Transportation Industry

Can I quote you on that? - From the Editor - David Gunn of Amtrak

Railway Age, May, 2003 by William C. Vantuono

In my line of work, the people who provide the best interviews, and the best quotes, are those who don't take themselves too seriously. David Gunn, who by a combination of encyclopedic railroading knowledge, decades of operational experience, and sheer willpower is reforming Amtrak, is such a person. Though he takes his work (which he thoroughly enjoys, by the way) very seriously, he knows himself well enough to be able to speak frankly--and at times, rather irreverently. It's one reason why Amtrak is well on its way to re-establishing credibility with Congress. With a lot of hard work and a little luck, that credibility will translate into operating and capital dollars.

I thought I'd let David Gunn speak for himself, on a variety of Amtrak subjects close to his heart. For a look at what he and his management team are doing to turn Amtrak around, see our cover story on p. 27.

* Gunn's love of railroading is evident as soon as you walk into his modestly-appointed office. Amtrak photos, models, and artwork (among which are paintings by noted railroad artist Gil Reid) adorn the walls. The aesthetics have been extended to much of Amtrak's corporate headquarters. "We took down all those stupid Service Guarantee signs hanging up all over the place," he told me. "They drove me nuts!"

* On selling off millions of dollars worth of ancient equipment littering Amtrak's yards and shops (cars, locomotives, cabooses, even an antiquated wheel lathe that's been sold to a museum): "We've got three miles worth of crap sitting in Beech Grove. We're getting rid of all the junk and cleaning the place up. It does wonders for morale. We have 50-year-old switchers we're trying to keep running. That's impossible."

* To those who believe Amtrak's long-distance trains are the company's biggest money-losers: "Getting rid of individual trains saves next to nothing--it doesn't do a damn thing."

* On Amtrak's enormous debt: "Our asset to liability ratio is 0.39. In business school, anything below 1.0 is a disaster!"

* On the lack of financial controls he found: "This place was the Enron of the public sector--it was awful. We had a management that didn't focus on the day-to-day running of the railroad, and they had lost control. All the 'reform' was big-picture stuff: Grow the company into prosperity with express business and high speed rail. The Acela Express was supposedly going to make a $180 million positive contribution to the bottom line in its first year of operation. That was absolute fantasy. Then you had all the politicians running around saying they were going to privatize the long-distance trains. Give me a break!"

* On reducing the vice president count from 88 to 22, shortening the chain of command: "An air brake shop general foreman I had never met came up to me after a Mechanical Department meeting and said, 'I don't know what you've done, but it's really easy to get things done around here,' I said, 'Because the entire chain of command, from me to you, is tight here."'

* On the restructuring/financial accountability and control/capital planning process: "This is true reform. Some people want reform that's a blinding flash of light, and out of this puff of smoke will emerge a brand new Amtrak. That's nonsense. What we're trying to do is what reform is all about."

* On the Northeast Corridor's capital needs: "Everybody talks billions--particularly consultants. We know what has to be done, and we can do it economically."

* On car fleet refurbishment and standardizing Amtrak's livery: "No more Strategic Business Unit 'fleetettes.' And we're getting rid of those silly lava lamps." (He means the Acela paint scheme.)

* On the monthly financial performance report to the USDOT: "There are damn few railroads that can close their books within two weeks of the end of the month." (This was said with a chuckle.)

* On Amtrak's five-year capital plan, which details, right down to the last wheelset, interlocking, and catenary pole, the minimum of what's needed to achieve a state of good repair: "What we're asking for is very specific. It's nor gold-plated, it's not rhetoric, it's not a wild wish list, and it's not bulls__t. It's good stuff. I don't know if it's going to get funded. Part of our problem is rebuilding our credibility, to actually carry out what we've promised to do. Will we get the money? If we don't, we'll lose the railroad."

My guess is, David Gunn will get the money.

COPYRIGHT 2003 Simmons-Boardman Publishing Corporation
COPYRIGHT 2003 Gale Group

 

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