New Hands on the Amtrak Throttle

Thursday, September 28, 2006, 10:00 a.m.

Room 2167, Rayburn House Office Building

PURPOSE

This hearing is intended to provide the Subcommittee with an opportunity to hear from Amtrak’s newly installed chief executive officer about his plans and management strategy for Amtrak.

BACKGROUND

Amtrak, a District of Columbia business corporation, is governed by a presidentially appointed board of directors. 49 U.S.C. 24301- 24302. The president of Amtrak is a nonvoting ex officio member of the board of directors. 49 U.S.C. 24302(a)(2)(D). The Amtrak president, like other corporate officers, “serves at the pleasure of the Board” and must be a citizen of the United States. 49 U.S.C. 24303(a). All Amtrak officers “may not be paid more than the general level of pay for officers of rail carriers with comparable responsibility” as long as Amtrak is receiving federal assistance. 49 U.S.C. 24303(b). Amtrak officers also may not have a financial or employment relationship with another rail carrier, except for holdings of railroad securities that are publicly disclosed. 49 U.S.C. 24303(c).

Amtrak’s previous CEO, David Gunn, was fired by the Amtrak board in the fall of 2005. (The Subcommittee held a hearing shortly afterward on Amtrak governance issues.) While a search for a successor was conducted, David Hughes, then head of the Amtrak engineering department, was appointed acting CEO. Amtrak’s new president, Alexander Kummant, was selected by the Amtrak board in early September 2006 and began work on September 12.

In early 1998, Mr. Kummant was president of the Sweco Division of Emerson Electric Company. From February 1998 to September 1999, he was president of the Filtran Division of SPX Corporation. From September 1999 to early 2003, he was a vice president in charge of the central division of the Union Pacific Railroad. After leaving Union Pacific in mid-2003, he became president of Bomag, a German manufacturer of compacting equipment. In April 2005, Mr. Kummant became executive vice president of Komatsu. In May 2006, Mr. Kummant became vice president and general manager of Invensys Controls in charge of American business.

Chairman LaTourette’s Opening Statement

EXPECTED WITNESSES

Mr. Alexander Kummant

President and Chief Executive Officer

Amtrak