Cost-Sharing Alternatives for Northeast Corridor Rail Freight and Passenger Service

Amtrak, Conrail, and three regional commuter authorities jointly incur certain operating and maintenance costs in their use of the Northeast Corridor. Because these costs are not directly attributable to a specific user and because each party wishes to pay as little as possible, the users disagree as to how the Corridor's costs should be divided. Conrail argues that Amtrak wants more money than other railroads charge in similar circumstances. The commuter authorities argue that they are legally required to pay only those costs directly attributable to commuter trains and should not have to pay any of the base costs of the Corridor. In addition, the statutes that apply to the Northeast Corridor cost-sharing dispute are vague. GAO reviewed some of the different cost-sharing arrangements used by other railroads and concluded that there is no best cost-sharing method which can be used to settle the Northeast Corridor dispute. GAO believes that Congress should decide in general terms how the users should share the Corridor's joint operating and maintenance costs and revise the applicable statutes so as to clearly indicate federal policy. GAO also believes that Congress should encourage the users to negotiate and to arrive at a settlement within a fixed time.