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c. Renewed corporate fiscal discipline

d. Continued population growth and changing demographics e. "State of Good Repair" efforts

f. Assessment of long-distance network

g. Thoughtfully reducing operating expenses

h. Improving customer service


FY07 "State of Good Repair" - Anticipated Beech Grove Overhaul Production:


Superliner 1 Coaches (43) Superliner 1 Lounges (5) Superliner 2 Coaches (18) Superliner 2 Dorms (12) Surfliners (10)

Horizon Coaches (24) Viewliners (12)


Baggage Cars (14)

P42 Locomotives (30)

P32 Locomotives (3)

F59 Locomotives (2) Superliner Wreck Repair (10) Locomotive Wreck Repair (5)


Amtrak Governance:


In late August, the Amtrak Board appointed Mr. Alexander Kummant as President and CEO, replacing Mr. David Hughes, who had been Acting President and CEO since David Gunn's

departure. Mr. Kummant officially began on September 12'" and formerly held three positions

with the Union Pacific Railroad from 1999-2003. Prior to joining Amtrak, Mr. Kummant served as Executive Vice President and Chief Marketing Officer for heavy equipment manufacturer, Komatsu America Corporation.


The Senate confirmed Mary Peters as the new U.S. Secretary of Transportation. Previously, Ms. Peters held positions with the engineering firm HDR, Inc., the Federal Highway Administration, and the Arizona Department of Transportation.


Strategic Reform Initiatives:


On July 28th the USDOT's office of the Inspector General (DOT IG), issued its third quarterly report on Amtrak's progress toward implementing the Strategic Reform Initiatives that were unveiled in 2005. The report praised Amtrak for achieving $46.3 million in savings this fiscal year through May, which was better than expected, but implored Amtrak to seek additional opportunities to reduce operational costs and streamline operations. To date, these savings have been achieved through reducing corporate overhead, and restructuring the delivery of food and beverage service--among other efforts.

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