Imagine for a moment an Amtrak train going 80 MPH while up ahead a freight train is moving along much more slowly. Amtrak can slow down or the freight train can temporarily move to a side track. Neither wants to lose valuable time.
Where are we going? To railroad transportation dilemmas.
The Dilemma
On Amtrak’s long-haul national routes–72% of its mileage–they use freight train track. On this track, they have “preference” over freight traffic according to legislation from 1973. However, the freight carriers have asked the U.S. Surface Transportation Board to reconsider the law.
Citing the cost of time and other sacrifices created by unexpected delays, inconvenient schedules and the search for less appropriate alternatives, Amtrak points out that in 2015 their reliability affected 30 million people. Similarly, a railroad that moves furniture or oil or wheat across the country needs dependability. But freight carriers might not even be able to figure out an established routine because demand can shape when trains depart.
Looking at the passenger/freight train relationship, scholars have quantified the connection. You can see below that more passenger trains create an increasingly large cost from foregone demand, postponed departures (waiting for a passenger train to pass through) and delays along the route.
Freight Carrier Costs
“Shares of various components in freight-side total cost ($000)”
Amtrak Costs
Shown by the red line (below) for long distance routes that are in freight carrier “territory,” Amtrak’s costs relate primarily to delayed arrival times.
Our Bottom Line: Transportation Infrastructure
Minimizing the cost of our transportation infrastructure has always been important for economic growth. During the nineteenth century a new railroad network fueled a national market and regional specialization. With different sections of the country doing what they do best, it permitted us to enjoy David Ricardo’s comparative advantage. And now, as the U.S. Surface Transportation Board wrestles with track-sharing dilemmas, their goal is still to optimize the economic benefits of our transportation infrastructure.
As the courts have ruled that Amtrak cannot impose itself on the privately-owned railroads that spend their own capital to build and maintain infrastructure, which is taxed; and the Surface Transportation Board (STB) seeks to tweak the meaning of on-time en route and at end points for Amtrak, when do the parties realize the economics have changed since 1970?
-Even with traffic decline, track slots are now assets with a true economic value that cannot be denied; track access and dispatching have a market cost, as evidenced by hotshot “Z” intermodals.
-Passenger trains require higher maintenance costs for track and signaling; freights travel slower than passengers.
-What has researched evidenced re Amtrak contributing to the costs to the Class 1s re delays, etc?
-For example, how many Amtrak’s failed en route due to insufficient fueling, mechanical breakdown; as well, on routes where grade crossing accidents are almost daily, does Amtrak only run its trains with one diesel; thus, blocking the mainline from such an accident, i.e., CSX Richmond-Jacksonville?
To accommodate ideal of increased passenger frequencies and new routes:
-Infrastructure investment is required, ideally embracing P3 (Public Private Partnerships), to be encouraged by DOT.
-Given downturn in freight traffic, almost 15% down from May, 2015, does Amtrak’s management not see this as an opportunity? Certainly, the Class 1s would prefer over the cost of furloughs and storing motive power, to negotiate favorable rates with Amtrak to use its T&E crews, possibly engines, to accommodate additional Amtrak frequencies or route expansions.
Bottom Line: Amtrak will never resolve this issue by taking it down the legal route through courts and STB. It will be a redux of Jarndyce v. Jarndyce. Resolution is predicated on the next CEO for Amtrak acknowledging the new economic market dynamics involved; and re-negotiate a market appropriate track slot and dispatching charge for access on the private railroads. This will have to occur, as without a semblance of schedule reliability predicated upon on-time performance, their will be no scheduled passenger train operation.