Casino execs hear train proposal

Wednesday, May 28, 1997 | 10:48 a.m.

With horror stories of Memorial Day weekend traffic delays fresh in their minds, casino executives heard a proposal from Amtrak that would put a daily Los Angeles-to-Las Vegas run on track by next year.

Amtrak West President Gil Mallery on Tuesday told a group representing casino properties, government entities and transportation-related consultants that he wants a private-public coalition to be formed and for resort properties to pre-sell the 322 seats daily on the high-tech train that would make the trip between Los Angeles and Southern Nevada in 5 1/2 hours.

The train is a high-speed "Talgo" passenger liner with tilt technology on curves, making it capable of achieving speeds of up to 120 mph. The track between Las Vegas and Los Angeles is rated only for speeds of up to 79 mph. Mallery proposes that Las Vegas entertainers make the daily run or that instruction on casino games be offered en route.

A train set, produced specifically for the L.A.-Las Vegas run, is being built by Patentes Talgo SA of Madrid, Spain.

At Tuesday's meeting, Mallery was ready for resorts to start selling tickets: "How many seats are you in for?" he asked the group of about 15, which included representatives from ITT Sheraton, Circus Circus Enterprises, the Rio hotel-casino and the Boyd Gaming Group.

Mallery's economic analysis of the rail service projects a $3 million annual profit based on selling every seat on the train for $100, round trip, which is comparable with the cheapest air fares to Los Angeles. The break-even point assumes that about 80 percent of the seats would be sold. Mallery said that if casinos pre-sold every seat on the train, the company wouldn't have to spend a budgeted $1 million advertising and marketing it.

Mallery said he hopes to develop a coalition of 10 resorts that would commit to buying 10,000 seats apiece. Once purchased, each resort could provide seats to Southern California customers in whatever way best fit the resort's marketing strategy.

Tentatively, Mallery suggested that a train would leave Los Angeles' Union Station about 8 a.m., arriving in Las Vegas around 1-1:30 p.m. The return to California would leave about 4 p.m., arriving by 9-9:30. Three-minute stops are proposed for San Bernardino, Calif., and Primm or Jean.

He said if the service became an instant success, additional runs or more passenger cars -- up to 25 -- could be added.

Amtrak officials hope to meet again within two weeks to answer more specific questions about the proposal.

While none of the casino executives in attendance was willing to commit to the plan, each expressed interest and had his own list of questions. The stickiest: Where would the train arrive in Las Vegas and how elaborate would a station be?

Mallery said Amtrak is considering some options that would include a stop somewhere near the Strip as well as downtown. The company also is mulling whether to stop at Primm, Jean or both.

Bruce Hampton, general manager of Nevada Landing hotel-casino at Jean, said since his property thrives on Southern California traffic, his resort, owned by Circus Circus, is highly interested in the train proposal.

Other logistical details have to be worked out with Union Pacific, which administers the rail line, to assure that the passenger train gets priority flagging on the tracks to avoid delays. The inability to stick to a timetable is one of the biggest gripes passengers have with train service. The Desert Wind, a three-times-a-week Amtrak operation between Chicago and Los Angeles, made its last run earlier this month and was notoriously late.

While resort officials were noncommittal on the train plan and several questions remain unanswered, most in attendance expressed optimism that the new service would be a reality within a year.

Clark County Commissioner Lorraine Hunt called the plan a win-win situation for residents of Las Vegas as well as Los Angeles, since many local residents get away to Southern California. Mallery pointed out that Metro Station in Los Angeles is a hub for intercity rail service and other L.A.-area rapid transit.

Mallery also suggested that the level of service could be elevated with trains, proposing that travelers checking in at Los Angeles could have luggage routed all the way to their hotel rooms with some of the plans under study. He also said the Talgo train could validate the market for future bullet trains or magnetic levitation technology under consideration.

"We saw this weekend how people are arriving later and leaving earlier to avoid the traffic on the weekend," said Don Snyder, chairman of Boyd Gaming. "It's good for the industry and good for our company to have reliable train service in place."