Advancing Passenger Rail: Early Insights From the PRAC

By Patty Long

The Passenger Rail Advisory Committee (PRAC), formed in the fall of 2024 under the Surface Transportation Board (STB), is an exciting development for the future of passenger rail in the United States. The committee, comprised of 21 individuals representing the rail industry across the country, is filled with enthusiasm and a shared commitment to make meaningful changes in the industry. We are eager to work together and use our collective expertise to drive progress.

Early this year, the committee identified its top five priorities: liability, on-time performance, collaboration between passenger and freight rail, Amtrak’s role, and technology as it relates to current uses and opportunities.

These priorities are crucial for the advancement of passenger rail and are being tackled by four dedicated subcommittees, with initial considerations outlined below:

1. Joint Operations: This group is exploring how to expand passenger rail in collaboration with freight operations. This involves identifying mutually beneficial opportunities and the potential to convert unused freight assets into passenger rail assets.
2. Expansion: This group is focused on breaking down the siloed approach to passenger rail, supporting the industrial base for passenger rail in the U.S., and considering the possibility of small-scale startup opportunities.
3. Current State: This group will explore ways to homogenize passenger rail, similar to freight rail, to improve system quality and passenger experience. Flexibility and adaptability will be key to enhancing service.  
4. Liability: This group is addressing the costs of insurance, identifying ways to lower liability caps, and making insurance more affordable to encourage freight rail carriers to host passenger services.

Looking outward, a recent report from Amtrak’s Office of Inspector General highlights the rail line’s responsiveness to car builders’ concerns, though more resources are needed to keep program timelines on track. Initiatives like the Department of Transportation’s Corridor ID program, which promotes planning for new passenger rail corridors, are crucial as well. Funding for future corridor research and development can lay the groundwork for new services, supporting suppliers through the procurement of new railcars.

Federal funding in this space remains a critical need. Reliable, long-term funding sources, such as the Federal-State Partnership for Intercity Passenger Rail (FSP) Grant Program, support the replacement and refurbishment of rolling stock.

In speaking with Husein Cumber, fellow committee member and chief strategy officer of Florida East Coast Industries, on the current state and opportunities, he shared the following:

“President Trump has discussed the lack of first-class infrastructure in the U.S. and the need for private sector investment in the industry. I do not believe that these positions have changed. However, this administration will not want to make incremental investments in projects. If a project cannot clearly show the full funding plan, then it will not be competitive with discretionary grant programs. Incremental funding has been the biggest challenge since it does not force project sponsors to engage all funding stakeholders on day one, and the project cost continues to increase as the funding timeline gets elongated. We need the first true high-speed rail project to be completed and put into operation, and then the industry will have a chance to mature.”

While the path ahead will come with challenges, the PRAC is poised to make significant strides in the passenger rail industry. Our collective enthusiasm and dedication to addressing these key issues promise a bright future for passenger rail. Together, we are committed to creating a more efficient, collaborative, and innovative rail system that benefits all stakeholders.