Amtrak set to be franchised out

A leading critic of America's passenger rail system, Amtrak, is proposing a radical restructuring that would break up the network.

Republican senator John McCain has introduced legislation to direct the Federal Railroad Administration to begin franchising rail routes.

Companies involved would have to meet to certain safety and liability requirements.

Amtrak, currently America's exclusive provider of intercity passenger train service, would be broken up into an operations unit, a maintenance unit and a rail reservation unit.

Each would be turned over to the private sector within four years.

The bill would also create an Amtrak Control Board to oversee the restructuring and eventual privatisation.

Mr McCain commented: "Given Amtrak's extremely precarious financial situation, I strongly believe we must work together to pass legislation this year that will provide for a restructured, revitalised and streamlined rail passenger network."

Many of his recommendations are in line with those of the Amtrak Reform Council.

The council, created by Congress in 1997, issued a report on February 7 calling for competition in passenger rail.