Mobile’s Amtrak decision could affect $178.4 million federal grant: rail representative

The Mobile City Council’s decision on whether to subsidize the revival of an Amtrak connection to New Orleans, bringing passenger rail back to the Port City for the first time in 19 years, could have a much bigger financial impact than the $3.1 million city taxpayers are being asked to contribute.

According to the head of the Southern Rail Commission, if the council declines to support the operations of the Gulf Coast line, it could jeopardize a $178.4 million federal grant awarded last fall to Amtrak for improvements along the Gulf Coast.

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Mobile city leaders to consider funding Amtrak’s return

MOBILE, Ala. (WPMI) — There are still two more contracts that must be approved before passenger rail service is restored on the Gulf Coast. The Mobile City Council must approve a land use agreement for the temporary platform by Cooper Riverside Park, and council members must approve an operational agreement.

"The operating agreement actually has the financial component to it. And it's $3,048,000 for a three year period," said Mayor Sandy Stimpson.

Progress for passenger rail in the South and beyond

Interstate Rail Compact Grant

The states of Mississippi, Alabama, and Louisiana make up the Southern Rail Commission (SRC), which has been steadfastly committed to expanding passenger rail service in the South for the past 40 years, most recently achieving success for the restoration of service on the Gulf Coast.

On March 14th, the Federal Railroad Administration (FRA) announced that the SRC, along with rail commissions in the Midwest and Mid-Atlantic won an Interstate Rail Compact (IRC) grant. The SRC will match 50 percent of the $400,000 they have been awarded and use these funds to hire more people, market passenger rail, conduct impact studies, and apply for more federal grants. In short, they can spend the money on everything but running the service itself.

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Amtrak pegs Mobile’s train obligation at $3.048 million, but long-term costs could be millions

Amtrak’s latest filing with a federal regulatory agency promises a relatively modest, short-term obligation for taxpayers in Mobile – a little more than $3 million spread out over three years.

It is the same commitment the Mobile City Council made in 2020 to restore passenger rail service along the Gulf Coast for the first time since Hurricane Katrina.

While technically true, the filing last month to the Surface Transportation Board masks questions about operating the route over the long term. A federal grant would pay 90 percent of the operating subsidy for the first year but then taper off over the next five years, eventually going away.

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Mobile’s Amtrak obligation: $3.048 million over 3 years, similar to 2020 plan

The City of Mobile will be asked to support the operations of a twice-daily Amtrak service to New Orleans for three years and at a lump-sum cost of $3.048 million, according to a recent filing with the U.S. Surface Transportation Board.

The amount is on par with what the Mobile City Council approved with a 6-1 vote four years ago, in early 2020.

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Amtrak Gulf Coast Passenger rail service issues could be resolved by May

According to documents filed before the Surface Transportation Board, all parties involved in the ongoing Gulf Coast Passenger rail effort believe all hurdles could be removed by May.

Amtrak and Mobile city officials met in late February, according to the paperwork, at which time Amtrak explained to the City that the only financial support would be the $3.048 million for the first three years, which was already approved by the council in 2020.

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