Amtrak 2014 Annual Report Download - page 54

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 46
10. Commitments and Contingencies (continued)
Amtrak is 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, 2014, Amtrak has spent a total of
$307.7 million on ADA-related projects. Approximately $37.5 million and $52.8 million of the
expenditures were incurred during FY2014 and FY2013, 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, 2014, Amtrak has spent
$132.1 million in general capital funds for PTC-related projects. Approximately $32.5 million
and $20.1 million of the expenditures were incurred during FY2014 and FY2013, respectively.
Although the Company plans to have all of the NEC rail owned or controlled by the Company
fully PTC compliant by the December 31, 2015 deadline, certain other Amtrak owned and/or
operated rail is not expected to be compliant with the PTC requirements by December 31, 2015.
In addition, certain host railroad companies over whose rail Amtrak’ s passenger trains operate
have indicated that they will not be compliant with the PTC requirements by December 31, 2015.
Those host railroads have indicated they will be forced to suspend passenger rail on their lines