FT. LAUDERDALE, FL--(Marketwired - Jun 24, 2014) - Train Travel Holdings Inc. (
Train Travel Holdings Inc. has moved to take a strong position in this industry by entering a bid for the management of the highly publicized Hoosier State Intercity Passenger (HSIP) Rail system. Train Travel Holdings Inc. is currently one of the few finalists in this process. The Company is also working with municipal authorities in Ontario, Canada about operating and managing a key rail corridor there.
"Having personally experienced the tremendous benefits of The Staggers Act back in the 80s, I am really looking forward to being a part of the revitalization of passenger rail within this new business and political environment," said B. Allen Brown, President of Train Travel Inc. "The establishment of a competitive marketplace in this industry will undoubtedly bring huge benefits to both the passengers and the system as a whole. Our Company's demonstrated strengths in passenger rail promotion, passenger retention, passenger operations and our focus on the passenger experience is exactly what is needed across all of the passenger systems in North America," added Brown.
Although the government-owned and subsidized Amtrak had dominated the US passenger rail industry for several decades, in 2008, the government enacted the Passenger Rail Investment and Improvement Act (PRIIA) to strengthen the U.S. passenger rail network by mandating a long-term plan to improve efficiency and reduce subsidies to the rail system. PRIIA required that Amtrak and the States develop a standardized method for allocating the costs associated with State-supported corridor services. In the same way that the Staggers Act of 1980 created an opportunity for smaller railroad companies to find entry into a marketplace previously closed to all but the industry giants, so has the Passenger Rail Investment and Improvement Act (PRIIA) opened US passenger rail to competition for contracts based on management strength and efficiency. PRIIA expired in 2013 but has been reauthorized by Congress in 2014 as a reiteration of the country's determination to focus on empowering its rail systems.
The reauthorization of PRIIA in 2014 has given rail carriers that own infrastructure over which Amtrak operates intercity passenger service authorization to petition to be considered as a passenger rail service provider over the route, in lieu of Amtrak, for a period not to exceed 5 years. This new rule along with the desires of states which fund passenger rail routes within their states, will combine to open up a whole new opportunity for railroad companies like TTHX to participate in a variety of passenger rail operations and management well into the future. Commuter rail agencies have grown to over 400 across North America, each with the need to find rail service providers like TTHX. Additionally Amtrak has been charged with locating more companies in areas where they operate that can provide outsourced services.
Additionally, state and local governments, as well as the contractors who serve them in the commuter movement industry, are also seeking operators who can efficiently offer customer service level functions such as ticketing, customer assistance, concessions and food/beverage services, public transport vehicle operations and dispatch, etc. Train Travel Holdings Inc. is prepared to assume these functions as opportunities arise.
The strong growth of the passenger rail industry is fueled, largely, by economic considerations, as public transportation enables a commuter to save over $10,000 annually. (American Public Transportation Association) Gasoline prices are not expected to come down, and the cost of operating private vehicles can be prohibitive, so these savings are crucial to middle class households. These facts, combined with the projected growth in the U.S. population to 550 Million citizens by 2050, make passenger rail a growing and viable option for communities all over North America.
A second factor, and one that is gaining public support, is the lowered environmental impact of railroads versus private vehicle travel. A single commuter switching his or her commute to public transportation can reduce a household's carbon emissions by 10%, or up to 30% if he or she eliminates a second car. When compared to other household actions that limit CO2, taking public transportation can be 10 times more effective in reducing this harmful greenhouse gas.
"The railroad companies I have either founded or helped to grow over the past few decades have been very profitable, largely due the ability of Leadership to accurately identify railroad industry trends and take an early position, or exit point, that profited the company and its shareholders," said Laurence Coe, Chairman of Train Travel Holdings Inc. "I am pleased to be a part of just such a company at this time."
The objective of Train Travel Holdings Inc.'s Passenger Rail Services Division is to bring innovation, reduced costs, and streamlined management to each of our operations. State and federal governments are relying more on the private sector for the delivery and maintenance of the ailing elements of their infrastructure, as well as the innovation to increase ridership and passenger rail utilization. This is providing an opportunity for TTHX to expand further into the North American industry.
ABOUT TRAIN TRAVEL HOLDINGS INC.
Train Travel Holdings Inc. (
Safe Harbor Statement : The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control.