FOR IMMEDIATE RELEASE
ATK-98-184
October 19, 1998
Contact: John Wolf (202) 906-3770

Amtrak Board Approves Landmark Business Plan
To Revitalize National Passenger Rail for the 21st Century

Plan Achieves Operating Self-Sufficiency;
Includes Critically Needed Investments

WASHINGTON -- The Amtrak Board of Directors today released Amtrak's four-year strategic business plan designed to meet the dual objectives of creating a more vibrant, modern national rail system and becoming an operationally self-sufficient business.

"This plan will make Amtrak a stronger competitor in the transportation marketplace and improve its bottom line," said Amtrak's newly elected Board Chairman, Wisconsin Governor Tommy G. Thompson. "It responds to both the desires of consumers for a quality national rail system and the demands of Congress for a more fiscally sound business operation."

"The key to Amtrak's long-term success depends on transforming the national passenger rail system into a more market-based system that delivers services that customers want and takes them to and from destinations of their choice," said George Warrington, Acting President and CEO of Amtrak. "Our business strategies put consumers first, and in doing so, Amtrak will capture a greater share of the national transportation market."

Amtrak's four-year business plan maintains a national system that is supported by revenues from passengers and commercial enterprises, such as the mail and express business which generated $83 million in revenue in fiscal year 1998, ending September 30.

Another important revenue generator is Amtrak's high speed rail service, which is estimated to contribute up to $180 million in net annual revenue by Fiscal Year 2002. The first high speed trains are scheduled to go into service between Washington, DC and Boston in late 1999. The high speed rail program serves as a model for how a market-based, consumer-oriented service can produce revenues to improve the financial health of the corporation as a whole.

Building on this success, Amtrak will work with states and other partners to expand corridor services in other parts of the country including the Midwest regional hub out of Chicago, California, the Pacific Northwest, the Southeast, along the Gulf Coast, and in New York State.

To help further refine and define the future of the national railroad, Amtrak has launched a market-based analysis that will not only determine opportunities for growth of service, but will also provide guidance on services and amenities that are important to travelers. While the extensive market research is being completed this year, Amtrak will, in tandem, establish and implement a service standards program to improve the quality and consistency of its customer services throughout the national system.

As part of the Strategic Business Plan, the Board also approved an $823 million federally funded capital investment program for Fiscal Year 1999 which will generate an additional $303 million in outside funds. The capital investments are designed to yield revenues in support of the operating self-sufficiency goal, and to improve customer service.

Capital projects that will be seen by customers in the near future include: telephone reservations system improvements that will result in quicker response times, easier access to information, and a wider range of travel services; infrastructure improvements in California to improve schedule reliability for the San Joaquin and Coast Starlight services; and equipment design and on-board customer amenity improvements based on market research for the Superliner II fleet used in cross-country services, Heritage diners used on the Crescent and the Silver Service trains, and Amfleet I and II cars used in North Carolina and on the Gulf Coast, the West Coast, and the Northeast Corridor.

Amtrak's ability to reach operational self-sufficiency and achieve the other business plan goals depends heavily on Congress living up to the commitments it made last year to provide the railroad with adequate annual appropriations. The $609 million agreed to by Congress fully funds Amtrak's needs for Fiscal Year 1999, and will keep Amtrak on the path to operationally self-sufficiency.

Implementation of the Business Plan will ensure continued improvement of Amtrak's key financial and service performance indicators. Through the end of August, on-time performance showed a 5 percent improvement over last year, reaching nearly 80 percent; ridership growth for FY 98 is projected to reach 5 percent -- the strongest performance in 10 years; and revenues remain strong. Year-end business results will be announced in November.

Created in 1971 to manage the rail passenger operations of the private railroads, Amtrak today serves more than 20 million customers annually on its national network of intercity trains and employs 24,000 people. Amtrak trains and connecting Thruway Motorcoaches serve more than 500 communities in 44 states. An additional 48 million customers use commuter services operated by Amtrak under contract to regional transportation authorities.

More detailed information about Amtrak's Strategic Business Plan:

Highlights of Strategic Business Plan
Business Vision
The Operating Plan
On the Path to Self-Sufficiency
Build a Market-Based Network
Develop Corridor Services
Deliver Consistent Quality Service
Revitalize the Amtrak Brand
Leverage Public and Private Partnerships