Rethinking The Railways As Fuel Prices Surge

Posted June 11, 2008 by Chuck Posted in: Personal Finance

As gas prices have reached over $4 per gallon in most parts of the country it seems that alternative forms of travel have been gaining popularity. According to this routers article, passenger railway Amtrak had a record increase of riders compared to last year – up 12.3%.

For some shorter trips where you need a layover or 2, the rail can be just as fast as flying. And with prices sometimes less than 1/3 of airfare its making sense to more travelers. Businesses are also trying to cut travel costs and encouraging their employees to take the train.

Federal Funding

There is growing debate whether the government should continue to fund Amtrak since it has been in red ink since its creation in 1971. The house has passed a bill that would give them $14 billion for improvements and maintenance over the next 5 years. Currently president Bush has threatened to veto this. The presidential candidates are on different sides of the issue – John McCain wants to stop funding, while Barrack Obama wants to continue it.

My Thoughs

I rarely travel on the train because it used to not be cost effective. Now with the gas prices the way they are I might have to reevaluate the savings as many Americans already have.

I’ve been hoping they would add faster train services like they have in Europe and Asia where the speeds can reach 185mph. Currently here by the time it makes stops along the way a trip to Montreal on Amtrak takes about 2-3 hours longer than it does to drive there.

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