[Congressional Record Volume 148, Number 76 (Tuesday, June 11, 2002)]
[House]
[Pages H3422-H3424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           IMPORTANCE OF PASSENGER RAIL AND FUTURE OF AMTRAK

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Indiana (Ms. Carson) is recognized for 5 minutes.
  Ms. CARSON of Indiana. Mr. Speaker, I rise today to talk about the 
important issue of passenger rail in America and the future of Amtrak.
  The passenger rail system suffers from gross neglect of our 
investment. We have actively engaged in financing and developing and 
preserving the infrastructure of all other modes of transportation, 
whether it be bailing out the airlines, federally funding and fixing 
the State highway system, or subsidizing airport construction. However, 
we continue to be faced with the possibility that Amtrak may suddenly 
have to cease operations. Recently, Amtrak president David Young said 
that if Amtrak did not receive a $200 million loan in the next 3 weeks, 
it would have to begin shutting down operations.
  Mr. Speaker, it is imperative that we build a world-class passenger 
railroad system in the United States. We cannot wait for highways and 
airports to become so overwhelmed that they can no longer operate, and 
we cannot continue to hold the millions of Americans who rely on rail 
service in limbo while we refuse to provide Amtrak with adequate 
funding. We must engage in long-term planning.
  The terrorist attacks of September 11 and the aftermath that followed 
exposed the vulnerability of our society, our economy when 
transportation choices are limited and our mobility is diminished.
  After the FAA grounded all flights following the terrorist attacks, 
travelers turned to Amtrak. Whether people had to travel for business, 
to help with rescue efforts, or just to get home, Amtrak kept our 
American citizens moving during the time of national emergency. 
Amtrak's ridership and revenues skyrocketed, led by the northeast 
corridor, which had a 13.5 percent revenue growth and a 4.6 percent 
ridership growth in 2001.
  The system as a whole, including the corridor, revenue rose 8.2 
percent, ridership 4.3 percent. The situation not only proved that 
Amtrak works but that passenger rail is critical to our transportation 
infrastructure during national emergencies or a security crisis.
  Amtrak provided a critical transportation link, carrying 35,000 
passengers along the northeast corridor every day and hundreds of extra 
carloads of mail for the U.S. Postal Office in the days following 9-11.
  Mr. Speaker, it was not until 1956 that the government began heavily 
promoting highway transportation with the passage of the Federal Aid 
Highway Act of 1956. The act established a highway trust fund based 
upon Federal user taxes in order to finance up to 90 percent of State 
construction costs of the $25 billion plan to pay for new roads and the 
construction of the Eisenhower National Interstate and Defense Highway 
System. Similar policies and Federal attention for aviation resulted in 
the strengthening of the aviation industry.
  Amtrak was created as a Federal corporation in order to relieve the 
railroad industry of unprofitable passenger operations and in the 
interests of maintaining a national passenger rail service. Per capita 
spending in America on passenger rail is dismal compared to the other 
23 industrialized nations with rail service.
  I would like to present, Mr. Speaker, that part as a part of the 
Record for the edification of all those concerns.
  The material referred to follows:

             NARP--World Mainline Rail Spending Per Capita

       The United States ranks low among industrial nations in 
     terms of its spending on rail spending--both in whole terms 
     and per capita.
       Population density is not entirely a determining factor--on 
     the chart below, Norway, Finland, Sweden and Canada all spend 
     more than the U.S. per capita, yet have lower population 
     densities. Estonia is slightly more densely populated than 
     the U.S., yet invests over twice as much in rail per capita. 
     Some states in the U.S. have population densities closer to 
     that of some of the other countries.
       Even as a society, you get what you pay for. Is it any 
     wonder that the passenger rail system in the U.S. is so 
     skeletal compared to other countries?


