As companies throughout the country wait for the sequester ( $85 billion in government-wide spending cuts) to take effect, it appears that one business will not have to change a thing in their day-to-day operations--Amtrak.
Officials of the nation's only long-haul passenger railroad say there will be no cutbacks or changes in its schedule, especially on its popular Northeast Corridor route between Washington, New York and Boston, according to CNN.
The reason for this--its charter as a for-profit government corporation, which allows it to operate like a business and charge fares and fees.
"Amtrak is planning to take actions to allow it to withstand a funding cut and not cut service. During (fiscal year) 2013, Amtrak is experiencing solid revenue growth and we have been controlling our costs and managing our budget in anticipation of a possible reduction in federal funding," said Kimberly Woods, an Amtrak spokeswoman, reported CNN.
Amtrak carried more than 31 million passengers last year and covers most of its operating costs from passenger revenue, according to Associated Press.
In fiscal year 2012, Amtrak was approved to receive an operating subsidy of $466 million. The remainder of government help for capital improvements and debt service was estimated at $950 million, stated CNN.
However, to continue to stay the course, Amtrak, the fastest-growing domestic transportation mode over the past 15 years, will have to rely on its money-making short haul routes.
Nearly 90 percent of the rail service's ridership since 1997 has been on trips under 400 miles. Along with a 55 percent jump in passengers, it generated a positive operating surplus of $47 million in 2011, according to a new report released by the Brookings Institution, according to Associated Press.
"The Brookings report shows that Amtrak ridership has been growing faster than any other domestic mode of transportation, faster than GDP, and faster than population growth. These ridership numbers include our long-distance train passengers," Steve Kulm, Amtrak spokesman, said in an E-mailed statement to CNN.
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