2012 Annual Report  
of
CONTENTS INTrOduCTION Mission & Map Letter from the Chairman Board of Directors Executive Committee Amtrak Basics
SAFETY CuSTOMEr FOCuS MOBILITY & CONNECTIVITY ENVIrONMENT & ENErGY OrGANIZATIONAL EXCELLENCE FINANCIAL & OpErATIONS ANALYSIS
2012 ANNUAL AnnuAl REPORT RepoRt
2 14 20 26 32 42 50 Safety 1 SAFETY
VANCOUVER
SEATTLE
PORTLAND
SALT LAKE CITY SACRAMENTO OAKLAND
FLAGSTAFF LOS ANGELES
ALBUQUERQUE
SAN DIEGO TUCSON
2012 ANNUAL AnnuAl REPORT RepoRt
EL PASO
ST. PAUL/ MINNEAPOLIS
MISSION
TORON
MILWAUKEE
“Amtrak will become America’s first DETROIT intercity travel CHICAGO choice for connections to and between the nation’s CLEVELAN PITTSBURGH key metropolitan areas, providing customer-driven, BURLINGTON safe, environmentally sustainable, energy-efficient WASHIN INDIANAPOLIS OMAHA CINCINNATI and intermodally linked service to passengers, communities and partners. Through recognized KANSAS CITY ST. LOUIS organizational excellence, Amtrak’s diverse and talented team will lead the development and growth of the high-speed and intercity rail passenger system in North America.” MEMPHIS
ATLANTA DALLAS
HOUSTON
NEW ORLEANS
SAN ANTONIO
INtRODUCtION SAFETY 3
TA
VANCOUVER
SEATTLE
PORTLAND
SALT LAKE CITY SACRAMENTO OAKLAND
FLAGSTAFF LOS ANGELES
ALBUQUERQUE
SAN DIEGO TUCSON
2012 ANNUAL AnnuAl REPORT RepoRt
EL PASO
MONTREAL
TORONTO
ST. PAUL/ MINNEAPOLIS
BOSTON
MILWAUKEE DETROIT
PITTSBURGH
BURLINGTON
INDIANAPOLIS CINCINNATI
OMAHA
KANSAS CITY
NEW YORK PHILADELPHIA
CLEVELAND
CHICAGO
WASHINGTON, DC
BALTIMORE
ST. LOUIS
MEMPHIS ATLANTA DALLAS JACKSONVILLE
HOUSTON
NEW ORLEANS
TAMPA
SAN ANTONIO
SAFETY 5
LETTEr FrOM THE In many ways, Fiscal Year 2012 was a landmark year for Amtrak. We achieved significant accomplishments and made enduring investments to position Amtrak for growth, fiscal stability and competitive advantage. The company set a new annual ridership record of 28.7 million passengers and collected a record $1.74 billion in ticket revenue for the year ending Sept. 30. This accomplishment extended Amtrak’s trend of record ridership in seven of the last eight years and supported a 36 percent increase in ridership between FY 2000 to 2010. In the same decade, ticket revenue increased 59 percent. Service expansions in Virginia and North Carolina in FY '12 were made possible thanks to backing from our state partners. With more than half of our departures supported by the 15 states with which we partner, these relationships are a critical element of Amtrak service. In addition, Amtrak began operating Los Angeles-area Metrolink commuter rail service and expanded Shore Line East commuter service in Connecticut in FY '12. Our relationships with states were further strengthened when 25 states sought Amtrak’s advice and expertise for their American Recovery and Reinvestment Act (ARRA) applications for funding passenger rail projects in FY '12. Amtrak reduced its debt by $850 million in FY '12, contributing to a 50 percent cut in our debt since 2002, and laid the groundwork for new financial systems that will enhance fiscal management and transparency. While Amtrak relies on federal funding support, total revenue covered 85 percent of our operating costs in FY '12. Moreover, farebox recovery increased over the prior year to 76 percent; Amtrak has the highest reported farebox recovery among all U.S. passenger railroads, including commuter railroads. Although federal investment in passenger rail is critical, Amtrak has embarked on a strategy to identify new revenue streams, as well as new investment sources, including the private sector.
