Over $4 Billion Invested by Northeastern and Mid-Atlantic States on Intercity Passenger Rail

Washington, D.C. – A study prepared by the Coalition of Northeastern Governors (CONEG) finds that the twelve Northeastern and Mid-Atlantic States from Maine to Virginia have invested more than $4 billion on intercity passenger rail infrastructure and operations since 1992. They expect to expend over $3 billion from 2002-2006.

According to the report, The Northeast and MidAtlantic States: Investors in Intercity Passenger Rail That Serves the Region and the Nation, these states have invested $2.8 billion in infrastructure improvements and more than $1.4 billion in operations support of intercity passenger rail service on the Northeast Corridor (NEC) and the feeder lines that extend service throughout the 12 state region.

• The $2.8 billion in state infrastructure improvements include: life and safety improvements to Pennsylvania Station New York; signal and power systems on the electrified NEC; and throughout the network, station and platform improvements, grade crossings, track improvements, rail yard and bridge projects that improve the safety and capacity of the system.
   
• The more than $1.4 billion in operating support includes: state contribution to the costs of operating some intercity passenger rail service; payments by commuter railroads that use Amtrak-owned right of way for a share of Amtrak’s operating costs (e.g., maintenance, power, signals and dispatching); and a portion of the direct operating costs assumed by a state to maintain state-owned right of way used by Amtrak for intercity passenger rail service.

The information contained in the report is important and timely to the debate on the future of Amtrak and intercity passenger rail. The national debate asks the question “who pays” to provide intercity passenger rail service. Central to this question is an understanding of the substantial financial support currently being made by states across the nation in support of intercity passenger rail. States recognize a responsibility to provide an appropriate share of financial investments in intercity passenger rail services that promote state and regional economies. However, state funding does not diminish the importance of a federal partner for strong, consistent funding support, particularly in multi-state corridors.

The CONEG report finds that states’ support of intercity passenger rail is more extensive than the frequently cited state operating agreements with Amtrak. This support also includes investments made directly by the states, as well as partnerships with commuter and freight railroads. The infrastructure investments include improvements that directly benefit intercity service as well as those that mutually benefit intercity and commuter service. Even with this substantial state support, the level of capital investment needed for safe, reliable intercity passenger rail service on the Northeast Corridor system far exceeds the current level of federal funding support made available to Amtrak.

The Northeast Corridor network is one of the nation’s most complex and heavily used transportation corridors. The NEC, which serves the Boston-New York City-Washington, DC travel market, is the nation’s major publicly owned intercity passenger rail corridor, with ownership shared among Amtrak, Massachusetts, Connecticut, and New York. It supports millions of intercity and commuter travelers, as well as freight movements in a region that accounts for a quarter of the nation’s population and jobs. The feeder lines provide ready access to travel markets in Maine, New Hampshire, Vermont, New York, Pennsylvania and Virginia. Efficient use of this NEC network dramatically affects the overall viability of highways, aviation, freight and commuter rail transportation networks that serve the region and the nation.

Highlights are enclosed and the full report is available on the CONEG website: www.coneg.org; or by contacting us at coneg@sso.org.

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