David.Black@cmu-cs-a.ARPA (02/19/86)
Amtrak's Northeast Corridor trains cover their marginal costs, but overall Amtrak loses money due to the ICC's infamous cost allocation decision. Basically the ICC decided that Amtrak was the major user of the corridor, and therefore not only was Amtrak responsible for maintenance, but other users (Maryland DOT, SEPTA, NJTRANSIT, Conrail) were only responsible for the marginal costs of using the corridor. As a result Amtrak picks up about $300 million in maintenance and operational expenses each year that should be allocated to the aforementioned users. This cost allocation decision doesn't apply to the corridor between New Rochelle (just out of NYC) and New Haven, as this trackage is owned by the MTA and Connecticut DOT. This is also the reason the Amtrak is not as competitive in the New York - Hartford, Springfield, Providence, and Boston markets as it could be, because the MTA dispatchers regularly shaft Amtrak trains in favor of their own commuter trains. I don't know what the deal is in Massachusetts between Amtrak and the MBTA on the piece of the corridor (RI state line to Boston) that the MBTA owns. --Dave