Posts Tagged ‘Joseph Boardman’

Gardner Named Amtrak President

December 1, 2020

Amtrak said on Monday that one of its vice presidents will become its president on Dec. 1.

Stephen Gardner

Stephen Gardner, currently Amtrak’s executive vice president and chief operating and commercial officer, will replace William Flynn.

Flynn, who became Amtrak’s president and CEO in April, will remain with the passenger carrier as CEO and a member of its board of directors.

The promotion of Gardner to president had been widely expected by many rail industry observers.

Railway Age reported that Gardner has been making most of the major decisions and setting policy during his time as an Amtrak senior vice president.

His elevation to the president’s chair coincides with the election of Joseph Biden as president. Gardner, like Biden, is a Democrat.

Earlier in his career, Gardner served in staff positions for Congressional Democrats on Capitol Hill, including Delaware Senator Tom Carper.

He joined Amtrak in 2009 after having helped develop railroad and transportation policy for the U.S. Senate Committee on Commerce, Science and Transportation.

Before coming to Washington, Gardner worked for Guilford Rail System (now Pan Am Railways) and the Buckingham Branch Railroad.

Railway Age said Gardner is widely recognized as one of the principal authors of the Passenger Rail Investment and Improvement Act of 2008.

The magazine said Gardner was unlikely to become Amtrak’s president so long as Republicans controlled the White House and the Department of Transportation.

In a prepared statement, Amtrak said the change in leadership was “part of a broader set of actions taken . . . to ensure that Amtrak is well positioned for success in fiscal year 2021 and beyond.”

The statement said Gardner will lead day-to-day operations and oversee marketing, operations, planning, government affairs, and corporate communication.

Historically, Amtrak’s president has been its top executive, but during the tenure of the late Joseph Boardman the company added the CEO title to his duties.

Amtrak’s statement said the carrier faces “two urgent challenges in 2021” including weathering the COVID-19 pandemic and bolstering Amtrak’s future.

Amtrak’s presidency has been a revolving door in recent years with no one person holding the position for more than a few years.

Charles “Wick” Moorman, a former CEO of Norfolk Southern, came out of retirement in 2016 to serve as Amtrak president and CEO in what at the time was described as a transitional appointment.

Moorman became co-CEO of Amtrak with Richard Anderson in June 2017, an arrangement that continued through the end of 2017.

Anderson, a former CEO of Delta Air Lines, served as Amtrak’s top executive until being replaced in April 2020 by William Flynn, a former CEO of Atlas Air.

Making Sense of Amtrak’s Anderson

May 10, 2018

To paraphrase a well-known remark made by Marc Anthony in Act 3, Scene 2 of Shakespeare’s Julius Ceasar, I come not to bury or praise Richard Anderson but to explain him.

Since taking the sole helm of Amtrak last January Anderson has become public enemy No. 1 among some railfans and passenger train advocates.

In short order he triggered intense anger by approving such changes as ending everyday discount fare programs, banning most special and charter movements, restricting operations of private rail passenger cars while sharply raising handling fees, threatening to suspend service on routes that do not meet the federal positive train control installation deadline later this year, and ending full-service dining cars on the Capitol Limited and Lake Shore Limited.

It is a common belief among his critics that Anderson doesn’t understand railroads because he came from the airline industry.

There may be some truth to that. It is probably true that Anderson does not view intercity rail passenger service in the same manner that many railfans and passenger train supporters do.

It also may be true that Anderson is overseeing a movement toward ending long-distance passenger trains that would leave vast swaths of the country without intercity passenger rail.

That doesn’t mean Anderson knows nothing about intercity passenger rail and its role in the nation’s transportation network as some of his critics would have you believe.

He is just not as convinced as many passenger train advocates that America needs 1950s style streamliners with full-service dining cars, sleepers and lounges.

Having spent much of his career in the airline industry, Anderson came to Amtrak with well-formed ideas about transportation that he would have expressed during his interview with the Amtrak board of directors.

During that interview he no doubt was asked to lay out his vision for Amtrak. He would not have been hired had that vision been incompatible with the board’s own views of Amtrak’s purpose and future.

Anderson may, indeed, have an air travel bias, which would not be surprising given his airline industry background.

He knows most long-distance travel in America is by air. Few business executives travel long distance by rail and most Americans who are not rail enthusiasts rarely, if ever, do so either.

