





Planned Growth for Profitability
Planned Growth for Profitability
TACTICS
The tactics outlined below are essential ingredients to the attainment of
overall goals.
- Route Identification
Summary: A
profitable, truly national rail passenger system must begin with development of
the market potential of the various segments of the existing network and
expansion of that network through the addition of routes that will contribute to
overall system performance. By applying various models of intercity movement and
examining existing travel patterns of rail, bus, airline, and automobile, it is
possible to predict the number of potential rail travelers along a given route
segment. Using this ratio of potential daily passengers per mile (PM/RM)
developed in Amtrak 90, a target system for 1990 was determined (Figure 5). This approach tailors passenger train service
to market.
- Service Levels
Summary: Three basic
types of trains are needed to service the various markets on the 1990 national
system:
- Long-Distance Trains
- Medium-Distance Trains
- Short-Distance Trains
Using these types of trains where
each is appropriate in maximizing market penetration is the major key to turning
Amtrak into a successful financial operation. To fully develop the market
potential by strengthening the capacity of existing trains, adding new trains to
the present network, and expanding the network, it will be necessary to spend
$4.75 billion over an eight-year period.
- Capital Needs
Summary: The biggest
single obstacle to expanding the capacity of the Amtrak system to maximize
market potential is the lack of passenger cars and locomotives.This capital
improvement program is summarized in
Figure 8
- Marketing
Summary: Effective
marketing is much more than advertising and salesmanship. It includes designing
and delivering a product that is attractive to potential users, informing them
of the advantages of the product, and making the product accessible to them in
physical and economic terms.
- Labor Productivity
Summary: Three
major areas of concern are wages and hours, craft and territorial boundaries,
and manning levels.
- Operations
Summary: The overall
operating philosophy of Amtrak 90 is for maximum utilization of cars and
locomotives to meet train requirements as established by marketing goals.
- Northeast Corridor
Summary: A
three-level, fixed-interval service restructuring is proposed.



