http://www.oig.dot.gov/rss.jsp?subject=30 The 10 most recent releases on the U.S. DoT OIG web site related to Amtrak en-US webmaster@oig.dot.gov (OIG Webmaster) http://www.oig.dot.gov/images/dot.gif http://www.oig.dot.gov/rss.jsp?subject=30 http://www.oig.dot.gov/item.jsp?id=2520 On July 31, as mandated by the FY 2009 Consolidated Appropriations Act, we issued our quarterly report to the House and Senate Appropriations Committees on Amtraks savings from operational reforms and yeartodate financial performance. Amtraks operating loss through June 2009 was $367.2 million, 0.6 percent more than budgeted as declining passenger revenues were largely offset by declining fuel and employee benefit costs. Amtraks financial performance is expected to continue to erode through the remainder of the fiscal year, resulting in a forecasted yearend operating loss of $16.0 million more than budgeted. Thus far, Amtrak has not yet identified the measures it will take to close this funding gap.Amtrak expects to end the year with a cash balance of $192.8 million, well above the minimum yearend level the OIG believes is necessary. These funds could be used to close the funding gap if Amtrak can not implement sufficient operating efficiencies. Fri, 31 Jul 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2520 http://www.oig.dot.gov/item.jsp?id=2489 On June 3, 2009 as mandated by the fiscal year (FY) 2008 Consolidated Appropriations Act, we issued our quarterly report to the House and Senate Appropriations Committees on Amtraks savings from operational reforms and yeartodate financial performance. Amtraks operating loss through March 2009 was $259.9 million, 6.9 percent less than budget as declining passenger revenues were largely offset by declining fuel and employee benefit costs. Amtraks financial performance is expected to continue to erode through the remainder of the fiscal year, resulting in a forecasted yearend operating loss of $25.8 million. Thus far, Amtrak has not yet identified the measures it will take to close this funding gap.Amtrak has shifted $24 million in costs from general operating to capital and now expects to end the year with a cash balance of $182 million, well above the minimum yearend level the OIG believes is necessary. These funds could be used to close the funding gap if Amtrak can not implement sufficient operating efficiencies. The OIG also found that Amtrak could do more by providing a transparent and detailed analysis of the financial risks and external factors, such as forecasted economic growth and fuel prices, impacting the companys revenues and expenses. Doing so would improve policymakers understanding of the magnitude of these risks going forward. Finally, the OIG believes that while Amtrak has enhanced its internal reporting of financial and operating measures, it will be important to integrate this reporting with the measures required under the Passenger Rail Investment and Improvement Act of 2008 to better link Amtraks actions, external risks, and its bottom line.As directed by Congress, reports requested by the House and Senate Appropriations Committees are subject to a 15 day hold before being publicly released. In compliance with that requirement, the report was withheld from public release until June 18, 2009. Wed, 03 Jun 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2489 http://www.oig.dot.gov/item.jsp?id=2466 The Office of the Inspector General plans to conduct an audit of risks associated with the Federal Railroad Administrations implementation of the new Capital Assistance for High Speed Rail Corridors and Intercity Passenger Rail Service programs, which were mandated by the American Recovery and Reinvestment Act of 2009 (ARRA). Specifically, we plan to focus on (1) the capability of states and FRA to plan and manage high speed rail projects, (2) statefreight railroad capital agreements, (3) financial forecasting best practices, and (4) intercity passenger rail service bottlenecks. Tue, 05 May 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2466 http://www.oig.dot.gov/item.jsp?id=2441 On February 23, 2009 as mandated by the fiscal year (FY) 2008 Consolidated Appropriations Act, we issued our quarterly report to the House and Senate Appropriations Committees on Amtraks savings from operational reforms and yeartodate financial performance. Amtrak is not pursuing any new operational reform savings in FY 2009. Amtraks operating loss through December totaled $82.2 million, $26.1 million less than originally forecast, largely due to lower than expected revenues being more than offset by lower employee benefit and fuel costs. For FY 2009, Amtrak projects an operating loss of $476 million, only $1 million more than originally forecast, despite significant projected changes in both revenues and expenses. Amtrak reestimated both revenue and ridership forecasts in light of the steep decline in the economy since the FY 2009 budget forecasts were prepared last summer. The OIG believes that Amtrak requires no more than $40 million above the current CR level for operating subsidies in order to reduce the risk associated with Amtraks revenue forecasts and to implement Amtraks decision regarding its defeased leases.As directed by Congress, reports requested by the House and Senate Appropriations Committees are subject to a 15 day hold before being publicly released. In compliance with that requirement, the report was withheld from public release until March 10, 2009. Mon, 23 Feb 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2441 http://www.oig.dot.gov/item.jsp?id=2385 On November 12, 2008 as mandated by the fiscal year (FY) 2008 Consolidated Appropriations Act, we issued our quarterly report to the House and Senate Appropriations Committees on Amtraks savings from operational reforms and yeartodate financial performance. Amtrak achieved $30.7 million in operating reform savings through July, $5.0 million more than it originally anticipated However, we believe Amtrak will fall short of achieving its $40.3 million FY 2008 operational reform savings target. Amtraks operating loss for FY 2008 was $381.1 million, $93.9 million less than budget due largely to better than expected revenues, partially offset by higher than budgeted wages and fuel, power, and utility costs. We identified three nearterm challenges facing Amtrak. First, an extended economic downturn could pose risks to Amtraks ability to meet its ridership and revenues targets. Second, Amtrak is scheduled to make $145 million retroactive wage payment in FY 2009. While this payment can be accommodated within Amtraks current cash balance, it is concerned that doing so would leave the company with unacceptably low reserves at the beginning of FY 2010. Third, Amtrak has yet to define a strategic direction which incorporates continuous operating improvements. Such a strategic direction would allow the company to reduce its operating costs, freeing