Amtrak will provide daily service between New York City and New Orleans via Atlanta. Southern had operated the train on a daily basis between Washington, D. C., and Atlanta but only three days a week between Atlanta and New Orleans. |
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Amtrak and Southern Railway have reached agreement for Amtrak to take over operation of the Southern Crescent passenger service on February 1. The agreement is contingent upon Southern's being relieved by the Interstate Commerce Commission of its obligation to provide rail passenger service. Final agreement came December 13 when the Amtrak Board of Directors, at its regular monthly meeting, approved a contract with Southern for the Crescent's takeover. Both companies' management teams had agreed earlier on the terms, worked out over months of negotiations.
"We recognize that the Crescent is a regional institution," said Amtrak President Alan S. Boyd, "and we intend to see that it remains one of America's finest long-distance trains." L. Stanley Crane, Southern's president, added: "We are pleased that the negotiations have culminated in agreement, so that the Southern Crescent can be continued. The train has been our flagship for many years and we have taken great pride in maintaining it as a quality, luxury train.
Amtrak will provide daily service between New York City and New Orleans via Atlanta. Southern had operated the train on a daily basis between Washington, D. C., and Atlanta but only three days a week between Atlanta and New Orleans. |
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" Although we deeply regret that a way could not be found to continue the train under Southern's auspices, Amtrak can count on our full cooperation in their efforts to keep it one of America's finest long-distance trains." Mr. Boyd said that initial changes in the Crescent's operation and staffing would be minimal and that the train would continue to operate for the present with Southern locomotives, cars and employees.
Under the agreement, Southern will pay Amtrak $6,674,812 to be divided into eight monthly installments commencing with the payments in February and continuing through September. Basic operating costs to be assumed by Amtrak are similar to costing arrangements that Amtrak has with other railroads that operate Amtrak trains. Equipment requirements will be covered by a lease arrangement with Southern for locomotives and a lease - purchase program for cars required by Amtrak to operate the service.
Under the December 13 contract, Amtrak's statutory rights of access for additional service on Southern Railway, subject to Interstate Commerce Commission approval, is preserved. It also establishes a methodology for compensating Southern for such service - although no additional service or new routes are contemplated by Amtrak at this time.
For the remainder of Fiscal Year 1979, Amtrak and the U.S. Department of Transportation estimate the Crescent's operating costs will be about $11 million, including equipment rental, local taxes and insurance. Revenues for the same period are estimated at about $5 million, leaving a deficit of about $6 million. Southern's contribution of nearly $6.7 million is expected to cover the operating deficit for Fiscal Year 1979, which ends September 30.
The Southern Crescent, one of America's most historic trains, was the only overnight luxury train in the nation that was not either discontinued or taken over by Amtrak when it began operations on May 1, 1971. The train runs over a 1, 154-mile route that includes intermediate stops at such cities as Charlottesville, Va., Greensboro and Charlotte, N .C., Greenville, S.C., Atlanta, Birmingham and Meridian, Miss. It includes a transcontinental sleeping car that operates between New York and Los Angeles, and also carries through cars between New York and New Orleans. .