Dive Brief:
- Retired Norfolk Southern Chairman, President and CEO Charles Moorman will become Amtrak's president and CEO effective Sept. 1, the passenger train service announced last week.
- Amtrak Board Chairman Anthony Coscia said the passenger railroad's directors expect Moorman, in the coming year, to launch efforts to further enhance safety and customer service, modernize operations, and guide Amtrak's implementation of the new federal Fixing America's Surface Transportation (FAST) Act.
- The Association of American Railroads hailed Moorman's appointment to lead Amtrak, given his knowledge of the "delicate balance that exists in this country between freight and passenger rail."
Dive Insight:
Amtrak's selection of a freight rail veteran comes as cargo and passenger railroads find themselves at odds before the U.S. Department of Transportation's Surface Transportation Board (STB) over rail "preference," or right of way, which goes to passenger trains.
The STB in July dropped a proposal that would have allowed railroads to give priority to freight trains over passenger trains. Freight lines had supported the plan and Amtrak opposed it, arguing the move would slow its trains. Instead, the STB implemented a new rule that would increase the pressure for freight trains to cede to their passenger counterparts.
The rule benefits Amtrak, however, which has reportedly been moving to decrease its reliance on federal subsidies by increasing its service network and improving its reliability. However, outside of the Northeast Corridor Amtrak runs on freight-owned railroads, so the passenger train service depends heavily on its relationship with freight operators.
Outgoing Amtrak CEO told the Wall Street Journal he hopes Moorman's experience will help herald a new era of collaboration and efficiency between the train services. The freight association's commendation of Moorman as Amtrak CEO reveals a similar hope.
