United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2002-04-12 monographic deposited born digital 45 p. GA 1.13:GAO-02-398 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-398 P0b002ee180385cf5 f:d02398 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-02-398 machine generated eng fdlp REPORT GAOREPORTS-GAO-02-398 GAO-02-398 Financial management Railroad transportation operations Railroad industry Strategic planning Cost control Program evaluation Amtrak Network Growth Strategy Other Written Product A03054 Due to the continuing deterioration of its finances and its attempt to eliminate its federal operating assistance by December 2002, Amtrak undertook several actions to improve its financial condition, including changes in its routes and services. In December 1999, Amtrak's board of directors implemented the Network Growth Strategy to shift its route and service plans for new routes and expanded services on the freight tracks over which it operates. Amtrak has not been successful in implementing its Network Growth Strategy. Two years after announcing the new strategy, Amtrak has only implemented three routes, one of which was later canceled. Amtrak still plans to implement the remaining three routes, although later than planned. The overestimation of express revenue and an inability to reach agreement with freight railroads over various aspects of implementing the proposals contributed to the cancellation of any proposed route or service action. Increased mail and express revenues were the cornerstone of the Network Growth Strategy. However, Amtrak overestimated the mail and express revenue expected. According to Amtrak, this overestimation occurred because (1) it had no empirical basis for its revenue estimates and (2) express shippers were reluctant to enter into contracts for service that did not yet exist. Six of the planned route actions were canceled because Amtrack overestimated the revenues associated with them. Amtrak was not able to reach agreement with freight railroads since they were concerned about (1) Amtrak's plans to operate additional trains in already congested areas, (2) Amtrak's plans to carry express merchandise that might compete with their own business, and (3) compensation that Amtrak would pay for use of their tracks. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-398/html/GAOREPORTS-GAO-02-398.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-398/pdf/GAOREPORTS-GAO-02-398.pdf GAO-02-398 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-398 Other Written Product GAO-02-398; Intercity Passenger Rail: Amtrak Needs to Improve Its Decisionmaking Process for Its Route and Service Proposals; Financial management Railroad transportation operations Railroad industry Strategic planning Cost control Program evaluation Amtrak Network Growth Strategy