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Passenger Trains > Amtrak IPH question


Date: 02/18/17 12:49
Amtrak IPH question
Author: Spongebob-Trainguy

Will Amtrak be getting the money IPH was getting for the Hoosier State, when Amtrak takes over the Hoosier State?



Date: 02/18/17 22:41
Re: Amtrak IPH question
Author: TWC

IPH was hardly getting anything from the state. IPH underbid Amtrak to get their foot in the door and tried to renegotiate with INDOT once they could no longer afford to operate the service. Amtrak has indicated that they are being flexible with INDOT, as they step in to fulfill IPH's obligations under the existing 2-year agreement. Uninterrupted operation of the service is best for both parties financially. However, Amtrak's standard pricing will likely apply if INDOT enters a new contract with Amtrak. 



Date: 02/19/17 19:44
Re: Amtrak IPH question
Author: justalurker66

The state's contract paid Amtrak for operating the train and IPH for the train and services on the train. Unfortunately the contract was worded in a way where Amtrak was paid first and received extra money when the train was on time, cutting in to IPH's profits. Amtrak also pulled the dead-head business off of the Hoosier State and used the Cardinal instead which reduced the income of the Hoosier State.

Amtrak will continue to be paid ... and without IPH getting the leftovers they will end up getting more money when Amtrak equipment is used. They will likely use the Hoosier State for the hospital train (which could affect on time performance) but it won't affect the bulk payment from the state of Indiana.

I do wander what services Amtrak will continue to provide ... and what the next contract will look like. IPH did not underbid Amtrak for the route ... they won the route by promising to improve services. Which they accomplished. Will Amtrak be able to keep up the service level or will this become another hobo train?



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