up Federal support for Amtraks substantial capital needs. As directed by Congress, reports requested by the House and Senate Appropriations Committees are subject to a 15 day hold before being publicly released. In compliance with that requirement, the report was withheld from public release until November 27. Wed, 12 Nov 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2385 http://www.oig.dot.gov/item.jsp?id=2370 The Office of the Inspector General is undertaking an audit of service issues on two of Amtraks West Coast routes, the Amtrak Cascades and the Coast Starlight. This audit is being conducted in response to Section 225 of Division B of H.R. 2095 (110th Congress), the Passenger Rail Investment and Improvement Act of 2008. The objective of this audit is to identify the source of service delays and disruptions on the Amtrak Cascades and Coast Starlight routes and make recommendations for improving their ontime performance. Thu, 09 Oct 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2370 http://www.oig.dot.gov/item.jsp?id=2356 On September 8, 2008, we issued our analysis of the root causes of delays to Amtrak trains operating outside the Northeast Corridor (NEC). The objectives of our audit were to: (1) identify the root causes of delays for Amtrak trains operating outside the NEC, (2) assess whether Amtraks passenger trains have been granted preference over freight trains as prescribed by law, (3) identify practices in dispatching trains that influence delays, and (4) evaluate whether delays in maintaining track have impacted Amtrak train delays.We found several root causes of Amtrak train delays, including; (1) host railroad dispatching practices, some of which result in preference violations; (2) track maintenance practices and the resulting speed restrictions; (3) insufficient track capacity; and (4) external factors beyond the host railroads control. We also identified host railroad dispatching practices that violate Amtraks preference rights. However, disagreements between Amtrak and the host railroads, both on how to measure delays and how to define Amtraks right to preference in the use of rail infrastructure, make measuring violations of preference and allocating the exact causes of delay difficult.Our recommendations to the Federal Railroad Administration (FRA) focused on (1) legislative changes to clarify Amtraks preference rights and enhanced enforcement of those rights; (2) increased involvement and oversight by the FRA to facilitate cooperative planning between Amtrak and the host railroads to reduce delays and improve Amtraks OTP; (3) expanded funding for rail capacity projects. Mon, 08 Sep 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2356 http://www.oig.dot.gov/item.jsp?id=2332 On August 7, 2008 as mandated by the House passed fiscal year (FY) 2008 Appropriations Act for the Department of Transportation, we issued our quarterly report to the House and Senate Appropriations Committees on Amtraks savings from operational reforms and yeartodate financial performance. Amtrak has realized $19.5 million of the $31.7 million in FY 2008 reform savings it originally anticipated. Over 65 percent ($12.7 million) of Amtraks cost savings were achieved from productivity savings in Amtraks core operating departments and reflect lower staffing requirements. These savings resulted from better business practices and management efficiency reforms undertaken in the prior 2 years. Amtraks operating loss through June was $294.1 million, $72.8 million less than budget due largely to better than expected revenues. Amtrak forecasts it will finish FY 2008 with an operating loss of $456 million, $19 million less than budgeted. This increase in Amtraks projected loss this quarter largely is a result of an accrual of $25.8 million in onetime costs related to Amtraks recent labor settlements and higher than budgeted fuel, power, and utility costs.Amtrak is in the process of developing a new 5year strategic plan that it hopes to complete and begin implementing this fall. Along with the strategic plan, Amtrak needs to ensure the appropriate management structure to ensure adequate oversight, management, and reporting on its strategic reform initiatives. As required by Congress, reports requested by the House and Senate Appropriations Committees are subject to a 15 day hold before being publicly released. In compliance with that requirement, the report was withheld from public release until August 15. Thu, 07 Aug 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2332 http://www.oig.dot.gov/item.jsp?id=2323 On July 1, we released our analysis of the benefits of high speed rail (HSR) on the Northeast Corridor (NEC). The objectives of our review were to: (1) estimate the revenue and congestion relief benefits associated with different levels of HSR on the NEC and (2) determine whether HSR would pay for itself through increased revenues, congestion relief, or a combination of the two. Additionally, we sought to estimate the consumer surplus provided by different levels of HSR on the NEC. The benefits from HSR achieving 3hour service between Boston and New York and 2 1/2hour service between New York and Washington would exceed the expenditures required to implement it. A sizeable share of air travelers along the NEC would switch to HSR if it achieved those travel times, thereby providing some relief to the areas congested airspace. In addition, the investments required to reach those travel times would significantly benefit NEC commuter and freight rail services. Our analysis also showed that should travel times decrease further, the resulting benefits from HSR would grow at an increasing rate. Thu, 26 Jun 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2323 http://www.oig.dot.gov/item.jsp?id=2325 On June 17, as requested by the Senate Transportation Appropriations Subcommittee staff, we issued our assessment of the costs related to Amtraks recently settled labor negotiations and Amtraks ability to pay those costs. We continue to believe that for FY 2009, Amtrak needs $475 million for operations, $675 million for capital, and $266 million for debt service. We believe Amtraks projected cash balance of $293.2 million will be sufficient to fund Amtraks labor settlement costs in FY 2009 without any supplemental appropriation in FY 2009. This large projected cash balance reflects betterthanexpected financial performance for the yeartodate (through April). The total cost of the settlement is estimated to be $435.6 million, $23.4 million over Amtraks March estimate. Since March, these estimates were revised upward to reflect the actual payout amounts of a portion of the retroactive pay for the employees of 15 of the 19 union negotiating groups, as well as for the recently agreed upon terms of the retroactive payments for the remaining 4 negotiating groups. Tue, 17 Jun 2008 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2325