Trains News Wire EXCLUSIVE: Indiana seeks operators for ‘Hoosier State’ route, Iowa Pacific possible bidder
By Steve Glischinski
Published: March 28, 2014
INDIANAPOLIS – For years, some passenger rail advocates have pressed the idea of allowing a private operator to take over a route operated by Amtrak, and demonstrate how service could be improved beyond what Amtrak provides. Now they may finally get their chance. The Indiana Department of Transportation has issued a request for proposals to find bidders willing to take over operation of the Chicago-Indianapolis Hoosier State route, currently operated by Amtrak.
In early October 2013, INDOT reached agreement with Amtrak to provide a $2.7 million subsidy for the Hoosier State to keep it running for one more year. The deal includes an option to continue the service for four more months after that. The communities of Rensselaer, Indianapolis, Crawfordsville, Lafayette, West Lafayette, Tippecanoe County, and Beech Grove (Hoosier State Partners) are putting up about half the $2.7 million the state has pledged to subsidize the Hoosier State route.
The purpose of the request, the department says, is to obtain competitive bids to operate the Hoosier State in a way that optimizes the service. The state and its partners intend to make the selection so a contractor may begin its operations when the current agreement with Amtrak expires on Sept. 30, 2014. Should additional time be required, the state’s current agreement with Amtrak may be extended through Jan. 31, 2015, by mutual written agreement of the parties.
At least one company is considering making a bid. Iowa Pacific Holdings President Ed Ellis tells Trains News Wire that, “We are evaluating it. We haven’t decided, but it is of great interest, and Indiana is being innovative in their approach.â€
The state and its partners want the selected contractor not only to reduce the cost of operating the train, but also work with INDOT and Hoosier State Partners to improve operations, attract higher ridership and bring in increased revenues, thereby further reducing costs.
Bidders have three bid options:
■Perform all functions presently performed by Amtrak on the Hoosier State service
■Bid on some portion of those functions
■Perform all functions presently performed by Amtrak, and add amenities such as Wi-Fi and food service
The request gives the following vision statement: “The future Hoosier State rail service will connect Indianapolis and other Indiana cities to Chicago with additional trains, increased speed between stations, improved on-time performance, increased ridership, and improved on-board amenities. The enhanced passenger service will generate more revenue, and reduce the amounts which Indiana Department of Transportation and Indiana Hoosier State Partners are obliged to pay to subsidize this service. The future Hoosier State intercity passenger rail service will reinforce Indiana Transportation goals and o[not allowed]ectives by providing safer, more reliable, efficient movement of passengers, in a manner, which is more cost effective. The future Hoosier State service will further alleviate roadway congestion, contribute to economic development, improve energy efficiency and protect environmental quality.â€
A number of stakeholder meetings plus an on-board survey of Hoosier State passengers indicates that passengers would respond positively to additional trains, faster service, increased on-time service, Wi-Fi, and food service, INDOT says.
Bidders must explain what improvements will be made to service quality and how such improvements will be implemented and maintained. INDOT and its partners will be especially interested in any ideas for improvement of on-time performance, the RFP said.
The state is interested in a three-year contract, extendable for additional three years, based upon mutual agreement. Amtrak has access rights by law to freight railroad corridors, and Amtrak pays only incremental maintenance costs for this access. Bidders must show the expected access cost to operate over CSX, CN, Union Pacific, Norfolk Southern, Belt Railroad of Chicago, and Metra. Bidders should recognize that the list of railroads could change, since rerouting in the Chicago region is being considered, the state says.
It remains to be seen if another operator can conquer all the hurdles involved in taking over an Amtrak route, but if they are successful, it could be the beginning of a vast change in how passenger rail service is delivered along state corridors.
