http://fair.org/extra/0207/amtrak.html

July/August 2002

The Railroading of Amtrak

Trains, planes and automobiles held to different standards

By Christopher Ott

Coverage of Amtrak contains two surprises: the details reported about 
the 31-year-old railroad, and the details that aren't reported about 
its competition.

Despite the introduction of successful high-speed trains in the 
Northeast, as well as increased ridership both before and after 
September 11's airborne attacks, coverage of Amtrak is surprisingly 
negative. "You don't read much in the way of good news," says Ross 
Capon, executive director of the National Association of Railroad 
Passengers (NARP). Instead, typical reporting singles out Amtrak for 
criticism and glosses over the advantages enjoyed by rail's 
competitors.

Most coverage focuses on the rail network's financial situation. 
"Amtrak is in disarray," reported USA Today (5/2/02). "The nation's 
passenger railroad faces a projected $1.1 billion deficit this fiscal 
year--its biggest ever." The Associated Press (4/12/02) reported that 
Amtrak is "a chronic money-loser for the government." The Arizona 
Daily Star (4/18/02) editorialized that Congress "should relegate 
Amtrak to the dustbin of failed efforts to overturn the law of supply 
and demand."

The implication that Amtrak is exceptional in the transportation 
industry in its reliance on government subsidies, however, is 
troublesome--and ironic, given the recent well-publicized bailout for 
U.S. airlines. On top of $13 billion in federal aviation spending for 
fiscal year 2002, Congress approved a $15 billion package of airline 
aid within two weeks of September 11. Intercity passenger rail, by 
comparison, received half a billion in federal funds for the current 
fiscal year, and Amtrak is asking for $1.2 billion in the next to 
avoid service cuts.

Subsidies for automotive transport also dwarf support for "federally 
subsidized" Amtrak (Reuters, 4/10/02). The Worldwatch Institute, in a 
paper on "The Global Rail Revival" (4/94), pointed out:

Although government support of rail is necessary--since passenger 
fares seldom cover the full cost of train service--this subsidy pales 
in comparison to the hidden costs of road travel. For example, in the 
United States, few people realize that direct taxes on automobiles 
and gasoline barely cover two thirds of the cost of road building, 
maintenance, administration and safety.

Additional social costs of car and air travel--including accidents, 
lost time, and loss of quality of life--are obvious to planners and 
economists, and are increasingly counted as a real drag on the 
economy. The social costs of car travel in 11 countries studied is 
nearly twice that of air travel and seven times that of trains.

Stephen Goddard, in his 1994 book Getting There: The Epic Struggle 
Between Road and Rail in the American Century, found that hidden 
subsidies for drivers amount to well over $2 for every gallon of 
gasoline sold.

A double standard

The NARP's Capon says "a tremendous double standard" is at work. 
Government support for Amtrak is deemed a "subsidy," while spending 
on aviation and highways is thought of as "investment" and decoupled 
from a need to break even. "They never talk about the money-losing 
highway system," says Capon.

One reason is that it's easy to see the costs of rail "on a single 
balance sheet," Capon says. Subsidies for highway travel in 
particular come from a wider array of local, state and government 
agencies.

The aviation and highway industries are also powerful lobbies. As the 
New York Times reported (10/10/01), lobbyists for the airline 
industry were instrumental in winning quick passage of last year's 
airline aid package.

Another missing element in Amtrak coverage is international context. 
Successful railroads in other countries get much greater levels of 
government support. Canada has passenger-rail service that is "flush 
with a new infusion of federal government funding, new locomotives 
and rolling stock, improved railbed infrastructure and burgeoning 
ridership" (Windsor Star, 4/15/02). According to figures from the 
European Conference of Ministers of Transport, Germany spends 22 
percent of its total transportation capital spending on rail, while 
France spends 21 percent. The United States spends 0.4 percent.

The real issue in most coverage of Amtrak is not whether the railroad 
pays its own way. Instead, it's whether rail receives a share of 
government support that is appropriate to its advantages over other 
forms of transportation and the options that rail provides. The most 
important things that journalists covering Amtrak can do, according 
to Capon, is "not be seduced by talk about how we can have the trains 
without paying for them."

Christopher Ott's work on rail issues has appeared in publications 
including Salon.com, E: The Environmental Magazine and the Baltimore 
Sun.


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