$US 13 billion boost for US passenger rail

International Railway Journal, April, 2009

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Despite the billions being made available through stimulus funds, the substantial decline in sales tax revenues at state level is an immediate threat to the viability of some Amtrak services. One service at risk of closure is the daily Ethan Allen Express from Albany to Rutland, which is one of only two Amtrak trains serving Vermont. Passenger numbers grew 7.8% last year, but the state government says it no longer has the funds required to support the service.

THE President of the United States Mr Barack Obama has signed a bill authorising a $US 787 billion fiscal stimulus package, which includes $US 8 billion for high-speed and intercity rail over two years.

The Obama administration has also unveiled a budget plan that identifies an additional $US 5 billion in funding for intercity rail over a five-year period. This funding is intended to help states create intercity or high-speed corridors, and will be available to states, groups of states, public agencies, or Amtrak.

As part of the stimulus package Amtrak will receive capital grants of $US 1.3 billion, $US 500 million more than previously proposed by the House of Representatives and the Senate. $US 850 million of this is allocated to infrastructure and roiling stock investment, although spending on Amtrak's busiest route, the Northeast Corridor from Washington DC to New York and Boston, will be capped at 60% of the total available. Nonetheless, Amtrak CEO Mr Joseph Boardman says one of his priorities will be to buy a new fleet of electric locomotives for this line, which is in dire need of additional rolling stock. Amtrak will seek a federal loan to support the purchase of these locomotives because delivery will take place after the 2011 deadline for spending stimulus funds.

States with 'shovel-ready' projects that are planned but require funding are already applying to the federal government for stimulus money. For example, Northern

California Capitol Corridor Joint Powers Authority has applied for SUS 98 million for improvements to the San Jose Oakland--Sacramento line.

Freight railways will have access to up to $US 29 billion in the plan, although only $US 1.5 billion of this is assured through a grants programme for capital investment projects, with the remainder only available to states willing to divert funds to rail from highway investment. Nonetheless, some ready-to-go freight projects, including Norfolk Southern's Heartland Corridor and Crescent Corridor meet federal criteria for funding and could now be completed ahead of schedule.

The federal government has also allocated SUS 6.9 billion for transit projects, including light rail and metros.