California State Rail Plan 2007-08 to 2017-18

Chapter XI – Amtrakand operating costs assumed on a proportionate basis by all users, includingAmtrak, freight and commuter railroads.• Establishment of phased-in financial performance thresholds for Amtrak’sexisting 15 long-distance trains and any future similar proposed service.Amtrak initiated a series of actions to improve the financial performance ofthese trains. Services falling below the thresholds could be continuedthrough support by state or other authorities, reconfigured or eliminated.• Creation of markets for competition, private commercial participation andindustrial reforms in various rail functions. This includes competitionamong operators, including Amtrak, for new corridor routes.For California there are a number of important initiatives included in thedocument. First, the recommendation for a Federal 80 percent/state 20 percentcapital match program for state rail capital investment is key to allowingCalifornia to leverage State funds with Federal funds to continue to makeimprovements to the intercity rail system. Second, the reform initiatives call forother operators to be able to compete for elements of service (e.g., food serviceand mechanical services), and ultimately with Amtrak for operation of routes.Qualified competitors could potentially receive the rights to private railroad trackat incremental costs, assuming legislative changes contained in the proposal, andaccess to Amtrak rolling stock. As part of the proposal, Amtrak would phase outany operating support for State-supported Routes by FY 2011. This may result inadditional costs to California.AMTRAK’S 2004 STRATEGIC BUSINESS PLANIn June 2004, Amtrak released its Amtrak Strategic Plan FY 2005-2009, which isa strategic capital investment and operating plan that updates the plan released in2003. Amtrak is now updating the Strategic Plan and expects to release it inMarch, 2008.Amtrak’s Strategic Plan FY 2005-2009 aims to restore Amtrak’s physical plantand train equipment to a state-of-good-repair and improve the railroad’soperational reliability. The Plan identifies four strategies: (1) maintain the focuson stabilizing the railroad; (2) continue to ramp-up the capital program;(3) continue the emphasis on operating efficiencies through improved fleetutilization, better service design, and increased productivity; and (4) encourageinvestment in improved service, including corridor development. The Plan isbased on investments in existing infrastructure and equipment, and proposes nonew significant passenger services – focusing instead on improving the reliabilityand cost-efficiency of the passenger railroad’s existing services.The Plan outlines the progress made in FFY 2003-04, including establishing atransparent financial reporting system, implementing zero-based budgeting,imposing strict headcount control measures, focusing on day-to-day passenger187