User:Mackensen/Network Growth Strategy

File:20020428 05 Amtrak Lewistown, PA.jpg at Lewistown, Pennsylvania in 2002. Multiple material handling cars are visible at the head end. Amtrak hoped that mail and express service would help it achieve profitability.]]

The Network Growth Strategy was a business strategy adopted by Amtrak, the national intercity rail carrier of the United States, toward the end of the 1990s. Amtrak, which depends on government support, intended to achieve profitability by expanding its mail and express service over existing routes and adopting new routes whose primary purpose would be freight and express, with passenger traffic a secondary consideration. Amtrak planned fifteen "route actions" (new routes or alterations to existing routes) to be implemented between FY1999 and FY2002. Of these only three were ever implemented, and only one remained in place after 2003. Amtrak exited the freight business in 2003 and returned its focus to passenger travel.

History

The United States Congress passed the Amtrak Reform and Accountability Act (ARAA) in 1997. Among other provisions, the act called for an end to operating subsidies by 2002.

George Warrington, then Amtrak's president, officially unveiled the plan on February 29, 2000. The plan envisioned growing both passenger and the freight and express business, with the aim for the company to become financially self-sufficient. Amtrak expected to realize $229 million per year in new revenue. At the time Amtrak faced possible liquidation if it did not achieve that status by the end of FY 2002. Revenue from the mail and express business grew from $70 to $117 million between 1997–2001, but this growth was offset by increased expenses, which Amtrak met through borrowing. Not all expenses were attribute to the network growth strategy as substantial amounts were invested in the Acela Express program.{{Harvnb|Pinkston|2003|p=13}} Nevertheless, Amtrak's operating loss increased by 70.9% between 1997–2001 (all numbers in millions):

{{ #invoke:Chart | bar chart

| group 1 = 1669 : 2244 : 2011 : 2111 : 2109

| group 2 = 2359 : 2548 : 2660 : 2876 : 3288

| colors = blue : red

| group names = Revenues : Expenses

| units prefix = $ : $

| x legends = 1997 : 1998 : 1999: 2000: 2001

}}

David L. Gunn replaced Warrington as president in May 2002. In September he ended the mail and express program, which at the time was losing $3 million per year.{{Harvnb|Pinkston|2003|p=14}} Amtrak continues to handle small parcels in its baggage cars.{{Cite web |url=https://www.amtrak.com/servlet/ContentServer?c=Page&pagename=am%2FLayout&cid=1241267371736 |title=Amtrak Express Shipping |publisher=Amtrak |access-date=February 18, 2017}}

Route changes

Amtrak planned numerous route changes, including several completely new services. Most of these never advanced beyond the planning stages and were abandoned in the face of freight railroad opposition, funding woes and equipment shortages. Of the eight new services proposed only two, the Lake Country Limited and the Kentucky Cardinal, operated in revenue service, and both were cancelled by 2003.

= Florida =

In May 2000 Amtrak had three long-distance trains serving Florida:Timetable

Amtrak planned two changes to these trains:

  • Move the northern terminus of the Silver Meteor from New York to Boston, creating a direct New England–Florida connection. This train would use the so-called "Inland Route" via Springfield, Massachusetts.
  • Create separate Miami and Tampa sections for all three trains, with the split occurring at Jacksonville. The Miami sections of the Silver Meteor and Silver Star would use the Florida East Coast Railway.

= Iowa =

Passenger service to Des Moines, Iowa had ended on May 31, 1970, when the Chicago, Rock Island and Pacific Railroad (the Rock Island) discontinued an unnamed round-trip between Chicago and Council Bluffs, Iowa. {{cite news|title=Passenger Trains Make Last Runs |url=https://www.newspapers.com/clip/8989644/passenger_trains_make_last_runs/ |newspaper=Iowa City Press-Citizen|date=June 1, 1970|page=3|via = Newspapers.com|accessdate = February 16, 2017 }} {{free access}} Amtrak proposed to run an overnight train, the Hawkeye, from Chicago to Des Moines via Savanna, Illinois. The train would have used the tracks of I&M Rail Link and the Iowa Interstate Railroad. Nothing came of the proposal.{{Harvnb|Sanders|2006|p=151}}

= Kentucky =

File:Hi-Level coach and express boxcar on the Kentucky Cardinal at Jeffersonville, August 2001.jpg

{{main|Kentucky Cardinal}}

On December 17, 1999, Amtrak extended the Chicago–Indianapolis Hoosier State south to Jeffersonville, Indiana, across the Ohio River from Louisville, Kentucky. Amtrak sought to tap in to mail and express business at the United Parcel Service's Louisville hub. The train began serving Louisville directly in 2001. Poor track conditions south of Indianapolis hampered operations, and Amtrak discontinued the train on July 5, 2003.Sanders? A planned revival of service to Nashville, Tennessee never occurred.