 Selected countries, U.S. dollars, 1999--capital and operating support 
              from governments to major national railways

Belgium..........................................................834.39
Austria..........................................................117.30
Switzerland......................................................162.65
Luxembourg.......................................................160.69
France............................................................67.66
Slovenia..........................................................46.98
Italy.............................................................46.09
Netherlands.......................................................44.36
Ireland...........................................................43.75
Sweden............................................................39.09
Croatia...........................................................37.40
Britain...........................................................36.98
Slovakia..........................................................26.27
Norway............................................................24.92
Spain.............................................................22.76
Hungary...........................................................21.06
Czech Republic....................................................20.08
Germany...........................................................18.60
Romania...........................................................15.75
Yugoslavia........................................................13.83
Estonia............................................................7.67
Finland............................................................5.95
China..............................................................5.21
Canada.............................................................5.09
United States......................................................3.28
Poland.............................................................3.13
South Korea........................................................3.11
Turkey.............................................................1.55
Portugal...........................................................1.48
Saudi Arabia.......................................................0.82
Cameroon...........................................................0.23
Algeria............................................................0.20
Senegal............................................................0.17
Chile..............................................................0.17
Malaysia...........................................................0.16
Taiwan.............................................................0.15
Mali...............................................................0.02


                                 notes

       U.S. spending includes 2000 federal appropriations for the 
     Federal Railroad Administration (including for Amtrak and 
     high-speed programs) and state payments to Amtrak.
       Canada includes VIA Rail Canada only, for 2000.
       Information from 1998 for Sweden and Taiwan.
       Information from 1997 for Luxembourg, Cameroon, Mali, 
     Senegal, and Malaysia.
       International Union of Railways (UIC), Paris, for spending 
     figures except: United States, from appropriations 
     information; Canada, from Transport Canada; Britain, from 
     Department of Transport, Local Government, and Regions; and 
     China (includes infrastructure spending only), from 
     International Railway Journal.
       Time Almanac (2000) for population figures.
       Yahoo.com for exchange rates (March 19, 2002; historical 
     information from same source used where available).

  While we subsidize the building of roads and highways, Mr. Speaker, 
with tax dollars, we must ensure the survival of Amtrak. It is a wise 
use of taxpayer money. It is for the benefit of the American public. It 
is for the benefit of the transmission of cargo in this country. I 
would urge Members to sign onto legislation that I have authored which 
would authorize $1.5 billion annually for corridor developments. They 
are needed for the infrastructure, highway-rail grade crossing 
improvement, acquisition of rolling stock and track and signal 
equipment.
  Mr. Speaker, the rest of my remarks for the benefit of time and the 
limitation that has been afforded in this 5 minutes will go into a part 
of the Congressional Record for further explanation, but I would 
encourage the Members of this body who believe that America should 
engage in economic stimulus for the benefit of jobs, for the benefit of 
the American people, to sign onto my bill that would ensure the 
continued survival and viability of Amtrak, a very vital, needed 
service for the American people.
  Mr. Speaker, I rise today to talk about the important issue of 
passenger rail in America, and the future of Amtrak.
  The passenger rail system suffers from gross neglect of our 
investment. We have actively engaged in financing, developing, and 
preserving the infrastructure of all other modes of transportation. 
Whether bailing out the airline industry, federally funding and fixing 
the interstate highway system, or subsidizing airport construction. 
Finally, it will require an annual independent audit of Amtrak, to be 
reviewed by the Department of Transportation's Inspector General.
  By developing passenger rail as part of a balanced transportation 
system, this legislation will lead to the creation of jobs in the short 
run to stimulate our economy. In the long run, high-speed rail 
corridors will become a key foundation for our national rail passenger 
transportation system, which is critical to the strong backbone of a 
prosperous economy.
  I understand that this legislation is an ambitious blueprint, but I 
believe that with the appropriate funding, America's passenger rail can 
take its appropriate place as the best rail system in the world.
  We continue to be faced with the possibility that Amtrak may suddenly 
have to cease operations. Recently, Amtrak CEO David Gunn said that if 
Amtrak did not receive a $200 million loan in the next 3 weeks, it 
would have to begin shutting down operations.

