News & Reviews News Wire New York tunnel needs, Amtrak break-even claims questioned in hearing NEWSWIRE

New York tunnel needs, Amtrak break-even claims questioned in hearing NEWSWIRE

By Angela Cotey | March 5, 2020

| Last updated on November 3, 2020

House subcommittee session addresses upcoming surface transportation reauthorization

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WASHINGTON — Witnesses told a U.S. House of Representatives hearing Wednesday that investment in America’s rail infrastructure needs to be sharply increased.

Six witnesses addressed the House Railroads, Pipelines, and Hazardous Materials Subcommittee hearing titled, “Funding a Robust Freight and Passenger Rail Network,” addressing the upcoming surface transportation reauthorization. Video of the nearly 2½-hour hearing presided over by Chairman Dan Lipinski (D—Ill.) and links to written testimony of the participants are available here.

New York-area representatives pressed NJ Transit CEO Kevin Corbett and Amtrak’s Stephen Gardner, senior executive vice president and chief operating and commercial officer, on U.S. Transportation Secretary Elaine Chao’s contention that Amtrak could simply make repairs to its century-old North River tunnels between New Jersey and New York, rather than build new ones.

Gardner sidestepped direct criticism of Chao’s viewpoint until Rep Tom Malinowski (D-NJ) pressed for explanations why her plan wouldn’t work.

In addition to replacing and modernizing the 12,000-volt cables needed to be encased in concrete, Gardner said, “We have to be able to excavate the current track structure, repair the drainage underneath, and inspect the tunnel lining — which hasn’t been looked at, frankly, in 109 years. To do that during a four-hour slot in the evening or on a 55-hour weekend outage scenario could present incredible difficulty … which is why we have always proposed to do a full rehabilitation of the tunnels once new tunnels are in place, allowing us to maintain all of New Jersey Transit and Amtrak service.”

Gardner came under fire from other lawmakers during other questioning:

— Rep. Scott Perry (R-Pa.) from the Harrisburg area disputed Amtrak’s claim it is close to breaking even on operations, “asserting that $235 million in state payments were subsidies, not passenger revenue, and citing net revenue figures that fail to account for $870 million in depreciation in 2019. “This represents a loss of over a billion dollars,” Perry said.

“Those payments are very transparent,” Gardner insisted, and defended depreciation “as a cost primarily associated with our vast Northeast Corridor infrastructure funded by the federal government.” This essentially admitted that the full costs of running trains on the Northeast Corridor don’t enter into the rosy profit-loss equation Amtrak presents.     

— Rep Stephen Lynch (D-Mass.), a former iron worker and organized labor official, sympathized with witness Rob Shanahan, the assistant to the president of the Teamsters’ Brotherhood of Maintenance of Way Employees Division, who said Amtrak is using non-union contractors to perform safety protection at a Chicago worksite.

“It shakes my confidence in Amtrak … With all the challenges we have,” Lynch asked, “do you really want to pick that fight to try to save a couple of bucks by bringing in workers who don’t have ongoing regular training on rail systems? As an iron worker, it’s a very different environment when you’re working on a live transportation system.”

— Rep Steve Cohen (D-Tenn.) said his office still hadn’t received survey data that justified food service downgrades on eastern trains. CEO Richard Anderson promised the information at a November hearing. When asked whether full dining car service would return under newly selected CEO William Flynn, Gardner noted the new chief executive would start on April 15.

“We have a variety of different services, and that requires us to experiment and try new ways to meet the requirements and needs of our traveling public,” said Gardner, who assured Cohen, “We will continue to experiment to find the right mix, the right balance. For sure we know passengers expect a much broader set of food options — healthier choices than the historic railroad menu that had been offered. We also know people prefer a variety of different environments to eat in; it’s become quite clear that many people prefer to be served in their own rooms or to be able to use the dining car in a more flexible way.”

Gardner told Cohen he would have the survey information by the end of this week.

“All I’ve heard from the public is that they don’t like the food; it’s premade, put into a microwave,” Cohen said, adding, “Millennials may like to look at their phones, but they don’t like bad food either … you need to put that back and attract more customers.”  

24 thoughts on “New York tunnel needs, Amtrak break-even claims questioned in hearing NEWSWIRE

  1. Remember in all these money debates that the U.S. Government will spend 7 billion dollars just on Coca-Cola for poor people this year.