A LANdMArk YEAr FOr AMTrAk:
36
percent increase
rIdErSHIp INCrEASE
between 2000–2010
2012 ANNUAL AnnuAl REPORT RepoRt
59
percent increase
TICkET rEVENuE
between 2000–2010
50
percent decrease
AMTrAk dEBT since 2002
CHAIrMAN Given the age of our equipment—which is 25 years—we produced a comprehensive fleet plan in FY '10 that set the stage for replacing the entire fleet by 2040 and that is designed to help spur the growth of a domestic manufacturing base. The first step in the plan was taken in July, when Amtrak Annual Report 2010 | 5 we announced the award of a contract to acquire 130 single-level long-distance cars that would replace and augment the fleet. Later in the fall, we signed another contract to purchase 70 new electric locomotives to be used along the Northeast Corridor. In FY '10, Amtrak continued to invest ARRA funds in important capital projects, bringing tangible benefits to our fleet and infrastructure. As a result, we added significant capacity with additional equipment on our routes in the East and the Midwest; rebuilt certain mechanical facilities and stations; and invested in our Northeast Corridor infrastructure, including the installation of more than 183,000 concrete ties, among other enduring capital projects. We created a distinct High-Speed Rail department and unveiled a bold vision for the next generation of 220 mph high-speed rail service along the Northeast Corridor that could operate between Washington, D.C., and New York in 96 minutes, and New York and Boston in about the same time, cutting today’s trip-times in half. The plan envisions a dedicated two-track railroad that would be completed by 2040 and carry 18 million passengers a year, with the capacity for 80 million in future years. In addition, we partnered with others in the industry to pursue high-speed rail opportunities in other regions of the country. We also invested in customer service improvements that would enhance the travel experience while also contributing to ridership and ticket revenue growth expectations. In FY '10, we introduced AmtrakConnectSM, free on-board Wi-Fi, aboard Acela Express and in major Northeast Corridor stations, an investment that is expected to yield significant incremental ticket revenue. In addition, ongoing back-end technological investments were made for the development of a sophisticated eTicketing system, with the official rollout starting in FY '11 and completing in FY '12.
INtRODUCtION SAFETY 75
Just as Amtrak strives to earn the loyalty of the customers who ride the service, we strive to do the same with our state, commuter, freight and o ther industry partners, especially in this increasingly competitive climate. To that end, we began organizing functions to better align with our commitment to serve the needs and expectations of all our customers, including the initiation of a commercial partner satisfaction program. We aim to better exemplify 28.7 million Ridership Farebox Recovery Operating Expenses Covered by Total Revenue Ticket Revenue FY '12 76 percent 85 percent $1.74 billion qualities attributed to excellent customer service—such as responsiveness and a high degree of professionalism—in our approach to our state and commuter service partners. We also commenced a company-wide analysis for better leveraging Amtrak assets and expertise to grow revenue, expand market presence and secure our position to compete for new and expanded intercity and high-speed rail projects. Our facilities and our employees’ unique know-how and skills are strengths that can be capitalized in new ways. Internally, we dedicated resources to changing the Amtrak mindset by reinforcing initiatives and activities that inculcate a more collaborative and inclusive working environment and stress accountability, rather than blame. These efforts were also aimed at creating a stronger safety and security culture that is driven by union and employee engagement, and is supported by management. The culture shift also helped strengthen our relationships with the unions, forging stronger bonds than in recent history.
