Passenger Transportation Act Law and Legal Definition

The Passenger Transportation Act (“Act”) is a federal legislation that governs the choice of transportation that is most convenient to the needs of a traveler in the U.S. The purpose of the Act is to provide efficient and effective intercity passenger rail mobility consisting of high quality service that is trip-time competitive with other intercity travel options.

The objectives of the Act are:

1.To increase revenue from the transportation of mail and express;

2.To reduce losses on food service;

3.To improve its contracts with operating rail carriers;

4.To reduce management costs; and

5.To increase employee productivity.

The Act also carries out strategies to achieve immediately maximum productivity and efficiency consistent with safe and efficient transportation. In addition, it also encourages rail carriers to assist in improving intercity rail passenger transportation. The Act provides additional or complementary intercity transportation service to ensure mobility in times of national disaster or other instances where other travel options are not adequately available.