  2. Instead of eliminating these trains that don’t create hundreds of passengers, I suggest they invest in those economical, single-unit motorized rail cars, instead of using the usual locomotive and two and three coach train-set. It would require much less maintenance, and possibly a one-man crew – like the old fashioned street car. Indiana lost a very useful Chicago to Indy train, because the two car train-sets were simply too expensive. If Amtrak is only going to serve long-range routes, they certainly won’t be looking at serious longevity.

  3. Not only do federal fees on road gasoline and diesel need to be raised from 18 and 24 CENTS per gallon, a few cents a gallon on off-road locomotive diesel (and electric) wouldn’t hurt to get many projects that both freight and passenger rail need.

  4. “For sure we know passengers expect a much broader set of food options — healthier choices than the historic railroad menu that had been offered. We also know people prefer a variety of different environments to eat in; it’s become quite clear that many people prefer to be served in their own rooms or to be able to use the dining car in a more flexible way.”

    B-a-l-o-n-e-y! What Gardner “knows” is a bunch of hooey. Eating on a train, passengers just want good, hot meals, regionalized where possible. They want to sit at a table set with real china and silverware and converse with friends and strangers. The only people who benefit from room service are disabled persons and work-a-holics. If I want “healthier choices” and a “variety of different environments to eat in”, I’ll go to a local health food establishment. On the train I want a freshly prepared steak, fish, or other meat dish with sides and a drink and an option for dessert.

    Amtrak’s Gardner seems to want to serve us generic plastic food on plastic plates with a plastic bag lined cardboard box to discard our trash in. Yech!

  5. STEVE FOSTER – You hit the nail on the head when in your comment about Lynch’s complaint about Amtrak work rules. I’ve been on countless construction sites over my careers. What you learn is that there are all different trades out there and all different skill levels. If the track welder needs to be certified, the assistant carrying the material or the tool bucket doesn’t need to be. If the signal maintainer needs to be a union electrician, the flagger does not.

    Yesterday I saw two M/W sites in Chicago (one Metra, the other Union Pacific), each with about twenty men (maybe women, couldn’t tell). If they were all doing the same thing there wouldn’t need to be that many.

    In any event, Lynch was off topic, which muddles any discussion and is one reason why the tunnels aren’t getting built.

  6. Rep. Perry is the only one of the 3 quoted who really contributed anything new. Lynch was all about protecting unions and their work rules. Cohen was trying to get full service dining restored no matter how big a loss it generates. It you do have to offer food on runs of 8 hours or less Subway or similar is the way to go. For runs 4 hours or less vending machines offering drinks and snacks would be the way to go if you have to have something.

  7. Mister Shoemaker (and other so-called gentlemen in this forum):

    It is time to call a spade a spade. Actually, it is time to call it a (censored) shovel.

    Our Lords and Masters are trying to kill Amtrak, except for the Northeast Corridor, and they will not take “NO” for an answer. To do this they have brought back the Damntrak of the days of yore. What their motivation is for this, whether it is is at the behest of their friends in the aviation industry, the direction of administration officials and/or bureaucrats, cozying up with the freight railroads, or an innate hatred of the flanged wheel I cannot say. But the evidence is clear, there would be dancing in the streets if only they could consign passenger rail to the dustbin of history.

    The latest weapon is the food. Make the food unpalatable and/or inedible and people will not ride the rails. After all, ya gotta eat.

    If you are dead-set intent on taking the train, there are a couple of things you can do, at least until they implement the next outrage. You can bring on board a bag full of MREs and bottled water, and eat them in your compartment. Or, you can call restaurants along the way and arrange to have food delivered to the train when it comes through (I have done this last). This might work for a while, until Amtrak upper management catches on and forbids outside food and drink – which I would expect them eventually to do.

    Not to give them any ideas, but one thing they could do to discourage ridership is to not provide bedding. You would then have to bring your own sheets and blankets. They could sell it as a cost-cutting measure, after all it costs money to put that stuff through the laundry, not to mention person-hours to strip and make up the beds, etc. etc. I could think of other outrages, but best to not give them pointers in how to alienate customers.

    There is one thing clearly to be kept in mind here. Amtrak is not about providing passenger rail service. It is owned by the US Federal government and is therefore a political entity. As such it is not answerable to the people it serves, it is answerable to the administration, and to those who influence the administration – which is not such as you and I. It will do their bidding – not ours. If ordered to self-destruct, it will do so, and apparently it has, except as mentioned above with the Northeast Corridor, been so ordered.

