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CONLEY COMMENTARY (WSAU) – I’m a train guy. It’s my favorite way to travel.
But Amtrak is a poor partner that regularly fleeces the states that it partners with for regional rail service. Wisconsin is setting itself up for those costs on the much-publicized new train, the Borealis, between Chicago, Milwaukee, and Minneapolis. Federal grants cover the costs of the run for the first three years. Then Wisconsin, Illinois, and Minnesota will be billed by Amtrak for whatever costs aren’t covered through ticket sales. In Wisconsin, that’s money that could be used for road repairs.
In year four, Amtrak will tell the states what their share is and send a bill. The states have almost no control over the costs of the service. States pay for the locomotives and rolling stock, Amtrak negotiates the costs of labor with its union workers.
Indiana had a particularly bad experience with Amtrak, which Wisconsin needs to be careful to avoid. Three times each week Amtrak runs a long distance train from Chicago to New York called the Cardinal. It stops in Indianapolis. On the four days the Cardinal does not run, there was a local train, called the Hoosier State, between Indy and Chicago. Indiana was presented with a bill for the service: $3-million. That’s a breathtaking subsidy of $107 per passenger, covered by the taxpayers. A bus ticket between the cities costs about $30.
So Indiana put the train route out to bid. Another railroad, the Iowa and Pacific, took over the route. And what a spiffy train they ran, with classic brown and orange coaches, a dome car, and a real dining car where a chef cooked food instead of offering microwaved meals. But Amtrak doesn’t want competing railroads bidding on state routes. They sabotaged the Iowa and Pacific with exorbitant fees to use Amtrak stations, and for dispatching services, and to access Union Station in Chicago. When these costs were added it, the route was a money loser. Iowa and Pacific dropped out, and the train no longer runs.
Amtrak operates exactly like you’d expect a government agency to. They don’t like to be questioned, they don’t cooperate with outsiders. It’s a here’s your bill – keep quiet and pay it with a smile.
As much as I like train rides, Wisconsin needs to remember that the costs of even more routes, like Milwaukee to Madison and Milwaukee to Green Bay, are tremendous money losers. Every time you hear the whistle blow, remember you’re paying for it.
Chris Conley
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