HIGHLIGHTS FrOM FY 2012
28.7
1.74
rIdErSHIp
TICkET rEVENuE
million in 2012
2012 ANNUAL AnnuAl REPORT RepoRt
billion dollars
With unprecedented support from the administration, passenger rail in America is in the midst of a renewal. On Capitol Hill, in state houses and legislatures, and communities large and small, there is recognition that a passenger rail network that comprises long-distance, corridor and highspeed rail is a matter of strategic national import. As Amtrak grows, so does our capacity to meet national needs. Amtrak is a part of the solution for reducing our nation’s dependence on foreign oil, curtailing emissions, connecting communities—both rural and metropolitan— anticipating population growth expectations and mitigating congestion, contributing to national emergency response and sound environmental stewardship. Our future is not without challenges. The state of the national economy and condition of state budgets are factors that could hamper our growth. And our plans for equipment acquisition, service expansion and development of corridor and high-speed service are all designed to address one of our biggest challenges— capacity restriction. The ongoing investments made and accomplishments achieved in FY '12 solidify the new generation of passenger rail Amtrak has entered. We thank our dedicated workforce, loyal passengers and supporters for the opportunity to be America’s RailroadSM. Sincerely,
Thomas Carper Chairman, Board of Directors
76%
85%
FArEBOX rECOVErY
OpErATING EXpENSES covered in total revenue
INtRODUCtION SAFETY 97
2012 ANNUAL AnnuAl REPORT RepoRt
AMTrAk BASICS In its 39th year of providing service to millions of travelers across the country, the National Railroad Passenger Corporation (Amtrak) carried 28.7 million passengers in Fiscal Year 2012 and collected $1.74 billion in ticket revenue, reaching all-time records for both ridership and ticket revenue. In FY '12, Amtrak earned just over $2.5 billion in total revenue and incurred $3.7 billion in expenses. The annual federal appropriation on which Amtrak relies totaled $1.565 billion in FY '12, comprising $563 million for operating, $594 million for capital, $264 million for debt service, and $144 million to be used for ADA compliance. Amtrak covers 85 percent of its operating cost with total revenue. Additionally, the company continued to make capital investments in its infrastructure, stations, rolling stock and customer service with $1.3 billion in funding from the American Recovery and Reinvestment Act.
500
21,000
925,000
dESTINATIONS
rOuTE MILES
pASSENGErS
U.S. & Canadian
traveled
daily commuter
Amtrak partnered with 15 states in FY '12 to bring service to their communities; statesupported service comprises more than half of Amtrak’s departures. In addition to the approximately 300 daily trains Amtrak operates, it also facilitates the operation of commuter services—which carry an estimated 925,000 passengers every weekday— through a variety of agreements with 13 commuter entities. Amtrak travels across more than 21,000 route miles to more than 500 destinations in 46 states, the District of Columbia and three Canadian provinces. Approximately 20,500 employees make up the company’s diverse and dedicated workforce, the majority of whom are affiliated with 13 labor unions and two labor councils. Amtrak owns 363 miles of the 456-mile Northeast Corridor from Washington, D.C., to Boston, where Acela Express trains operate at speeds of up to 150 mph; a 62-mile track segment from New Haven, Conn., to Springfield, Mass.; 104 miles between Philadelphia and Harrisburg over which trains travel up to 110 mph; and 97 miles of track in Michigan over which trains travel up to 95 mph.
INtRODUCtION SAFETY 119
SAFETY Become North America’s safest, most secure railroad by creating a collaborative, team-oriented workplace culture that minimizes risks and maximizes passenger and employee safety.
2012 ANNUAL AnnuAl REPORT RepoRt
SAFETY 15 13
ENGINEErING prOduCTION FY '10 General Capital & Stimulus-Funded A criticl aspect of maintaining the highest standards of safety is the work done by the men and women of Amtrak’s Engineering department to improve the dependability of the railroad infrastructure. Capital investments made in FY '12 on Amtrak-owned Northeast Corridor infrastructure included work on the replacement of nine century-old bridges, including a multiyear project to completely replace the 102-year-old Niantic River Bridge in Connecticut; the replacement of hundreds of thousands of ties; and renewed overhead electrical power. The end result of these investment— the largest upgrade program on the Northeast Corridor in more than 10 years—is a more reliable railroad.
SIGNAL CABLE
CONTINuOuS WELdEd rAIL
ELECTrIC CATENArY HArdWArE
14.71
35.5
40.5
miles replaced
2012 ANNUAL AnnuAl REPORT RepoRt
track miles installed
miles renewed
59
HIGHLIGHTS
TurNOuTS installed
373
55,180
206,966
BrIdGE TILES
WOOd TILES
CONCrETE TILES
installed
8
installed
installed
7
electric traction
TrANSFOrMErS replaced
electric 12 KV
CIrCuIT BrEAkErS installed
SHOuLdEr CLEANING
88.6
track miles installed
Safety 15 SAFETY 17
rISk rEduCTION IS AT THE HEArT OF AMTrAk’S STrONG SAFETY rECOrd. Launched in FY '09, Safe-2-Safer is a company-wide approach to improving safety and security by engaging employees at all levels to work more collaboratively toward identifying and removing potential hazards in trains, stations, track and facilities. Working with United Transportation Union and the Brotherhood of Locomotive Engineers and Trainmen, Amtrak also participated in Confidential Close Call Reporting in FY '12, a Federal Railroad Administration-sponsored pilot that allows employees to confidentially report “close call” events that could have resulted in an accident or injury.
