Trains magazine 'Observation Tower' blog, 2/8/19:
Private railcars and Amtrak: a clearer picture
by Malcolm Kenton
Amtrak’s Office of the Inspector General released a report today recommending ways that the national passenger carrier could improve safety, better manage costs and increase revenue associated with the haulage of privately-owned railcars. A key takeway is that, just as Amtrak’s flawed accounting system (see Bob Johnston’s report in the January 2019 issue of Trains or this August 2018 Rail Passengers Association paper) keeps it from knowing the actual costs or profit/loss of its passenger services, the company is also in the dark when it comes to the true direct or allocated costs associated with accommodating private railcars (or PVs, for ‘private varnish’).
The OIG’s recommendations are generally sensible, but the report and the discussion so far around it miss many key points about what the private railcar hobby is, how it benefits Americans, and how policy changes that Amtrak implemented last year have constricted PV owners’ travel options to the point where many are selling their railcars (mostly to tourist and excursion railroads) and exiting the business.
Disclaimer: Malcolm Kenton is a freelance contributor to Trains and an independent consultant specializing in writing, research and communications with a focus on passenger rail and transit. His clients include Herzog Transit Services, Inc. and the Association of Independent Passenger Rail Operators, as well as a travel agency that organizes and manages charter train trips in the US. He is also an avid and frequent train traveler. The views expressed in Observation Tower are solely his own and do not necessarily reflect the positions or business interests of any of his clients.
