POSITION PAPER
NATIONAL PASSENGER RAIL

27 June 1997

ARPA recommends that a permanent funding mechanism be created for national rail passenger infrastructure. These funds would be available to any qualifying public or private operator or regional authority to help fund:

• Rail line maintenance and improvements;
• Acquisition of locomotives and equipment.

ARPA also believes that the Northeast Corridor and the remainder of the national rail passenger system should be capitalized and operated as separate and distinct entities:

• The Northeast Corridor would be a landlord to those long distance trains which traverse it;
• Managers of corridor passenger operations would be entirely accountable for costs, profits and performance of their trains.

ARPA further recommends that any restructuring of the national rail passenger system must allow the system to expand without relying entirely upon Federal funding. This can be accomplished by:

• Removal of the Amtrak first right of refusal clause (USC 49§24701). This would permit additional qualified operators to compete to provide service;
• Providing incentives and inducements to the freight railroads so they become willing and active partners in the nation's passenger rail system. Tax and fee waivers would be a start on this proposal;
• Examination of the entire system to determine areas that could be considered for public/private partnerships.