If Anderson has a “bias” against long-distance intercity passenger trains, he would not be the first person in the transportation world to have that.

You can go back to the 1960s when Alfred Perlman of the New York Central acted as though long-distance trains were expensive dinosaurs to be removed.

Stuart Saunders of Penn Central infamy also declared that any rail passenger service beyond 500 miles was dead. So did a lot of other railroad CEOs.

Since Amtrak began in 1971 the U.S. Department of Transportation has ranged from outright hostile to benign indifference to Amtrak’s national route network.

What Amtrak appears poised to do under Anderson’s stewardship to the long-distance trains is not unlike the vision that Norman Mineta had when he was Secretary of Transportation.

Mineta pushed the corridor concept and said that long-distance trains should not stop at stations in states that do not help to underwrite the costs of those trains.

That vision did not prevail, but it is part of a long history of antagonism toward long-distance trains.

For that matter, Amtrak management itself has tolerated long-distance trains, but not since the 1970s has a new long-distance route been created.

There is much that we don’t know yet about Anderson’s views toward transportation and the role that intercity rail has to play even if he has been dropping hints about it.

Anderson said at a conference in California of passenger rail officials that Amtrak’s best marketing prospects lie in corridor services of no more than 400 miles served by DMU equipment.

During that same conference, he also was said to have emphasized the high financial losses of long-distance trains and that he must follow the law in making Amtrak a more efficient operation.

During his apprenticeship as co-CEO of Amtrak with Charles “Wick” Moorman, Anderson would have been schooled on the political realities that Amtrak faces, including why the long-distance trains remain in place decades after some believed their usefulness as transportation had expired.

Moorman would have pointed out that these trains continue to run because of long-standing political support. But maybe Anderson already knew that. Remember, Anderson is not necessarily a transportation neophyte.

Of late Anderson has come under fire from former Amtrak President Joesph Boardman, who has accused Anderson and the Amtrak board of launching a campaign to eviscerate long-distance trains.

In an interview with Trains magazine Boardman told an anecdote of how he responded when asked by the board to name Amtrak’s most important train.

“I told them it was all of the long distance trains. Did that ever make it out into the rail community? No, because it wasn’t my job to (do that),” he said.

Maybe Boardman should have made it his job. And that brings me to what may be Anderson’s most significant shortcoming.

Boardman hinted at that when he wrote in an email to public officials across the country that “Amtrak is not really a ‘private business,’ it is a “state owned enterprise.”

It may be that Amtrak was set up in 1970 as a for-profit company and ostensibly it is expected to cover its operating expenses from the fare box.

But in practice Amtrak is more like a government agency, a reality that the U.S. Supreme Court recognized in a case involving a dispute over the efforts by the U.S. Surface Transportation Board to establish on-time train standards that Amtrak could use to hold its host railroads accountable for excessive delays.

The head of a government agency does not have the luxury of thinking and acting like a Fortune 500 CEO if he or she wants to be successful.

Yet that is what Anderson has been doing by playing defense rather than offense.

Anderson has done little thus far to share his vision of Amtrak’s future with the public, let alone the constituencies that have lone manned the bulwarks to provide political support when Amtrak funding was threatened.

Boardman touched on this in his email when he said Amtrak “has begun to do surgical communications in a way that does not provide a transparent discussion of what they are doing.”

What Amtrak is doing, Boardman believes, is transforming Amtrak out of the long-distance passenger train business without saying upfront that that is the objective.

If so, it is because Anderson and the board that hired him have beliefs about transportation that are at odds with those held by many rail passenger advocates who don’t want to see Amtrak change much.

Rail passenger advocates have legitimate beliefs and visions, even if they are not always well-grounded in solid economic understanding. But so does Anderson and Amtrak’s board.

Anderson and his critics would agree that Amtrak is in the transportation business, but they have different views as to how that is to be pursued. It has nothing to do with lack of understanding of “railroading.” It has everything to do with ineffectively trying to sell that.

Boardman Critical of Amtrak Management, Sees It Moving to End Long-Distance Trains

May 9, 2018

Former Amtrak President Joseph Boardman has joined the chorus of those claiming that the current management of the passenger carrier is employing a strategy to dismantle the network of long-distance passenger trains.

