(snip)"Profits are unlikely. The Government Accountability Office found last November that Amtrak had received more than $30 billion in federal aid since its creation in 1971, but was still in “poor financial condition,” with extensive deferred maintenance.
When Amtrak began operating 37 years ago, the plan was for it to eventually break even. In 1997, Congress passed a law threatening dire consequences if it did not reach self-sufficiency by 2002.
But by 2002 the mood had changed, and the appropriations have continued, financing losses of over $1 billion a year [with subsidies paid for with federal taxpayer's money - sic].
The G.A.O. analysis noted the continued operation of cross-country trains with low ridership and high costs. “The current structure does not appear to effectively target federal funds where they may provide the greatest level of public benefits, such as reduced traffic congestion and pollution,” it said.
Oil costs hurt Amtrak, too. Fuel is projected to reach 11 percent of Amtrak’s budget this year, up from 6 percent in 2004. The railroad is not radically more energy-efficient than other means of travel. Amtrak can move a passenger a mile with 17.4 percent less fuel than a passenger car can, and about 32.9 percent less than an airline can, according to the Oak Ridge National Laboratory.
It does save oil, however, since much of the fuel Amtrak uses is in the form of electricity, made from coal, natural gas and nuclear power.
Despite its popularity with passengers, the biggest determinant of the railroad’s health is still the federal government, and in Washington, views diverge sharply"(snip)
from
more confirmation of the point that mass transit light rail is only 'cost effective' for ticket buyers if 1/2 of the TRUE cost of their ticket is being paid for by the taxes of suburban and rural residents who seldom / never get to ride the train ! If taxpayer funded subsidies were eliminated, and if the amortized costs of equipment maintenance / replacement were also included (versus being paid for by future taxpayers via the sale of transporation authority bonds, as is currently the case) it's likely that the 'break even' price of a mass transit light rail ticket would have to be tripled compared to current gov't regulated ticket prices.
Also some technical analysis from Oak Ridge National Laboratory that mass transit light rail actually consumes MORE fuel per passenger mile than small high mileage passenger cars - and only saves 17% on fuel versus 'average' mileage passenger cars.
of course, mass transit light rail does provide thousands of extremely well paid civil service jobs ! It also provides the illusion to certain politicians and voters that money spent to develop and subsidize mass transit light rail is actually a socially and environmentally responsible thing to do.
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