WASHINGTON (MMD Newswire) July 1, 2011 - - Amtrak President and CEO Joseph Boardman made the following statement regarding a Railroad Rehabilitation and Improvement Financing (RRIF) loan from the Federal Railroad Administration. Additional information is attached.
"Record numbers of passengers are riding Amtrak trains across our national network of intercity routes. To better serve our customers, we are implementing a fleet replacement and renewal plan to improve the reliability and performance of our equipment.
"As a result of the RRIF loan announced today by the Federal Railroad Administration, Amtrak's purchase of 70 new, energy efficient and higher performing electric locomotives is fully funded. These locomotives will operate on the Northeast and Keystone Corridors beginning in 2013, replacing units in service between 20 and 30 years with average mileage of 3.5 million miles traveled.
"The Amtrak fleet strategy plan will provide new and modern equipment for passengers, and develop and sustain the domestic production capacity needed for the long term viability of intercity passenger rail in the United States.
"We appreciate the strong support of the Obama administration in advancing passenger rail in America."
About Amtrak®:
Celebrating 40 years of dedicated service as America's Railroadsm, Amtrak is the nation's intercity passenger rail provider and its only high-speed rail operator. A record 28.7 million passengers traveled on Amtrak in FY 2010 on more than 300 daily trains - at speeds up to 150 mph (241 kph) - that connect 46 states, the District of Columbia and three Canadian Provinces. Amtrak operates trains in partnership with 15 states and four commuter rail agencies. Amtrak also is a strong financial performer achieving an 85 percent cost-recovery ratio in FY 2010. Enjoy the journeysm at Amtrak.com or call 800-USA-RAIL for schedules, fares and more information. Join us on facebook.com/Amtrak and follow us at twitter.com/Amtrak.
NEW AMTRAK ELECTRIC LOCOMOTIVES
- In April 2011, Amtrak released its updated Fleet Strategy Plan that analyzes the company's need to replace its existing conventional and high-speed fleet and manage capacity to meet the forecasted growth in ridership across its national network.
- The report lays out the basis for recapitalizing the entire fleet over a period of time in a manner that will not only provide new and modern equipment for passengers, but will also develop and sustain the domestic production capacity needed for the long term viability of intercity passenger rail in the United States.
- The $465.9 million contract for 70 electric locomotives is a key element of the Fleet Strategy Plan and follows another major equipment procurement of a $298 million contract to build 130 single-level passenger rail cars to support growing ridership on its long-distance trains.
Electric Locomotives Contract and Benefits
- As part of this comprehensive plan to modernize and expand its fleet of equipment, Amtrak has purchased 70 new electric locomotives to provide improved performance and reliability for its Northeast intercity passenger rail services.
- The first Amtrak Cities Sprinter ACS-64 electric locomotive is to be delivered in 2013 and will operate at speeds up to 125 mph (201 kph) on the Northeast Corridor from Washington, D.C. to Boston and up to 110 mph (177 kph) on the Keystone Corridor from Philadelphia to Harrisburg, Pa. They will replace locomotives in service between 20 and 30 years with average mileage of 3.5 million miles traveled.
- The six-year, $465.9 million contract was awarded to Siemens Mobility and will create 250 jobs primarily at a facility in Sacramento, California, but also at plants in Norwood, Ohio and Alpharetta, Georgia.
Funding
- The Railroad Rehabilitation and Improvement Financing (RRIF) loan from the Federal Railroad Administration totals $562.9 million and includes $465.9 million for the 70 electric locomotives and $97 million for maintenance facility upgrades and spare parts.
- Amtrak projects that improved ticket revenue from more reliable locomotives can fund the debt service payments to repay this loan.
- Amtrak has worked strategically to improve its financial performance across a number of measurements, including successfully reducing its debt by half since 2002 to about $2 billion at the end of FY 2010.
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