= Michigan =

File:Michigan Central 2015.jpg, disused since 1988. Amtrak hoped to handle mail and express business here with the Canadian Pacific Railway ]]

Amtrak planned changes for three of Michigan's five trains: the International would be re-routed via Detroit, the Twilight Limited would become a long-distance train and begin serving New York, while the Lake Cities would resume serving Toledo, Ohio, which it had done until 1995. Both would bypass the existing Detroit station. None of these plans were implemented.

The International operated between Chicago and Toronto via the Canadian National Railway in Michigan, serving East Lansing, Michigan. Amtrak proposed to re-route it over the former Michigan Central Railroad east of Battle Creek, Michigan, which already saw several daily trains. This would permit the train to service Ann Arbor and Detroit. Under this arrangement the International would no longer be supported by the state of Michigan.{{Harvnb|Sanders|2006|p=205}}

The Twilight Limited and the Lake Cities, along with the Wolverine, provided thrice-daily service between Chicago and Pontiac, Michigan, via Detroit. Amtrak proposed to extend the Twilight Limited to New York, via Ontario. This would also replace an existing Empire Corridor train. Under the New York Central Railroad the New York–Chicago via Detroit and southern Ontario route had hosted multiple long-distance trains,{{Harvnb|Sanders|2006|194}} with two surviving under Penn Central until the formation of Amtrak.{{Harvnb|Thoms|1973|pp=84–85}} Amtrak had operated the Niagara Rainbow between New York and Detroit from 1974–1979.{{Harvnb|Sanders|2006|67}} The Lake Cities had terminated at Toledo instead of Pontiac until 1995.{{Harvnb|Sanders|2006|p=200}} Amtrak opened a mail and express facility at Michigan Central Station in Detroit in expectation of increased business.{{Cite press release |title=Amtrak Opens New Joint Shipping Facility in Detroit to Serve Its Growing Mail and Express Business |date=June 14, 2000 |publisher=Amtrak |location=Chicago |url=http://www.prnewswire.com/news-releases/amtrak-opens-new-joint-shipping-facility-in-detroit-to-serve-its-growing-mail-and-express-business-73568577.html |access-date=February 18, 2017 |archive-url=http://web.archive.org/web/20170218151431/http://www.prnewswire.com/news-releases/amtrak-opens-new-joint-shipping-facility-in-detroit-to-serve-its-growing-mail-and-express-business-73568577.html |archive-date=February 18, 2017}}

None of the three route changes came to pass, although both the Lake Cities and Twilight Limited terminated at Detroit for several months. The initiatives founded on opposition from the host freight railroads and a lack of mail and express business.{{Harvnb|Sanders|2006|p=201}}{{Harvnb|GAO|2002|p=12}}

= New York-Chicago =

In its February 2000 announcement Amtrak included the Manhattan Limited, a new long-distance train on the ex-Pennsylvania Railroad Main Line. The Manhattan Limited was to operate between New York and Chicago via Pittsburgh, supplementing the Three Rivers and Pennsylvanian. In the spring this service appeared on the national timetable as the Skyline Connection with its eastern terminus moved to Philadelphia and a note that service would "commence on a date to be announced." The Skyline Connection would have departed Chicago in early afternoon and arrived in Philadelphia the following morning. The westbound version was scheduled to depart Philadelphia after midnight, arriving in Chicago in the evening. The train's equipment would have included Viewliner sleeping cars. Amtrak was unable to come to an agreement with the Norfolk Southern Railway and cancelled the proposed train in 2001.{{Harvnb|Sanders|2006|p=77}}

= New York-Los Angeles =

As part of its strategy Amtrak announced a "luxury transcontinental" train which would operate between New York and Los Angeles on a 60-hour schedule, making just eight intermediate stops. The train's route would take it via Pittsburgh and Albuquerque. Amtrak intended to partner with American Orient Express, a private purveyor of luxury train travel in the United States.

= Texas =

File:MHL-2005.jpg in 2005, after the restoration of daily service]]

Amtrak planned numerous changes within Texas, including two new routes, a re-route, and a increase in service. The overall effect would be to convert Fort Worth into a regional hub.

At the time the Sunset Limited followed the former Southern Pacific route through Texas, serving San Antonio and Houston but passing well south of the Dallas–Fort Worth metroplex. Amtrak proposed routing the Sunset Limited north from Houston to Dallas, then west to Abilene before re-joining the former SP at El Paso. Amtrak believed that the Sunset Limited, traditionally a weak performer, would realize an additional {{USD|2.9 million}} in yearly revenue from this move. Amtrak considered discontinuing the train altogether, but reported that doing so would save $8 million against $9.5 million in fares and business from connecting routes.

