An ambitious plan to start high-speed train service from New York to Los Angeles via the Lehigh Valley in time for America’s 250th birthday and the 2026 FIFA World Cup has been rejected by Amtrak.
Last year, Delaware-based AmeriStarRail proposed a passenger and freight line dubbed the Transcontinental Chief. The goal was to have the service up and running by May, in time for the soccer tournament that will have six matches in Philadelphia.
The cross-country route was to include a stop in Bethlehem, according to a system map released by AmeriStar. Several other Pennsylvania cities were on the map, including Reading, Harrisburg and Pittsburgh. A spur line was to run from Harrisburg to Washington via Philadelphia.
However, Amtrak threw cold water on the proposal during a board meeting in December. In a statement to The Morning Call, the passenger railroad company said it reviewed the proposal and “found it to be lacking a fundamental business case to support its lofty proposal.”
“Amtrak is not considering the proposed combined freight and passenger route but remains singularly focused on enhanced interstate passenger service as evidenced by our continued growth in ridership and revenue,” Amtrak said.
Scott Spencer, chief operating officer of AmeriStarRail, said his company needed approval from Amtrak to act as a joint venture partner. That’s because the Transcontinental Chief needs to be operated, branded, ticketed and marketed as an Amtrak train in partnership with AmeriStarRail under congressional statutes and the host freight railroads.
“Unfortunately, Amtrak has yet to meet with us or express interest in our proposal to have a joint venture with them, using our private financing, to turn their money-losing long distance trains into a profitable operation with revenue from passengers, Auto-Train (for cars, motorcycles, vans and RVs) and Intermodal Express service for tractor trailer trucks coast-to-coast as well from a RailPort in Bethlehem,” Spencer said in an email to The Morning Call.
Spencer wondered why Amtrak was not interested in private financing. He said that AmeriStarRail investors “have far more expertise than Amtrak evaluating the fundamental business case of the proposed joint venture.”
“We have several billions of dollars in asset based financing available from two major infrastructure funds,” he said.
Spencer said AmeriStar is now planning to begin cross-country service in 2028 for the Summer Olympics that are scheduled for Los Angeles.
“AmeriStarRail is still actively pursuing this opportunity with many mayors, economic development interests, chambers of commerce and logistics owners and investors, across the country along the route, who are greatly interested to see The Transcontinental Chief begin service,” he said.
“In fact, I have recently had several meetings with elected officials, business leaders and logistics investors in Allentown, Bethlehem and Easton who recognize that Amtrak Transcontinental Chief rail passenger, Auto Train and Intermodal Express services at Bethlehem RailPort will be a game changer for the region.”
Meanwhile, Lehigh Valley agencies are still in a years-long task of restarting passenger rail from Allentown to either New York or Philadelphia. In December, state Sen. Nick Miller and Lehigh County announced that the money has been raised for the second of a 14-step process, a $400,000 mandatory feasibility study that will take several months.
Morning Call reporter Evan Jones can be reached at ejones@mcall.com.