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Friday, June 07, 2002

Shutdown a possibility for Amtrak




The Associated Press

        WASHINGTON — Amtrak's new president is warning that the cash-strapped passenger railroad will shut down all service next month unless it gets a $200 million loan in the next three weeks.

        President David Gunn is hopeful that the loan will come through, Amtrak spokesman Bill Schulz said Thursday. As collateral, Amtrak can use $200 million of the federal appropriation it expects to receive when the new fiscal year begins Oct.1.

        Mr. Schulz urged passengers holding reservations in July and beyond to keep them.

        Amtrak's governing board met in Washington on Thursday. Mr. Schulz said Mr. Gunn intended to propose a sweeping company reorganization reducing the number of “vice president” titles from 84 to about 20.

map
        Mr. Gunn also wants to consolidate Amtrak's three railroad operating divisions — Amtrak West, Intercity and Northeast Corridor, which are now distinct business units — into the company's overall management structure. Mr. Gunn said in a memo to employees that he wants Amtrak to “move back to a traditional railroad structure. ... We will have an operating department, a mechanical department, an engineering department, etc.”

        Under the plan, Mr. Schulz said, the division offices in Chicago; Philadelphia; and Oakland, Calif., will remain open, but only to handle local operations, not to make policy decisions.

        Mr. Gunn took over Amtrak May 15, succeeding George Warrington. He previously ran transit systems in New York City and Washington.

        Mr. Gunn announced the $200 million shortfall in a letter Wednesday to Amtrak employees. He said Amtrak still is asking for $1.2 billion from Congress for the fiscal year beginning in October.

       



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- Shutdown a possibility for Amtrak
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