The Federal Railroad Administration (FRA) published a proposed rule today establishing a pilot program under which railroads that own the infrastructure over which Amtrak operates may bid to provide passenger service. The routes open for bid are "under-performing" Amtrak routes. The proposed rule is mandated by the Passenger Rail Investment and Improvement Act of 2008.
The pilot program proposed in the rule limits the number of intercity routes that may be awarded to carriers other than Amtrak to no more than two existing Amtrak routes. A carrier winning a bid to operate service previously provided by Amtrak, would be entitled an operating subsidy up to the level Amtrak had received for the route, conditioned upon meeting certain performance standards. Amtrak would be required to provide a winning bidder access to its reservation system, stations, and "facilities directly related to operations." The bid process also allows Amtrak to submit its own bid to retain the service over the route that another carrier petitions to operate.
Comments on the proposed rule are to be submitted to the FRA by November 7, 2011.
It remains to be seen if there are any takers for operating passenger service on routes which have been "under-performing" for Amtrak, even with equivalent operating subsidies.
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