D.P. Roberts
Conductor
I readily admit I don't know much of anything about Amtrak's financing. But recent news from NASA about the Boeing & SpaceX contracts got me thinking.
(Here's a link to NASA's new contracts, if anyone hasn't heard about this: http://www.cbc.ca/news/technology/nasa-s-spacex-boeing-deal-a-giant-leap-for-space-flight-1.2771526 )
Basically, NASA is still being funded by the government, but it's subcontracting its spaceship construction & operation to two private companies, Boeing and SpaceX. NASA still gets its funding from the government, but now private companies can try to operate spaceflights more efficiently, pushed on by competition between the two companies.
What if Amtrak used NASA as a model, and contracted out its railroad operations the same way?
On the surface, it looks like it might work. If the US has a vested interest in maintaining passenger rail across the US, it could keep its funding as it does now, but contract out the operation of passenger rail to the major Class I railroads (or other companies that might want to try it).
Basically, Amtrak would say something like "The Empire Builder costs Amtrak $X per year to run. We think private companies could run a train across the northern US more efficiently, so we'll bid the service out at 80% of X." Then, let BNSF, competing railroads, new startups, or even airlines compete for that bid.
If it works, then Amtrak saves money, service would probably improve, and the congresscritters who only like private enterprise would be pleased (as the winning bidders line their pockets with campaign contributions).
If it doesn't work, Amtrak proves that private enterprise could not, in fact, do the job better than they can, and perhaps those angry voices for privatization would quiet down.
Either way, it seems like a win-win for Amtrak.
(Here's a link to NASA's new contracts, if anyone hasn't heard about this: http://www.cbc.ca/news/technology/nasa-s-spacex-boeing-deal-a-giant-leap-for-space-flight-1.2771526 )
Basically, NASA is still being funded by the government, but it's subcontracting its spaceship construction & operation to two private companies, Boeing and SpaceX. NASA still gets its funding from the government, but now private companies can try to operate spaceflights more efficiently, pushed on by competition between the two companies.
What if Amtrak used NASA as a model, and contracted out its railroad operations the same way?
On the surface, it looks like it might work. If the US has a vested interest in maintaining passenger rail across the US, it could keep its funding as it does now, but contract out the operation of passenger rail to the major Class I railroads (or other companies that might want to try it).
Basically, Amtrak would say something like "The Empire Builder costs Amtrak $X per year to run. We think private companies could run a train across the northern US more efficiently, so we'll bid the service out at 80% of X." Then, let BNSF, competing railroads, new startups, or even airlines compete for that bid.
If it works, then Amtrak saves money, service would probably improve, and the congresscritters who only like private enterprise would be pleased (as the winning bidders line their pockets with campaign contributions).
If it doesn't work, Amtrak proves that private enterprise could not, in fact, do the job better than they can, and perhaps those angry voices for privatization would quiet down.
Either way, it seems like a win-win for Amtrak.