For the Coalition of Northeastern Governors
Volume 3, Number 1	October 1999

Acela as it emerges from the Bombardier Transportation manufacturing facility in Barre, Vermont. Photo courtesy of Amtrak.

new intercity passenger rail service along the Northeast Corridor is about to change the travel experience. The pending arrival of high speed intercity passenger rail service along the Northeast Corridor, long championed by the Coalition of Northeastern Governors (CONEG), marks an important point in the evolution of travel in the Atlantic Coast Corridor. It provides travelers with a choice of transportation modes contributes to mobility, promotes economic development, and coincides with a growing public desire to understand the impact of regional transportation projects on communities and the natural environment.
     Amtrak also looks to high speed passenger rail service in the Northeast to foster fundamental changes in its financial health and its service operations. When fully deployed, this Acela service is expected to increase Amtrak's financial revenues significantly, providing much needed recapitalization. By generating up to $180 million in additional net revenue for re-investment, the high speed Acela Express and Acela Regional services will make a vital contribution to maintaining a national intercity passenger rail system. Key to the success of the service will be the establishment of a highly service-oriented business culture within Amtrak's operations.
     In addition to bolstering Amtrak's financial health, the high speed passenger rail service offers investment and job opportunities for states along the Atlantic Coast Corridor and beyond. Amtrak has a significant corporate presence in this Corridor, employing over 15,000 people from Maine to North Carolina, writing almost $695 million in payroll checks in 1998. The Acela project, with a 70 percent "Buy America" participation overall, created contracts with over 70 suppliers in 23 states. In the process, over 10,000 construction and manufacturing jobs were created. Spending from these jobs provides businesses an opportunity to grow and enhances the financial health of the communities in which they are located.
     Acela is a complex piece of industrial engineering; yet its phased-in service will represent more than a sleek, fast train. It is tangible evidence of an incremental approach to the deployment of higher speed service. While other approaches may be more high tech, the incremental strategy -- using existing technologies over established rights-of-way while respecting the prerogatives of freight and commuter users -- is moving forward throughout the Atlantic Coast Corridor. For example, New York State is rebuilding RTL turbo-powered trainsets, while Pennsylvania is completing an intensive review of equipment options. Other corridors around the country have taken notice and are emulating this incremental approach.