While Amtrak throws itself a party, some taxpayers are wondering what there is to celebrate
On Saturday, May 7, Amtrak is throwing its own 40th birthday celebration. Amtrak is a public-private partnership formed in 1971 during the Nixon administration as a bailout to big Railroad and their associated labor unions. Amtrak has never been profitable and requires huge infusions of taxpayer dollars to continue operations. In 2009, it gobbled up $1.3 billion in stimulus funds and $1.5 billion in federal appropriations, and they still managed to come up $1.2 billion short. In 2009, it paid $285 million just in interest payments on its debt!
The only track Amtrak owns is 363 miles of the Northeast Corridor that services Boston to DC. It must lease access on other tracks nationwide which negatively impacts freight schedules.
Amtrak’s founding mission was to provide inter-city passenger service. Last year however, private bus service moved more than double the amount of people than Amtrak that taxpayers subsidize $1.5 Billion a year. Private bus service offers passengers fares as low as $10 each way from Orlando to Tampa that includes free WiFi and large, reclining leather seats, free parking and requires zero taxpayer subsidies.
Rail advocates cite that Amtrak is “greener” than other mass transit alternatives. The dirty little secret is that intercity rail service averages 179 CO2 g/passenger mile compared to 56 CO2 g/passenger mile for motor coach service.
While Amtrak proponents want us to “eat cake”, Amtrak realists would prefer Amtrak not add any further candles to its cake. Sell off the Northeast Corridor to the highest bidder and let private companies compete for intercity travel elsewhere. It’s time to fold up shop and let free enterprise flourish in its place.
