For More Information Contact:
Deirdre O'Sullivan
(202) 366-0631
January 11, 2002
For Immediate Release
THE AMTRAK REFORM
COUNCIL APPROVED BASIC ELEMENTS FOR ITS RESTRUCTURING PLAN
In a meeting today in Washington, the Amtrak Reform Council
approved basic elements of a restructuring plan it must submit
to Congress on February 7th. The Council recommends that the
National Railroad Passenger Corporation (NRPC), commonly referred
to as Amtrak, be reorganized by putting its train operations
into one subsidiary and its real property infrastructure into
another.
The NRPC itself would be reconfigured as a small program
management agency that would control the passenger rail franchise
rights, define funding requirements for train operations and
infrastructure needs, secure funding from the Congress, and
oversee the performance of the system.
If Congress agrees, the immediate effect would be to place
train operations in a separate company, free from the burden
of the expensive infrastructure of tracks, stations, and other
real property. Once the reorganization is in place, the NRPC
could introduce competition into the national rail passenger
system by entering into contracts with other train operating
companies for the operation of a particular route or routes.
The NRPC could also exercise its franchise authority to operate
passenger trains at the request of a state or an interstate
compact.
Council Chairman Gil Carmichael summed up the Council's action,
saying, "What we're trying to do is produce a new national
rail passenger system that works and is modern and meets the
needs of this country and this century."
The Amtrak Reform Council is an independent Federal oversight
commission established under the provisions of the Amtrak
Reform and Accountability Act of 1997 (P. L. 105-134) to recommend
improvements in Amtrak's operations and to monitor its financial
performance.
The ARC is an independent federal commission established under
the Amtrak Reform and Accountability Act of 1997 (P.L. 105-134). |