Rolling Short: The Equipment Crisis Facing US Passenger Rail

At Railway Interchange, John Robert Smith, Chairman of Transportation for America, highlighted the growing public demand for passenger rail and its clear economic potential.

To help optimise investments and tackle current challenges, he advocated for specific legislative solutions, such as the creation of a National Equipment Leasing Pool , which could accelerate passenger rail expansion, reduce costs, and open the door to greater competition.

The Equipment Crisis

Smith acknowledged the growing demand for passenger rail connections across the US, citing the public’s enthusiasm for the return of Amtrak services to the Gulf Coast. Reflecting this rising interest, Jed Poster, Senior Director at Amtrak, also presented a vision for Amtrak’s nationwide expansion plans during his keynote speech at Railway Interchange.

However, despite the enthusiasm, serious challenges remain. Notably, Amtrak is facing an equipment crisis, recently retiring 80 Horizon cars due to corrosion. The operator has also yet to deploy its new Acela trains after years of delays. Consequently, Smith reasoned that there simply isn’t enough rolling stock to expand services nationally.

John Robert Smith, Chairman of Transportation for America said:

Amtrak can’t run what they have today—much less expand. We’re at a crisis point.

Smith noted that this crisis is compounded by long manufacturing lead times. For example, Amtrak’s replacement long-distance fleet isn’t expected to begin revenue service until 2033. In addition, when Brightline recently lost a locomotive in a grade crossing accident, it was told the replacement would take three years to deliver.

Arguably, these delays stem in part from a lack of consistent federal investment, which has made it difficult for Original Equipment Manufacturers (OEMs) to commit to long-term US-based production.

A National Equipment Leasing Pool

The Surface Transportation Board’s Passenger Rail Advisory Committee has proposed a National Equipment Leasing Pool (NEP) to help tackle this problem. Smith detailed that this proposal would create a federally procured pool of standardised intercity passenger equipment that could be leased or sold to public agencies and private-sector operators.

Such a move would:

• Support US manufacturing jobs by creating steady demand for OEMs and their supply chains
• Accelerate project timelines by making readily available trainsets accessible to new and existing services
• Open the market to new operators by reducing capital barriers that currently keep private-sector competitors out

Under the draft legislative framework, Congress would authorise 7 billion USD for the initial procurement, to be led by the Federal Railroad Administration (FRA) in consultation with key stakeholders, including Amtrak, US-based OEMs, state rail agencies, and private operators. Crucially, the FRA would prioritise trainset designs already in production in the US, helping to reduce costs and speed delivery.

Breaking Amtrak’s Monopoly

As part of this vision, Smith took aim at Amtrak’s current monopoly in the intercity passenger rail space, which limits the potential for other providers, such as Herzog, to step in and offer additional services.

Smith said:

Right now, if you want to travel by passenger rail, you tend to only have one choice—and that’s Amtrak. That has to change.

Acting as a key barrier to this potential, liability and indemnification issues currently deter freight railroads from allowing new passenger operators on their lines. Under current law, freight railroads are indemnified when Amtrak operates on their tracks, even in cases of freight company negligence.

Understandably, freight companies are hesitant to host other passenger operators who cannot provide similar coverage. Smith expressed that legislative fixes are in development to address this, with solutions being shared on Capitol Hill throughout June.

With the NEP and related legislative reforms, Smith and Transportation for America hope to lay the policy foundation for a future where public investment meets private innovation, and where passenger rail is once again a viable, competitive, and sustainable mode of travel for millions of Americans.

Smith concluded:

I want my grandsons to live in a country that’s better connected. Where they can move for jobs, education, and healthcare and still stay connected to their communities. That future doesn’t build itself.