CSX Management Change Hinders Efforts to Restore Amtrak Service to the Gulf Coast

An Alabama member of the Southern Rail Commission said talks with CSX over getting approval to reinstate Amtrak service along the Gulf Coast have gone back to square one.

Commission member Jerry Gehman of Atmore said that since E. Hunter Harrison became CEO of the railroad last March that management has said that the cost of reinstating the service will be $2.3 billion, take it or leave it.

Gehman said that talks with the railroad facilitated by the Federal Rail Administration had whittled the price tag down to less than $800 million.

But then Harrison took over and “ . . . he is not amenable to our interests,” Gehman said. “Their position was fixed and firm. They said we should go back to the original estimate of $2.3 billion, that they would have no further negotiations, and they walked out of the meeting.”

Gehman said the FRA believes that the price of reviving Amtrak service east of New Orleans should be $117 million.

Now, Gehman said, any chance of seeing the service launched by end of this year is gone.

“We understand CSX’s position; unfortunately, it’s a hostile position, but they’ve made it very clear,” he said. “That hostile position is simply a negotiating tool.”

The Commission plans to continue negotiations. “What I left the [June 9] Rail Commission meeting with was frustration, aggravation and ‘how can I become a better negotiator?’” Gehman said. “My frustration comes from seeing the possibility, not the perspective of the railroad. I would not say that I’m disheartened, but I’m certainly disappointed.”

Gehman said a more aggressive posture on the part of the Rail Commission might be more beneficial.

 

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