The Indiana Department of Transportation said it has ended contract negotiations with Chicago-based Corridor Capital LLC to provide passenger rail cars, marketing,and other services for Hoosier State service between Indianapolis and Chicago.
An Indiana DOT spokesman declined to comment on the move to end talks, but did say the state seeks to preserve rail service beyond a Jan. 31 contract expiration date with Amtrak, which runs the Hoosier State.
"INDOT is requesting pricing from Amtrak to continue as operator after January 31, minus certain elements of the existing service that Amtrak is providing, such as rolling stock, onboard services and marketing," the spokesman told local media Sunday, Nov. 9, 2014.
Amtrak spokesman Marc Magliari diplomatically noted "Amtrak submitted a contract renewal in April for the current service model and has offered to work with the state on other viable models used in other states." He added, "However, time is growing short to resolve many open questions for daily passenger rail service to continue from Feb. 1 and onward."
Indiana, the cities of Lafayette, West Lafayette, Rensselaer, Dyer, and Crawfordsville, and Tippecanoe County collectively have committed $2.7 million into the line since Oct. 1, 2013, to keep it operating after Congress eliminated federal funding for Amtrak routes shorter than 750 miles. Last July Indianapolis balked at continuing to fund the service.
Indiana DOT said its goal was to continue the service and find an independent contractor that could overcome constant delays, run trains at more convenient times, provide amenities such as Wi-Fi, attract more riders, and operate the train more cost effectively than Amtrak.
But numerous rail observers and rail advocates questioned whether any company could offer even the modest economies of scale Amtrak can lend the underperforming Hoosier State, which runs four days a week. Combined with the tri-weekly long-distance Cardinal, the Indianapolis-Chicago route is served by one train each way per day.
Amtrak executives also privately fumed over the state's intent to farm out the route to Corridor Capital, which originally was scheduled to assume operations on Oct. 1.
In a public move, Amtrak President and CEO Joe Boardman rode the line from Indianapolis to Chicago, and announced the company would provide free Wi-Fi, a business-class car and light snacks as a goodwill gesture during the last three months of the contract extension.