tfherb wrote:The operational costs of the Lynchburg trains are funded by Virginia. What they are saying on NBC29 quoted by Arlington is that the legislature needs to approve the funding in the 2011 legislative session for the trains to continue in 2012 and beyond.
Amtrak's planners told its management that 1 extra NEC-LYH and NEC-RVR services would each lose $2m per year, so Amtrak never chose to operate either, until Virginia promised to fork over enough to cover the direct costs.
As it turns out, passengers have fully funded NEC-LYH's direct costs plus a $800,000 surplus, ergo VA is not needed to fund it and it doesn't (really) need any action on VA's part.
Amtrak should be smart enough to keep it going on its own after the 3-year agreement runs out. AFAICS, the only thing in jeopardy is who gets the power to allocate that surplus to other rail operations...Virginia or Amtrak? Will Virginia keep control via legislation and contract, or will Amtrak take control (and probably choose to keep NEC-LYH and drop the extra NEC-RVR service).
Here's my math: According page 25 of the
original Amtrak-Virginia agreement, the total direct costs of the NEC-LYH service was $5,481,000 per year.
Because they expected fares to only cover 2,580,000 of that, Virginia was on the hook for an estimated 2,901,000 per year.
As it turns out, NEC-LYH took in
$6,337,457.42 in revenue, meaning the service turns a profit of $800,000 per year ($6.3m in revs - $5.5m in costs). Meanwhile NEC-RVR trains have underperformed by 10% ($363k vs $400k for the first 3 months) and so look likely to fall $200,000 short of the $2.0m that fares were supposed to contribute (with VA pledging another $2.1m toward a $4.2m annual cost).
VA legislative action is needed to keep the VDRPT in the intercity train biz and needed to keep the $800k surplus from LYH yoked to the expected $2.2m loss from RVR. While I think that's a good policy, I don't think LYH riders need to be scared unecessarily into thinking they'd lose their service if the Legislature fails to act.
This Demonstration Project has demonstrated that Amtrak could operate NEC-LYH without any help from Virginia at all. That's a win. If the VA legislature failed to act, I'd be pretty confident that Amtrak would continue the service on its own, not needing any permission from VA to do it, and keeping the $800k for themselves.
NBC29.com wrote:Meredith Richards of the Cville Rail said, "Today [Thursday], I wanted to alert people that there are going to be issues with sustaining funding for this train." Richards says even though it's paying for itself that doesn't mean that other routes are, and funding for this pilot project runs out in 2011
So the pilot study is threatened, NEC-RVR is threatened, but it is just paranoia/sensationalism to say "Funding Gap May Close Popular Amtrak Route" if the route, as implied, is NEC-LYH.