The strength of Amtrak’s police and security operation encompasses a combination of strategic unpredictability, highvisibility and covert presence; and a network of partnerships with federal, state and local law enforcement, and domestic and international counterterrorism entities. Random and unpredictable baggage screenings, patrol and Operation RAILSAFE (Regional Alliance Including Local, State 2012 ANNUAL AnnuAl REPORT RepoRt
fORt pOINt ChaNNel ROllINg lIft BRIDge (1977), BOStON, SUffOlk, Ma
In FY '12, Amtrak made progress on the installation of Positive Train Control technology on segments of Amtrak-owned track where the technology was currently not available. Installation of the collisionprevention technology on parts of the Northeast Corridor and on the Michigan Line is slated for completion by the end of 2012, three years ahead of a Congressional deadline.
In FY '10, the Amtrak Police Department joined the Department of Homeland Security in its “See Something, Say Something” campaign, and became a participant in the Suspicious Activity Reporting Initiative, a centralized information-sharing partnership that involves a number of other federal, state and local law enforcement agencies.
MaINteNaNCe paRtS fOR aMtRak’S lOCOMOtIveS, paSSeNgeR CaRS aND RaIlS aRe NeveR IN ShORt SUpply at the WaShINgtON, D.C. WaRehOUSe.
and Federal Efforts) surges are central to Amtrak Police and Security’s deterrence and detection strategy. Amtrak’s K-9 teams are among the most sophisticated in the nation, including Vapor Wake dogs that can sniff our the presence of explosives in the air.
Amtrak continues to attract automobile and airline travelers to train service, contributing to the country’s environmental health, while also helping reduce the nation’s dependence on foreign oil. While Amtrak serves as a feeder with other modes of transportation, its share of the air/rail travel market in the Northeast Corridor rose to 69 percent in the Washington, D.C.,–New York market and 53 percent in the New York–Boston market in FY '12. Amtrak carries more people between New York and Washington, D.C., and New York and Boston, than all of the airlines put together. Safety 17 SAFETY 19
New data released in FY '12 from the U.S. Department of Energy’s Transportation Energy Data Book shows that Amtrak trains are now even more efficient than auto and airline travel. Amtrak is 20 percent more energy efficient than airlines on a per-passenger-mile basis, up from 19 percent in the previous study. Amtrak trains improved to being 30 percent more efficient than automobiles, up from 28 percent. Important elements of Amtrak’s environmental stewardship include its involvement with The Climate Registry and Climate Counts, two organizations that assist companies with assessing their contributions to greenhouse gas emissions and use of natural resources.
“AMTrAk TrAINS ArE NOW EVEN MOrE EFFICIENT THAN AuTO ANd AIrLINE TrAVEL.”
As a signatory of the American Public Transportation Association Sustainability Commitment, Amtrak pledged in FY '12 to pursue a set of actions, starting with a sustainability inventory that encompasses greenhouse gas emissions, energy and water usage, waste generation, and air and water pollutant emissions. The inventory is designed to identify goals for reducing emissions and prudent use of resources. Investments made in mechanical facilities such as the Seattle Maintenance Facility are designed to improve safety, productivity and implement new technologies. New, modern maintenance facilities were being built in Los Angeles and Hialeah, Fla., with stimulus funds in FY '12. Thanks to work completed in FY '12, all diesel and dualmode locomotives and cab cars are outfitted with a new train communications system that enables direct two-way data communications between en route trains and Amtrak facilities to facilitate operational and customer-service improvements. Key system functionality includes locomotive health monitoring and reporting, train tracking, satellite imagery and locomotive video recording.
2012 ANNUAL AnnuAl REPORT RepoRt
SAFETY 21 19
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