ENOUGH IS ENOUGH, AMTRAK JOE.
" With President Biden Pledging Eighty Billion Dollars Of His New $2.25 Trillion Infrastructure Plan To Revamp Amtrak's Rail System, A Valueless Government Owned Business Entity, When Will Washington Come To Their Senses."
May 4, 2021 Commentary By Englebrook Independent News: Investigating Reporting By: Kevin Peterson, Art Fletcher, With Leonard Madison:
President Biden's announcement last week in Philadelphia that he would be providing additional funding to Amtrak, while selling his new $2.25 trillion dollar infrastructure plan to the American public. Biden's pledge to fund Amtrak with an additional $80 Billion Dollars to upgrade present and build new rail lines, again proves Biden's lack of business experience.
Nostalgic touting by Biden that he has ridden over 2 million miles on 16,000 Amtrak trains since first winning his Senate seat in 1972. Touting that does not address the core issues plaguing Amtrak's continued financial losses for decades.
We must take a serious look at Biden's pledge in giving Amtrak an additional 80 Billion dollars of aid to a failing corporation, monies that would be better spent on other programs that we are in need of.
The National Passenger Railroad Corporation ( Amtrak ) is a government-owned corporation established in 1971 to provide intercity passenger train service throughout the United States. The name Amtrak comes from the combination of " American"and "Track." The members of Amtrak's Board are appointed by the President and subject to confirmation by the Senate. Amtrak operates passenger service on 21,000 miles of track that connects 500 destinations in 46 states and select Canadian Cities. Although the Federal Government owns all of Amtrak's stock , it is widely considered to be valueless. In recent years, Amtrak's financial struggles have lead republican calls to privatize parts of the railroad and end federal subsidies that keep the railroad going. Attempts by Amtrak to improve its service in key parts of the country have continued to backfire, resulting in ever increasing bad publicity for the beleaguered business.
Biden's aid would expand areas of the south and west, connecting cities like Nashville, Tennessee and Atlanta, Houston and Dallas, and bringing back rail service between Las Vegas and Los Angeles.
Amtrak's CEO Bill Flynn proposed enhanced services in the Northeast United States, but a priority would be rebuilding many major bridges and tunnels in the Northeast Corridor, the main line that then Senator and later Vice- President Biden would travel on.
All routes out of Chicago would also be improved according to Amtrak. Giving speculation to the reasoning why there would be a need to improve those routes. Those routes were supposedly improved during the Obama Administration.
Looking at Biden's love affair with Amtrak, it seems to extend beyond Folksy Nostalgia.
During the past 3 years Amtrak continued to report major losses. During fiscal year 2018 they reported losses of $817.2 million dollars, in fiscal year 2019 they reported losses of $874.8 million dollars, and again in 2020 Amtrak losses surpassed $700 million dollars, even after receiving Coronavirus support and a reduction of their workforce due to the pandemic. Bringing total reported losses to over $2.55 trillion dollars. Amtrak also reported receiving $234 million in support from the governments of states through which some of their trains run. Without that additional support Amtrak's losses would surpass $1 billion annually. Biden's plan to repay the additional funding to Amtrak along with the balance of his infrastructure plan, will be to raise taxes.
In total, Amtrak could bring more than 30 new routes and add more trips to 20 existing routes.
The improvements could bring up to 160 more communities into the U.S. Rail System, with multiple daily trips being in another 15 States, by 2035 if the infrastructure plan is approved.
Biden's continued rhetorical slamming of Wall Street firms and big business, needs to stop. He should take note of the financial successes reported by the four other national railroads that operate in our country.
BNSF the largest railroad in North America reported earnings revenue of $23.9 billion in 2018, with a profit of $5.22 billion. In 2019 BNSF report a profit of $5.48 billion up 5% from the previous year.
According to Bloomberg BNSF is 46 percent owned by Wall Street Investment Firms; at CSX the figure is 35%; at Union Pacific 34%; at Kanas City Southern 33% and at Norfork Southern 32%.
In 2020 during the Pandemic BNSF generated more than $20.8 billion U.S. dollars, with over $3.4 billion in profits.
Instead of slamming corporate America and Wall Street Investment Firms. Biden and his Administration should take a business 101 lesson from them. The Republicans may be right in their past calls to privatize Amtrak, ending the unnecessary 50 year cash infusion to a failed corporation. Then again it's not Biden's money he is spending, it's ours. Further during last weeks announcement, President Biden encouraged more people to ride Amtrak rather than drive cars or trucks. If that's what you want us to do, then why do we need your infrastructure plan for roadways !
FILE UNDER MAY 4, 2021: Commentary, Biden, Amtrak.