
Article: National Association of Railroad Passengers – Investment: the logic behind Amtrak’s Acela RFP.
As a general rule, passenger trains in North America don’t make money. That’s been true for a lot longer than people realize – it goes back to the 1930s and even the 1920s. All those streamliners before and after WW2? Railroads trying to get travelers back from the automobile. By the time the Post Office Department (as the USPS was called then) pulled most of the railroad mail contracts in 1967, it’s was pretty much all over, with all but three railroads relieved of their common carrier passengers obligations by Amtrak a few years later.
But I digress. The Northeast Corridor has lots of trains, the fastest of which are Amtrak’s Acela which spends most of its time running at 120-135 mph with gusts to 150 up in Rhode Island and Massachusetts. With hourly service most of the day between Washington, DC, New York, and Boston, it’s very popular. So popular that it’s now covering its “above the rail” cost. “Above the rail” means labor and other operating costs but not the capital costs of replacing the trains (usually) or, most importantly the cost of the 456-mile-long right of way. This is kind of new for Amtrak and it’s not clear that they are equipped to handle it.