Foreign Intercity Passenger Rail : Lessons for Amtrak (RL31442) / John Frittelli.

Format:

Book

Author/Creator:

Frittelli, John, author.

Language:

English

Subjects (All):

Transportation and state.

Physical Description:

1 online resource (17 pages)

Place of Publication:

Washington, D.C. : Congressional Research Service, the Library of Congress, 2002.

Summary:

Congress is debating the federal government's role in providing intercity passenger rail service. Many believe that Amtrak's future is now at a crossroads. Amtrak's worsening financial situation and its relatively small overall share of the intercity passenger market have led some policymakers to consider other models of passenger rail regulation. The experience of other countries is often cited in debates about passenger rail regulatory regimes. The foreign experience can provide some perspective and some insight in the debate on U.S. intercity passenger rail. Many countries have dramatically reorganized the regulatory framework of their railroads. Market forces and political pressures were the underlying causes of railway reform. The objectives of rail reform was to reverse declining market shares due to competition from the automobile and airplane, to make the railroads more responsive to customers, and to reduce the railroads' dependence on government subsidies. In order to accomplish these objectives, governments have reorganized their railways along several dimensions. Some national railroads were divided geographically into separate entities by region. In some cases, national railroads were also divided by business sector, such as freight separated from passenger services. Vertical integration, where one entity controlled both train operations and track infrastructure, versus vertical separation, where train operations and track infrastructure were controlled by separate entities, was another choice offered by rail policymakers. Rail policymakers also faced a choice between public versus private ownership. Levels of privatization can be distinguished among several foreign railroads. A final important element of railway regulation is the role of competition. Theoretically, competition in passenger rail service can take the form of multiple train operating companies competing on the same track. However, in practice, competition more readily takes the form of franchises bidding for government contracts to perform rail services and/or competition from other modes, such as automobile, bus, and airplane. The regulatory framework of passenger rail in seven countries is profiled: Argentina, Canada, France, Germany, Japan, Mexico, and the United Kingdom. The level of government support for passenger rail in Japan and European countries far exceeds the level of government support in the United States. In many cases, at the initial stage of restructuring, foreign governments absorbed the large debt that the previous national railroad had accumulated. Even the most market- oriented governments have accepted some kind of public support for new (high speed) track construction. Federal governments also provide direct operating subsidies to their railroads in most cases. In Japan, a few lines are able to cover their operating expenses without government operating subsidies. Although restructuring may provide opportunities for increasing productivity and efficiency, many rail analysts contend that a more critical issue facing Congress is the high level of government spending a viable intercity passenger rail system requires.

Contents:

Introduction 1

Origins and Objectives of Railway Restructuring 3

Options for Railway Restructuring 3

Selected Country Experiences 6

Government Financial Support for Passenger Railways 10

Debt Write-Off 10

Government Support for Infrastructure 11

Government Support for Operations 13

Conclusion 14

List of Tables

Table 1. Classification of Railway Companies based on Levels of Legal

Independence 5.

Notes:

Description based on online resource; title from PDF title page (Congressional Research Service, the Library of Congress, viewed June 9, 2023).