EDITORIAL

Clarification: The Amtrak Monopoly

In the February UPDATE, I commented on the Amtrak Reform and Accountability Act of 1997’s repeal of the statutory Amtrak monopoly (which gave Amtrak the first right of refusal for intercity passenger rail service).

While the monopoly may be gone, however, Amtrak still has an advantage over other potential operators: It has the right to run trains over the freight railroads.

The Association of American Railroads, which represents the freight railroads, wants to ensure that this preference extends only to Amtrak, not to other passenger operators. The AAR has issued a position paper which puts it this way: “Amtrak’s restructuring may well require the elimination of routes and service. Other operators may seek legislative authority to substitute themselves for Amtrak. Amtrak has unique status in terms of access to the freights’ rights-of-way. That access must not be made transferable to successors or assigns.”

Further, a potential rail passenger operator would have to negotiate contracts with both the freight railroads and the various labor unions.

So it may be awhile before we see a competitor to Amtrak emerge. However, with the Reform Act passed into law, at least it will not be impossible. I am always glad to see new opportunities for free enterprise.

– William Lindley