...Executive Summary Statement of the Problem As a result of the Amtrak Reform and Accountability Act (ARAA) passed by Congress in 1997, The National Railroad Passenger Corporation (Amtrak) will no longer receive federal subsidies to cover operational expenses after 2002. Amtrak has determined that differentiating its northeastern services with a new high-speed line, Acela, which will require $750 million (MM) for fifteen locomotives and 20 train set, is the best way to generate revenues to cover operating expenses once the company loses federal subsidies. It is April 30, 1999 and Arlene Friner, CFO of Amtrak, has already arranged the financing of all of the equipment save for six locomotives and seven train sets that will cost $267.9 MM. She has been tasked with determining the additional financing for this equipment, either by using precious federal funding available for capex, borrowing funds and buying the assets, or agreeing to a levered lease agreement with BNY Capital Funding LLC (BNYCF). Discussion Amtrak should discard the alternative of accepting federal funds available for capex. This alternative has been deemed “premium and precious” and should only be used for projects that cannot be cost-effectively financed including safety, right-of-way and infrastructure related projects, and major overhauls. The Acela equipment purchase does not fall in one of these categories and the company should pocket this option and consider its other two financing options: levered...
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...1993 took 47 lives. There are many circumstances surrounding this wreck that affect the many stakeholders involved. Certainly, CSX Transportation, Inc., Amtrak and Warrior and Gulf Navigation Company (WGN) and their employees, the passengers on the train and barge, the surrounding community, the train and barge industries, the governing body of the Big Bayou Canot bridge, environment, and stockholders are all stakeholders. Adding possibly to that list, the National Transportation Safety Board (NTSB), US Army Corps of Engineers and the Coast Guard might be stakeholders as well. The Mauvilla, while being steered by Pilot Odom, and not Captain Stabler, in dense fog conditions could be viewed as negligent. Additionally, Odom admittedly was not adequately trained in the use of the towboat’s radar system. At the time of the accident, Amtrak’s conductor and assistant conductor were not in the wheelhouse of Amtrak’s engine Number 819 and the train, being guided by engineers, was traveling at a speed above authorization. Again, given the weather conditions, this could be viewed as negligent. Certainly, these two examples might not be illegal; however, the outcome of the incident “precipitated the filing of over one hundred personal injury and wrongful death suits against WGN, the pilot and captain of the Mauvilla, CSX and Amtrak.” (1999. Case Research Journal, H. Richard Eisenbeis, Sue Hanks, Bruce Barnett). Neither action alone caused the accident, but compounding those with the...
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...Corporation (Amtrak) is a government founded rail transportation company that was created in 1970 to provide passengers with means of transportation. Beginning 2002, the government would no longer fund improvements and expansions for Amtrak. From looking at the income statement, we can see that Amtrak has never been profitable and has experienced an increasing deficit in recent years. To produce income, Amtrak decided to build “Acela;” a set of high speed trains in northeast America. In order to decide the best plan of financing this project, Amtrak and it’s advisor, Babcock & Brown Financial Corporation (BBFC) asked BNY Capital Funding LLC (BNYCF) to come up with lease-financing proposals. On April 30, 1999, Arlene Friner, the CFO of Amtrak presented these proposals for financing Acela to her Treasury team. A present value analysis is used to determine whether borrowing money, leasing the equipment, or relying on federal funding is the best option for financing the project. Discussion Acela is projected to produce $180 million in net revenue by 2002. This includes the purchase of 15 high-speed locomotives and 20 train sets of $750 million, of which Amtrak needs financing for six locomotives and seven train sets of $267.9 million. Amtrak presents three options for financing the Acela purchases and becoming a profitable entity by 2002: • Borrow money to fund the purchases • Lease equipment from BNYCF or other financial institution • Continue to rely on federal funding Amtrak was offered...
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...Statement of the Problem: On April 30, 1999, the National Railroad Passenger Corporation (Amtrak) is considering financing options to purchase an equipment for Amtrak’s new train service, Acela. Acela is a new high speed rail service that will service the Northeast Corridor, which serves routes from Virginia to Maine. Congress passed the Amtrak Reform and Accountability Act (ARAA), which prevents Amtrak from using federal funds for operating expenses after 2002. By 2002, Acela is estimated to generate $180 million in revenues and consequently making Amtrak a self-sustaining company. The project requires $267.9 million to fund six locomotives and seven train sets and have three options to acquire the equipment: 1) issue debt to finance the purchase, 2) lease the equipment using a leveraged-lease structure, or 3) use federal grant monies. A discounted cash flow analysis on the three options has been performed to determine the most cost-efficient option. We will assume two potential scenarios when analyzing the options: 0% tax rate (operating at a loss) and 38% tax rate (operating with a gain). Discussion: Amtrak could issue bonds with a 20-year term at 6.75% per annum to purchase the equipment. They would make semiannual payments of $12.303 million and can sell the equipment at the end of its 25-year useful life at $40.185 million. If Acela’s revenue expectations are not met and Amtrak remains unprofitable, the present value of the cost of this option would be 260.26 million...
