Posts Tagged ‘Ed Hamberger’

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.”

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.”