Early Progress Made in Implementing Strategic and Business Plan, but Obstacles Remain

T-RCED-95-227: Published: Jun 16, 1995. Publicly Released: Jun 16, 1995.

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GAO discussed Amtrak's progress in: (1) implementing its strategic and business plan: (2) addressing its current financial crisis and; (3) reorganizing its operations. GAO noted that: (1) the strategic and business plan is expected to reduce Amtrak's costs by adjusting routes and the frequency of service, retiring some of the railways oldest cars, reducing staff, and improving labor productivity; (2) in order for Amtrak to fulfill its strategic and business plan, maintenance work will have to be contracted out, and state and local contributions will have to increase; (3) the bulk of Amtrak's capital requirements are allocated for the continuation of the Northeast Corridor Improvement Project, which will extend high-speed, electrified rail service between New York and Boston, and rehabilitate the infrastructure between Washington and New York; and (4) if Amtrak achieves all of the savings envisioned by this plan and federal support continues at the present level, Amtrak will still fall $1.3 billion short of covering its costs.

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