During remarks to the Amtrak Board of Directors last week, CEO Stephen Gardner gave an upbeat view of Amtrak’s future that he then qualified with numerous caveats that suggested expansion of the Amtrak network is still far away.
The board met in St. Louis and heard top Amtrak managers give a snapshot of where the passenger carrier is, which is recovery mode from the effects of the COVID-19 pandemic.
Ridership is at 85 percent of pre-pandemic levels with 22.9 million passengers handled during fiscal year 2022, which ended on Sept. 30.
Revenue of $2.8 billion was down 15 percent compared with fiscal year 2019.
In the past year fares have been higher and Amtrak’s capacity has been lower due to equipment that was idled during the pandemic still not being available for revenue service due to shortages of mechanical workers and funding.
During fiscal year 2022, Amtrak operated 80 percent of its pre-pandemic schedule.
As for expansion, Amtrak in 2021 released its Connect U.S. plan that called for new intercity rail passenger service to 160 communities.
Funding from the Infrastructure Investment and Jobs Act was expected to be a major down payment on that plan.
“We’re entering a new [era] . . . for passenger rail in America, and Amtrak’s future could never be brighter,” Gardner said.
But then Gardner began issuing his list of caveats. Topping the list is that it will take longer to get new routes up and running than some rail passenger advocates would like.
Just two new routes began in FY2022 and both of those were in the development stage before the onset of the COVID-19 pandemic.
Although new service between New Orleans and Mobile, Alabama, was mentioned along with development of a corridor between Richmond, Virginia, and Raleigh, North Carolina, no timeline for implementation of those services was provided.
Another key caveat is the network expansion hinges on state and local government financial support.
Gardner noted during his presentation that state and federal financial support is key to new service because the influx of funding made available by the IIJA mandates that just 80 percent of the cost to develop a new service can be provided by the federal government.
“Amtrak is not a unitary actor,” he said. “We cannot tomorrow say ‘we want to stop here and issue an edict.’”
Amtrak Board Chairman Anthony Coscia said later, “There is a meaningful difference between states in terms of their ability to be supportive of passenger rail.”
Amtrak already appears to be pulling back on its ambitious Connects U.S. project.
Executive Vice President Dennis Newman introduced a new map that showed “expressions of interest” that reflects potential new service where there has been significant state and local interest.
This includes a new train between Fargo, North Dakota, and Spokane, Washington, which would mirror the former Chicago-Seattle North Coast Hiawatha that was discontinued in early October 1979.
Also on the map is proposed service between Los Angeles and Las Vegas, proposed service between Salt Lake City and Boise, Idaho, and a Dallas section of the New York-New Orleans Crescent.
The Las Vegas and Boise service proposals would revive other former routes of the Desert Wind and the Pioneer, respectively.
During the question and answer session of the meeting, Gardner said Amtrak can’t expand long-distance routes without additional funding from the federal government.
Aside from the open question of whether Congress would agree to provide that funding, long-distance network expansion is hamstrung by equipment shortages that have reduced the capacity of existing trains.
In response to an audience member question, Gardner said some stored equipment that is no longer commercially viable is being used as a parts supply.
“We also have to analyze the dollars available,” he said and then added that additional capital is needed to put equipment back into service.
For now, Garnder said Amtrak is seeking to get more equipment back into service “just to catch up on overhauls and maintain the current fleet.”
Although the audience member was asking about Superliners, Amtrak has found itself short of equipment for corridor services because many of the 60 Venture cars it had expected to be in service this year remain sidelined by production issues and quality control matters.
Instead, Amtrak has only been able to use about 30 of the Venture cars.
New equipment that Amtrak had expected to use for its Acela service in the Northeast Corridor remains on the sidelines. Gardner said that equipment is not expected to begin revenue service until late 2023, which is two years later than originally projected.
New equipment that Amtrak plans to order for Northeast Regional service in the Northeast Corridor won’t be available until 2026 at the earliest.
“There is not an off-the-shelf product, in most cases, that is available,” Gardner said when speaking about equipment issues. “We don’t have the domestic supply base.”