1 00:00:06,440 --> 00:00:08,440 Speaker 1: Just about three thirty pm here in New York. This 2 00:00:08,600 --> 00:00:11,640 Speaker 1: is the countdown to the close arm remain bostic. 3 00:00:11,520 --> 00:00:14,360 Speaker 2: And I'm Alex Steele. Guess what's that's performing today? What's 4 00:00:14,640 --> 00:00:17,560 Speaker 2: now Transportation index? And I wonder if that's a China 5 00:00:17,600 --> 00:00:19,920 Speaker 2: effect or if it's growth here in the US effect, 6 00:00:19,960 --> 00:00:20,840 Speaker 2: But it is outperforming. 7 00:00:20,920 --> 00:00:22,639 Speaker 1: Yeah, it was kind there to I saw earlier this 8 00:00:22,640 --> 00:00:25,080 Speaker 1: week it is all airlines rallying, a lot of transportation 9 00:00:25,200 --> 00:00:27,720 Speaker 1: socks rallying as well here, and of course I think 10 00:00:27,760 --> 00:00:29,880 Speaker 1: a lot of US, at least certainly here in the US, 11 00:00:29,960 --> 00:00:33,599 Speaker 1: obsess over some of these transportation stocks. Yeah, that's right, 12 00:00:33,640 --> 00:00:35,360 Speaker 1: because we try to get fromer point A to point B, 13 00:00:35,440 --> 00:00:37,680 Speaker 1: and if you're in New York, that's impossible even when 14 00:00:37,720 --> 00:00:40,960 Speaker 1: it's not un week here. And of course it raises 15 00:00:40,960 --> 00:00:43,000 Speaker 1: a lot of questions here about the infrastructure that we 16 00:00:43,040 --> 00:00:44,160 Speaker 1: have to move people around. 17 00:00:44,400 --> 00:00:46,839 Speaker 3: So whether it is by land, air, or sea. You know, 18 00:00:46,880 --> 00:00:47,599 Speaker 3: you have a. 19 00:00:47,640 --> 00:00:51,800 Speaker 1: Huge amount of passengers utilizing US transportation systems every year, 20 00:00:51,800 --> 00:00:54,760 Speaker 1: more than three hundred million, and just last year twenty 21 00:00:54,760 --> 00:00:57,320 Speaker 1: eight million of those passengers chose But what you're looking 22 00:00:57,320 --> 00:00:59,880 Speaker 1: at they are Amtrak, formerly known as the National Railroad 23 00:01:00,080 --> 00:01:03,640 Speaker 1: Road Passenger Corporation amtractors remained one of the go to 24 00:01:03,800 --> 00:01:07,200 Speaker 1: services for inner city rail travel, particularly here in the Northeast, 25 00:01:07,440 --> 00:01:10,480 Speaker 1: but it also has challenges, be it outdated infrastructure causing 26 00:01:10,520 --> 00:01:14,680 Speaker 1: delays or increase competition from other private rail companies. Here 27 00:01:14,720 --> 00:01:18,200 Speaker 1: to talk about all that is well, the president of Amtrak, 28 00:01:18,280 --> 00:01:20,759 Speaker 1: Roger Harris, joining us right now from Union Station down 29 00:01:20,840 --> 00:01:23,520 Speaker 1: in Washington, DC. And Roger, great to have you back 30 00:01:23,520 --> 00:01:25,920 Speaker 1: here on the program. I do want to start off 31 00:01:26,120 --> 00:01:28,479 Speaker 1: you guys have been spending a lot of money last 32 00:01:28,480 --> 00:01:30,760 Speaker 1: time I checked, at least in the fiscal year. Last year, 33 00:01:30,800 --> 00:01:32,880 Speaker 1: at twenty twenty three, you had one of your biggest 34 00:01:33,080 --> 00:01:36,160 Speaker 1: capital investments. The Biden administration gave you a big shot 35 00:01:36,160 --> 00:01:39,160 Speaker 1: in the arm about a year ago, fundeling several billion 36 00:01:39,200 --> 00:01:43,640 Speaker 1: dollars to railroads here. How exactly is that money being spent? 37 00:01:45,040 --> 00:01:47,280 Speaker 4: Hi remain Thanks for having me back. It's good to 38 00:01:47,280 --> 00:01:50,280 Speaker 4: be here. Well, it's going on a lot of different things. 