Congress and Amtrak
The perils of fast-tracking
The Economist
Dec. 10, 2014
"LIKE Plato's early dialogues inquiring into the meaning of justice or piety, Monday’s oral argument at the Supreme Court ended with no clear answer to the central question: what, exactly, is Amtrak? In the case of Department of Transportation v. Association of American Railroads, for which oral arguments were heard on December 8th, the justices grappled with whether the nationwide passenger train service is or isn't part of the government, and whether it unconstitutionally steps on the toes of other train companies.
Amtrak, it appears, is an inscrutably indeterminate entity. But some facts are clear. With the rise of the automobile and commercial aviation in the 20th century, passenger rail service took a huge hit; by the late 1960s the Pullman Company and the Penn Central, two big railroad companies, were headed for bankruptcy. In 1970, the federal government stepped in to save America’s moribund rail service from extinction, creating Amtrak under the Rail Passenger Service Act (RPSA). The company was an unusual public-private hybrid from its inception: a for-profit entity that has received billions in federal subsidies (starting with an initial grant of $40m) and whose board is appointed by the president. In 2008 Congress reauthorised Amtrak and tasked it with working with “the US Department of Transportation (US DOT), Federal Railroad Administration (FRA), states, and other stakeholders in improving service, operations, and facilities." This means that for the past six years, Amtrak has established standards for itself and for freight railroad companies rolling on their own tracks. In order to improve on-time rates and reduce delays, it has often given priority to passenger trains over freight trains.
It’s no wonder this did not go over well. Like the Biblical Joseph’s gift of the technicolour dreamcoat from his father, Amtrak’s favourite-son status rankled the Association of American Railroads (AAR). In its brief, the AAR calls the 2008 law "unprecedented and untenable". The preferential status enjoyed by “Amtrak trains limit[s] the host railroad’s ability to move freight. Thus, while Amtrak and the freight railroads do not compete for customers, they do compete for a limited resource: capacity, or the ability to operate trains within the limited slots available on a rail line.” Since passenger trains run faster than their freight-hauling cousins, the latter are often forced to pull over to let the Amtrak cars whiz by, literally fast-tracking Amtrak’s trains..."
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