Amtrak CEO Stephen Gardner Steps Down Amid Privatization Debate

Amtrak’s Chief Executive Officer, Stephen Gardner, has left his position with immediate effect amid a debate over the federal passenger rail company’s future. According to a White House official, Gardner was asked to step down by the Trump administration.

Gardner had been a keen rail advocate since joining Amtrak in 2009 and had previously worked for the Senate Committee on Commerce, Science & Transportation. He became President of Amtrak in 2021 and took on overall leadership of the business.

In his departure statement, Gardner said he was leaving to ensure that Amtrak continues to enjoy the full faith and confidence of the administration. However, just weeks before his departure, US government advisor and tech entrepreneur Elon Musk raised the prospect of Amtrak being privatized, citing concerns about the company’s profitability.

Amtrak has defended itself against privatization claims, stating that it achieved record revenue and ridership figures in the 2024 financial year. The operator also pointed out that a private entity would face similar constraints as Amtrak but lack its essential statutory right to operate over the national rail network.

The debate over Amtrak’s future comes after the federal government mandated the company to provide socially desirable long-distance trains on routes across the USA, which have been heavily loss-making. Despite this, Amtrak remains a vital part of the country’s transportation infrastructure.

Gardner’s departure marks a significant shift in the ongoing debate over Amtrak’s privatization and future direction.

Source: https://www.railwaygazette.com/policy/amtrak-ceo-gardner-leaves-as-operator-pushes-back-against-musks-privatisation-drive/68509.article