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...Sunset Limited H. Richard Eisenbeis, Sue Hanks, and Bruce Barrett University of Southern Colorado On September 22, 1993, the Sunset Limited, the pride of Amtrak, glided swiftly along through the warm, fall night. A dense fog hugged the countryside. Because there was nothing to see through the train’s windows, many passengers dozed peacefully, lulled to sleep by the gentle, rhythmic, clickety-clack of iron wheels passing over jointed rails. Crewmembers roamed the aisles and halls making sure that those guests still awake were accommodated and comfortable. In less than a second, this peaceful scene was shattered by a thundering roar as seats were torn from the floor and passengers were sent flying through the cars. At 2:53 a.m. Amtrak’s only transcontinental passenger train, the Sunset Limited, plunged into Big Bayou Canot, killing 47 passengers. Eight minutes earlier at 2:45 a.m., a towboat, pushing six barges and lost in a dense fog, unknowingly bumped into the Big Bayou Canot Bridge knocking the track out of alignment. The train, traveling at a speed of 72 mph in the dense fog, derailed as a result, burying the engine and four cars five stories deep in the mud and muck of Big Bayou Canot.4,7,8,10,12,13 Bruce Barrett, a locomotive engineer, has described what might have been occurring in the cab of Amtrak engine Number 819 prior to the wreck.2 This scenario is based upon my 17 years’ experience as a locomotive engineer on a major western railroad and upon...
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...cities in which Amtrak offers service; however for the purpose of this case study, the stakeholders are Amtrak’s owners, the passengers and CSX Transportation, the owner of the railroad. The interests of the stakeholders do vary, but they also share a common interest; the concern for the train to travel safely to and from the desired destinations without incident and the loss of lives. The owners’ interest leans more towards the financial repercussions should an accident occur, such as the cost of replacing the damaged train and the legal costs that would ensue. The legal impact for all the stakeholders was the lawsuit filed by the victim’s families, which lasted over five years before Amtrak agreed to settle ("Amtrak agrees to," 1998). In addition to the settlement payout, the economic impact for the owners most included the loss of financial investors, while the surviving passengers and the families of those who lost their lives received financial compensation from Amtrak. Although I expect the main concern for Amtrak’s owners to still be profitability, the accident and loss of lives might make them think more about the ethical responsibility they have to their customers. The philanthropic impact is that Amtrak makes charitable contributions to organizations that further primary education and museums that advance the history and knowledge of railroads ("Amtrak sponsorport," 2012). The actions I would recommend in the four areas of CSR are: Legally, Amtrak should follow...
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...Amtrak Train Derailment And Positive Train Control (PTC) Jennifer A. Alkasmikha Oakland University, Professor Cynthia E. Miree-Coppin, Ph.D. May 26,2015 Abstract This current events paper discusses the tragic Amtrak Northeast Regional Train 188 derailment that occurred on Tuesday night May 13, 2015 in Philadelphia and the issue that this tragedy could have been avoided with simple preventative measures. The derailment left eight people dead and over two hundred more passengers injured. The engineer, Brandon Bostian, survived the wreck but suffered a concussion and as a result cannot remember the cause of the wreck. While the cause of the derailment has yet to be determined, officials speculate that a few common reasons are most likely the cause of this incident; train or track malfunction, human error, or a combination of both. Experts agree, however, that whether this tragedy was a cause of human error or not, simple preventative measures should have been in place that could have prevented this from happening. The preventive measure is called Positive Train Control (PTC). This technology is capable of automatically slowing down a train that is traveling at a speed too high for certain predetermined speed restricted stretches of railway. If human error, traveling at a speed greater than allowance occurred, the PTC has the ability to kick in and automatically slow down the train preventing such disasters. Also if a medical emergency occurred leaving the engineer...
