AMTRAK CONSOLIDATES FREIGHT OPERATIONS INTO NEW DIVISION
Amtrak said Monday it is consolidating its mail and express business to improve freight revenues and build commercial partnerships with freight railroad partners.
The passenger-based railroad has named Lee H. Sargrad, former vice president of sales and marketing for Triple Crown Services, to serve as president of Amtrak's mail and express unit.
Sargrad, who has 15 years of rail freight industry experience, will undertake a 90-day review of Amtrak's business operations and freight rail relations, update the unit's strategic plan and consolidate it's business elements.
“The opportunities ahead require a cohesive management structure which continues to build our strong bonds with the freight railroads and our commitment to high-quality service for our time-sensitive commercial customers.”
Amtrak is searching for ways to boost revenue in order to cut back on federal subsidies and to eventually become self-sufficient. The railroad anticipates growing its express and mail business to $300 million to $400 million a year.
Prior to working with Fort Wayne, Ind.-based Triple Crown, Sargrad was also director of marketing for Contrail and managing director of Jet Fresh Associates, a management consulting and marketing development firm.
Amtrak has also named Ed Ellis, vice president, to the newly created position of vice president, sales and marketing, for the mail and express division.
Amtrak operates a 22,000-mile rail system, serving more than 500 communities in 45 states, through trackage rights with freight railroads.