    I wish I could remember the source of the following quote: “The government is the government because it serves the ends of the people in power. Any time it fails to serve those ends it will be replaced.”.

    The above comments are generic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Now playing, “REDSHIRTS”, starring Kenny Dyes and Willie Makit.

  8. I concur with Galen Riley. The Northeast Corridor Railway Development Corporation (NERDC) would be patterned after the Saint Lawrence Seaway Development Corporation (SLSDC), a wholly owned corporation of the United States and overseen by the USDOT. DOT already owns the NEC physical plant. The NERDC would be incorporated to operate and maintain the rail infrastructure. Its mission would be to serve Amtrak, the freight railroads, and the regional rail commuter authorities by improving the operation and maintenance of a safe, reliable, efficient, and environmentally responsible rail infrastructure.

  9. Some years ago an attempt was made to allow Subway to handle food service on NYC-Albany trains. The unions had a melt down and it was killed. IMO they should look at en route caterers to deliver food to LD trains. Sleeping car passengers could order meals ( some airlines do this now with their flights) when they make their reservations. Coach passengers could also do the same but pay for their meals in advance. No refund on meals if reservation is cancelled after a specific time. Passengers not selecting meals with their reservations or last minute reservations could purchase meals on the train at a higher price with the disclaimer that meals may or may not be available based on demand. At Siem Reap, Cambodia, I managed to switch to an earlier flight to Bangkok. The agent said I would not get a meal and stamped on my boarding pass no meal. I got served one anyway. My thought is they had enough extra meals to serve me. Some airlines do have good ideas and service. Food service on the trains needs to change.

  10. Anna – There are no real alternate routes. There are alternate tunnels, used by PATH trains, so Amtrak to Newark, change to PATH to Manhattan is possible, but impossible logistically on a large scale. Keep in mind NJ Transit sends more passengers through those Hudson tunnels than Amtrak, and both entities depend on Sunnyside Yard, through Penn Station to another set of tunnels to Long Island, for cleaning, servicing, maintenance, turning, etc.

  11. They need to take the NEC away from Amtrak control and put it under the FRA or DOT then Amtrak & all the other users can be charged accordingly. They also need to eliminate the exemption the NE states were granted under PRIIA or eliminate the PRIIA requirement totally. As for food service why do they even need it on the NEC trains most riders will only be on it for 1-3 hrs grab your breakfast sandwich & latte before you get on and eliminate the at seat food service on the Acela. Riders on these trains aren’t interested in amenities they just want make their short commute from point A to B. These NEC trains are far more subsidized than the LD trains which was admitted by Mr Boardman at his departure and would be confirmed were it not for Amtrak’s voodoo slight of hand acctg methods.

  12. Anna, The SP sent whole trains across the Mississippi Until the Huey Long bridge was built in the late 30s. Can’t wait to see the Acela do the same for the Hudson. (Of course one needs a pretty large barge and several track yard at each end, but it would be quicker to do than build new tunnels.)

  13. ANNA – Tunnels are into Penn Station. From there going east, tunnels to Long Island Ciy Queensborough (mostly used by Long Island RR) and from there over Hell Gate Bridge and north toward New Haven and Boston.

  14. As far as the tunnels, a lot of people think it’s just a “regional” problem. If there’s some sort of calamity that shuts down a tunnel south of Baltimore or one of the tubes into NYP, we’ll see how much of a regional problem it is. All of those tunnels need replacement and then perhaps the old ones can serve as a backup. Otherwise Acela 2’s will be worthless.

    On the subject of meals, I have never been able to get an attendant to serve a meal in my room in the history of Amtrak. Excuses ranged from “you’re not handicapped” to “the diner crews are too busy” to “not my job.”

    And finally, while not mentioned here, conductors moving/threatening passengers has always been a problem in my travels. For some reason they can’t stand to see a person sit by themselves. I once bought two tickets in BC (business class) only to be told to “get a refund at the station” while forcing me to sit with another person, because they had a group coming on soon as him and the attendant needed the seats. Then he said he had to search my luggage because I acted nervous. I’m still waiting for the alleged group years later.

  15. These are the tunnels going into Hudson Yards, no? I’m navigating from Google Earth. There are a couple of transit tunnels downriver from there, but nothing – and I mean nothing – to the north.

