Mineta Says Amtrak Deal May Be Close

Transportation Secretary Norman Mineta said Tuesday afternoon a solution to Amtrak's financial crisis could be worked out by Wednesday, the Associated Press reported.

An Amtrak spokesman told Transport Topics that the nation's passenger railroad derives more than $140 million a year from hauling mail and express freight. While there is some competition between Amtrak and trucks, there are also business partnerships between the railroad and most major less-than-truckload carriers.

In case of a shutdown, that freight would probably move to the highways, along with rail passengers, who would likely turn to their cars for transportation.

Mineta did not offer a potential solution to Amtrak's $200 million budget gap. However, Senate Democrats have urged President Bush to include $205 million for Amtrak in a new spending bill, the story said.

Mineta had called for an emergency meeting of Amtrak's board after President David Gunn said he would begin a shutdown of the railroad by the middle of this week if he could not obtain $200 million in financing.

Amtrak has not been able to obtain credit from its banks because of its poor financial condition, Reuters said.

Mineta said one option would be an emergency appropriation from Congress, which controls the federal purse strings.

Speaking on a television program Sunday, House Speaker Dennis Hastert did not say what Congress might do, but did criticize Amtrak for failing to correct money-losing policies, the Associated Press said.

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