ASSET MANAGEMENT: Opportunities Exist to Enhance Decision-Making Process for Utilization of Long-Distance Equipment
October 23, 2014 | Audit Reports
Amtrak’s network of 15 long-distance trains is expected to lose almost $615 million in fiscal year 2014. In October 2013, the company established a long-distance business line to improve the financial performance of these trains and to help support the company’s strategic goal of being profitable on an operating basis, with revenues exceeding operating costs. Optimizing the utilization of equipment assets could help the company capture a portion of up to approximately $25 million in additional revenue each year. Given this, we assessed the extent to which the company is using a process for making fleet utilization decisions that consistently follows sound business practices. We did this by comparing the company’s practices to sound business practices we had identified in earlier reports.