RailPAC: Rail Passenger Association of CA & NV

Hoosier State Passenger Rail Service to End April 1

RailPAC is still gathering information about new proposed rulings by the Federal Railroad Administration which would appear to have a profound effect on State rail programs.  This has the hallmarks of a Washington DC power play involving FRA, Amtrak and others to ensure that the states do not use non-Amtrak operators.  However, the burden placed on the states, including states like Texas and California that cannot be railroads for legal reasons, may well backfire on the proponents and cause the Congress to take action on this.
Check railpac.org and our social media for regular updates.

Hoosier State Passenger Rail Service to End April 1
FRA to classify state rail sponsors as railroad carriers

INDIANAPOLIS – The Indiana Department of Transportation today announced that the Hoosier State passenger rail line, which operates four days per week between Indianapolis and Chicago, will have its last day of service on Wednesday, April 1.

The announcement follows a Federal Railroad Administration decision requiring the state of Indiana to serve as a railroad, even though it owns no track or trains.

“Passenger rail providers and the host railroads are already required to comply with FRA rules,” said INDOT Commissioner Karl Browning. “Requiring a redundant layer of bureaucracy would not create improvements in passenger rail service or safety, it would only increase taxpayer costs.”

Proposed long-term service

INDOT has been working for a year to improve the Hoosier State service, and had been making progress in negotiating long-term agreements with two experienced passenger rail providers.

“INDOT thanks our partners Amtrak and Iowa Pacific Holdings as we worked together to preserve the Hoosier State service,” Browning said.

Under the proposed service, Amtrak would have served as the primary operator, working with host railroads, providing train and engine crews, and managing reservation and ticketing. This would have taken advantage of the priority access and pricing that Amtrak enjoys with the host railroads. Iowa Pacific would have provided the train equipment, train maintenance, on-board services and marketing.

The proposed service was modeled in part after Amtrak’s successful Piedmont service, which operates between Charlotte and Raleigh, N.C. The North Carolina Department of Transportation owns the equipment for the Piedmont service. NCDOT contracts with Amtrak for operations and private contractors to improve and grow passenger rail.

NCDOT contested a similar FRA determination in 2008 when it attempted to place the same impediments on the Piedmont service. INDOT was unsuccessful in convincing the FRA to formally reconsider its decision. Copies of INDOT’s correspondence with FRA and letter of intent with Iowa Pacific are available at www.in.gov/indot/3200.htm.

States as railroads

Congress voted in 2008 to end federal funding for certain Amtrak routes of less than 750 miles. Six years later, the FRA is developing rules governing states that now support the cost of passenger rail services.

Under new rules that the FRA is testing with Indiana, all states that support passenger rail services would be considered railroad carriers. This burdensome interpretation exposes states to significant increases in cost, paperwork and liability, including:

  • Liability for the actions of passenger rail providers up to $200 million for each occurrence of injury, death or property damage,
  • Hiring new staff to monitor plans and programs in compliance with federal rules, and
  • Interpretation that state employees are rail employees, subject to retirement and employer liability rules and limits.

Indianapolis-Chicago transportation

After April 1, INDOT encourages Hoosier State travelers to take advantage of alternative transportation options between Indianapolis and Chicago:

  • Amtrak’s Cardinal service (Trains 50 & 51) will continue to operate three days per week – Mondays, Thursdays and Saturdays northbound and Tuesdays, Thursdays and Saturdays southbound – with intermediate stops in Crawfordsville, Lafayette, Rensselaer and Dyer. Tickets are available at www.amtrak.com, 800-USA-RAIL and other sales channels, including Amtrak mobile apps.
  • Greyhound offers express bus service with intermediate stops in Lafayette. In addition, INDOT uses federal transit funds to support once-daily regional service with stops in Merrillville, Gary and Hammond. For fare and schedule information and to buy tickets, call 800-661-8747 or visit www.greyhound.com.
  • Megabus offers frequent express bus service. Visit www.megabus.com for additional information about the service, schedules, arrival and departure times and fares.
  • American and United airlines offer frequent nonstop service between Indianapolis and Chicago O’Hare international airports. Purchase tickets at www.aa.com orwww.united.com.

info