39 00:01:50,320 --> 00:01:53,240 Speaker 4: It's partly going on new fleet, so we have new 40 00:01:53,240 --> 00:01:57,080 Speaker 4: trains coming this winter. We're going to be hopefully putting 41 00:01:57,080 --> 00:02:01,720 Speaker 4: into service our new Aessela trains coming after that in 42 00:02:01,760 --> 00:02:06,120 Speaker 4: twenty twenty seven, we will be launching our new Aerrow 43 00:02:06,160 --> 00:02:10,920 Speaker 4: trainsets on the Northeast Regional service in the Northeast, so 44 00:02:11,040 --> 00:02:13,640 Speaker 4: really a complete makeover of the trains that we have 45 00:02:13,760 --> 00:02:18,360 Speaker 4: in the northeast of the US. We're also spending a 46 00:02:18,400 --> 00:02:22,760 Speaker 4: lot of money on new infrastructure, not only in things 47 00:02:22,840 --> 00:02:27,520 Speaker 4: like tracks, signaling, and electrical infrastructure that really makes the 48 00:02:27,560 --> 00:02:30,560 Speaker 4: railroad run every day, but also those really big one 49 00:02:30,639 --> 00:02:35,679 Speaker 4: hundred year investments in things like major bridges and tunnels. 50 00:02:35,720 --> 00:02:37,919 Speaker 4: And that's really a lot of the work that we're 51 00:02:37,960 --> 00:02:41,280 Speaker 4: going to have us getting underway and earnest in twenty 52 00:02:41,400 --> 00:02:45,640 Speaker 4: twenty five. So you mentioned that we have a lot 53 00:02:45,639 --> 00:02:48,880 Speaker 4: of growth in our capital spending in twenty twenty three. 54 00:02:49,160 --> 00:02:52,359 Speaker 4: Well this year twenty twenty four, we grew fifty percent 55 00:02:52,440 --> 00:02:53,600 Speaker 4: for twenty twenty three. 56 00:02:53,919 --> 00:02:56,160 Speaker 1: And is that going to continue into twenty twenty five 57 00:02:56,240 --> 00:03:00,000 Speaker 1: and beyond. And if so, Roger, are some of the 58 00:03:00,000 --> 00:03:01,600 Speaker 1: those costs are they going to be passed on to 59 00:03:01,760 --> 00:03:03,800 Speaker 1: the commuter? Are they going to pay more in ticket prices? 60 00:03:05,160 --> 00:03:09,400 Speaker 4: So the large infrastructure items that we're talking about are 61 00:03:09,440 --> 00:03:12,160 Speaker 4: primarily funded through the I I J at this point, 62 00:03:13,560 --> 00:03:18,760 Speaker 4: so they won't inherently be passed on to the commuter 63 00:03:18,800 --> 00:03:20,959 Speaker 4: in that form. We have a lot of other costs 64 00:03:20,960 --> 00:03:24,239 Speaker 4: that are going up though at the same time, so 65 00:03:24,680 --> 00:03:28,160 Speaker 4: there are price increases probably underway, but it's for all 66 00:03:28,240 --> 00:03:29,520 Speaker 4: kinds of other inputs. 67 00:03:30,400 --> 00:03:34,680 Speaker 2: Roger, it's Alex, what's the biggest hurdle to you building 68 00:03:34,720 --> 00:03:38,040 Speaker 2: these projects on time and on budget? Like, what's the 69 00:03:38,160 --> 00:03:39,960 Speaker 2: risk that you take on in the medium. 70 00:03:39,720 --> 00:03:44,560 Speaker 4: Term, Alex, great question. One of the things we've done 71 00:03:44,640 --> 00:03:47,400 Speaker 4: since the money was awarded is we have built up 72 00:03:48,000 --> 00:03:54,240 Speaker 4: an incredible infrastructure of project management, project controls, things to 73 00:03:54,280 --> 00:03:58,480 Speaker 4: make sure that we get the projects done right and 74 00:03:58,520 --> 00:04:00,960 Speaker 4: that we don't have a lot of unpleasant prizes later on. 75 00:04:02,240 --> 00:04:04,480 Speaker 4: There are a lot of steps that we have to 76 00:04:04,520 --> 00:04:10,280 Speaker 4: go through, including environmental clearances, historical clearances. We work with 77 