[[Page H3423]]

  Mr. Speaker, it is imperative that we build a world class passenger 
railroad system in the United States. We cannot wait for highways and 
airports to become so overwhelmed that they can no longer operate, and 
we cannot continue to hold the millions of Americans who rely on rail 
service in limbo while we refuse to provide Amtrak with adequate 
funding. We must engage in long-term planning to address future 
passenger transportation growth and show forethought in crafting 
transportation solutions--not wait for the impending crisis.
  The terrorist attacks of September 11, 2001, and the aftermath which 
followed, exposed the vulnerability of our society and our economy when 
transportation choices are limited and our mobility is diminished. 
After the Federal Aviation Administration grounded all flights 
following the terrorist attacks on September 11, 2001, travelers turned 
to Amtrak.
  Whether people had to travel for business, to help with rescue 
efforts, or just to get home, Amtrak kept our American citizens moving 
during a time of national emergency. Amtrak ridership and revenues 
skyrocketed, led by the Northeast Corridor, which had a 13.5 percent 
revenue growth and a 4.6 percent ridership growth in 2001. The system 
as a whole, including the corridor, revenue rose 8.2 percent and 
ridership 4.3 percent.
  The situation not only proved that Amtrak works, but that passenger 
rail is a critical part of our transportation infrastructure during a 
national emergency or security crisis. Amtrak provided a critical 
transportation link, carrying 35,000 passengers along the Northeast 
corridor every day, and hundreds of extra carloads of mail for the U.S. 
Postal Office in the days following the terrorist attacks.
  Transportation security, an essential part of our national security, 
requires a balanced and competitive system of transportation 
alternatives. In September, we found that our dependence on the 
aviation system was basically stagnant. We cannot afford to rely on any 
single mode of transportation; we need to ensure that we have a 
balanced system that includes a sound passenger rail system. Passenger 
railroads use less fuel per passenger mile than highway vehicles and 
commercial airlines.
  During these times of oil-consciousness, a larger presence of 
passenger rail in our transportation system would reduce our Nation's 
dependence on foreign oil. Passenger railroads, the interstate highway 
system, and our national aviation network have all taken different 
paths in their current roles in our national transportation system. The 
interstate highway system has received significant attention and 
federal funding since the construction of the Lincoln Highway in 1913 
and the Rural Post Roads Act of 1916, and later during World War II 
with the Federal Highway Act of 1944. It was not until 1956, however, 
that the Government began heavily promoting highway transportation with 
the passage of the Federal Aid Highway Act of 1956.

