Posts Tagged ‘Charles Wick Moorman’

Moorman Upbeat About Future of Rail Passenger Service

July 17, 2017

Amtrak President Charles “Wick” Moorman gave an upbeat assessment of passenger rail even as he acknowledged that the passenger carrier faces challenges fixing decaying infrastructure in the Northeast Corridor.

Speaking to the National Press Club in Washington, Moorman said Amtrak’s need for federal funding was no excuse for not operating “like a great company.”

Moorman

Nonetheless, Moorman said that getting pressure from government officials and tight budgetary resources have taken their toll.

He said that in the 1990s and 2000s Amtrak lost sight of its customers as a result. As an example he cited carpet cleaning.

Amtrak saved $1 million by not shampooing the carpets in its passenger cars as often, but passengers noticed the dirty carpets.

“That’s not the experience we want to create for our customers,” he said.
Providing a better customer experience has been one of four focuses that Moorman has brought to Amtrak after becoming its president last year.

“The customer experience is ticketing, the station, our employee interactions, and our equipment,” he said.

The equipment used by Amtrak is, in Moorman’s words, starting to look “stale,” but the carrier has taken steps to improve it.

“It’s old, but that doesn’t mean it can’t be good,” he said.
Moorman said rail passenger transportation in general is a particularly good business model.

The creators of Amtrak chartered it as a for-profit corporation even though they knew it was not a good business model.

However, Moorman said, they sold at the time to President Richard Nixon and the Congress at the time as a concept of “Create this and [it] will become profitable.”

In essence, Moorman said Amtrak is a government contractor that unlike other contractors can’t always present to government officials a bill that factors in the costs of doing business plus a profit to benefit shareholders.

“We rely on what are in effect user fees – passenger fares,” he said. “And because the marketplace doesn’t sustain the passenger fares we need to make that profit, we ask the government to make up the difference.”

Among Amtrak’s many challenges Moorman said the one that worries him the most is the aging Northeast Corridor infrastructure.

He said the NEC has eight major bridges and only is younger than 100 years old. The B&P Tunnel in Baltimore is 127 years old and well past its “sell-by date.”

Moorman express confidence that the idea of having a national rail passenger network is taking hold and predicted the development of more corridors offering rail passenger service between urban areas.

He also circled back to the need to provide good customer service.

“For 46 years, a lot of people [at Amtrak] were there trying to keep the flame alive, understanding that someday the world would come to the point where people started to say, ‘We really need to have passenger rail as an option.’ I think that day has come,” Moorman said.

“The better we run Amtrak, the better we deliver on projects, the more people understand how good our company is, the easier every funding conversation is,” he said.

In a related note, Moorman said disruptions at New York’s Penn Station may extend in the fall.

He told the New York Post that Amtrak has the ability to finish the remaining work at Penn Station with subsequent weekend outages extending beyond the planned July to early September work curfew.

“We’ve done an exceptional and extraordinary amount of planning on the material side and we know it all fits, and we have a lot of skilled people,” he says.

After those repairs are concluded, Moorman said Amtrak will need to to schedule signal and power system repairs at a later date.

Amtrak Eyes Reducing Seat Pitch in Coaches

July 13, 2017

Amtrak may take a page out of the airlines playbook and try to squeeze more passengers into its coaches.

Co-CEO Charles “Wick” Moorman said this week that Amtrak is studying the creation of a new economy class that would have less room between seats, known as seat pitch.

“We are looking at doing some creative things in terms of creating an economy class,” Moorman told the National Press Club in Washington.

For years the airlines have been reducing seat pitch in an effort to increase seating and therefore increase the amount of revenue earned per flight.

Moorman said the carrier has not decided whether to implement the idea, but acknowledged “there will be some other things that just don’t make it quite as comfortable.”

For years, Amtrak has touted how it offers more leg room than the airlines and that its trains do not have a center seat as do many jetliners.

“We compete very well with the airlines,” Moorman said, adding that travelers in the New York-Washington who take Amtrak avoid New York’s LaGuardia Airport and lengthy airport security lines.

The tighter seat proposal was revealed on the same day that Moorman began sharing the CEO post with Richard Anderson, a former Delta Air Lines head.

