Cato Institute
Policy Analysis
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ignores the possibility of extra time that may be
and on glamorous projects that yielded a
needed for security checks in train stations.
poor rate of return. If given the funding,
Amtrak now requires passengers to show valid
Amtrak will undertake needed tunnel work.
photo identification when buying tickets and
But Amtrak also will waste a good portion of
checking baggage. Amtrak is working with the
the $3.2 billion on pork-barrel trains that
FBI to determine if it should institute measures
serve few travelers.
such as screening baggage and checking pas-
Amtrak also is poised to benefit from
sengers through metal detectors.7 Meanwhile,
three other pieces of legislation.
U.S. Department of Transportation secretary
Under consideration is the $12 billion High
Norman Y. Mineta has questioned the need to
Speed Rail Investment Act of 2001, which
require rail customers to pass through metal
would not really bring about high-speed trains
detectors before boarding Amtrak trains.8
(more will be said about this later).
Additional experience is needed to deter-
Also being discussed is an ill-advised stimu-
mine the degree to which these changing fac-
lus package that includes $37 billion, a good
portion of which would expand Amtrak.1 3
tors will help or hinder Amtrak.
Commented one editorial, "A vastly expanded
Overreaching in Washington
passenger rail system would do little for the
The giveaway
In a display of political opportunism,  nation's security and, if the system is a white ele-
fares appear to be
Amtrak is requesting $3.2 billion in "disaster  phant, the short-term economic stimulus
aid" even though no disaster exists at  would become a long-term economic burden."1 4
a move to build
Amtrak.9 In fact, Amtrak has profited from
One  measure,  named  the  Rail
ridership at any
travelers' reluctance to fly. Amtrak's request-  Infrastructure Development and Expansion
cost. Unfortu-
ed bailout is more excessive than the one the  Act for the 21st Century, or RIDE-21, pro-
airlines received. Consider that airlines aver-  poses to spend $71 billion on a broad range
nately, that cost
aged 1.8 million passengers a day and  of railroad-related projects.1 5 Although the
could be billions
received $5 billion in grants and $10 billion  bill appears to minimize Amtrak's participa-
in loan guarantees. Amtrak carries fewer pas-  tion, the fact remains that Amtrak's de facto
of dollars in new
sengers--typically 60,000 a day, and up to  monopoly in intercity passenger service posi-
taxpayer
80,000 at the peak of the airline diversion--  tions the railroad to feed at this additional
subsidies.
but wants a whopping $3.2 billion in grants.  government trough.
The disparity should surprise no one because
The rush to throw money at Amtrak rep-
Amtrak has no upper limit to the amount of  resents government at its worst. The nation
subsidies it seeks. Amtrak's current political  should not stay wedded to the Amtrak para-
posture is a low point in Amtrak's history. As  digm, which has been a colossal failure for 30
one congressional aide told Reuters,  years, because terrorists' acts have boosted
"Amtrak's agenda, as usual, is capitalizing on  train travel. Amtrak is the same mismanaged
[the attacks] in a bogus way."1 0
organization after September 11 that it was
It must be acknowledged that Amtrak  before that date. Additional subsidies will do
would use a portion of the funds to correct  nothing to reverse Amtrak's high costs and
fire and safety problems in the tunnels lead-  abysmal productivity and are likely to further
ing to New York's Penn Station. But that very  institutionalize poor Amtrak practices.
Choosing to expand rail service through
lack of repairs is an indictment of Amtrak
policies. Amtrak has long known about the  Amtrak instead of induce the creation of
needed work; as the first report pointing to  new, more efficient entities reflects more
the problem was issued in 1978,1 1 and other  than the usual lack of governmental imagi-
reports have been issued since.1 2 But Amtrak  nation; it reflects congressional panic and a
failed to launch a tunnel improvement proj-  dedication to a dysfunctional system, both of
ect for 23 years while it squandered billions  which are counterproductive to meeting
of dollars on lightly used trains elsewhere  future transport needs.
3