Included in the Network Growth Strategy was returning the Texas Eagle to daily operation between Chicago and San Antonio; the Texas Eagle had operated quad-weekly since 1998 and tri-weekly before that. Amtrak implemented the change on May 21, 2000.{{Harvnb|Sanders|2006|p=116}} A further change, in which the Texas Eagle would continue to provide twice-weekly service to Alpine and Del Rio in place of the re-routed Sunset Limited, was never implemented as the Sunset Limited's route never changed.

= Wisconsin =

File:Lake Country Limited, July 2000.jpg

In 2000–2001 Amtrak considered extending one Hiawatha Service round-trip {{convert|70|mi|km|0}} north from Milwaukee to Fond du Lac, Wisconsin. Potential stops included Brookfield, Elm Grove, Slinger, and Lomira. Travel time would be nearly two hours. Amtrak hoped to attract mail and express business along the route, but abandoned the idea in September 2001.{{cite web|title=AMTRAK DROPS FOND DU LAC PLAN|url=http://www.highbeam.com/doc/1G1-78159233.html|publisher=Capital Times {{Subscription required|via=HighBeam Research}}|accessdate=2012-12-17|date=September 11, 2001}}

One of the few new services begun was the Lake Country Limited, a corridor train between Chicago and Janesville, Wisconsin. It began running on April 15, 2000.class="wikitable"

! Name !! Endpoints !! Action !! OutcomeHiawatha ServiceChicagoMilwaukee, WIExtend to Fond du Lac, WisconsinCancelledLake CitiesChicago—Pontiac, MIRestore Toledo, Ohio serviceCancelledLake Country LimitedChicago—Janesville, WINew serviceOperated 2001—2002Skyline ConnectionChicago—PhiladelphiaNew serviceCancelledSilver MeteorNew York City—Miami, FLExtend to BostonCancelledCrescent StarMeridian, MSDallas, TXNew serviceCancelledAztec EagleSan Antonio, TXMonterreyNew serviceCancelledTexas EagleChicago—San AntonioIncreased service from quad-weekly to dailyImplementedTwilight LimitedChicago—New York CityExtend to New YorkCancelledLuxury TranscontinentalNew York City–Los AngelesNew serviceCancelledInternationalChicago—TorontoRe-route in MichiganCancelledHawkeyeChicago—Des Moines, IANew serviceCancelledSilver ServiceNew York City—FloridaService along Florida East Coast RailwayCancelledSunset LimitedLos AngelesOrlando, FLRe-route in TexasCancelledKentucky CardinalChicago—Louisville, KYNew serviceOperated 1999—2003

Equipment changes

The proposed new routes would have outstripped Amtrak's existing rolling stock. To meet the new demand Amtrak planned to "activate 50 passenger cars and 45 locomotives, as well as 4,000 mail and express cars." In addition, the size of existing trains would have been reduced.{{Harvnb|Johnston|2000|p=16}}

Notes

{{reflist|30em|refs=

{{cite news|title=Amtrak planning to expand service in Western Pa. | first=Laurence | last=Arnold |url=http://www.newspapers.com/clip/931103/network_growth_strategy/ | newspaper=Indiana Gazette|date=February 28, 2000|page=1|via = Newspapers.com|accessdate = August 28, 2014 }} {{Open access}}

{{cite web|title=Amtrak route through Vicksburg expected to boost tourism|url=http://www.highbeam.com/doc/1P3-51979529.html|publisher=Mississippi Business Journal {{Subscription required|via=HighBeam}}|accessdate=18 August 2013|date=March 20, 2000|first=Becky|last=Gillette}}

{{cite news | title=Amtrak expanding long-distance routes | newspaper=Post-Gazette | date=February 28, 2000 | accessdate=August 28, 2014 | url=http://old.post-gazette.com/headlines/20000228netamtrak2.asp}}

{{cite web|title=Amtrak's "Network Growth Strategy"|url=http://www.highbeam.com/doc/1G1-62968173.html|publisher=Railway Age {{Subscription required|via=HighBeam}}|accessdate=18 August 2013|date=April 1, 2000}}

{{Sanders-Heartland}}

{{cite web | title=Three Rivers/Pennsylvanian/Skyline Connection | url=http://www.timetables.org/full.php?group=20000521n&item=0030 | date=May 21, 2000 | author=Amtrak | accessdate=August 28, 2014}}