00:04:10,960 --> 00:04:16,440 Speaker 4: our partners who are investors in these projects, and those 78 00:04:16,480 --> 00:04:19,360 Speaker 4: steps typically take a number of years. And that's why 79 00:04:19,400 --> 00:04:22,680 Speaker 4: you don't see these projects delivering benefits yet because the 80 00:04:22,720 --> 00:04:25,680 Speaker 4: setup of the projects really takes a long time. But 81 00:04:25,720 --> 00:04:28,120 Speaker 4: it's a necessary part of making sure that they're successful 82 00:04:28,160 --> 00:04:28,760 Speaker 4: in the long run. 83 00:04:29,040 --> 00:04:31,680 Speaker 2: So then how do you compete back to Romains's original question, 84 00:04:31,720 --> 00:04:34,840 Speaker 2: how do you compete then with more of the private 85 00:04:34,880 --> 00:04:37,240 Speaker 2: players who can get in there in a different way 86 00:04:37,279 --> 00:04:39,799 Speaker 2: and move money faster and build projects faster. 87 00:04:42,080 --> 00:04:45,520 Speaker 4: Very good question. We have a lot of efforts underway 88 00:04:45,560 --> 00:04:48,600 Speaker 4: to be more efficient. So when you look at, for instance, 89 00:04:48,640 --> 00:04:51,600 Speaker 4: our newest sellers that, as I said, we hope to 90 00:04:51,680 --> 00:04:57,039 Speaker 4: launch this winter, they carry about twenty five percent more 91 00:04:57,080 --> 00:05:01,159 Speaker 4: customers than the previous sellers, and they're about twenty five 92 00:05:01,200 --> 00:05:03,640 Speaker 4: percent lighter. So they're actually going to be twenty percent 93 00:05:03,680 --> 00:05:08,560 Speaker 4: more energy efficiently, and that translates directly into lower operating costs, 94 00:05:08,600 --> 00:05:11,400 Speaker 4: especially on a per passenger basis. 95 00:05:11,600 --> 00:05:13,560 Speaker 1: You know, Roger, I am curious when we talk long 96 00:05:13,640 --> 00:05:16,760 Speaker 1: term about the future and the health of Amtrak, when 97 00:05:16,760 --> 00:05:19,320 Speaker 1: we talk about the number of miles of tracks you have, 98 00:05:19,440 --> 00:05:21,680 Speaker 1: the number of passengers you have a lot of that 99 00:05:21,839 --> 00:05:25,039 Speaker 1: is still and correct if I'm wrong, still weighted towards 100 00:05:25,160 --> 00:05:28,440 Speaker 1: the Northeast Corridor. And I am curious as to whether 101 00:05:28,440 --> 00:05:32,080 Speaker 1: there are ambitions to do more outside of the Northeast, 102 00:05:32,600 --> 00:05:36,159 Speaker 1: whether there is profitability to be had outside of the Northeast. 103 00:05:36,400 --> 00:05:38,960 Speaker 3: Is there? I think so? 104 00:05:39,120 --> 00:05:42,839 Speaker 4: I mean there's some very unique features of the Northeast 105 00:05:42,839 --> 00:05:46,919 Speaker 4: Corridor that do help to make it profitable, including density, congestion, 106 00:05:47,040 --> 00:05:49,880 Speaker 4: et cetera. But those things are happening all over the 107 00:05:49,880 --> 00:05:55,720 Speaker 4: country as the country grows. We've been investigating the Texas 108 00:05:55,760 --> 00:05:58,520 Speaker 4: High speed Rail project to see what we can do 109 00:05:58,560 --> 00:06:01,159 Speaker 4: there to assist in the development of that project, because 110 00:06:01,200 --> 00:06:05,640 Speaker 4: we think that's very promising. Between Dallas and Houston. It's 111 00:06:05,640 --> 00:06:10,799 Speaker 4: a metro market of fifteen million people and perfectly situated 112 00:06:10,800 --> 00:06:14,840 Speaker 4: for high speed rail. We also have really exciting developments 113 00:06:14,839 --> 00:06:17,440 Speaker 4: in North Carolina with the S Line project, which also 114 00:06:17,560 --> 00:06:20,920 Speaker 4: got some funding in the last round of grants from 115 00:06:20,920 --> 00:06:23,839 Speaker 4: the FRA, and we continue to work with our partners 116 00:06:23,839 --> 00:06:29,240 Speaker 4: in the Commonwealth of Virginia on extending and expanding rails 117 00:06:29,320 --> 00:06:33,320 Speaker 4: between Washington, d C. And Richmond, Virginia, which will eventually 118 00:06:33,920 --> 00:06:35,760 Speaker 4: connect to the S Line projects. 