In a letter sent to elected officials across the country, Boardman described what Amtrak CEO Richard Anderson and the Amtrak board of directors is doing as a “hedge hog” strategy.

“Meaning that the Board sees an opportunity to ‘hog’ all the federal assistance to complete the Gateway Plan; procure new city-pair “train sets” operating off the NEC to the Southern big cities like Charlotte NC and Atlanta and others; and shortening more routes in order to transfer more cost to the states while abandoning the national purpose of Amtrak.”

Boardman said the strategy is being carried out by using safety as a weapon, making a reference to a comment that Anderson made to Congress that Amtrak would not operate on any route lacking positive train control after Dec. 31, 2019.

Amtrak has since said that it is undertaking safety risk assessment studies of all routes that will lack PTC after that date, either because of a waiver by law or action of the Federal Railroad Administration.

Boardman said these segments are as small a few feet to more than a hundred miles.

In his letter, Boardman charged that following the fatalities in the Cascades derailment in Washington State and the head-on collision in South Carolina between Amtrak’s Silver Star and a parked and unattended CSX freight train that Anderson decided to make his “safety mark” by demanding PTC everywhere Amtrak operates.

Although Boardman praised Amtrak for undertaking the safety risk assessments, he said the threat to cease operating on track without PTC is neither responsible nor acceptable.

“Yes, additional mitigation for those risks which might be ATS (automatic train stop) or perhaps solar powered switch position indicators could be suggested as a part of the ‘risk’ process but it will take time and funding,” Boardman wrote. “It has not been made clear by board policy or CEO direction that service would be continued while those mitigations are funded and completed.”

Noting that some commuter rail services, including New Jersey Transit and Metro North in the New York City might miss the Dec. 31 deadline to install PTC, Boardman said those services will continue under an FRA waiver as work progresses to install PTC.

If those commuter services can continue operating under a waiver, Boardman sees no reason why Amtrak can’t as well.

P42DC Named for ex-Amtrak Head Boardman

September 29, 2016

Amtrak has named P42DC No. 42 after its former president, Joseph Boardman.

Amtrak logoPainted in a livery honoring the nation’s veterans, No. 42 will carry an inscription below its cab reading: “Amtrak Honors: Joseph H. Boardman, President and CEO 2008-2016, US Air Force Vietnam Veteran.”

The locomotive was officially named for Boardman earlier this week during a ceremony held at Washington Union Station that was attended by more than 100 invited guests, including Union Pacific CEO Lance Fritz; BNSF Railway Executive Chairman Matt Rose; Federal Railroad Administration Administrator Sarah Feinberg; former FRA boss Joe Szabo; union officials; and dozens of Amtrak employees and managers.

Also attending and speaking were U.S. Transportation Secretary Anthony Foxx, Amtrak Board of Directors Chairman Tony Coscia and board member Tom Carper, U.S. Rep. Jeff Denham, and Association of American Railroads President and CEO Ed Hamberger.

Current Amtrak President and CEO Charles “Wick” Moorman was absent because he was on a previously-planned family vacation.

Moorman to be Next Amtrak President

August 19, 2016

Former Norfolk Southern head Charles W. “Wick” Moorman has agreed to become president of Amtrak effective Sept. 1.

Moorman, who retired as president and CEO of NS in 2015, will replace Joseph Boardman.

Amtrak logoIn announcing Moorman’s appointment, Amtrak said he had agreed to take a $1 yearly salary but will be eligible for a $500,000 annual bonus if meets specified performance goals.

Moorman would be the third Amtrak head to take over after serving as president of a Class I railroad.

Graham Claytor Jr. served as Amtrak president from 1982 to 1993 after having previously been president of the Southern Railway.

Alan Boyd was president of Amtrak between 1978 and 1982 and had been president of the Illinois Central Railroad.

“I view this as public service,” Moorman told Railway Age Editor-in-Chief William C. Vantuono. “Amtrak is important to the freight rail carriers, and to the country. This is something I really want to do, and I believe I can contribute to making Amtrak a better railroad. I’m sure the work will be interesting, and I hope it will be fun as well.”

Moorman said he did not take the job for the money or because he had been unhappy in retirement.

