Amtrak, the U.S. intercity passenger railroad, may have trouble staying on track, literally, if a U.S. government shutdown is prolonged for a month or more.
The Washington-based railroad, which has never made money, gets 12 percent of its operating budget and most capital and debt-service funding from U.S. appropriations funneled through the Transportation Department. Some are scheduled to be paid quarterly while others are reimbursements, all of which have been cut off for now.
WASHINGTON – Amtrak is moving forward with a plan to eliminate its food and beverage losses over five years. It builds on successful initiatives implemented since fiscal year 2006 that have increased the cost recovery rate from 49 percent to 65 percent.
“We have made steady and consistent progress, but it is time we commit ourselves to end food and beverage losses once and for all,” said President and CEO Joe Boardman. “Our plan will expand initiatives that have worked, add new elements and evolve as updated information and opportunities lead us to better solutions.”
Amtrak Inspector General Ted Alves agrees improvements have been achieved and testified before Congress that “over the last several years, Amtrak has taken action to reduce food and beverage losses and improve program management controls and these efforts have yielded benefits. We believe opportunities remain for further improvement.”
In inflation adjusted dollars, the Amtrak food and beverage loss is down $31 million, from $105 million in fiscal year 2006 to a projected $74 million in fiscal year 2013 – or about a 30 percent move in the right direction.
Boardman explained that approximately 99 percent of the food and beverage loss is reported from the long-distance trains that Congress requires Amtrak to operate, specifically costs associated with the dining car service. Cafe car services across the system, on the other hand, essentially break even or make a positive contribution to the bottom line.
The centerpiece of the plan is an improved management structure that consolidates operations and accountability for food and beverage into a single department. This new organization also establishes a long-distance services general manager and route directors responsible for profit and loss of specific trains who will identify opportunities for further cost savings and efficiencies.
Some of those opportunities include: aligning dining car staffing with seasonal changes in customer demand; establishing metrics to assess service attendants’ onboard sales performance; reducing spoilage; closely tracking onboard stock levels; regularly refreshing menus; and exploring new pricing and revenue management options to align with customer needs and enhance cost recovery.
Further, Amtrak is using technology onboard trains aimed at improving customer service, automating financial and other reporting, and eliminating the error prone and time consuming method of manual data entry. Just this week, for example, Amtrak began a pilot on the Silver Meteor (New York-Miami) long-distance train to test a new touch-screen tablet-based solution that dining car service attendants use to take passenger orders and print customer receipts.
In 2014 Amtrak will roll out its Point of Sale (POS) system across its national network. Currently in operation on Acela Express and California trains, POS technology improves the customer experience by streamlining the check-out and receipt printing process in café and lounge cars, and allows onboard employees more time to focus on sales and customer service. It also provides real-time inventory status, better decision support and more flexibility to introduce targeted pricing and discounts, including value and combo meals.
Also in 2014 Amtrak plans to test “cashless” sales for food and beverage on certain routes. The elimination of cash reduces transaction time and significantly reduces accounting expenses and the risk of fraud or abuse. In addition, many venues that have pursued similar initiatives have seen increased sales. This model is very popular in the airline industry and has been seen as a favorable change by travelers.
“I am confident Amtrak will succeed in this effort just as we have in other areas and across a wide range of financial and operating performance metrics,” he said, noting records for ridership, ticket revenues, and on-time performance as well as significantly reducing corporate debt and the amount of federal operating support.
If Amtrak were to eliminate food and beverage services as some observers recommend, the railroad would actually lose more money because of the loss in associated ridership and ticket revenue, and thereby increase its dependence on federal support, he stated.
ALBANY, N.Y. — Amtrak and the state Department of Transportation have reached an agreement on a method for sharing costs on most trains in the Empire State, avoiding a shutdown of service that could have taken place as early as Oct. 17.
The agreement, required by the federal Passenger Rail Investment and Improvement Act of 2008, basically requires states to assume more of the cost of operating trains on routes of up to 750 miles. Long-distance trains such as the Lake Shore Limited, which connects the Capital Region to Chicago, Boston and New York City, aren’t covered by the requirement.
New York state will provide about $22 million in federal fiscal year 2014, which will help cover operating and capital costs for the Empire Corridor trains, as well as the Adirondack, Maple Leaf and Ethan Allen services. It also has a separate agreement with Vermont to cover 35 percent of the Ethan Allen’s costs, estimated to be about $800,000, in the 2014 fiscal year.
INDIANAPOLIS. Ind. (WLFI) – In less than three weeks, Amtrak’s Hoosier State Line will stop operating. That is unless Indiana spends millions of dollars to keep it from getting derailed. Dozens of supporters of the Hoosier State Line gathered Thursday afternoon at the Indiana Statehouse. Members of the United Transportation Union were on hand at the rally, even though they said they don’t represent Indiana Amtrak employees. “Support our fellow railroaders and make sure, try our best to keep jobs,” said Kyle Brooking. Click here to read more.
Creative vision in Washington, D.C., is not quite an oxymoron, but seemingly only extraordinary external events cause it to materialize.
Perhaps there was prediction of a month of Sundays when Congress authorized land grants for a transcontinental railroad; expectation of hell freezing over when lawmakers approved construction of the Interstate Highway System; and sightings of flying pigs when the House of Representatives combined aviation, highway, and railroad funding authorization and oversight into a single Transportation & Infrastructure Committee.
It may require the Chicago Cubs winning the World Series before the entire Congress ceases to treat passenger transportation project-authorization and funding as if aviation, highways, and trains were mutually exclusive even though travelers frequently combine all three in their travel plans.
Rail use in America continues to climb ever higher. In July, Amtrak posted its busiest ridership month ever. But what are the busiest individual routes?
Let’s take a look. Here are the 10 highest ridership Amtrak routes, as of July, 2013.
Responding to a federal mandate and acting on transportation legislation passed this year by the General Assembly, Gov. Bob McDonnell announced Tuesday that Virginia will assume more financial responsibility for Amtrak regional service in the state.
The agreement had to be in place by Oct. 1 or the regional rail service would have ceased in the state.
Jim Henson’s Pajanimals has teamed up with Amtrak in their new sweepstakes. The sweepstakes offers three levels of prizes: Grand prize (one winner), first prize (five winners) and second prize (10 winners). The grand prize-winner will receive four round-trip tickets on Amtrak, a flip video camera and a four-piece large Pajanimals plus set.
First place winners will receive HeysUSA Amtrak luggage and Pajanimals Adventure Game. The ten second prize winners will receive an Amtrak hoodie and a Pajanimals Playdate DVD.
Entries to win must be received by July 31, 2013 and be 18 years or older to enter the contest. To enter the sweepstakes visit www.henson.com/PJsweepstakes.
I just sat through a pretty boring hearing on rail financing. But I’m glad I stuck it out, because the fireworks came at the end, when Rep. John Mica picked a fight with the wrong man.
John Robert Smith is familiar face in transportation reform circles. The former Republican mayor of the town of Meridian, Miss., he now leads two of the most significant advocacy organizations in the field, Transportation for America and Reconnecting America. He also happens to be a former chair of Amtrak’s board of directors. All of those qualifications made him a natural choice to testify as a witness at this House Transportation Committee hearing.
Amtrak, the U.S. intercity passenger railroad, may have trouble staying on track, literally, if a U.S. government shutdown is prolonged for a month or more.