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Rail News Home High-Speed Rail

5/27/2011



Rail News: High-Speed Rail

Mica, Shuster call for privatizing Northeast Corridor


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Yesterday, U.S. House Transportation and Infrastructure Committee Chairman John Mica (R-Fla.) and rail subcommittee Chair Bill Shuster (R-Pa.) called for legislation that would separate the Northeast Corridor from Amtrak’s operation so that a public-private partnership could design, build, operate and maintain the corridor’s high-speed rail (HSR) service.

Mica and Shuster plan to introduce legislation to transfer the corridor to a separate entity and begin a competitive bidding process, they said in a prepared statement.

Amtrak’s $117 billion plan to develop the corridor’s HSR service over 30 years is too costly and would take too long, the congressmen said.

“Our plan would do so in a dramatically shorter time, in closer to 10 rather than 30 years, and at a fraction of the $117 billion cost proposed by Amtrak, while creating new jobs,” Mica said.

The 437-mile Northeast Corridor is the only rail corridor owned by Amtrak. Last week, Amtrak proposed partnering with private investors to bring HSR service to the corridor. But, during a transportation committee hearing yesterday, Mica highlighted profitable private-sector rail operations in other countries.

Not everyone is on board with Mica and Shuster’s proposal, however.

“Amtrak is doing better today than ever and has well-positioned itself to be the leader in delivering high-speed rail service on the Northeast Corridor and throughout its system,” said Edward Wytkind, president of the Transportation Trades Department, AFL-CIO, in a prepared statement. Wytkind testified in Amtrak’s support during Thursday’s committee hearing.

“Now is the time to boost funding for Amtrak and support its long-term vision for growth, which includes targeted private investment,” Wytkind said. “It is not the time to allow private companies to provide rail services that are profitable only by exploiting past taxpayer investments, by relying on continued government support and cherry-picking the most lucrative routes.”