Amtrak Rights and Relationships with Host Railroads

SCORT, September 13, 2011

Paul Vilter

AVP Host Railroads, Amtrak

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ST. PAUL / MINNEAPOLIS

OAKLAND

SAN DIEGO

LOS ANGELES

HOUSTON

SAN ANTONIO

DALLASFT. WORTH

ALBUQUERQUE

SACRAMENTO

PORTLAND

VANCOUVER

SEATTLE

DENVER KANSAS CITY

SALT LAKE CITY

MEMPHIS

ATLANTA

NEW ORLEANS

TAMPA

MIAMI

JACKSONVILLE

CLEVELAND

INDIANAPOLIS

ST. LOUIS

CHICAGO

MILWAUKEE

NEW YORKPITTSBURGH

BALTIMOREWASHINGTON

PHILADELPHIA

TORONTO

BOSTON

MONTREAL

Grand Rapids

Bakersfield Oklahoma City

Spokane

Harrisburg

Charlottesville

Newport News

Richmond

Springfield

Rutland

AlbanyPontiac

Port Huron Niagara Falls

St. Albans

Portland

FDOT

VTRNECR

Pan Am

MBTAMetro-North

SCRRA

Metra

Operatedby VIA Rail

SCRRA / BNSF / SDN

Railroads

Amtrak

Union Pacific

BNSF

CSXT

Norfolk Southern

Canadian Pacific

Canadian National

Other Railroads

Amtrak Route SystemTrack Ownership Excluding Terminal Railroads

BuckinghamBranch

70% of Amtrak’s Train-Miles Operate on Host Railroads

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Amtrak and Host Railroads

• Amtrak helps states gain access to host railroad tracks and facilities needed to operate intercity passenger service

– States can leverage existing business and operating relationships between Amtrak and its host railroads

• Amtrak’s unique statutory rights of access to the rail network are the foundation of intercity passenger rail service in the nation

– Amtrak’s rights are sometimes taken for granted

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What are Amtrak’s rights?

• The Rail Passenger Service Act of 1970 and subsequent amendments, now codified at 49 U.S.C. §§ 24101 et seq., provides Amtrak with rights on host railroads, including:

– Access to any rail line in the US

– Use of host railroad facilities

– Payments based on host’s incremental cost

– Amtrak preference over freight transportation

– Additional trains

– Accelerated speeds

– Condemnation authority

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How does an Operating Agreement relate to statute?

• Amtrak’s Operating Agreements translate the general terms of the statute to host-specific negotiated terms and conditions that provide the foundation for day-to-day Amtrak operations on each host, dealing with issues including:

– Operation of existing service

– Service standards

– Implementing new service

– Payment amounts and terms for services provided by the host

– Liability apportionment

– Dispute resolution

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What type of payments does Amtrak make to hosts?

• Incremental cost reimbursement

– The avoidable cost incurred by the host due to the presence of Amtrak operations on its rail lines

– Includes host railroad staff employed due to the presence of Amtrak.

• Performance incentives/penalties

– Operating agreements do not require host performance, but incent good performance and penalize poor performance

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Access to the National Rail Network

• By Federal law, Amtrak is granted access to the entire national rail network

– Including host railroad property such as station buildings, platforms, and other facilities

• This access is not restricted to routes where Amtrak already has or previously had service

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Access at Incremental Cost

• There is no fee for the access to the national network granted to Amtrak

– Amtrak reimburses hosts for their out-of-pocket costs for hosting Amtrak trains

– This is a fraction of host railroad charges for non-Amtrak passenger service which include host profit and other fees

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Preference Over Freight Transportation

• Rail passenger transportation provided by Amtrak has preference over freight transportation

– A host may seek to have preference modified by the STB by demonstrating that providing preference “materially will lessen the quality of freight transportation provided to shippers”

– No host has sought to demonstrate this

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Additional Trains

• Additional Amtrak service may not unreasonably impair freight transportation

– So new services may require capacity investments negotiated with the host

– However, hosts must engage in these negotiations, and cannot refuse new Amtrak service

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Accelerated Speeds

• If a host railroad refuses to allow accelerated speeds for Amtrak trains, Amtrak may apply to the Surface Transportation Board for an order requiring the carrier to allow the accelerated speeds

– The Board will decide which improvements would be required to make accelerated speeds safe and practicable

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Eminent Domain

• Amtrak has condemnation authority over private property, including owned by host railroads, if such property is needed for intercity passenger service

– Amtrak must compensate the owner for the property

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Other Amtrak Arrangements on the Host Railroad Network

• Liability coverage

– Amtrak has a unique contractual no-fault liability arrangement with its host railroads, an excellent safety record, and a decades-long history of standing behind its liability commitments to hosts. This combination provides the lowest-cost liability arrangement.

– Amtrak extends this indemnification to states by contract

• Access to Amtrak servicing facilities and stations

– Amtrak has existing servicing facilities and stations on the host railroad network that can be made available for Amtrak-operated state supported services

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Amtrak’s rights are key to intercity passenger rail

Thank you.