Elon Musk’s call to privatize Amtrak should surprise no one. He owns a car company, has recommended that tourists from abroad not ride passenger rail in the U.S., and according to his biographer “the idea (for the Hyperloop) originated out of his hatred for California’s proposed high-speed rail system,” which he viewed as too costly and too slow.
But supporters of passenger rail in the U.S. should not dismiss the notion of redefining Amtrak’s role in running our nation’s intercity rail network, including privatizing some of its operational responsibilities. Rather, they should use this moment as an opportunity to debate the best way to leverage private investment in passenger rail.
Born out of necessity, Amtrak was never intended to be the long-term solution to providing passenger rail in the U.S. The collapse of privately-owned and operated passenger rail in the 1960s led to the government corporation’s creation in 1971. Amtrak’s operations greatly expanded in the mid-1970s when it took over the Northeast Corridor (NEC), which accounts for over a third of its passengers and is operationally a money maker. Since then, Congress has been fairly divided about Amtrak’s vision. Many Democrats support more government funding of Amtrak while large swaths of Republicans have called for the public corporation’s dismantling and the sale of the NEC to private interests. Partly as a result of this partisan divide, Amtrak has been unable to access a stable source of funding to invest in its rail infrastructure, leaving it with billions in deferred maintenance and little money for investments in high-speed rail.
