The Future of Commuter Rail in North America (2025) / Chapter Skim
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4 Commuter Rail Industry Parameters
Pages 20-28

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From page 20...
... The challenges are generalizations for the North American commuter rail industry, and the options for future services will vary depending on the agency, the network, and the region's goals. 4.1 Institutional Considerations: Who Owns, Operates, and Funds Commuter Rail Services?
From page 21...
... State agency State Amtrak (Union Station) , Contracted MARC Freight host MBTA Commuter Division of state DOT State, local Agency Contracted Rail Regional authority State, local Agency, freight host Directly operated, Metra contracted Metrolink Regional authority Local, state Agency, freight host Contracted Metro-North State authority State, local Agency, CTDOT Directly operated NCTD Coaster Regional authority Local, state Agency Directly operated State agency State Agency, Amtrak, Directly operated New Jersey Transit Freight host Northstar Regional authority State, local Freight host Contracted Rio Metro Regional Regional authority State, local State DOT Contracted Transit District Regional authority State, local Agency, Amtrak, Directly operated SEPTA Freight host Shore Line East State agency State Amtrak Contracted SMART Regional authority State, local Agency Directly operated Sounder Regional authority Local Freight host Contracted South Shore Line Regional authority State, local Agency Directly operated SunRail State DOT State State Contracted TEXRail Regional authority Local Freight host Contracted Trinity Railway Regional authority Local Agency Contracted Express Tri-Rail Regional authority State, local State DOT Contracted Utah Transit Regional authority Local Agency Directly operated Authority Virginia Railway Regional commission Local, state Amtrak (Union Station)
From page 22...
... The Costs of Commuter Rail In North America, costs for transit systems, including commuter rail, come from two primary categories: operating costs and capital costs. These distinctions are important because they inform how public transportation agencies develop their budgets and because their classification deter mines whether they are eligible for certain federal, state, and local funding programs.
From page 23...
... Commuter rail's farebox recovery ratio was high in part because it could charge higher fares for longer passenger trips compared with lower fares charged by local transit systems with much shorter passenger trip lengths.27 In 2023, fares covered only 25 percent of operational expenses on average across the commuter railroads in the United States.28 Reduced fare revenues from lower ridership combined with growing operational expenses pose a financial challenge for commuter rail.29 State and local subsidies covered the remaining operating costs for commuter rail services before 2020.30 The relative amount from state and local sources depends on the governance of the agencies. The MARC system, for example, is a division of the state DOT and receives its operating subsidies from the State of Maryland.
From page 24...
... In 2023, fares covered only 25 percent of all costs.34 To make up the shortfall for commuter rail operations and other transit operations in the United States, Congress passed three COVID-19 relief laws in March 2020, December 2020, and March 2021. This legislation allocated a total of $70 billion in funds for public transit operations in the United States.35 The intention of the funding was to cover operating shortfalls related to plummeting fare revenues and increasing operational costs and was the first time the federal government gave broad eligibility to fund major transit operations since the 1990s.36 Similarly, in Canada, the federal Safe Restart Agreement provided $2.3 billion in temporary transit operating funding in 2020 to help cover shortfalls (Government of Canada 2024b)
From page 25...
... However, on February 26, 2025, the Minnesota DOT and the Twin Cities Metropolitan Council announced that the Northstar service would likely be discontinued and replaced with commuter buses.38 How Operating Models Affect Costs How a commuter rail network is operated will greatly affect its operating and capital costs. In general, the more extensive a system, the more infrastructure and rolling stock it maintains.
From page 26...
... The simplified operating patterns in Figures 11 and 12 are for illustration; each railroad would need to evaluate its timetables within its own context, including when and how to add additional frequencies. In many cases with balanced regional rail, providers add additional trains during the peak, sometimes with express patterns, to add capacity and increase service if the demand is higher during that time.
From page 27...
... However, these agencies can partner with entities eligible for FRA grants, including states, groups of states, other public agencies, Amtrak, and other freight rail carriers, which provide intercity passenger transportation services to receive FRA funding. However, planning grants, such as the Corridor ID Program and capital grants for intercity Table 5.   Operating expenditure per revenue hour by commuter rail system type, 2019.
From page 28...
... In planning for the future of commuter rail, states, regions, and commuter rail providers need to understand the constraints regarding what they can and cannot control. While it might be dif ficult, states and regions can address the governance of their commuter railroads, help establish new funding resources, and enable changes to their operational patterns.


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