Planned Growth for Profitability

• Strategy
• Tactics (this file)
• Financial Impact

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.