBTA SCRRA Bakersfield NMRX ALBUQUERQUE Oklahoma City MEMPHIS LOS ANGELES SCRRA / BNSF / SDN SAN DIEGO FT. WORTH DALLAS ATLANTA Railroads HOUSTON SAN ANTONIO NEW ORLEANS TAMPA JACKSONVILLE Amtrak (incl. Leased) Union Pacific Norfolk Southern Canadian Pacific FDOT MIAMI BNSF Canadian National CSXT Other Railroads 4
5 MDOT Pontiac Port Huron Amtrak NEC Route System Track Ownership Excluding Terminal Railroads Conrail Operated by VIA Rail CLEVELAND PITTSBURGH TORONTO Niagara Falls Harrisburg Vermont Railway Hoffmans Schenectady Poughkeepsie Metro- North PHILADELPHIA MONTREAL Rouses Point St. Albans NEW YORK Albany Rutland Springfield New Haven New Rochelle Worcester New England Central Haverhill BOSTON Providence Brunswick Pan Am MBTA (Boston to RI State Line Dispatched by Amtrak Buckingham Branch Charlottesville Petersburg BALTIMORE WASHINGTON Richmond Newport News Norfolk Amtrak (incl. Leased) CSXT Norfolk Southern Railroads Canadian Pacific Canadian National Other Railroads 5
6 Evolution of Amtrak Off-Corridor Railroads carried both freight and passenger through most of history Perfect Storm in 1950s Going bankrupt in 1960s Amtrak created in 1970 to absorb losses and personnel, and improve service Began operations May 1, 1971 Initially purchased nearly all services from hosts at incremental cost By early 1990s took over on-board train operations and equipment maintenance Today, primary host asset used is tracks On-Corridor Amtrak acquired Northeast Corridor at formation of Conrail in
7 Amtrak Size and Scope Today Only US railroad with truly national operations 70% of Amtrak train-miles are operated on host railroads Amtrak provides T&E crews On-Board crews Locomotives Cars Stations/terminals Locomotive and car maintenance 7
8 Host Railroad-Amtrak Framework Based primarily on legislation Access Incremental cost Preference over freight transportation Early cases at ICC / National Arbitration Panel resolved questions and definitions 8
9 How Do Hosts and Amtrak Interact Day to Day? Amtrak duties include: Provide safe, reliable equipment Provide safe, efficient crew Share liability exposure (usually no-fault) Pay our bills Host duties include: Provide safe, well-maintained right of way and operating environment Provide preference over freight transportation Assist when Amtrak trains need help Plan on Amtrak trains we ve been coming for over 40 years 9
10 Operations Issues On-Time Performance and Delays FRA published Metrics and Standards under PRIIA Section AAR challenge Management focus by Amtrak and hosts to achieve PRIIA Standards Operating Performance Improvement Programs - Operating Improvements (good railroading; preference) - Maintenance Improvements (slow orders; Amtrak equipment) - Capacity Improvements (if needed as last resort) New role for the Surface Transportation Board - Failure to achieve PRIIA Standards - Failure to provide preference over freight transportation Positive Train Control On-Corridor and Michigan: ACSES, ITCS Off-Corridor: I-ETMS 10
11 How Does Amtrak Grow and Change? National Network Some revisions / additions / deletions in long-distance service since 1971 Growth is in state-supported services State-Supported Services Current partners: CA, IL, ME, MI, MO, NC, NY, OK, OR, PA, VA, VT, WA, WI States fund many existing and any new services and frequencies For new services/frequencies: - Amtrak estimates annual operating revenues and costs - Parties determine possible capacity needs - Determine state s financial appetite and abilities - If a go, state funds any improvements and Amtrak commences operations For existing state-supported services, PRIIA Section 209 requires states to provide funding on an equal basis starting FY14 11
12 Today s Amtrak System 12
13 Billions of Dollars A Long-Term Challenge: Funding Amtrak Federal Funding (Not Adjusted for Inflation) * Fiscal Year 2009 includes one-time $1.3 billion stimulus grant; $1.5 billion without grant. 13
14 Role Reversal: Freight Railroads Use the NEC
15 Intercity and Commuter Rail Trains Also Use the NEC (Not all lines owned by Amtrak) Amtrak services on the NEC Red: Acela, Regional Gold: Keystone, Springfield, Albany Services NEC including Springfield, Albany, Harrisburg and Richmond Lines Daily Trains Intercity Amtrak 154 Commuter MBTA / RIDOT 296 ConnDOT / Shore Line East 23 Metro-North 345 Long Island Rail Road 581 NJ Transit 387 SEPTA / DelDOT 374 MARC 83 Virginia Railway Express 29 Total Passenger 2,272 Freight 50 (NS, CSX, Conrail, P&W, CP, PanAm) Source for all NEC Data: Amtrak NEC Master Plan,
16 NEC Intercity, Commuter and Freight Operations Also Growing Northeast NEC Passenger Corridor Operations including Springfield, Including Harrisburg, Albany, Harrisburg Albany, and Springfield Richmond Lines Daily Trains Annual Riders (millions) Current 2030 % Chg Current 2030 % Chg Amtrak % % MBTA % % RIDOT 0 32 N/A 0 2 N/A ConnDOT / SLE % % MNR % % LIRR % % NJT % % SEPTA / DelDOT % % MARC % % VRE % % Total 2,272 3,294 45% % Freight changes on the NEC Coal traffic down New oil trains on the NEC serving refineries in SE Pennsylvania and northern Delaware Source for all NEC Passenger Data: Amtrak NEC Master Plan,
17 Amtrak works with freight and commuter railroad partners in both host and tenant roles nationwide Questions and Discussion 17
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