Monday,
July 28, 2003
Contact: Leonardo Alcivar
Tel: 202-366-4570
DOT 63-03
Secretary
Mineta Sends Passenger Rail Reform Bill to Congress
U.S.
Transportation Secretary Norman Y. Mineta today submitted to the Congress the
Bush Administration's proposal for fundamental reform of the nation's intercity
passenger rail system, the first comprehensive proposal in thirty years.
The Passenger Rail Investment Reform Act of 2003 builds on the successful
service models used in several areas around the country to provide states and
localities greater flexibility to plan and invest in rail service operations to
create a truly national system.
"Our
nation's current system of intercity passenger rail has failed to deliver on its
promise for American travelers," said Secretary Mineta.
"Business as usual is a recipe for failure.
The Bush Administration is proposing a measured, steady, but certain
course to lasting reform. Our
proposed legislation will yield a more financially stable and effective network
of intercity passenger rail - one that the country can confidently rely
on."
He
added, "I believe that our states and localities, in partnership with the
federal government, are best suited to decide how and when to operate passenger
rail service. As with highways,
transit and aviation, local and regional priorities should govern rail
transportation planning and investment."
The
Administration's proposal would bring investment in intercity passenger rail in
line with all other transportation modes by creating a system in which states
and local communities, using capital investments supported by federal funds,
operate rail service in their areas. Funding
for the President's proposal will be subject to the appropriations process.
The
proposal builds on proven models of success in attracting riders and providing
quality service for travelers, such as the Cascades service between Portland,
Oregon and Seattle, Washington, and other state-funded trains in California and
Illinois.
The
Administration's proposal replaces subsidy payments to the National Railroad
Passenger Corporation (Amtrak) after a transition period, with direct federal
matches for capital investment to be paid directly to the states.
States and multi-state compacts would submit proposals for passenger rail
capital investment and train operations to the U.S. Department of
Transportation. Ultimately, states
would be free to choose the train operations provider of their choice - whether
a private company or a public transit agency.
Under
the Administration's plan, Amtrak would transition over time into three
entities:
*
A private passenger rail company that would operate trains under contract to
states and multi-state compacts - just as the current Amtrak operates trains
under contract to commuter rail agencies;
*
A private rail infrastructure company that would maintain and operate the
infrastructure on the Northeast Corridor under contract to a multi-state
Northeast Corridor Compact. Title
to Amtrak's current tracks, stations and other infrastructure on the Northeast
Corridor will be held by the federal government and leased to the Northeast
Corridor Compact; and
*
The National Passenger Rail Corporation, which would continue as a government
corporation that would retain Amtrak's current right to use the tracks of the
freight railroads, and the Amtrak corporate name. Both the track-access rights and the Amtrak brand would be
provided under contract to states and multi-state compacts for qualifying
passenger rail service they sponsor.
Secretary
Mineta cited the Cascades rail service, developed by the states of Washington
and Oregon, as a model for the support and innovative planning that results when
communities and states take the lead in addressing their needs for passenger
rail service. The two states have
invested some $170 million in developing high-quality passenger rail service
from Portland to Seattle. State
funds have been used to improve track, purchase new trains and upgrade stations.
The states have provided operational subsidies to support the service and
have hired Amtrak to run it. Other
states are exploring the potential of such multi-state coalitions for the
planning of intercity passenger rail service and eventually high-speed rail
service.
Under
the Administration's proposal, the transition plan for the Northeast Corridor
between Washington, D.C. and Boston, Massachusetts - by far Amtrak's busiest
route -would relieve the private passenger rail operations company of the need
to fund capital investment to maintain the Northeast Corridor.
The bill proposes to transfer Amtrak's current property on the corridor
to the federal government, which would fund its significant capital backlog over
a period of several years, leasing the corridor to a Northeast Corridor Compact
composed of the corridor states.
During
a multi-year transition, Amtrak, followed by the newly created passenger rail
service provider company, would hold the contract for train operations on the
corridor. The passenger rail
infrastructure company would hold the contract for corridor maintenance and
upgrades, signaling and switching during this transition.
At the end of the transition, the Northeast Corridor Compact would take
bids from private sector companies and public sector transit agencies for both
contracts, introducing competition and bringing Northeast Corridor passenger
rail financing and investment in line with the new passenger rail model proposed
by the bill.
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