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ST. PAUL / MINNEAPOLIS

Amtrak Rights and Relationships with Host Railroads SCORT, September 13, 2011 Paul Vilter AVP Host Railroads, Amtrak. 70% of Amtrak’s Train-Miles Operate on Host Railroads. Amtrak Route System. Track Ownership Excluding Terminal Railroads. VANCOUVER. !. !. SEATTLE. !. Spokane. !.

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ST. PAUL / MINNEAPOLIS

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  1. Amtrak Rights and Relationships with Host RailroadsSCORT, September 13, 2011Paul VilterAVP Host Railroads, Amtrak

  2. 70% of Amtrak’s Train-Miles Operate on Host Railroads Amtrak Route System Track Ownership Excluding Terminal Railroads VANCOUVER ! ! SEATTLE ! Spokane ! MONTREAL ! PORTLAND ! ST. PAUL / MINNEAPOLIS Operated St. Albans ! by VIA Rail NECR TORONTO VTR Rutland Niagara Falls ! Portland ! Port Huron Grand Rapids Pan Am ! ! MILWAUKEE ! ! Pontiac Albany Metra ! ! BOSTON Springfield ! ! CHICAGO ! Metro- MBTA CLEVELAND ! North SALT LAKE CITY PITTSBURGH ! ! NEW YORK ! INDIANAPOLIS Harrisburg ! ! ! PHILADELPHIA ! DENVER KANSAS CITY ! BALTIMORE ! ST. LOUIS ! WASHINGTON ! ! SACRAMENTO Charlottesville ! OAKLAND ! Richmond ! Buckingham Branch Newport News ! Oklahoma City Bakersfield ! ! ! MEMPHIS ! ALBUQUERQUE SCRRA ! ! LOS ANGELES ATLANTA DALLAS SCRRA / BNSF / SDN FT. WORTH ! ! ! SAN DIEGO ! JACKSONVILLE HOUSTON ! ! NEW ORLEANS ! SAN ANTONIO Railroads TAMPA ! FDOT Amtrak Norfolk Southern ! MIAMI Union Pacific Canadian Pacific BNSF Canadian National CSXT Other Railroads

  3. Amtrak and Host Railroads • Amtrak helps states gain access to host railroad tracks and facilities needed to operate intercity passenger service • States can leverage existing business and operating relationships between Amtrak and its host railroads • Amtrak’s unique statutory rights of access to the rail network are the foundation of intercity passenger rail service in the nation • Amtrak’s rights are sometimes taken for granted

  4. What are Amtrak’s rights? • The Rail Passenger Service Act of 1970 and subsequent amendments, now codified at 49 U.S.C. §§ 24101 et seq., provides Amtrak with rights on host railroads, including: • Access to any rail line in the US • Use of host railroad facilities • Payments based on host’s incremental cost • Amtrak preference over freight transportation • Additional trains • Accelerated speeds • Condemnation authority

  5. How does an Operating Agreement relate to statute? • Amtrak’s Operating Agreements translate the general terms of the statute to host-specific negotiated terms and conditions that provide the foundation for day-to-day Amtrak operations on each host, dealing with issues including: • Operation of existing service • Service standards • Implementing new service • Payment amounts and terms for services provided by the host • Liability apportionment • Dispute resolution

  6. What type of payments does Amtrak make to hosts? • Incremental cost reimbursement • The avoidable cost incurred by the host due to the presence of Amtrak operations on its rail lines • Includes host railroad staff employed due to the presence of Amtrak. • Performance incentives/penalties • Operating agreements do not require host performance, but incent good performance and penalize poor performance

  7. Access to the National Rail Network • By Federal law, Amtrak is granted access to the entire national rail network • Including host railroad property such as station buildings, platforms, and other facilities • This access is not restricted to routes where Amtrak already has or previously had service

  8. Access at Incremental Cost • There is no fee for the access to the national network granted to Amtrak • Amtrak reimburses hosts for their out-of-pocket costs for hosting Amtrak trains • This is a fraction of host railroad charges for non-Amtrak passenger service which include host profit and other fees

  9. Preference Over Freight Transportation • Rail passenger transportation provided by Amtrak has preference over freight transportation • A host may seek to have preference modified by the STB by demonstrating that providing preference “materially will lessen the quality of freight transportation provided to shippers” • No host has sought to demonstrate this

  10. Additional Trains • Additional Amtrak service may not unreasonably impair freight transportation • So new services may require capacity investments negotiated with the host • However, hosts must engage in these negotiations, and cannot refuse new Amtrak service

  11. Accelerated Speeds • If a host railroad refuses to allow accelerated speeds for Amtrak trains, Amtrak may apply to the Surface Transportation Board for an order requiring the carrier to allow the accelerated speeds • The Board will decide which improvements would be required to make accelerated speeds safe and practicable

  12. Eminent Domain • Amtrak has condemnation authority over private property, including owned by host railroads, if such property is needed for intercity passenger service • Amtrak must compensate the owner for the property

  13. Other Amtrak Arrangements on the Host Railroad Network • Liability coverage • Amtrak has a unique contractual no-fault liability arrangement with its host railroads, an excellent safety record, and a decades-long history of standing behind its liability commitments to hosts. This combination provides the lowest-cost liability arrangement. • Amtrak extends this indemnification to states by contract • Access to Amtrak servicing facilities and stations • Amtrak has existing servicing facilities and stations on the host railroad network that can be made available for Amtrak-operated state supported services

  14. Amtrak’s rights are key to intercity passenger rail Thank you.

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