For Immediate Release
May 27, 1997

Information
F. Colin Pease
(508) 663-1186

GUILFORD RAIL OFFERS TO PURCHASE AMTRAK'S NORTHEAST CORRIDOR

In a letter faxed today to U.S. Department of Transportation Secretary Rodney Slater, Guilford Rail System President David A. Fink offered to purchase or lease Amtrak's Northeast Corridor. In making his offer Mr. Fink pointed out that rail systems throughout Europe and South America have taken steps to privatize their rail systems and he referenced published reports that "Amtrak executives expect to run out of money this year". Mr. Fink also stated to Secretary Slater, "It is becoming increasingly clear that Congress and the Department of Transportation are faced with two options, chaos through bankruptcy or a planned transition of Amtrak services to the private sector."

The Guilford Rail System offer acknowledged that there are many organizations that have an interest in the disposition of the Corridor. The company's letter stated that Guilford was prepared to begin discussions with commuter authorities whose services operate on the corridor to determine the best means of continuing and improving those services. The letter also stated Guilford's interest in working with other freight carriers to develop Northeast Corridor freight services that could contribute to reducing truck congestion along North-South arteries such as I-95.

In closing Mr. Fink wrote, "It is my belief that passenger service on the Northeast Corridor and other high volume corridors in this country, if properly structured, could operate profitably or at significantly lower cost than service offered by Amtrak. States such as California have already indicated an interest in seeking alternatives to Amtrak. It is critical that the process start now in order to provide for a smooth transition from what will otherwise be a very disruptive and expensive end of the Amtrak system."

The full text of the Guilford letter is attached.