Off the rails on Amtrak’s crazy train

OP-ED | John E. Sununu

September 05, 2011|By John E. Sununu

An Amtrak train sits derailed in rural Nebraska on Aug. 26. (AP Photo/Bill Coe via McCook…)

OZZY OSBOURNE never rode the Zephyr, but he did popularize the notion of a crazy train. So he sprang to mind two weeks ago when Amtrak’s San Francisco-Chicago special derailed in rural Nebraska. Along with a dozen other long-distance routes, the Zephyr has been losing money hand over fist since 1970, when the government-owned passenger rail system was created. Insanity, we are told, is doing the same thing over and over again, and expecting a different result.

Amid a budget crisis and the US debt downgrade, the Congressional Special Deficit Committee is looking for $1.5 trillion in budget savings over the next 10 years. There’s no better place to start than long-distance train routes, which lose more money today than ever - despite years of endless promises, watered-down reforms, and rosy predictions. These routes represent the triumph of politics over common sense - the very attitude that must be overcome to restore some semblance of order to the federal budget.

Fortunately, there were no reports of serious injury among the 175 passengers aboard the Zephyr, but the cleanup costs will be substantial. The really bad news is that with the Zephyr’s per-passenger subsidy averaging over $200, taxpayers were out nearly $40,000 before the train even left the station. With Amtrak losing over $400 on a round trip, it would be cheaper just to give every rider a free airplane ticket!

Billed as “one of the most beautiful trips in North America,’’ patrons are encouraged to reserve a sleeper car “for a more luxurious experience.’’ That particular experience costs taxpayers another $214 each way. The good news: passengers usually enjoy the luxury for an extra 2 ½ hours - the average amount of time the train runs late. These numbers bring a new dimension to an old joke - “we lose money on every ticket, but we make it up in volume.’’

In 2010, Amtrak received $563 million in operating subsidies, plus $1 billion to cover capital investment and interest expense. This came on top of $1.3 billion in grants from the stimulus package. Total payments since 1971 exceed $40 billion. The long-distance routes were unprofitable then, and 40 years later, the efficiencies of air travel have rendered them economically obsolete. Fully 80 percent of the company’s losses come from just 15 percent of the riders - those using long-distance trains.