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...data interface translator for the transmittal of procurement documentation and accounts payable disbursements. ARROW is Amtrak’s automated reservation and ticketing system. It is a multi-functional system that operates in a mainframe environment and is used to maintain train reservation inventory and is accessed by Amtrak agents as well as a variety of distribution channels to create customer reservations. Its features include automatic pricing, low fare finders, automatic printing of ticket coupons, and real-time verification of credit and debit cards. Data is provided to other Amtrak systems for accounting, billing, and statistical analysis purposes. ARROW is also used operationally to produce passenger manifests and to track train departure status. Client Server Infrastructure (including Active Directory) is the solution that Amtrak uses for the majority of its client server data repositories, print facilities, and databases. The commercial off-the-shelf server and database solutions include a new industry directory services solution. Consolidated Electrification and Train Control Systems (CETC) is comprised of applications and technology that provide Amtrak with the ability to manage, monitor, and direct train traffic along the Northeast Corridor (NEC) right-of-way. This system manages both catenary electrification...
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...Amtrak’s Sunset Limited H. Richard Eisenbeis, Sue Hanks, and Bruce Barrett University of Southern Colorado On September 22, 1993, the Sunset Limited, the pride of Amtrak, glided swiftly along through the warm, fall night. A dense fog hugged the countryside. Because there was nothing to see through the train’s windows, many passengers dozed peacefully, lulled to sleep by the gentle, rhythmic, clickety-clack of iron wheels passing over jointed rails. Crewmembers roamed the aisles and halls making sure that those guests still awake were accommodated and comfortable. In less than a second, this peaceful scene was shattered by a thundering roar as seats were torn from the floor and passengers were sent flying through the cars. At 2:53 a.m. Amtrak’s only transcontinental passenger train, the Sunset Limited, plunged into Big Bayou Canot, killing 47 passengers. Eight minutes earlier at 2:45 a.m., a towboat, pushing six barges and lost in a dense fog, unknowingly bumped into the Big Bayou Canot Bridge knocking the track out of alignment. The train, traveling at a speed of 72 mph in the dense fog, derailed as a result, burying the engine and four cars five stories deep in the mud and muck of Big Bayou Canot.4,7,8,10,12,13 Bruce Barrett, a locomotive engineer, has described what might have been occurring in the cab of Amtrak engine Number 819 prior to the wreck.2 This scenario is based upon my 17 years’ experience as a locomotive engineer on a major western railroad and upon the compilation...
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...Economic Development Newsletter Philadelphia, or “The City of Brotherly Love,” as many like to call it is the largest city in Pennsylvania. It was actually once the capital of America. Philadelphia is home to about 1.5 million people today. It’s about 1 hour and 20 minutes away from New York and about 1 hour and 45 minutes away from Washington D.C. via Amtrak’s Acela Express. The Amtrak is the third busiest in the country. Philadelphia is the fourth largest consumer media market. It is a melting pot of different races, traditions, and cultures. In 2013 there were over 30,000 new start-up businesses in Philadelphia which created over 200,000 jobs and over $12 billion in sales. Philadelphia has over 300 healthcare facilities. The city has a crime rate index of 10. Philadelphia has the lowest cost of living among other northeast metros such as Boston, New York, and Washington D.C. It has been ranked in the top 15 Best Affordable U.S. Destinations by U.S. News. More than 100 Fortune 500 companies ate within 200 miles. More than 80 movies have been filmed in Philadelphia including the most recent and popular movie “Creed.” Philadelphia’s economy is driven by entrepreneurship and innovation. It is also home to some of the most top ranked universities such as Temple University, Drexel University, and the University of Pennsylvania. Many people are attracted to Philadelphia’s vibrant downtown city life. Business Insider named Philadelphia one of the top 10 hottest American cities...
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...Date: February 1st, 2012 To: Janet Snow, Chief Executive Officer From: , Administrative Assistant Subject: Meeting Destination Our 12th annual Recognition and Training Retreat is quickly approaching and location is still a factor. We have set a date of March 19th- March 24th. I have researched three major cities in the US as potential locations to hold the event. Given the fact that we are located in 25 states I felt it was important to review three cities across the US to give a fair recommendation. I selected the following states: * Los Angeles, CA * Cleveland, OH * Orlando, FL After carefully consideration of all three cities I would like to recommend Orlando Florida as our 2012 training and recognition program destination. To support my decision I factored in climate, location, convenience and cost. Cleveland Ohio is centralized in the US and would be a fair meeting ground in regards to commute. Cleveland also offers some of the most affordable lodging. According to hotelfinder.com the average room cost is approximately 170.00 per night which is within budget. Unfortunately Cleveland did not deliver in the weather department. According to weather.com there is a 70 percent chance of rain and strong winds the day of the event. The potential of inclement weather may create transportation issues which can delay trainings and other events. Based on the unpredictable weather, we must rule out Cleveland Ohio. The next city reviewed was Los Angeles...