Observers Give Their Take on Amtrak’s new CEO

June 29, 2017

So who is this former airline executive that Amtrak has chosen to take over as its CEO later this year when Charles “Wick” Moorman retires?

Richard Anderson

Richard Anderson was the head of Delta Air Lines, but he also at one time served as a prosecutor and the vice president of an insurance company, United Health.

His father, Hale, worked for the Atchison, Topeka & Santa Fe in Texas and the family moved multiple times as the elder Anderson held office jobs at posts from Galveston to Dallas and Amarillo.

When he was in college, the younger Anderson’s parents died of cancer and he subsequently had to raise his two younger sisters as he worked to earn college tuition money.

After earning his law degree, Anderson worked in Texas for nearly a decade as a prosecutor.

His entry into the airline industry began in the legal department of Houston-based Continental Airlines.

He would later join Northwest Airlines and became its CEO three years later. As Delta Air Lines was emerging from bankruptcy in 2007, its board of directors asked Anderson to become its CEO, which meant that he succeeded Gerald Grinstein, a former CEO of the Burlington Northern Railroad.

“Richard has a hands-on, roll-up-your-sleeves, let-me-see-how-this-thing-really-works kind of approach,” John Dasburg, Northwest’s former president, told USA Today in 2008.

During his time at Delta, Anderson sometimes sought unconventional solutions to solve problems.

For example, in an effort to cut fuel costs, Delta purchased an oil refinery near Philadelphia in 2012.

Industry reaction to Anderson being named co-CEO of Amtrak – Moorman won’t be retiring until late December – has been mostly positive.

He received unqualified endorsements from Linda Bauer Darr, president of the American Short Line and Regional Rail Road Association, and from Ed Hamberger, the president of the Association of American Railroads.

Jim Mathews, head of the National Association of Railroad Passengers lauded Anderson’s transportation experience.

“NARP is very pleased Amtrak is making the sensible move of bringing in an executive with strong management experience in a customer-service oriented transportation company,” Mathews said.

Former NARP executive director Ross Capon said the fact that Moorman will be Amtrak’s co-CEO through December shows the two men will likely have a good working relationship and that Anderson will be able to learn from Moorman.

Not all advocacy groups were enthusiastic about Anderson’s appointment.

Charles Leocha, chairman of Travelers United and an airline consumer advocate, said in an interview with Trains magazine that Anderson is “a real charger” who “has not been a friend of consumers, but ran an efficient airline as consolidation was completed . . .”

Richard Rudolph, the president of the Rail Users Network, said Amtrak needs someone who knows railroads, knows how to run a company and can stand up against Congress and President Donald Trump.

Also expressing skepticism was former Amtrak President and CEO David Gunn.

“If he can’t coax people at Amtrak who know how to run a railroad out of their fox holes, he’s doomed,” Gunn said in an interview with Trains. “And you have to convince them you have a plan that makes sense operationally and is not driven by politics.”

Gunn said the best hope is that Anderson has some knowledge of railroad operations.”

Jackson McQuigg, a railroad historian and passenger advocate based in Atlanta, told Trains that he sees in Anderson a man with a demeanor similar to that of W. Graham Claytor Jr. between 1982 and 1993.

“He had a stellar reputation in Atlanta and cared about the city and its history,” McQuigg told Trains.

While at Delta and Northwest, McQuigg noted, Anderson had a reputation for being a tough guy who wasn’t afraid to mix it up with the airline unions.

“Maybe that bunch in the White House will listen to him,” McQuigg said of Anderson. “It will be interesting to see if that happens or if Anderson presides over dismemberment instead. All I know is that the long-distance trains had better be preserved or the whole thing will go up in political flames.”

Richard Anderson to Become co-CEO of Amtrak July 12, Wick Moorman to Retire Dec. 31

June 26, 2017

Amtrak will be getting a co-president and CEO next month. Charles “Wick” Moorman will be joined by Richard Anderson, who has 25 years of experience in the airline industry.

This arrangement will continue until Dec. 31, when Moorman plans to step down from his position at Amtrak but continue as an adviser to the company.

The announcement was made in an internal memorandum sent to Amtrak employees and confirmed by a statement issued by Amtrak.

