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Article: Amtrak to Spin Off Corridor; Board Votes to Set Up Separate Subsidiary for High-Cost Line
- Article from:
- The Washington Post
- Article date:
- October 14, 2005
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Amtrak's board of directors has voted to split the train's
Northeast Corridor service into a separate subsidiary, a move that
railroad officials said would isolate the cost of maintaining the
railroad's busiest line.
The subsidiary would manage service between Washington, New York
and Boston. It would be owned and controlled by Amtrak but have its
own president and management who would report to Amtrak's board.
David M. Laney, chairman of Amtrak's board of directors, said the
railroad hoped to have the subsidiary in place by January. Although
Amtrak is partly funded by Congress, Laney said it is unlikely that
the proposal would require congressional approval.