Amtrak Ups and downs

[capltd29]

Over the years, Amtrak has made changes, some it could control, and then some it couldnt.

I was wondering what you guys think might've been one of Amtrak's best decisions, as well as what you think might've been one of Amtrak's goof.

For me, I think that one of the worst things Amtrak did, although it was sorta uncontrollable, was building and restoring the Louisville Amtrak Station, and then shortly killing the kentucky Cardinal, it's like what the heck is going on?

THanks

Jon Parker

 

[Trogdor]

Perhaps the worst thing Amtrak ever did was hire the Mercer consulting group about a decade ago to see how Amtrak could cut its losses. The Mercer consultants recommended that service on many long-distance routes be reduced from daily to only a few days per week, as a way to cut costs.

Amtrak heeded this "advice" and reduced service on the Empire Builder to four days per week west of St. Paul, the Texas Eagle to three days per week south of St. Louis, as well as converting the City of New Orleans and the Crescent (I believe, south of Atlanta) to less-than-daily service. There may have been others as well. The result was that revenues tanked faster than expenses were cut, and Amtrak's losses actually *increased.* In the end, some of these changes were reversed, but only by eliminating other routes (i.e. the Pioneer was eliminated to restore the Empire Builder to daily service; the Desert Wind was eliminated to run the California Zephyr daily, etc.). Meanwhile, Amtrak had since retired many Heritage Fleet cars, meaning that consists would have to be shortened and other services would have to be cut in order to restore the cuts made at Mercer's recommendation.

The result has been less service, and the service that remains has had its capacity reduced to the point where it can no longer accommodate demand. Losses have increased (especially on LD trains) and Amtrak's financial position has worsened.

The second worst move was the decision to take a couple of billion (ish) dollars in "Taxpayer Relief Act" funds in (or around) 1997, and blow it on a bunch of boxcars rather than passenger cars, while older passenger equipment was wrecked and not returned to service.

Amtrak didn't actually build or restore the Louisville Amtrak station. The City of Louisville paid for it to be restored. This was their (the city's) mistake, because the track was a tiny stub-end track virtually on the edge of a sidewalk, with a platform only long enough for one or two cars. The only way that train could have possibly survived was to be extended further, and there would be no way to possibly use that station/track if the route ran past Louisville.

As for things Amtrak has done right . . .

 

[GG-1]

Perhaps the worst thing Amtrak ever did was hire the Mercer consulting group about a decade ago to see how Amtrak could cut its losses.  The Mercer consultants recommended that service on many long-distance routes be reduced from daily to only a few days per week, as a way to cut costs.

Aloha

I am no finance expert but I Have never understand why a company who having trouble, always look for ways to lower cost rather than for ways to increase revenue. Who cares what it cost if it can be sold. And if it is needed it can be sold. Also full trains makes more revenue, right?

 

[Sam Damon]

I have yet to see an example of a company that "saved their way" to the top.

 

[haolerider]

No, but there are plenty who have been "bean-counted" out of existance.

Amtrak, however has made some good decisions in the past several years - getting out of the Mail and Express business that did not make a profit - trimming layers of managment - providing transparent accounting and budget planning - and focusing on telling Congress the truth.

 

[AmtrakFan]

Perhaps the worst thing Amtrak ever did was hire the Mercer consulting group about a decade ago to see how Amtrak could cut its losses. The Mercer consultants recommended that service on many long-distance routes be reduced from daily to only a few days per week, as a way to cut costs.
Amtrak heeded this "advice" and reduced service on the Empire Builder to four days per week west of St. Paul, the Texas Eagle to three days per week south of St. Louis, as well as converting the City of New Orleans and the Crescent (I believe, south of Atlanta) to less-than-daily service. There may have been others as well. The result was that revenues tanked faster than expenses were cut, and Amtrak's losses actually *increased.* In the end, some of these changes were reversed, but only by eliminating other routes (i.e. the Pioneer was eliminated to restore the Empire Builder to daily service; the Desert Wind was eliminated to run the California Zephyr daily, etc.).

The result has been less service, and the service that remains has had its capacity reduced to the point where it can no longer accommodate demand. Losses have increased (especially on LD trains) and Amtrak's financial position has worsened.

The second worst move was the decision to take a couple of billion (ish) dollars in "Taxpayer Relief Act" funds in (or around) 1997, and blow it on a bunch of boxcars rather than passenger cars, while older passenger equipment was wrecked and not returned to service.

Mr. Madison,

The Eagle cut south of St. Louis came while Claytor was still in office. I am still angry they cut the Pioneer and Desert Wind those Trains ran with 5/6 thru my Town and every Saturday or Sunday and some times on weekdays when he was off my Dad would take me to see those trains I was dishartened to see them go. I would agree with the Mercer thing. One of the Box Car Problems was Amtrak made some deals that were ripping their shirt off so to say. The Crescent went South of Atlanta 4 Days a week. The TPRA was $2.3 Billion. Good Things there doing is getting Wrecked Cars back to service, Telling the truth, Remanufacturing the Superliner 1 Sleepers, Overhauling equitment, getting out of M&E and Cracking Down on excessive Mangement.