Is It Feasible for Amtrak to Become Profitable?

Considering that Amtrak is a for-profit company, the question arises whether it is possible for it to break even or even become profitable. While this might seem like a straightforward business goal, we must also consider the potential impact on the functionality and public service aspect of the company.

Can Amtrak Be Profitable?

Yes, it is feasible for Amtrak to become profitable. However, it is important to note that such achievements would likely come at the cost of a more functional, efficient system that better serves the public.

Capital Investment and Profitability

To achieve profitability, significant capital investment is necessary. Many proposed measures do not undermine the quality of service provided by Amtrak. Here are several strategies that could help:

Highly Populated Corridors

Amtrak has a history of profitability on highly populated corridors, particularly the Northeast Corridor. The Keystone Service and some California corridors have also shown profitability. Additionally, there are other corridors, such as the Cleveland-Columbus-Cincinnati corridor in Ohio, which currently lacks Amtrak service entirely. Upgrading tracks for higher speeds, electrification, frequent service, and leveraging existing infrastructure can significantly boost profitability.

Other High-Demand Routes

Beyond the highly populated corridors, there are several other high-demand train services that could be profitable. For instance, the Auto Train and some seasonal services like the Winter Park Express are already making profits. Identifying and developing such routes can help increase profitability.

Operating Contracts

In addition to its own train services, Amtrak operates some commuter rail systems under contract. For example, the Metrolink commuter rail system in California is operated by Amtrak. Expanding the scope of such contracts can help Amtrak generate more revenue.

Freight Transport

While Amtrak primarily focuses on passenger services, it has a diverse business model historically. They can return to wagonload services and restart the operation of mixed trains, carrying both passenger and freight traffic. Operating freight trains in lines they own and possibly those owned by states and transit authorities (like NJ Transit) can increase profitability.

Reducing Long-Distance Train Costs

Long-distance routes are the least profitable for Amtrak. However, upgrading track speeds and electrifying lines can make these routes more cost-effective and potentially profitable.

Conclusion: Should Amtrak Be Required to Turn a Profit?

While Amtrak can indeed become more profitable through strategic investments and diversification, the question of whether it should be required to do so is significant. At its core, Amtrak serves as a public service, and it should be treated as such. The primary goal should be to enhance the quality and reach of rail transport, not just to turn a profit.

It is essential to balance profitability with the public service mission of Amtrak. While making the company more profitable is feasible, the livelihood of millions of passengers and the broader economic and environmental benefits of efficient rail travel should be prioritized.