Amtrak 2013 Annual Report Download - page 90

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 51
11. Commitments and Contingencies (continued)
options at stations where freight traffic is present when ridership is greater than 7,500 passenger
boardings and unboardings per year. Amtrak believes that the new revised plans will entail
additional costs and time. Amtrak is also working to obtain sufficient funding to achieve full
ADA compliance of all station components for which it is responsible under the ADA. The
extent of these estimated costs and effects of non-compliance on operations cannot be
determined at this time. Further, the nature of all expenditures that will be incurred, and the
effect on operating results, have not yet been fully analyzed. Accordingly, the accompanying
financial statements do not reflect the costs of Amtrak becoming fully compliant with the ADA.
As of September 30, 2013, Amtrak has spent a total of $270.1 million in ADA-related projects.
Approximately $52.8 million and $48.1 million of the expenditures were incurred during the
fiscal years ended September 30, 2013 and 2012, respectively.
Positive Train Control
In 2008, Congress enacted the Rail Safety Improvement Act. The legislation includes a mandate
that all Class I railroads and each railroad hosting intercity or commuter rail passenger service
have Positive Train Control (“PTC”) systems installed and operating by December 31, 2015. A
Class I railroad is required to install PTC on any route where there are five million or more gross
tons of railroad traffic per year and the presence of poison by inhalation hazardous materials.
PTC is required on any rail line used for regularly scheduled intercity or commuter rail passenger
service. The PTC rules provide for exceptions to PTC requirements, which are subject to FRA
approval, on rail lines hosting passenger trains on which freight traffic volumes, and the number
of passenger trains operated, do not exceed limits specified in the rule. Amtrak is working with
federal and state authorities and commuter and freight railroads to ensure Amtrak trains are
compliant with PTC systems adopted for use by host railroads. Additional funding to fully
comply with PTC requirements is necessary and will be requested. Compliance with PTC
requirements on the host railroads outside of the NEC could result in significant costs to Amtrak.
Amtrak’ s contribution to PTC installation and maintenance on host railroad property has not yet
been defined. Accordingly, the accompanying financial statements do not reflect the costs of
Amtrak becoming fully compliant with PTC. As of September 30, 2013, Amtrak has spent
$99.2 million in general capital funds for PTC-related projects. Approximately $20.1 million and
$13.7 million of the expenditures were incurred during the fiscal years 2013 and 2012,
respectively.