In a news release, Moorman said he agreed to take the position because, “it is an honor and privilege to take on the role of CEO at Amtrak, and I look forward to working with its dedicated employees to find ways to provide even better service to our passengers and the nation. At Norfolk Southern, our team fostered change by placing a solid emphasis on performance across all aspects of our business, which helped develop a stronger safety and service culture throughout the company. I look forward to advancing those same goals at Amtrak and helping to build a plan for future growth.”

Moorman has more than 40 years in the railroad industry with NS and the Southern.

He began his railroad career working on a track gang during college and became a management trainee after graduation.

Moorman is a graduate of Georgia Tech University and the Harvard Business School.

He serves on the boards of Duke Energy Corporation, Chevron Corporation, the Virginia chapter of the Nature Conservancy, and the Georgia Tech Foundation.

He had held the post of NS executive chairman until late 2015.

“Wick Moorman is a proven railroader whose track record of success demonstrates his commitment and adherence to rail safety, efficiency and service to customers,” said Association of American Railroads President and CEO Ed Hamberger in a statement. “His contributions and leadership in the freight rail industry, I believe, will advance the working partnership the freight railroads have with Amtrak. The AAR and its freight rail members recognize the importance of Amtrak as a reliable U.S. passenger rail service and look forward to working with Wick in his new capacity.”

Amtrak Board Chairman Anthony Coscia said in a statement, “We are very pleased that someone with Wick’s experience and vision will lead Amtrak during this critical period as the company charts a course for future growth and improvement.”

Coscia expressed optimism that Moorman would improve Amtrak’s relationship with its host freight railroads.

“He clearly understands both worlds, and he’s going to be in a position to try to get us all to a much better place,” Coscia said.

Boardman: We Need New Diesels

June 4, 2016

Amtrak needs new diesel locomotives, but its president, Joseph Boardman, said the carrier doesn’t have the money to pay for them.

Amtrak logo “Yes, we need new diesels. We need to do something different,” Boardman said.

Boardman rejected paying for new locomotive with loans financed with “profits” from the Northeast Corridor as the ACS-64 electric locomotives were, but fully paid for as state procurement contracts for diesel locomotives are being financed.

The Amtrak head said Congress won’t appropriate the money to buy the locomotives “until the public understands that this nation’s infrastructure needs to be rebuilt.”

Boardman Describes Headwinds Amtrak is Facing

February 24, 2016

Amtrak President and CEO Joseph Boardman told a Senate Committee on Tuesday that low gas prices and a strong dollar are negatively affecting Amtrak ridership this year.

Boardman told the U.S. Senate Committee on Commerce, Science and Transportation that other headwinds that Amtrak is facing include a pending Surface Transportation Board on-time performance rule-making proceeding.

The strong U.S. dollar that has reduced international ticket sales while lAmtrak logoower oil prices have sent many would-be Amtrak passengers to their automobiles to travel.

“This will be a challenging fiscal year for us and the rail industry,” Boardman said. “I think these challenges will continue in the years to come, and it’s going to be important that all of us who believe in intercity passenger rail work together to support its development.”

During his testimony, Boardman said the STB rule-making proceeding is needed to prod the freight railroads into working harder to keep Amtrak trains on schedule.

If on-time standard are not approved by the STB, Boardman said, it could negatively affect long-distance and state supported trains and result in higher costs for taxpayers.

Boardman said Amtrak’s long-distance trains are particularly important to smaller communities, not just major metropolitan areas.

“We don’t just leap from city to city — we connect smaller towns and communities with one another, and with the nation’s major urban center,” Boardman said. “These communities pay taxes, too, and we provide them a service they use and depend on. I think the excitement you saw last week is dramatic evidence of just how much we can bring to those towns — and how deeply they appreciate it.”

He was referring to an inspection trip that ran over the former route of the Sunset Limited between Jacksonville, Florida, and New Orleans.

The line has been without Amtrak service since Hurricane Katrina damaged the tracks and Amtrak stations along the route.

“We must be careful not to lose the economies of scale of a unified operation,” Boardman said. “One of the things I have learned in my eight years of service is that a unified system brings not just economies of scale, but a greater understanding of the value that Amtrak delivers for the nation.”

Knox W. Ross, the mayor of Pelahatchie, Mississippi, and secretary-treasurer of the Southern Rail Commission, made a plea in support of long-distance trains. The commission has been working to restore the Sunset Limited east of New Orleans.