In the memo to employees, Moorman noted that he promised his wife that he time at Amtrak would be short.

Moorman said he said he would stay at Amtrak only as long it took to achieve three goals: Making the company more efficient, developing a stronger safety culture and working with the board of directors to find an executive to lead the railroad long term.

Anderson is a former chief executive at Delta Air Lines and Northwest Airlines, the latter having been acquired by the former.

“Richard has a proven track record of driving growth while enhancing the customer experience,” Moorman said. “What I really admire about Richard is he faces difficult challenges head-on. He has helped companies navigate bankruptcy, a recession, mergers and acquisitions, and 9/11. In total, Richard is a leader with the strategic vision and tactical experience necessary to run a railroad that benefits our partners, our customers and our employees.”

The statement noted that Anderson’s father worked for the Santa Fe.

Anderson, 62, most recently was executive chairman of the Delta Air Lines board of directors after serving as the airline’s CEO from 2007 to 2016. He was executive vice president at United Healthcare from  2004 to 2007 and CEO of Northwest Airlines from 2001 to 2004.

He also served in the legal division at Continental Airlines and was a former county prosecutor.

“It is an honor to join Amtrak at a time when passenger rail service is growing in importance in America. I look forward to working  alongside Amtrak’s dedicated employees to continue the improvements  begun by Wick,” Anderson said in a statement.

Anderson earned a Bachelor of Arts degree at the University of Houston at Clear Lake City and a Juris Doctorate at South Texas College of Law. He is a native of Galveston, Texas.

Moorman Makes Pitch for Saving Long-Distance Train Funding

June 13, 2017

Amtrak President Charles “Wick” Moorman recently told Congress that eliminating funding for Amtrak’s long-distance trains in the federal fiscal year 2018 budget would cost more money than it would save.

Moorman

In a letter that accompanied Amtrak’s budget Moorman said ending the funding would cost $423 million more than keeping it.

“The Administration’s Fiscal Year 2018 budget request for the U.S. Department of Transportation proposes the elimination of Federal funding for Amtrak’s long distance services. Enactment of such a proposal would drastically shrink the scope of our network, could cause major disruptions in existing services, and increase costs for the remaining services across the Amtrak system,” Moorman wrote. “Amtrak’s initial projection is that eliminating long distance services would result in an additional cost of $423 million in FY 2018 alone, requiring more funding from Congress and our partners rather than less.”

The letter sought to highlight Amtrak’s successes last year.

“Amtrak reported strong audited financial results for the fiscal year which ended on Sep. 30, 2016, including an all-time ticket revenue record of $2.14 billion,” Moorman said. “The increased ticket revenue was fueled by a record 31.3 million passengers on America’s Railroad – nearly 400,000 more than the previous year. This is the sixth straight year Amtrak carried more than 30 million customers.

“The company covered 94 percent of its operating costs with ticket sales and other revenues, up from 92 percent the year before – a world-class performance for a passenger-carrying railroad. Thanks in part to our strong performance, Amtrak was also able to make a net reduction in long-term debt of $69.2 million.”

As Amtrak’s ongoing needs, Moorman said Amtrak needs funding to replace movable bridges that are more than 100 years old and money to pay for a backlog of crucial state-of-good-repair work in the Northeast Corridor estimated to cost $38 billion to complete.

Moorman said the Superliner equipment used by Amtrak’s long-distance trains averages more than 200,000 miles per car, per year, and the age of the fleet is nearly 40 years.

Signs Point to Shift to Grand Central for Amtrak

May 22, 2017

Amtrak has yet to comment on reports that it plans to shift some Empire Corridor trains this summer to New York City’s Grand Central Terminal, but there are increasing signs that it will happen.

Gary Prophet of the Empire State Passengers Association told New York radio station WCBS that he has spoken with Amtrak train crews who said they are being trained to operate on the route to Grand Central Terminal.

A New York state legislator who represent the Albany, New York, area, said Amtrak using Grand Central is a real possibility.

“The fact that there’s ongoing discussion and communication . . . indicates that it’s still very much in play,” he said.

