I’m liking the recent hypothetical question threads over the last couple of days so wanted to pose my own:
You are in charge of Amtrak: Politics aside (to help keep Bergie sane), what do you do to keep it alive?
What I’m looking for would be the business strategies you think would keep Amtrak afloat for now and what your long term plans for the railroad would be (ultimately scrapping it would be a proper answer by the guidelines here but I’m really looking for ideas to try to keep it). Please keep this discussion civil and don’t bother responding if all you want to do is bash our current government administrators or Amtrak itself. The politics should be kept to a minimum. For example, if lobbying for increased funding/subsidy would be part of your business plan, that is perfectly okay. If removing the President (or any goverment member) from office is your strategy, it’s not what I’m looking for here. Take it elsewhere please. Also please don’t attack anyone else’s plan. You may offer constructive criticism, but please don’t simply say , “That’ll never happen.” It may never happen but then again what are the chances that anyone’ll put me in charge of Amtrak?
Personally, I see four steps to making Amtrak a better service.
1.) Steamline the system and tear it down to bare bones. I envision running the system more closely to that how Southwest Airlines runs their operations or Greyhound runs. Trains that solely run coach, even on longer trips. Keep enough room to allow patrons to be comfortable but maximize the number of people who can travel on a given train. Observation/snack cars but no dining cars. Allow people to bring coolers that they can easlily acess or allow for slightly longer stops so people can bring their meals on the train.
2.) I’d lobby (probably unsuccessfully) for increased federal subsidy for rail trasportation. If the costs to the Class 1’s decrease so should their charges to me. At least in theo
Do a true market analysis. We’re leaving politics out of the discussion, and it needs to be left out of the analysis as well. We want to find out:
Who is using what services now?
Who would use other services if they were offered?
Is there a market we are not currently serving?
Do a true cost analysis. It’s really easy to skew numbers. This should be as neutral as possible across the country. Again, we need to find:
True costs of the services we provide.
Potential costs of the services we could provide, based on the market survey.
A value comparison between different modes (kind of analagous to the “good will” value of a business name.) Stuff like beautiful scenery enters into this value.
When we’re done, we will (hopefully) have a true picture of what is and what could be, minus political (local, state, and national) influences.
Assuming the conclusions we reach don’t consist of closing down the system, we now develop a business case for the national network. We also deal with the “but we want this route included” faction, although our research should help them decide how badly they want the route, especially if our (hopefully) unbiased research shows it to be a non-starter.
Now that we have a neutral picture of the services that should exist, and the costs involved (we can probably assume we’ll never actually make money), we can make the case for appropriate funding. Unfortunately, now politics enters the fray.
Assuming the funding comes through, we need to get decent management in place, and let them run the company, without interference from meddling politicians.
Larry,
Some interesting stuff I hadn’t factored in. The scenery factor, for example, played a large part in my first Amtrak trip because my mom wanted me to be able to see as much of America as possible but she didn’t want to drive. We were travelling fom Indianapolis to Seattle, so I got to see a lot and she got to rest rather than drive the whole way. I’ll never forget waking up in ND to field upon field of sunflowers and coming out of the Moffat tunnel and seeing Denver at night all lit up and sprawled out in front of us. It is a priceless memory I couldn’t have gotten on an airplane.
Also, I agree with the “but we want this route” thoughts. It would be a lot easier to make budgetary decisions based on their performances without the local politicians involved in every step.
Grow revenues. Amtrak’s cost structure is very rigid and will take a lot of effort to shrink so growing revenue is the only short term alternative. I like tree68’s idea of a true market study - but I would extend it to potential markets as well.
Increase the focus on equipment productivity. How many $/mile (or miles/$) is each class of equipment generating? What is the reliability of each class of equipment? How can I turn the equipment on the RIP tracks into revenue generators?
Strengthen public relations to develop a stronger constituency. I would focus more on mayors, governors and state legislators – grass roots suuport communicates well to the Feds.
Leverage Amtrak’s expertise in commuter rail operations to provide fee-based planning and support of new commuter rail services.
I especially like #3 and #4. To go along with #3 I think a commitment to on time service would help in the public view of Amtrak as well. I know that is easier said than done but I think it’d go a long way to help create a reliable base of riders and on time service is never bad for PR.
Goes back to the market analysis - and shows just how broad it could be. It definitely calls for a lot of out-of-the-box thinking.
As for Auto Train - ever been up the Northway (in NYS). Ever notice that many of the signs are also in French? Try this concept (I’m not pitching it - but it’s the type of thing that needs to be considered): How about seasonal service for snowbirds? Load up way up north (at the border, or maybe Albany) and unload at Sanford, and vice versa in the spring. Lease some AutoMaxs short-term. There might only be a half dozen trips each way, each year, but…
Impose a $155.75 per shipping container import duty on all incoming freight from overseas, spend $100 of that on Antrak subsidies, $50 of that towards retraining american factory workers displaced by out sourcing, and put the remaining $5.75 per each in my favorite charity…the AntiGates retirement fund.
I have said this before, but for the benefit of those seeing this subject for the first time here, I will repeat: The only way Amtrak can survive is to be a partnership between the big six railroads (KCS has no Amtrak trains) and the Government. The big six, BNSF,CN,CP,CSX,NS and UP no longer “need” the protection from passenger losses they and their predecessors (ancestors if you prefer) needed in 1971. The smaller carriers in Amtrak; Clarendon & Pittsford, Guilford,New England Central, Vermont Railway and others, likely will not be able to absorb the same fiscal responsibilty as the big six. For them, and other smaller lines over which Amtrak operates, having a stake in Amtrak would be wholly voluntary. The big six should be required to "invest " in Amtrak. The funds would derive from all federal taxes and fees the big six would pay to Washington, rather than passing into “general funds”, which we all know is [censored].
