Amtrak Troubles Threaten ExpressTrak
Nov 12, 2001 12:00 PM, Refrigerated Transporter StaffThe Amtrak Reform Council says that the national rail passenger service cannot meet a congressional mandate for financial self-sufficiency and has 90 days to plan for liquidation. Congress previously set December 2002 as a deadline for Amtrak to begin supporting itself, but the rail passenger service lost $405 million in the first eight months of 2001. If Congress decides to allow Amtrak to continue in operation past 2002, ExpressTrak, the rail service that intends to haul perishables in rail cars as part of Amtrak passenger trains, may be facing potential difficulty.
ExpressTrak could be an important factor in Amtrak's survival. Amtrak generates 43% of its revenue from non-passenger business and may need to increase freight revenue to remain in business.