Amtrak President Charles “Wick” Moorman didn’t address using Grand Central in speaking to a state legislative panel last week, but said that “for perspective on this, Grand Central Terminal handles only roughly two-thirds the number of daily trains on double the number of train tracks, compared to Penn Station.”

Amtrak has announced that it plans to conduct a track repair project at New York’s Penn Station this summer and that during that work 25 percent of the station’s track capacity will be out of service. That project will begin on July 7.

Penn Station handles 1,300 passenger trains a day. Amtrak has not used Grand Central Terminal since 1991.

High-Speed Rail Won’t be Inexpensive

May 22, 2017

High speed passenger rail service in America is going to cost a lot of money two railroad leaders said last week.

On that point Amtrak CEO Charles “Wick” Moorman” and Association of American Railroads Present Ed Hamberger both agree.

The two railroad executives appeared on Washington Journal, a daily C-SPAN cable network’s public affairs program.

AAR represents the interests of freight railroads so it is seeking different things in the pending Trump administration’s transportation infrastructure revitalization plan.

“The key issue with high speed trains which people don’t always recognize is that they essentially require [a] completely new right-of-way,” Moorman said. “The Europeans, the Chinese, the Japanese, and others have made significant commitments in the order of hundreds of billions of dollars, and that’s the kind of commitment it takes.”

Noting that Amtrak wants to boost train speeds in the Boston-New York-Washington Northeast Corridor, Moorman said that “will take huge amounts of infrastructure renewal and expenditure” to do so.

For his part, Hamberger made a pitch for freight rail. “Everybody says why can’t we have railroads like they have in Europe or Japan,” he said. “We have the best freight rail system in the world. We’re the envy of the world.”

Hamberger said freight railroads want changes in regulations of the industry, saying it now takes six to eight years to get government agencies to approve a capital investment such as a new bridge or intermodal yard.

“We need to compress that. You still have to go through the studies, you still have to get the permits, but let’s do it in a smart way so the different agencies are operating concurrently not in consecutive fashion,” Hamberger said.

Moorman also called for a balanced approach in providing passenger rail on long-distance and corridor routes.

“I view Amtrak as a government contractor,” Moorman said. “To date, the decision has always been made that Amtrak should be in the businesses that it’s currently in, and we continue to do what we do best, which is to promote the idea of passenger rail transportation across the country.”

Amtrak Makes Forbes Best Employers List

May 11, 2017

Forbes magazine has named Amtrak a top U.S. employer, the third consecutive year that the carrier has made the list.

Amtrak was listed under the transportation and logistics category. The honor was based on Forbes’ independent survey of 30,000 workers throughout the United States to see which companies were the best.

Amtrak is a great company because of the people who continuously keep our customers safe and make the railroad the smarter way to travel,” said Amtrak President and CEO Charles “Wick” Moorman in a statement. “We want employees to find a safe workplace, challenging work, and receive the reward of competitive pay and benefits in a performance-oriented culture.”

Trump Wants to Cut Amtrak Long-Distance Train Funding, Trim Public Transportation Spending

March 16, 2017

Here we go again. Another president has taken aim at Amtrak’s federal funding.

The proposed fiscal year 2018 budget released by the Trump administration this week calls for eliminating federal funding of Amtrak’s long-distance trains and would impose other steep cuts in transportation spending.

Amtrak would not lose all funding, but the funding it receives would be focused on supporting services within specific regions, specifically the Northeast Corridor and state-funded corridors in the East, Midwest and along the West Coast.

The budget described long-distance trains as inefficient and incurring the vast majority of Amtrak’s operating losses.

Trump is seeking to cut the U.S. Department of Transportation budget by $2.4 billion or 13 percent.

If Congress adopts the Trump budget blueprint, DOT will receive $16.2 billion.

Also slated for deep cuts in the budget are Transportation Investment Generating Economic Recovery (TIGER) grants.

Funding of the New Starts program of the Federal Transit Administration will be slashed and limited to projects with existing full funding grant agreements.

In a statement with the budget, Trump said the DOT budget is being revamped to focus on “vital federal safety oversight functions and investing in nationally and regionally significant transportation infrastructure projects.”

