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Home >  Short Publications >  The Little Engine That Couldn't
The Little Engine That Couldn't
Print Mail
By Joseph Vranich
Posted: Tuesday, August 30, 2005
ARTICLES
Wall Street Journal  
Publication Date: August 30, 2005

Children's literature is full of bad-tempered railway engines that get overheated, blow their tops and make angry whooshing sounds--only to get their comeuppance in the end. Amtrak President David Gunn just did his best imitation of a huffy little engine, lashing out at Transportation Secretary Norman Mineta for saying that the railroad should become more efficient.

All Mr. Mineta did was agree with a report by his independent inspector-general, who found Amtrak could save $1.2 billion in operating and capital spending over five years by eliminating costly sleeping cars and modifying food and beverage service. The splenetic Mr. Gunn said such comments "may make sense to someone who knows nothing about railroads" and suggested it's difficult to take the "irrational" Mr. Mineta seriously. He further belittled the DOT by adding, "Next thing they'll want to take toilets off and save money that way."

What the DOT actually said was that food for passengers is necessary but should be provided without federal subsidies. It urged Amtrak to sell food from carts (as on Europe's trains), outsource or have long-distance passengers buy meals during stops. The GAO found that for every dollar Amtrak earns on food-and-bev, it spends $2. That's just the tip of the iceberg: Don't forget that Amtrak designed faulty Acela Express trains, is virtually bankrupt, and is lightly used in most of the U.S. as 50% of passengers ride on just 10% of the system.

Unfortunately, Congress may soon approve another Amtrak bailout with the House willing to appropriate $1.2 billion and the Senate $1.45 billion for next year. Doing so will cave in to the rhetoric of contrived panic offered by Mr. Gunn, who has said that without more funding, he'd have no choice but to "cease operations nationwide." We hear this whenever Amtrak subsidies have been threatened, and each time Congress has bought into the myth that we need a national rail passenger system.

Amtrak's waste of $27 billion in subsidies thus far calls for ruthless remedies. It's time to eliminate long-distance trains, except for a few better-used "corridor" segments. Let's discontinue market-irrelevant routes and open remaining lines to competitive bidding. Mr. Gunn's contemptuous blast at Mr. Mineta demonstrates that true Amtrak reform is a delusion. It cannot turn itself around any more than its trains can.

Joseph Vranich is the author of End of the Line (AEI Press).

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