    My prediction is that nothing will happen except more dither until one or both of the tunnels is taken out of service, basically because it (or they) cannot continue to be used. At this point the fewmets will undergo an inelastic collision with the rotary air displacement apparatus, a great drive to build new tunnels and/or refurbish the existing ones will materialize, and all of this at immense cost.

    Meanwhile service – if that is the word – across the Hudson will be by car float. This tells me where I should put my money.

    But it doesn’t have to come out this way.

    The above comments are generic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. Torpedo juice consists of three parts pineapple juice and two parts ethyl alcohol.

  16. If you go across the Hudson on Amtrak you go through one of these tunnels.

    Let us assume that the dithering continues until the tunnels have to be shut down. No more tunnels.

    What are the alternate routes? ARE there alternate routes?

    The above comments are generic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Marge is the head vampire.

  17. New York needs to take ownership of its lousy government. City and State both. There’s no use negotiating either with Cuomo or DeBlasio. Both are vermin.

    If New York wants its tunnel then it needs to clean up its act first.

  18. Alternate routes are the PATH trains from Newark and Hoboken to both uptown and downtown NY City. This route is actually a couple of years older than the Amtrak (ex-PRR) tubes to Penn Station.

    NY Waterway has resumed ferry service and is operating from NJT Hoboken Terminal to three sites in Manhattan.

  19. What if foamers realized the reality of politics? Instead of cheering on the political forces to attack Trump, dismissing his ability to strangulate any dream for federal funding of the tunnels, what if the political forces figured out how they could work together to achieve goals?

    Instead of accepting foamers smugness to push their vision of tables and chairs, imagine instead if knowledgeable people could offer a realistic perspective to seriously resolve the issue. Hyping how much smarter they think they are over everybody body else will inevitably hurt the overall position of advocacy; dissipate the active interest of real advocates.

  20. Millennials like food trucks.
    Put a couple on a flat car in the middle of the consist with a few tables and chairs.

  21. Rep. Scott Perry R-Penna exposed Amtrak’s Big Lie. If a lie is big enough and told often enough, people will believe it. I never did.

    Every few days we have people posting on this site that Amtrak’s accounting system wouldn’t be acceptable from any other corporation. Well, it isn’t acceptable. It’s pure bilge water. Name any other corporation, take your pick. If it used an accounting system like Amtrak’s, it would be shut down.

    Ironic that a government that over – criminalizes bad corporate accounting is the sponsor of a railroad that has dodgier bookkeeping than anyone else. Years ago I had a close friend who was an accountant for one of the biggest corporations in America. She was wary about being caught in an innocent mistake. Wonder what she’d have to say about Amtrak’s financial reporting.

    Oh, BTW, re-reading the article above, Rep. Perry exposed not one but two Big Lies in Amtrak’s accounting. It’s a good thing Amtrak doesn’t float stock offerings. If it did the SEC would have shut Amtrak down 49 years ago.

    Now I’m going to make myself unpopular among certain of you. Some of you who are passenger train advocates look past Amtrak’s two Big Lies to believe that Amtrak is doing better than it actually is doing. Sorry, folks. Passenger train advocates (I am one) must start with the truth and go from there.

  22. Even with full dining car service, people have ALWAYS had the opportunity to partake meals in their rooms. All they needed to do was ask their car attendant. I believe this service was also available for coach passengers. Why AMTRAK management offers this reason for modifying meal service is ridiculous. It’s only to reduce costs and discourage people from riding the LD trains.

  23. I posted this once before.

    Franchise your food car options. Have a Panera food car or a Waffle House food car, etc.

    Have Amtrak reduced to simply an infrastructure, safety & traffic management entity. Provide a base fee for operators to pay based on mileage and track type (electric or diesel).

    Put route time slots up for bid and let them (operators) cover their own trainset costs in their fares. Airlines lease airplanes all the time. Let them lease those Alstom units instead of having the taxpayers having to swallow all that R&D themselves.

    Essentially get the government out of the operator business and let them stick to what they are good at. Infrastructure funding, setting standards with safety and traffic control.

    You want a cheap redeye from CUS to Penn Station? Take the Allegiant Air or Frontier of trainsets. ( a seat and a head) You want a high speed express instead? take an operator who uses the Alstom HSR trainsets. Amenties abound depend on the price of your seat and which car it places you.

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