Productivity of Passenger Rail Transportation Services in the Northeast Corridor

Abstract

Technological changes, capital investment, organizational reforms, and external factors can impact railway productivity. Using non-parametric single-factor and multifactor productivity (SFP and MFP) Törnqvist trans-log index approaches, we evaluated the performance of high-speed rail (HSR) lines in the U.S. during FY 2002-2012. Intercity rail transportation in the NEC experienced considerable yet highly volatile productivity growth during FY 2002-2012, in the range of ~1-3% per year. Amtrak increased its ability to economically exploit the available capacity, but did not perform equally well on the supply side. The NEC became cumulatively 20% more productive on the demand side but only 3% on the supply side of productivity with respect to 2005 levels. Service changes, technical problems with trains, targeted capital investments, and economic recession and recovery were the main drivers of productivity change. The main train services, the Acela Express and Northeast Regional, were very sensitive to external events, had large economies of scale, and implemented slow adjustment of capacity via rolling stock and infrastructure improvements, which varied depending on the service. In the face of ongoing planning efforts, the NEC could consider the resurgence of demand and recent substantial productivity improvements to launch ambitious plans for HSR. Additional ideas of organization and coordination of rail could reveal hidden opportunities for future HSR development