  The act established a Highway Trust Fund based upon Federal user 
taxes, in order to finance up to 90 percent of State construction costs 
of the $25 billion plan to pay for new roads, and the construction of 
the Eisenhower National Interstate and Defense Highway System. Similar 
policies and Federal attention for aviation resulted in a strengthened 
infrastructure, and follows much the same story of the highways system.
  Passenger rail service was once a vital instrument in the 
transportation needs of our Nation. For instance, during World War II, 
not only did the railroads transport 90 percent of all defense freight, 
but also 97 percent of all defense personnel on their way to theaters 
of action. By the end of the war, railroads accounted for three-
quarters of the common carrier share of intercity traffic, with 
airplanes and buses sharing the remaining quarter of traffic. However, 
with national focus turned to aviation and highways, by the late 1960s 
most rail companies were petitioning the Government to discontinue 
passenger services because of losses.
  Amtrak was created as a Federal corporation in order to relieve the 
railroad industry of these unprofitable passenger operations, and in 
the interest of maintaining a national passenger rail network. But in 
retrospect, Amtrak was set up not to thrive and expand passenger rail 
service, but really to just maintain the status quo of 30 years ago. 
That attitude persists even today. Since 1971, Amtrak has received only 
$25 billion in public subsidies. During the same period, the United 
States invested $750 billion on highways and aviation.
  Per capita spending on a passenger rail is much lower than many other 
countries with the U.S. ranking behind the top 23 industrialized 
nations with rail service, and with your permission Mr. Speaker, I 
would like to submit for the record these funding levels, so that 
Members can be aware how drastically wrong our current policies are. No 
passenger rail service in the world has built and operated a passenger 
rail system at a profit. All have required Government support for 
construction and maintenance, or operating support, or both. That same 
principle holds true for highways and aviation, which have required 
substantial Federal spending since their beginning and continue to 
receive generous Federal subsidies today.
  Those who want passenger rail to operate with Federal assistance 
argue that we should not ``subsidize'' passenger rails. Yet we 
subsidize the building of roads and highways with tax dollars. We 
subsidize the building of airports and pay for all of the equipment and 
people needed to run our air traffic control system.
  We consider those subsidies to be worthwhile investments in our 
economy and our quality of life. We must make the same investment to 
create a world-class passenger rail system in order to see the same 
kinds of benefits. From this, is evident that we need to reevaluate our 
Nation's rail passenger policy, and clearly define a role for Amtrak.
  A strong Federal role was required to establish the interstate 
highway system and the Federal aviation network, and now Federal 
investment in passenger rail infrastructure is critical. Once again, 
Federal leadership is required to address the needs of a reliable, 
safe, secure passenger rail network.
  In the coming weeks, I shall introduce the National Defense Rail Act, 
which will mirror S. 1991, introduced by Senator Ernest Hollings. This 
legislation provides a blueprint for the future of passenger rail in 
the United States. The bill will help develop high-speed rail 
corridors, which are the building blocks for a national passenger rail 
system. This will allow regional transportation solutions to play a 
part in the national system.
  It will also aid in the development of short distance corridors 
between larger urban centers, as well as provide funding to preserve 
longer distance routes for those communities that do not have the 
population densities to merit air service--sometimes the train is their 
only alternative to driving. Finally, it will provide Amtrak with the 
tools and funding it needs to operate efficiently.
  This legislation authorizes $1.255 billion in emergency spending for 
Amtrak's security and life safety needs. This bill will give the 
Federal Government the script for the role it needs to play in 
establishing a national rail passenger system. It would not require any 
State contribution, and would give preference to projects having right-
of-way dedicated to passenger rail, involving high-speed passenger 
service of 125 mph, although operations of 90 mph speeds or more would 
be eligible for funding, and those connecting to other modes of 
passenger transportation, including airports.
  The bill authorizes $1.5 billion annually for corridor development. 
These funds are needed for infrastructure acquisition, highway-rail 
grade crossing improvement, acquisition of rolling stock and track and 
signal equipment. This bill will also fund $35 billion in loan 
guarantees. This money will dramatically expand the current Railroad 
Rehabilitation & Infrastructure Financing loan and loan guarantee 
program. This bill eliminates the artificial limits on loan amounts, 
impossible collateral requirements, and unworkable loan cohort 
structures. This bill identifies existing high-speed corridors in 29 
States and the District of Columbia for priority consideration. Many of 
these corridors are in areas where people are now driving cars or 
taking airplanes on trips of 300 miles or less.
  In these areas travelers could take a high-speed train instead and 
arrive at about the same time. But right now they don't have that rail 
option, and they won't until we build it. The Northeast Corridor has 
become an invaluable asset to our national transportation system, and 
it should not be left in disrepair. This bill authorizes funds to 
enable Amtrak to eliminate its capital backlog of projects, maintain 
ongoing projects to capital infrastructure, and improve capacity to 
accommodate projected growth in traffic. It also allows Amtrak to 
reinvest revenues from operations in the Northeast corridor back into 
the backlog of capital infrastructure projects, and will require Amtrak 
to reinvest revenues from non-passenger operation into growth projects 
outside the Northeast Corridor.
  This bill ensures fair labor standards for all projects receiving 
funs under it, including payment of prevailing wages and allowance of 
collective bargaining over wage rates. Another immediate benefit will 
be the closing or improvement of highway-rail grade crossings in high-
speed rail corridors. Under this bill, funds are set aside specifically 
for these important safety improvements. This legislation will provide 
the necessary funds of $1.31 billion for Amtrak to repair and upgrade 
the track it owns and operates in the Northeast Corridor.
  This corridor is a prime example of the benefits we can attain when 
there are transportation choices for travelers. The passenger railroad 
system that has worked well in the Northeast can work in other highly-
congested areas of the country: the South, the Midwest, California and 
the Northwest.
  Thirty years ago, those areas did not have the population to support 
high-speed intercity rail. But today those areas are growing by

[[Page H3424]]

leaps and bounds. As the highways in those areas clog up and the planes 
run 3 hours late, many are asking us for help to build high speed rail. 
A short-term benefit of this legislation will be stimulation of the 
economy by providing jobs in developing new corridors. Millions of 
Americans have asked Congress to save Amtrak, and to ensure the future 
of passenger rail in the United States. I ask my colleagues to add a 
powerful voice to these millions, and join with me by cosponsoring this 
important legislation.

                          ____________________