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...New Hire Communication Jose A Marquez Navarro COM/295 11/03/2014 New Hire Communication Welcome to Subaru Of America Regional Distribution Center. As a new hire I would like to introduce you to our company culture and processes. As an instructor in our company you are expected to follow our procedures to train new warehouse associates according to our procedures written in our manuals. Company Culture At Subaru Of America Regional Distribution Center we believe and encourage our employees on working smarter and not harder every day. Our expected business goal for every employee is based on 80 lines per hour in production. We take care our staff very seriously and offer them the best benefits possible from healthcare to big discount in company cars. We like to keep a professional and friendly environment and enforce our employees to create new ways to make the process more efficient and easier for them. Company Process Our company process to meet our expected goals is to achieve a 100% of production standards based on line per hours. The personnel are expected to pick, pack and ship through our different carriers the merchandise to our retailers. Instruction Employees need to follow company policies. Phones, headphones and food are prohibited in the work area. Safety is our top priority for our team as having a clean work environment is too. Employees may have radios in their packing stations, any emergency call they may need to take are to...
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...Project Proposal Memo By Lisa Young 09/14/2014 CMGT/410 Adam Hawlk Technology Implementation Training Memo To: Micheal Smith Project Sponsor From: Lisa Young Project manager Mr Smith I have been hired to assist with the rollout of a new companywide compliance system all branches will comply with the changing and the implementation to the new technology. There will be 10 hours of training for all the managers across the country on both the use of the new platform as well as a host of new compliance policies being introduced. The training will take place at the main branch in Kansas City because it is located half way between California Branch and the New York City branch and that way no branch will needs to travel more than half way across the country. There will be ten hours of hands on training that will be conducted at the Kansas City branch; this training will be conducted in three training sessions with groups no larger than twenty. The training will help the managers to help others such as the employees to use the new technology that will be implemented into all branches no later June of 2015. The outcome of this training will help to train the employees and overall performance of the company that will help to bring in new clients to the company. This training is important to the company and those involved in the company’s success, so the outcome of this training is important not just to the company but to the customer and employees...
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...NJ Transit Paper Many tactics have changed in the twenty-first century we all know that the competitive landscape has almost completely changed. We have amazing leadership examples that have been left behind to help the present day remain successful business empires. This implies that there will always be traditional remnants of competitive advantage. When the economies advertising used to tip the scales and have a greater advantage over competitors in the past. It simply isn’t that way anymore and even the “little man” can afford amazing advertisement campaigns with little expensive out of their revenue. So has for NJ transits predecessors advertising was key for them in order to succeed as well as it was in order for NJ Transit making large advertising budget not nearly has an effective competitive weapons an effective weapon in the past. As the weapons of them game seem to rapidly change and seem to be almost completely unpredictable at times this new competitive advantage makes companies even larger ones adopt new ways of thinking. The new competitive mind set must value flexibility, speed, innovation, integration, and the challenges that evolve from constantly changing conditions (Chapter Notes). A term often used to describe the new realities of competition is hyper competition, a condition that results from the dynamics of strategic moves and countermoves among innovative, global firms: a condition of rapidly escalating...
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...Bejeweled Inc is a well known jewelry store which has locations in Florida, Georgia, and New York. Bejeweled Inc in addition to their stores also provides the jewelry to a few local jewelry stores in the New York area. Brian Leach Owner of Bejeweled Inc opened his first store in February 1995. The first store to open was the store located in Atlanta Georgia, within two years he opened another in Savannah Georgia and another in Brunswick six months later. In In June 2000 Brian opened up two stores in Miami and in March 2008 opened a store in Manhattan New York. Brian is very interested in opening up an E-Commerce where consumers can order online from the store directly. Known for their exquisite fine jewelry and precious gems Bejeweled Inc is increasingly becoming very popular and trying to communicate between shops with all the orders coming in is becoming harder and harder and Bejeweled Inc really needs a better IT solution in order to keep up with the demand. Statement of Need Now that Bejeweled Inc has “taken off” and Brian would like to expand their business and upgrade the current network. The objective is to be able to expand their services by attaining better operations by getting the offices in sync with each other rather than them being just another store with the same name. . In conjunction with expanding their operations section Bejeweled Inc envisions increasing profitability via E- Commerce. E-Commerce will allow people to carry out business without barriers of...
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