AASHTO Journal - Amtrak Advances Proposal for Corporate Overhaul

The Amtrak Board of Directors recently advanced a “preliminary framework,” developed by Amtrak management, to modernize and transform the company’s corporate structure.

[Above photo by Amtrak]

The passenger rail provider said the proposed structure is designed to bring “greater visibility” into performance and costs, enable faster and better-informed decisions, and align authority with responsibility and results, creating a more accountable, focused, and agile company built to carry more passengers, support more service, and deliver stronger financial performance.

Beginning in September, Amtrak will develop the detailed design and implementation plan, with a formal proposal to be delivered to its board in December. Operations under the new structure are expected to begin in 2027.

“Our management team developed this preliminary framework after extensive study and continues to seek input to be sure we get it right,” said Byl Herrmann, Amtrak’s interim president, in a statement.

“Our goal is a more accountable, effective, and resilient Amtrak, one that delivers more riders, more revenue, and the best customer service in the transportation industry,” he added.

Under the framework, Amtrak would remain the parent company – providing governance, strategic direction, and coordination – while establishing three focused business units:

Passenger Services: Delivering safe, reliable service and an improved customer experience.
Infrastructure Management: Maintaining and improving tracks, bridges, tunnels, and stations, overseeing more than $5 billion annually in infrastructure investments.
Fleet Management: Managing more than $10 billion in new rolling stock and fleet modernization.

Meanwhile, Amtrak is continuing to make investments across its rail system. The company recently wrapped up $3.5 million worth of improvements to its Huntingdon Station in Pennsylvania; completed a $15 million overhaul of two Colorado stations; and prepared to begin a major effort to rehabilitate the nearly century-old Dock Bridge in New Jersey.