2 replies to this topic

[KevinKorell]

KUSA-TV, Channel 9 in Denver, CO, 11/19/13:

What happens in Vegas may stay in Vegas, but how you get there may change soon.

Story

I think this reporter has Amtrak and X-Train confused. If Amtrak really wanted service to be operated between Los Angeles and Las Vegas, they would have kept the Desert Wind or reinstated it by now. And it really isn't being designed to hook up with Amtrak routes as the article states. The only Amtrak routes this route will touch would be those which serve Los Angeles, making it a roundabout route for anyone coming from the east on one of the east-west long distance trains. Nor would Amtrak give X-Train its New York-Miami route. And while a Las Vegas-Denver route (presumably via Salt Lake City and the California Zephyr routing over the Rockies) would be scenic, I doubt it would replace the Zephyr as it continues to run to Northern California.

[BillMagee]

Actually, having Amtrak start the LAX-LAS service is the plan - or at least it's the plan submitted by Las Vegas Railway Express (XTRN) in its latest SEC filing.

XTRN was approaching the point when they would have to pay Union Pacific $66 million up front for improvements. The problem is that XTRN does not have $66 million, and no one wants to lend them $66 million. So, they came up with what their PR release describes as an "off balance sheet" plan to fund the improvements that does not require them to pay anything.

Here is the exact wording from the XTRN release:

We have an alternative for off balance sheet financing for this route which eliminates the need for the Company to dilute its shareholders by $100 million.” Stated Michael Barron, President and CEO of the Company. “As a result of this alternative financing plan, we no longer needed to retain the Union Pacific agreement which required the Company to make prepaid capital improvement payments of $66 million.” Barron said. The alternative financing plan would still finance the LA to Las Vegas route as planned.

Sounds great, doesn't it? However, the SEC takes a dim view of PR fluff. They want facts, not some vague "plan." A quick trip to the actual XTRN 10Q filing reveals the details of the plan. The new plan is to have the improvements paid by (wait for it).... AMTRAK! Amtrak, which of course has $100 million ($66 million now) burning a hole in its pocket, will go to the UP, fund the improvements themselves for future Amtrak service. Once the work is done and the Amtrak service is up and running, XTRN will pay Amtrak the going rate to attach cars to the Amtrak trains. Brilliant!

Here is the exact wording from the XTRN 10Q:

In addition, we have had discussions with Amtrak regarding coupling our casino style consists up to the new service of passenger trains on the LA to Vegas route we have identified. Based on these discussions, we believe this arrangement, under which we would pay the going rate fee for such accommodation, will be acceptable to Amtrak. Under this provision, X Train would not be required to make any capital improvements to existing railroads as that would be the responsibility of the operator, Amtrak.

You have to admit, it is imaginative.

[KevinKorell]

Well thanks Bill, that clarifies things. I see that they still have their eyes on a North Las Vegas station facility rather than downtown where intercity trains have historically stopped. It would also be nice to get the restored Desert Wind back to Salt Lake City as it did before, to tap the Vegas market from the north and east with connections to the California Zephyr. I have to wonder if Amtrak would operate daily, or only on the days that X-Train intended to run 2 or 3 days a week. Or would Amtrak daily operation cause X-Train to run every day?