The National Railroad Passenger Corporation (Amtrak) is the nation's intercity passenger rail operator. In recent years, facing the continuing deterioration of its financial condition and its attempt to eliminate its need for federal operating assistance by December 2002, Amtrak undertook a number of actions intended to improve its financial condition. Among these actions were changes in its routes and services. Starting in 1995, Amtrak began reducing service and eliminating routes to reduce costs, although this strategy was ultimately unsuccessful. In December 1999, Amtrak's board of directors shifted its route and service strategy toward planning to implement new routes and expand services (called the Network Growth Strategy) on the freight railroad tracks over which Amtrak operates. It estimated that this expansion, involving 15 routes, would yield about $66 million in net financial benefits through fiscal year 2002, primarily from expanding its mail and express business, and help Amtrak move toward operational self-sufficiency.

This report addresses the public benefits and investment needs of intercity passenger rail transportation. AASHTO has published an investment needs report for highways and transit, and intends to publish a report on freight rail investment needs. Cost estimates for intercity passenger rail investment presented in this report were developed independently from those contained in the freight rail report. In combination, these reports provide a complete picture of the benefits of the various surface transportation modes to the U.S. and the value to be realized by both the traveling public and shippers through strategic investments.