Amtrak is stuck with the service levels and routes it has. Just do the job and do it well. Run the trains on time. Make sure they’re clean. Make sure that service meets demand. Come down hard on people and companies who play games.
That said, if I were faced with serious losses, I’d eliminate all service to and from Chicago. This would eliminate most of the long haul trains, which are the money losers.
The keys are simple… same as any business: Bring in new customers, then make them want to come back. First identify who your competitors are: In this case it’s airlines and the automobile. Identify what your advantages are over your competitors, then advertise those advantages in forms and publications your potential cutomers are likely to see, and at prices that are competitive. Study which lines are not being used and what could make them get used. If nothing would work, look at dropping them. What lines are the most profitable, what could be done to maximize that profit? Which lines don’t you currently have that customers want in numbers large enough to make it profitable?
Once you have the cutomers trying your service, you need to have a level of service that will make the customers believe they got their money’s worth and will keep them coming back. Customer service is a big issue. Friendly interaction with your cutomers is a must. Clean trains are also important. And perhaps most importantly, the trains have to run on time. Amtrak must work with the host railroads to get it’s trains through faster.
More government money is always good, and you shouldn’t stop going after that. But that could become less important if you’re putting a product out there that people want to use. That’s what running a business is all about.
PB-
Wow, interesting thinking indeed. If you make the big six responsible in a way for Amtrak it would definitely force some changes. I think delays caused by priority freight would go away altogether, seeing as if the passenger service was delayed the freight railroads would have to take the hit for lost revenue. Interesting.
Larry-
I was thinking the same things about the snowbirds. There are enough of them in my neck of Chicago alone to fill an entire train bound for Florida.
AG-
I don’t know about that Anti-Gates retirement fund.[:D] Sounds like a front to me…
In the same way zombies are alive? As it is, I wonder how one could avoid politics when speaking of Amtrak. It’s an entity that was created by politicians to address a political problem. Why otherwise does it exist? The politician’s lip service was that something was needed to serve aviophobes, diversify the transportation network, serve grannies in small towns, and could still earn a profit (someday). I doubt that few people, especially on Wall Street, ever believed that.
I take it you mean reform Amtrak into a viable corporation. If politicians really wanted to provide the first 3 goals they could do it by selling off Amtrak’s assets and provide operating subsidies or tax credits.
Establish local service to and from each of the capital cities in each of the 48 states. Provide for at least a 100 mile radius service for commuters at a good daily rate.
The NEC needs to be duplicated asap between partner cities or regions that support high speed rail. One area might be Little Rock/Memphis/Nashville etc.
Buy up the rails to trails and examine the ROW’s for potential rehabilitation for improved service.
Build dedicated high speed trackage free from lumbering freight trains.
Elevate trackage to european standards to preserve farmland and eliminate grade crossing accidents.
Add trains and increase sleeper service between cities 300 miles apart. Run them as dedicated trains while preserving the true long distance trains with higher level service.
Train, equipt and pay the staff good wages for the service they provide to the passengers. Hold them to standards that are expected of aircrew. Make good service availible similar to the old “Pullman” of days gone by.
Remove Chicago as the one area all trains must travel. For example If I wanted to travel to DC from Little Rock by rail; a day to chicago and then a second day to DC does not cut it at coach fare. no way.
Get the durn thing expanded, upgraded and improved outside in the USA. Dont sit there in the board room. Make it work and eat the initial costs. Everyone has been saying it’s dead, dying or near dead these last 30 years. So, prove em wrong. Find the capital, discharge the patient from the nursing home and start proving the naysayers wrong or go home.
Finally, get highspeed rail into the rest of the USA. Make it fast enough to outrun airlines in regional service. Currently I can get from Little Rock to Baltimore very very fast for a few hundred dollars by air. Not 2 days via chicago and twice the rate for one way.
I recognize that there are immense barriers from property owners and zoning in the east, but out west,
Establish local service to and from each of the capital cities in each of the 48 states. Provide for at least a 100 mile radius service for commuters at a good daily rate.
The NEC needs to be duplicated asap between partner cities or regions that support high speed rail. One area might be Little Rock/Memphis/Nashville etc.
Buy up the rails to trails and examine the ROW’s for potential rehabilitation for improved service.
Build dedicated high speed trackage free from lumbering freight trains.
Elevate trackage to european standards to preserve farmland and eliminate grade crossing accidents.
Add trains and increase sleeper service between cities 300 miles apart. Run them as dedicated trains while preserving the true long distance trains with higher level service.
Train, equipt and pay the staff good wages for the service they provide to the passengers. Hold them to standards that are expected of aircrew. Make good service availible similar to the old “Pullman” of days gone by.
Remove Chicago as the one area all trains must travel. For example If I wanted to travel to DC from Little Rock by rail; a day to chicago and then a second day to DC does not cut it at coach fare. no way.
Get the durn thing expanded, upgraded and improved outside in the USA. Dont sit there in the board room. Make it work and eat the initial costs. Everyone has been saying it’s dead, dying or near dead these last 30 years. So, prove em wrong. Find the capital, discharge the patient from the nursing home and start proving the naysayers wrong or go home.
Finally, get highspeed rail into the rest of the USA. Make it fast enough to outrun airlines in regional service. Currently I can get from Little Rock to Baltimore very very fast for a few hundred dollars by air. Not 2 days via chicago and twice the rate for one way.