A statement with the budget request said that the blueprint seeks to reduce or end “programs that are either inefficient, duplicative of other federal efforts, or that involve activities that are better delivered by states, localities or the private sector.”

In a statement, Amtrak President Charles “Wick” Moorman said that Amtrak’s 15 long-distance trains offer the only service in 23 of the 46 states that the carrier .

“Eliminating funding for long-distance routes could impact many of the 500 communities served by Amtrak,” Moorman said.

“These trains connect our major regions, provide vital transportation to residents in rural communities and generate connecting passengers and revenue for our Northeast Corridor and state-supported services. Amtrak is very focused on running efficiently  — we covered 94 percent of our total network operating costs through ticket sales and other revenues in FY16 — but these services all require federal investment.”

Moorman pledged to work with the Trump administration, including U.S. Transportation Secretary Elaine Chao and Congress to “understand the value of Amtrak’s long-distance trains and what these proposed cuts would mean to this important part of the nation’s transportation system.”

As for transit funding, the budget blueprint says that curtailing federal funding leaves funding up to “localities that use and benefit from these localized projects.”
The American Public Transportation Association issues a statement saying it was surprised and disappointed with the budget details so far.

APTA noted that the administration has been touting a broad plan to spend $1 trillion for infrastructure investment, but “the White House is recommending cutting billions of dollars from existing transportation and public transit infrastructure programs.”

The trade group said the budget cuts would affect projects underway in Kansas City; Dallas; Fort Worth, Texas; Indianapolis; Grand Rapids, Michigan; and Fort Lauderdale, and Jacksonville, Florida.

The cuts to the TIGER program is aimed at what the budget described as “unauthorized” projects. In January before Trump was inaugurated , DOT had announced that $500 million was available. The TIGER grants were first awarded in 2009.

Among the 2016 grant recipients are San Bernardino County, California., which received $8.6 million for passenger rail service; Mississippi’s 65-mile long Natchez Railway, which received $10 million for rehabilitation and upgrades for five bridges; and Springfield, Illinois, which received $14 million to build two underpasses for proposed high-speed service between St. Louis and Chicago.

Amtrak Favors Gulf Coast Service Restoration

March 4, 2017

Amtrak is in favor of restoration of service along the Gulf Coast east of New Orleans.

destinations-logo2Charles “Wick” Moorman, Amtrak’s president, recently expressed that support in a letter of the Southern Rail Commission.

The letter spoke of Amtrak’s “firm commitment to the Gulf Coast project, and our interest and support for other projects that are underway in (the) region.”

Until August 2005, Amtrak’s Sunset Limited had operated between New Orleans and Orlando, Florida, as part of its transcontinental route.

But the service was suspended in the wake of Hurricane Katrina, which heavily damaged the CSX tracks used by the train and some Amtrak stations.

The tracks have been repaired, but the service has yet to resume.

“We are committed to operating both the long-distance and corridor services on the Gulf Coast route as soon as the necessary funding can be arranged, and the necessary agreements are in place to implement the service,” Moorman wrote.

The Southern Rail Commission is made up of representatives of Louisiana, Mississippi and Alabama. It has formed a Gulf Coast Working Group to come up with a plan to restore daily Amtrak service between New Orleans and Florida.

The group is also seeking to create a second train that would originate in Alabama and terminate in New Orleans. The final report from the working group has yet to be released.

Members of the working group also include representatives of Amtrak, CSX, the Federal Railroad Administration.

In his letter, Moorman said Amtrak also “strongly supports” the Commission’s efforts to launch a Baton Rouge-New Orleans corridor and an extension of a section of the New York-New Orleans Crescent west from Meridian, Miss., to Fort Worth, Texas.

Moorman pledged to “obtain the necessary commitments from host railroads to determine the capital and operating needs of each service in order to advance all of these important projects.” The host railroads would be Kansas City Southern and Union Pacific.

The Fort Worth extension of the Crescent proposal dates to the late 1990s when Amtrak was activity courting mail and express business.

Trains magazine recently reported that an Amtrak study has found that the Fort Worth train would have enough ridership to make it worthwhile.

It is not clear, though, if Amtrak has enough rolling stock to equip all of the services being sought by the Southern Rail Commission.