News & Reviews News Wire STB seeks answers for delay on Gulf Coast settlement: Analysis

STB seeks answers for delay on Gulf Coast settlement: Analysis

By Bob Johnston | January 19, 2024

| Last updated on January 20, 2024

Board sets February hearing, invites City of Mobile to appear

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aerial view of land along railroad tracks near water
A CSX train with Union Pacific power passes the former Mobile, Ala., station site. The parking lot area is city-owned land where a station and pocket track are to be built under the agreement to allow Amtrak Gulf Coast service, but the city is not part of that agreement. The old station was destroyed by Hurricane Katrina. Bob Johnston

WASHINGTON —The Surface Transportation Board has called for Amtrak, CSX, Norfolk Southern, and the Port of Mobile, Ala., to provide “detailed information regarding the status of the implementation of the settlement agreement” agreed to in November 2022 to allow Amtrak service to begin between New Orleans and Mobile, Ala. — and scheduled a February hearing to address the matter.

A board decision issued Friday directs the railroads, Amtrak, and the port to “describe any issues that remain outstanding” as part of a previously scheduled Feb. 1, 2024, status report. And because the agency is concerned about “apparently unresolved negotiations between the City of Mobile and Amtrak, the Board will also invite Mobile to participate, if it chooses” at the hearing set for Feb. 14, 2024.

“We will review the STB’s action and respond in a timely manner,” Amtrak said in a Friday afternoon statement. “We appreciate the Board’s continued attention to the Gulf Coast service.”

For more than a year, the STB has held “in abeyance” any decision it might impose from a proceeding that began in March 2021 when Amtrak first petitioned to run the trains. The agency held 10 hearings in 2022 and scheduled a voting conference in December of that year before the Amtrak, the freight railroads, and the port hammered out an agreement [see “Top 10 stories of 2022, No. 5: Gulf Coast passenger conflict,” Trains News Wire, Dec. 29, 2022].

Though details of the agreement have not been disclosed, one of the settlement’s stipulations requires a pocket track and platform off the CSX main line at Mobile where passenger trains can lay over between runs. The city owns part of the property, so Amtrak and the city are required to execute a sale or lease agreement before construction can begin.

Amtrak asked for an agreement early in 2023 and began working with CSX on plans to construct the track and station, but Mobile didn’t respond with a proposal until November [see “City of Mobile sends lease …,” News Wire, Nov. 6, 2023]. Like almost every other aspect of the initiative to date, including what infrastructure the parties agreed would be built, the contents of Mobile’s proposal to Amtrak are shrouded in secrecy.

The city ostensibly holds the cards, but it is not a party to the settlement. Meanwhile, Amtrak has hired operating crews and has staged qualification runs along the corridor. If the agreement between the railroads and the port falls apart because it can’t be executed, the fact that the STB has scheduled another hearing makes the agency’s intention clear: the Board is prepared to take action to get the passenger trains running as soon as possible.

The full decision is available here.

11 thoughts on “STB seeks answers for delay on Gulf Coast settlement: Analysis

  1. And by the way, I just love the picture of the former Cruise Ship Terminal Building. Carnival Cruise lines used it for 10 seasons and moved the ship to another city. City got a lot of Federal money to build it. Stopped cruising full time from it in 2014. Since then it’s been only used occasionally.

  2. Got a quick and easy solution to the problem. While Mobile thinks it holds all the cards in the negotiations, they don’t hold a trump card. The Government, thought the Surface Transportation Board, can withhold every penny of Federal money going back to that city. If Mobile says it will take 18 to 24 months to build the station, then the fed’s could hold on to any money the City, County and Port of Mobile expects to receive for various programs and projects until station is completed.

    Most people think that their local and state taxes they pay covers 95-98% of everything in the city or county. I reality 30-35% of their budget comes from federal dollars. Cut that money off and see how fast they start to cry.

  3. Leave Mobile AL behind. Amtrak is already wasting 7 million on a new station In Brattleboro VT. I wonder what the passenger count is in that small town . They can’t run the trains they have now, so why add more. Amtrak is really in a sad state of affairs

  4. Great question Charles. Unfortunately like in most of the country, here in Mobile Alabama, Amtrak has become a political football. As you might have noticed the state/county/city had thrown up every roadblock in the playbook to keep it from happening. And although our state may be great when it comes to collegiate football, our political football skills are definitely lacking. And the way it’s looking they ain’t going to get better anytime soon. I’ve still got my doubts if we here in Mobile will ever see Amtrak service actually start. Just keeping my fingers crossed.

  5. It might take years to extend the train one foot. How about a stop with storage track West of Mobile with taxi service to Mobile?

    Alternately, how about a nice all-weather parlor bus all the way from N’awlins?

  6. The city owns the land — or at least a part of it. That gives them all the leverage. Now whether the city should be a landowner there is another story. A further question is whether another Mobile location is an option. Or, could AMTRAK go one city west and just skip a stop in Mobile. Maybe that would catch the attention of the city leaders.

    1. James you make a good point. The city of Pascagoula, Ms has welcomed Amtrak and has been ready for the service for months. There is a wye just east of the station and the trains could be turned there. Mobile is only about 40 min from Pascagoula. I’m not sure why Amtrak is still trying to work with the politicians here in Alabama when they obviously aren’t interested in a passenger train out of Mobile,

    2. James Hill did that to one town that would not deal with him, he just ran the trains through without stopping until the next town on either side. You folks down there will have to enlighten us why they object, it is confusing to many.

    3. Paul the short answer is our Governor Kay Ivey came out against Amtrak and passenger trains in general as antiquated and a waste of money. And from there her remarks took on a life of their own with her political cronies here in Mobile. Do an internet search of her to see how fiscally responsible she is and you’ll see the irony of it all. Alabama is a beautiful state and I’ve lived here all my life. But there’s a reason we come in last in almost every standard of living category compared to other states.

  7. Being a lifelong resident of the Mobile, AL area I can tell you that the majority of city leaders, like our governor are backwards thinking. Especially over the past few years. And this is why it will be an uphill battle for Amtrak to get anything done here. Mobile is a beautiful city with a lot of potential. And it’s frustrating to watch as other city’s along the Gulf Coast grow and pass us by. This situation with Amtrak is not at all surprising to me and I’m still not convinced it’ll ever happen given the current political thinking in this area.

    1. CHRIS — How did we get to the point where a NATIONAL railroad system is dependent on local leaders getting off their spreading bums.

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