Government funded railway a success or failure?

Rising petrol prices, increased levels of traffic, and stress inducing airports have all contributed to the recent success of Amtrack, America’s rail network. For the fifth straight year in a row, the rail company has announced a record year for nationwide ridership.

The government funded service has been losing money for decades and would not survive without its federal subsidies. But that may be starting to change as more and more Americans take to the rails.

Since its launch in 1971, Amtrack has lost money, relying on government grants and handouts since its very inception. This year, the railway is requesting $1.53 billion from taxpayers in the United States, many of whom never use the service themselves.

Amtrack doesn’t own the rails it rides on. On the contrary, it paid some $90 million last year to freight lines in order to share their rails. This is one of the major causes of delays on American trains, one of the factors Amtrack says is holding it back. This year, Amtrack had its worst record ever for on-time performance, something they say is not really their fault.

Faced with disapproval from the Bush administration Amtrack says more stable government funding would allow them to improve their services. Meanwhile the railway budget is being reviewed by a House appropriations committee as well as a Senate panel. Exactly how much the service will get this year is uncertain.

www.amtrak.com