Ross said a strong national network is important for everyone, even communities such as his, which is located 20 miles from the Sunset Limited route.

“The success of our town is directly tied to the prosperity of the region,” Ross said. “For my region to prosper, we must have a transportation system that provides options for residents to connect to opportunity in our region and beyond.”

Ross called supporting Amtrak a “bi-partisan issue that we can all agree on.”

Timothy Hoeffner, chair of the Midwest Interstate Passenger Rail Commission and Director of the Office of Rail for the Michigan Department of Transportation, also touted the benefits of long-distance trains even though Michigan does not lie on any long-distance routes.

Hoeffner spoke of the importance of a unified national network and called for better synergies between the long-distance and state-supported routes as well as the critical Northeast Corridor. He said a direct link from Michigan to the NEC would be beneficial to Michiganders by avoiding a “detour” through Chicago.

Amtrak Seeks $1.8B in FY 2017

February 19, 2016

In a five year improvement plan, Amtrak is seeking $1.8 billion from Congress for fiscal year 2017.

The request includes $920 million for capital expenditures, $650 million for operating expenses and $263.7 million in federal discretionary grant programs authorized under the new surface transportation bill that Congress approved last year.

Amtrak logoThe budget request would cover continued efforts to improve service and safety, funding for implementation of positive train control, an expansion of Wi-Fi service throughout Amtrak’s network, and costs related to the Hudson River tunnel project.

“Amtrak’s capital needs are pressing. Outdated and inadequate infrastructure and equipment must be replaced to sustain and grow both the Amtrak system and the economy it supports,” Amtrak CEO Joseph Boardman wrote in a letter to accompany the budget request.

Boardman said Amtrak’s ridership last year exceeded 30 million for the fifth consecutive year, with ridership records set on the Northeast Corridor and two other services.

At $2.185 billion, ticket revenue was slightly less than the previous year.

Noting that Amtrak’s cost recovery was about 90 percent for the second consecutive year, Boardman said ticket revenue was “enough, when combined with our efforts to control costs, to sustain our financial performance.”

Amtrak Revenue Falling Short; Boardman Orders Department Heads to Reduce Spending by 3.8%

February 13, 2016

Amtrak President Joseph Boardman has directed department heads at the passenger railroad to cut their spending by 3.8 percent and warned that further budget cuts lie ahead.

In a letter sent within the company, Boardman blamed bad weather and low gasoline prices, which have resulted in less-than-budgeted revenue.

Amtrak logoAmtrak ended Fiscal Year 2015 on Oct. 1 with a $305 million operating loss, which was $70 million worse than planned. The FY 2016 budget expects an operating loss of $245 million.

“We are going to need to take more aggressive actions to reduce our costs, some of which may be painful to take,” Boardman wrote.

Boardman said that low gasoline prices mean that some who would take the train are now driving short distances or flying long distances.

In particular, Boardman said, Amtrak had a “disappointing” Thanksgiving travel period. The letter also said a massive East Coast snowstorm in January disrupted service.

“Our company needs cash to pay our daily expenses, and our cash position is becoming a concern,” Boardman wrote.

An Amtrak spokeswoman said it would be premature to conclude that Amtrak will impose layoffs.

Boardman’s letter said Amtrak will make “all necessary investments” for employee and customer safety.

Among the cost-cutting mandates that Boardman cited are eliminating nonessential business travel and asking employees to conduct business by phone or video conference.

He also recommended delaying new costly projects and making new hires.

Carper Expresses Interest in Heading Amtrak

December 16, 2015

Speculation as to who will replace Amtrak President Joseph Boardman has begun with some industry analysts seeing the passenger railroad reaching out to the business world for a new chief.

Another possibility might be former Amtrak board member Tom Carper, who is now a U.S. senator from Delaware.

“I would like to be president of Amtrak,” he said. “I’ve wanted to have that job ever since I stepped down as governor in 1999. I was on the Amtrak board. I love trains. I have all my life. So I’m announcing my candidacy, not for president or vice president, not for anything else. I’m announcing my candidacy for Amtrak.”

The desire to see someone from the business sector appears to be rooted in a desire by some in Congress to see more competition to Amtrak from private companies.

A clause of the recently passed federal transportation bill would allow competition on certain long-distance routes.