Amtrak seeks loan for survival

New president proposes reorganization, more public disclosure

? Three weeks into the job, Amtrak’s new president says the railroad has a $200 million shortfall and needs a loan to keep operating next month.

David Gunn, who met privately Thursday with Amtrak’s governing board, also proposed steps to reorganize management and release more information to the public about Amtrak’s finances.

Gunn is optimistic the loan will come through and Amtrak spokesman Bill Schulz urged passengers holding reservations in July and beyond to keep them.

Gunn, who previously ran transit systems in New York City and Washington, took over Amtrak on May 15, succeeding George Warrington.

In a letter Wednesday to employees, Gunn said Amtrak faces a $200 million shortfall from now until Sept. 30 and plans to borrow to fill that gap. As collateral, Amtrak can use $200 million of the federal appropriation it expects to receive when the new fiscal year begins in October. Amtrak has asked Congress for $1.2 billion.

Gunn wants to consolidate Amtrak’s three railroad operating divisions Intercity, Northeast Corridor and Amtrak West, which now are distinct business units within company headquarters in Washington.

Under the plan, Schulz said, the existing division offices in Chicago, Philadelphia and Oakland, Calif., would remain open, but only to handle local operations, not to make policy decisions.

The intent, Gunn said in a memo to employees Wednesday, is to move Amtrak “back to a traditional railroad structure. … We will have an operating department, a mechanical department, an engineering department, etc.”

Gunn also wants to reduce the number of “vice president” titles from 84 to about 20. The move is not immediately designed to slice jobs or save money, but to focus the company on its basic role as a railroad operator. Gunn intends to release detailed information each month on Amtrak’s financial condition.

Amtrak offers service in Lawrence, running a train on the Burlington Northern Santa Fe line and stopping at the Santa Fe depot in East Lawrence.