Wedoany.com Report on Feb 24th, The Federal Railroad Administration has directed Amtrak to adopt a restructuring proposal that plans to split the railroad into three separate operating entities. The Amtrak restructuring will be conducted under a holding company structure, responsible for operational oversight, vehicle management and leasing, and infrastructure and construction management, respectively. Association officials stated they have received preliminary briefings and expect the proposal details to be refined through a public process in the coming months.
Jim Mathews, President and CEO of the Rail Passengers Association, noted, "If done correctly, structural reorganization could bring potential benefits. However, the experiences of European and Asian railroads tell us that there are clear and present dangers in such restructuring. If mishandled, it could lead to reduced services, route cancellations, increased passenger fares, and even a decline in infrastructure and safety standards." He added that a lack of predictable and adequate public funding would doom the restructuring to failure.
The Brotherhood of Locomotive Engineers and Trainmen issued a memo to its members expressing concerns that the restructuring labor agreement could affect approximately 18,000 unionized Amtrak employees. Patrick D'Arcy, Chairman of the Amtrak General Committee of Adjustment for the union, wrote, "A transition of this nature raises reasonable and substantial concerns regarding the maintenance of qualifications, the preservation of existing work jurisdictions, crew utilization practices, engineer requirements, and most importantly, the continued protection and enforcement of existing agreement rights."
The U.S. Department of Transportation has denied that the restructuring is related to privatization. DOT spokesperson Dana Almeida responded to Bloomberg, stating, "The Trump administration is considering how to strengthen and modernize Amtrak's future, but privatization is not on the table." Deputy Federal Railroad Administrator Drew Feli mentioned in a speech earlier this month that the restructuring aims to improve railroad operational efficiency and emphasized that there would be no cuts to routes or jobs.
