Thread: Amtrak subsidies total $32 per passenger, private study says

Amtrak subsidies total $32 per passenger, private study says

Kevin Freking, Associated Press Writer

WASHINGTON — U.S. taxpayers spent about $32 subsidizing the cost of the typical Amtrak passenger in 2008, about four times the rail operator's estimate, according to a private study.

Amtrak operates a nationwide rail network, serving more than 500 destinations in 46 states. Forty-one of Amtrak's 44 routes lost money in 2008, said the study by Subsidyscope, an arm of the Pew Charitable Trusts.

Stephen Van Beek, president of the Eno Transportation Foundation, a think tank, said the analysis could help guide decisions on how to spend $8 billion set aside for high-speed and intercity rail in a $787 billion economic stimulus bill. Rail planners may decide that spending the funds on high-speed rail makes more sense than slower intercity rail, which the Amtrak numbers show need higher subsidies.

Subsidyscope says its review counted certain capital expenses that Amtrak doesn't consider when calculating the financial performance of its routes, namely wear and tear on equipment, or depreciation.

Leading the list was the train traveling between New Orleans and Los Angeles — the Sunset Limited — which lost $462 per passenger. Taxpayers subsidize the losses to keep the passenger train service running.

The Northeast corridor has the highest passenger volume of any Amtrak route, greatly enhancing efficiency. The corridor's high-speed Acela Express made a profit of about $41 per passenger. The more heavily utilized Northeast Regional lost almost $5 per passenger.

Passenger rail systems throughout the world lose money and require government subsidies to cover operating expenses.

Marcus Peacock, project director for Subsidyscope, said his group's analysis should lead to more scrutiny for the Amtrak routes that are losing the most money.

Van Beek cautioned against holding passenger rail service to a higher standard than other forms of transportation.

"Let's not hold rail up and say it needs to make money when highways don't make money, transit doesn't make money and a lot of small airports don't make money and they all get subsidies," Van Beek said.

The Government Accountability Office had previously said the omission of depreciation substantially understates the capital expenses associated with Amtrak's routes.

Amtrak officials said they're working with the Transportation Department to come up with a fair way to determine capital expenses but the method used in the report unfairly burden routes whose equipment was sold and then leased back.

Associated Press writer Joan Lowy contributed to this report.

http://www.usatoday.com/travel/news/200 ... dies_N.htm

"Leading the list was the train traveling between New Orleans and Los Angeles — the Sunset Limited — which lost $462 per passenger. Taxpayers subsidize the losses to keep the passenger train service running."

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At this point it would be cheaper for the taxpayers to buy Amtrak passengers a Southwest ticket than to subsidize their Amtrak ticket.----------------------------------------------------

Southwest launches $25 fare sale

Southwest Airlines has launched an air fare sale in which some flights cost the same as what other carriers charge to check a bag.

The discount carrier says fares are $25 for travel up to 375 miles. The price is $50 for travel between 375 and 549 miles, and $75 for flights between 550 and 999 miles.

http://www.usatoday.com/travel/flights/ ... sale_N.htm

There was an estimate a while back on one of the public transportation systems here in the San Francisco bay area that was about $32,000 per year per rider.

It may have been that high because of construction cost not having been spread out over enough years. Then again maybe not.

Originally Posted by JohnDoe2

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At this point it would be cheaper for the taxpayers to buy Amtrak passengers a Southwest ticket than to subsidize their Amtrak ticket.----------------------------------------------------

Snip...

Yes, and send them home.

I would imagine those like the Federal Reserve that are putting up the money are profiting heavily, as are those that are beholding for their jobs because they come up with this sort of thing, like clockwork.

All this sort of thing adds up.



See how when we spend money we don't have the money people do hold gets devalued?

The little bumps are when we printed up fiat money for wars in the past and devalued the currency.

We have gone completely berserk with the spending of late. This chart doesn't include the recent efforts to spend the country into oblivion.

You add up all of the wars we are fighting now, the other expenditures we have, and you have a situation that no matter how good industry is they can never catch up and many have gone home because it just doesn't pay.

Originally Posted by StokeyBob

There was an estimate a while back on one of the public transportation systems here in the San Francisco bay area that was about $32,000 per year per rider.

It may have been that high because of construction cost not having been spread out over enough years. Then again maybe not.

Amtrak subsidies total $32 per passenger

That is $32. every time a passenger buys a ticket.

On East coast some people ride the train to and from work every day.

Originally Posted by JohnDoe2

Originally Posted by StokeyBob

There was an estimate a while back on one of the public transportation systems here in the San Francisco bay area that was about $32,000 per year per rider.

It may have been that high because of construction cost not having been spread out over enough years. Then again maybe not.

Amtrak subsidies total $32 per passenger

That is $32. every time a passenger buys a ticket.

On East coast some people ride the train to and from work every day.

257 X 2 X 32 = 16,448

They probably missed something.

Originally Posted by StokeyBob

Originally Posted by JohnDoe2

Originally Posted by StokeyBob

There was an estimate a while back on one of the public transportation systems here in the San Francisco bay area that was about $32,000 per year per rider.

It may have been that high because of construction cost not having been spread out over enough years. Then again maybe not.

Amtrak subsidies total $32 per passenger

That is $32. every time a passenger buys a ticket.

On East coast some people ride the train to and from work every day.

257 X 2 X 32 = 16,448

They probably missed something. :D

Each ticket from N.O. to L.A. cost the taxpayers $462.

Leading the list was the train traveling between New Orleans and Los Angeles — the Sunset Limited — which lost $462 per passenger. Taxpayers subsidize the losses to keep the passenger train service running.