Amtrak Crossing: Watch Out for the Subsidies

Flush with cash” from the 2021 infrastructure bill, says the Wall Street Journal, Amtrak hopes to “double ridership by 2040.” That’s an ambitious goal, and yet one that is totally insignificant.

Amtrak’s logo looks like a pointless arrow, but the real point is to spend lots of money.

Amtrak carried 5.1 billion passenger-miles in 2022. Divide that among the 332 million Americans and Amtrak carried the average American 15 miles. That compares with 16,000 miles of per capita travel by automobile and more than 2,100 miles by domestic airline. The Census Bureau expects the nation’s population to rise to 373 million by 2040, so even if Amtrak could double ridership, which is unlikely, per-capita intercity rail travel would grow to only about 27 miles per year. In other words, Amtrak will still be irrelevant to most Americans. Continue reading

Brightline Kills Again

As one of the comments to last week’s post noted, a Brightline train killed a pedestrian on the first day of service to Orlando. To be fair, the train that was involved in the accident wasn’t going to Orlando and the accident took place on the old part of the rail line, not the newly built line from Cocoa to Orlando.

But why should we be fair? Brightline has killed around 70 people so far, including 28 in Palm Beach County alone. I don’t have exact month-by-month data, but my sense is that the fatality rate has not been declining. The company says it plans to use government funds to make its line safer, but why should taxpayers have to pay for a supposedly private rail operation? Continue reading

Brightline Begins

Brightline will begin killing people carrying passengers between Miami and Orlando today. I hope the new line will be safe, but Brightline trains began killing people even before they went into revenue service and again when they resumed service after the pandemic. Brightline says it is willing to spend $45 million making its route safer for pedestrians and auto drivers — on the condition that taxpayers put up $35 million of it (so much for it being unsubsidized).

I’ve previously predicted that Brightline’s Miami-Orlando line is quite possibly the only higher-than-normal-speed passenger train route in American that could earn a profit. That’s because the route connects Orlando theme parks with the three busiest cruise ship ports in the United States: Miami, Fort Lauderdale, and Port Canaveral. Together, they saw 11.9 million cruise ship passengers last year, which is about 15 percent less than before the pandemic, but still quite a lot. If only 40 percent of those passengers take a round-trip to Orlando on Brightline, the line would carry more passengers than Amtrak’s Northeast Corridor carried in 2022. Continue reading

Amtrak Carried 86% of Pre-Pandemic PM in May

Amtrak carried 492 million passenger-miles in May 2023, which was just 86.4 percent of the 569 million passenger-miles it carried in the same month of 2019, according to Amtrak’s latest monthly performance report. Considering that Amtrak’s April passenger-miles were nearly 91 percent as many in 2023 as 2019, this is a disappointing result. Since Amtrak ridership usually usually picks up in May due to increased vacationers, this suggests that Americans aren’t enthusiastic about riding trains for discretionary travel in a post-COVID world.

For detailed comments on transit and highways, see my July 12 post.

All three types of Amtrak trains underperformed in May, with Northeast Corridor trains carrying less than 88 percent of pre-pandemic riders, long-distance trains carrying 85 percent, and state-supported day trains carrying less than 81 percent. It is worth noting that Amtrak is putting most of the money it received for expansion in the infrastructure bill into state-supported trains even though they are the worst-performing part of its network. Amtrak’s reasoning is that Congress gave it money for capital improvements but not operating costs, so it will need to persuade the states to pay for operating costs of any new routes or increased frequencies. Continue reading

Amtrak Carried 91% of Pre-Pandemic PM in April

Amtrak carried 90.9 percent as many passenger-miles in April 2023 as in the same month in 2019, according to the company’s monthly performance report posted yesterday. This was only the second time Amtrak exceeded 90 percent since the pandemic began.

April ridership was strongest in the Northeast Corridor, where Amtrak carried 93.9 percent as many riders as in the same month of 2019. Long-distance trains were next at 88.9 percent. State-supported trains were weakest at 84.5 percent. Continue reading

Amtrak Carries 87% of Pre-Pandemic Pass-Miles

Amtrak carried 87.0 percent as many passenger-miles in January 2023 as in January 2019, according to the state-owned company’s monthly performance report released earlier this week. That’s up from December’s 80 percent but down from November’s 91 percent.

Amtrak ridership seems to be bouncing around between 80 and 90 percent of pre-pandemic levels.

Amtrak’s January ticket revenues were only 83 percent of January 2019, but its basic operating expenses were 122 percent of 2019’s. As a result, its net losses were 52 percent greater in January 2023 than the same month in 2019. Continue reading

Amtrak November PM 91% of November 2019

Amtrak carried 90.8 percent as many passenger-miles in November 2022 as it did in November 2019, according to the monthly performance report released by the company last week. This is the first time since the pandemic that it has exceeded 90 percent of pre-pandemic numbers.

Amtrak remains behind air travel, which first breached 90 percent in April 2021. Yet it appears that Amtrak, unlike transit, will eventually come pretty close to 100 percent of pre-pandemic numbers. Continue reading

Amtrak Reaches 87% of 2019 Passenger-Miles

Amtrak carried almost 87 percent as many passenger-miles in October 2022 as it did in October 2019, according to the monthly performance report released by the state-owned company yesterday. This is a significant increase from the 80.5 percent recorded in September.

This is an update of a chart posted last week. I’ll provide another update when October driving data are available.

This is still short of the 94.5 percent carried by domestic and international airlines. Domestic air travel alone is even higher, but unfortunately those data are somewhat behind — the latest is for September, when domestic air travel was several percent higher than the average of domestic and international travel. Continue reading

Slow & Boring vs. Fast & Wasteful

Matthew Yglesias thinks that Amtrak’s latest “vision” is “slow and boring” and that Amtrak instead should spend money on high-speed trains in the Boston-Washington corridor. But Yglesias’ vision is no better; it might be faster, but it also means faster spending of money on worthless projects.

Amtrak’s 2021 “vision” for expanding its rail service. Click image for a larger view.

The first thing to note is that Amtrak’s latest plan is not so much a vision as it is a smorgasbord of pork barrel. Amtrak told the states, “We have this free federal money to spend; if you want some of it, draw some lines on a map where there are rail lines and maybe we’ll spend it there.” What Yglesias calls a vision is a taxpayers’ nightmare of idiotic rail projects. Continue reading

Is Amtrak Looking for More Ways to Lie?

Amtrak still hasn’t published its August performance report. But I noticed a paragraph on its “Reports and Documents” page under “Monthly Performance Reports.”

“Going forward,” the page says, “Amtrak will report Adjusted Operating Earnings as the key financial measure to evaluate results, Net Income/(Loss) will continue to be reported for reference. Adjusted Operating earnings represents Amtrak’s cash funding needs and is a reasonable proxy for Federal Operating Support needed in line with the appropriation.”

This isn’t really new; according to archive.org, it has been there since 2018 but wasn’t on the Reports and Documents page in 2017. What the statement means is that, instead of following generally accepted accounting principles, Amtrak will claim its net income is equal to the amount of operating subsidies it needs from the federal government, not including capital subsidies or state subsidies. Continue reading