FRA directs Amtrak restructuring as 3-unit plan takes shape

The FRA directs Amtrak restructuring that could reshape how the passenger railroad is organized, as reported by Progressive Railroading.

FRA directs Amtrak restructuring plan, RPA says

In a Feb. 19 update, the RPA described what it called a “dramatic” organizational restructuring of Amtrak that would place the railroad under a holding company and split it into three operating units, according to a Rail Passengers Association statement. One unit would oversee train operations. A second would manage and lease rolling stock management and leasing. A third would handle infrastructure as well as construction management.

Meanwhile, RPA officials said they have already received an initial briefing from FRA representatives. More detailed briefings are expected, and the proposal would presumably be developed through a public process in the coming months.

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RPA warns of risks and stresses public funding

RPA President and CEO Jim Mathews said a structural shift could bring benefits if it is handled carefully, but he cautioned that international experience shows real pitfalls. “When done correctly, there are potential benefits to a structural reorganization. However, the experiences of European and Asian railways tell us there are clear and present dangers to this kind of restructuring,” Mathews said. “If done incorrectly, it can lead to service reductions, elimination of routes, increased fares for passengers, and even degradations in infrastructure and safety.”

Also, he added that, without predictable and adequate public funding, the effort would not succeed.

Labor agreements and privatization questions emerge

In addition, the RPA pointed to a Bloomberg report indicating that the Brotherhood of Locomotive Engineers and Trainmen (BLET) circulated a memo to members raising concerns about how a restructuring might affect labor agreements for roughly 18,000 unionized Amtrak employees, as covered by Bloomberg Government. “Shifts of this nature raise legitimate and substantive concerns regarding the maintenance of qualifications, preservation of established work jurisdiction, crew utilization practices, pilot requirements, and, most importantly, the continued protection and enforcement of existing Agreement rights,” wrote Patrick Darcy, chair of the Amtrak General Committee of Adjustment for the BLET.

Separately, the U.S. Department of Transportation rejected the idea that the move is tied to privatization. “The Trump administration is considering ways to strengthen and modernize Amtrak for the future, but privatization is not under consideration,” Danna Almeida, a spokesperson for the Department of Transportation, told Bloomberg in response to inquiries.

At the same time, FRA Deputy Administrator Drew Feeley referenced the restructuring earlier this month during remarks to the American Association of State Highway and Transportation Officials. While he did not outline specifics, he said the initiative is intended to make Amtrak operate more efficiently and effectively, and he maintained that the proposal is not aimed at cutting routes or jobs.

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