119 00:06:36,240 --> 00:06:39,520 Speaker 1: In addition to those issues, there's also the issue of 120 00:06:39,680 --> 00:06:42,440 Speaker 1: delays and other things. Some of that has to do with, 121 00:06:42,720 --> 00:06:44,800 Speaker 1: of course, the tracks that you control, or rather that 122 00:06:44,880 --> 00:06:47,000 Speaker 1: you don't control. I know you guys have made some 123 00:06:47,040 --> 00:06:49,480 Speaker 1: deals recently that gives you more control of tracks. 124 00:06:49,640 --> 00:06:51,039 Speaker 3: Even in Union Station, where. 125 00:06:50,839 --> 00:06:53,880 Speaker 1: You're at right now, you've gained a greater degree of 126 00:06:53,880 --> 00:06:55,680 Speaker 1: control of what comes in and out of there. 127 00:06:56,120 --> 00:06:57,720 Speaker 3: Do you have more leverage to do that? 128 00:06:57,760 --> 00:07:02,320 Speaker 1: In other cities and other regions as well well. 129 00:07:02,400 --> 00:07:04,680 Speaker 4: I think we do. One of the things that we're 130 00:07:04,680 --> 00:07:08,000 Speaker 4: really focused on is working with our partners to have 131 00:07:08,480 --> 00:07:13,000 Speaker 4: the kind of relationships that really enable those improvements that 132 00:07:13,040 --> 00:07:15,640 Speaker 4: you're talking about. Whether it be our host railroads or 133 00:07:15,640 --> 00:07:18,400 Speaker 4: freight railroads that we run on, We're really trying to 134 00:07:18,400 --> 00:07:21,240 Speaker 4: work hard to make sure that we understand their concerns. 135 00:07:21,600 --> 00:07:24,840 Speaker 4: And also, you know, all over the country we were 136 00:07:25,160 --> 00:07:29,400 Speaker 4: commuter agencies who are also an important part of the 137 00:07:29,480 --> 00:07:34,680 Speaker 4: rail environment, and they're necessary parts of the environment in 138 00:07:34,760 --> 00:07:37,160 Speaker 4: terms of the investments that need to be made. 139 00:07:37,320 --> 00:07:37,920 Speaker 3: Yeah. 140 00:07:37,920 --> 00:07:39,800 Speaker 1: One just final quick question here, and you mentioned the 141 00:07:39,880 --> 00:07:42,840 Speaker 1: host tracks that you're on. Obviously a lot of those 142 00:07:43,000 --> 00:07:45,680 Speaker 1: either owned or operated by the freight companies. There's a 143 00:07:45,720 --> 00:07:49,800 Speaker 1: big potential strike in East Coast ports. It could have 144 00:07:49,880 --> 00:07:53,600 Speaker 1: reverberations on rail lines. Is that going to affect Amtrak 145 00:07:53,640 --> 00:07:53,920 Speaker 1: at all? 146 00:07:55,200 --> 00:07:56,320 Speaker 3: We don't expect it to. 147 00:07:56,520 --> 00:08:00,360 Speaker 4: I mean, there may, in isolated situations, create congestion on 148 00:08:00,400 --> 00:08:03,880 Speaker 4: the freight lines, but we don't expect it to impact 149 00:08:03,920 --> 00:08:05,120 Speaker 4: our operations. 150 00:08:05,560 --> 00:08:07,160 Speaker 1: All right, Roger, we'll let you get back to work. 151 00:08:07,160 --> 00:08:10,080 Speaker 1: Appreciate you taking time to be with us today. Roger Harris. 152 00:08:10,080 --> 00:08:12,800 Speaker 1: He's the president of Amtrak down there in Union Station 153 00:08:12,960 --> 00:08:14,080 Speaker 1: in Washington, DC.