Amtraks Board Chairman, Gov. Thompson, Testifies Before Congressional Oversight Panel

At an oversight hearing today before the Senate Subcommittee on Surface Transportation and Merchant Marine, Amtraks Chairman of the Board, Gov. Tommy Thompson, testified to the corporations progress toward freeing itself from federal operating support. The Subcommittee is chaired by Senator Kay Bailey Hutchison (R-Texas) who coauthored the Amtrak Reform and Accountability Act of 1997.

Board Chairman Thompson noted that Amtrak surpassed the bottom-line target in its business plan for the second consecutive yearin 1999 by $8 millionkeeping Amtrak on course to become operationally self-sufficient. Powering this achievement last year was total revenue of $1.84 billion, an all-time high. Further, for the first time ever, Amtraks ridership increased for a third year in a row. Up 10 percent since it began rebounding, Amtraks ridership has reached 21.5 million.

Testified Thompson, If Im enthusiastic about Amtrak, its not because Im painting some sort of rosy scenario. Its because we are keeping our commitment to Congress and the American people to run Amtrak like a business and achieve solid financial improvement.

Amtraks Chairman of the Board also cited the growing recognition from states that a vibrant passenger rail network must play a stronger role in relieving congestion, combating urban sprawl and spurring economic growth. In 1999, joint capital projects with states reached historic levels, totaling $300 million.

Critical to Amtraks business plan success is the continued partnership with 36 states to develop high-speed rail corridors nationwide. Thompson noted that the completion of electrification in New England made it possible to launch Acela Regional service that reduced travel times between Boston and New York by as much 90 minutes. Describing the publics response as tremendous, Thompson told the subcommittee ridership has grown more than 25 percent compared to the ridership on the trains Acela Regional replaced. Later this year, Amtrak will introduce Acela Express, Americas first high-speed service between Boston and Washington, D.C.

In addition to growing public sector confidence in Amtraks progress, the corporation has entered into partnerships with private sector leaders, such as Norfolk Southern and the BNSF to bolster its mail and express business, and with Hertz and Motorola to improve travel options and customer service. And, based on its expectation that operational self-sufficiency will be achieved, Moodys Investors Service assigned Amtrak an A3 rating, reflecting a stable outlook.

In closing, Thompson told the subcommittee, Yes, there have been obstacles in the track-and no doubt there will be more. And there are also those who will criticize our every move, and do everything in their power to make sure the predictions theyve been making these past 29 years about our inevitable demise come true. The bottom line, however, is this: Congress and the American people gave us a mandate in 1997. So far, we have lived up to that mandate. We believe weve earned the right to your continued support.

Amtrak operates a 22,000-mile intercity passenger rail system, serving more than 500 communities in 45 states. Under Amtrak's new leadership, the corporation is turning the corner to become a successful business enterprise. As part of its turnaround, Amtrak is focusing on growing public and private business partnerships, improving and guaranteeing consistency and quality of service, introducing high-speed rail in the Northeast, and developing other high-speed rail corridors nationwide. For more information about Amtrak, including schedules, fares and reservations visit Amtraks Web site at www.amtrak.com.