Showing posts with label High Speed Rail. Show all posts
Showing posts with label High Speed Rail. Show all posts

Thursday, June 10, 2010

This Week in Amtrak

Southeastern "Javelin" unit 395018 a...Image via Wikipedia



Volume 7, Number 16
June 10th, 2010


A weekly digest of events, opinions, and forecasts from



United Rail Passenger Alliance, Inc.

America's foremost passenger rail policy institute



Jacksonville, Florida USA

Telephone 904-636-7739, Electronic Mail info@unitedrail.org . http://www.unitedrail.org

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This week: A brief report from each coast and then we look at some Amtrak finances.

On the right coast, some good news for the passenger rail manufacturing industry, and a lesson in perseverance. Around 1974 when I was in fourth grade my parents took me to a public meeting about Washington Metro.
Even then, I loved studying maps; and one of the "future extensions" was to Dulles Airport. A mere 35 years later, that line may have a chance to finally be built --- which is quite quick, really, compared to Boston's extension of its Red Line past Harvard (proposed in 1912, with the Cambridge segment completed in 1985). In any case, here's is part of WMATA's press release
:

Metro's Board of Directors approved a contract today (May 27) to
have Kawasaki Rail Car, Inc., manufacture 428 new generation
Metrorail cars known as the Series 7000 cars at a cost of $886
million. The cars will address Metro's number one safety priority to
replace its oldest rail cars (Series 1000).Of the 428 cars, 128 of
the cars will enable the expansion of Metro service on the Dulles
rail corridor and 300 of the cars will be used to replace Metro's
oldest rail cars (Series 1000), which will improve safety and
reliability of Metro's fleet. The Dulles rail cars will be funded by
the Metropolitan Washington Airports Authority...
The delivery schedule calls for the cars to start arriving on Metro
property in 2013, and undergo a rigorous, months-long inspection
process. All 428 cars are scheduled to go into service by 2016....
Kawasaki Rail Car, Inc., will manufacture the new rail cars in
Lincoln, NE...

Kawasaki has built single and double level commuter railcars, as well as NYCTA subway cars, partially at the Lincoln plant with final assembly at Yonkers, New York. At least one factory in America will be busy for awhile.

Now to the left coast, where Democratic Congresswoman Anna Eshoo /ponders in the San Francisco Chronicle/
what will happen to Caltrain's nearly forty thousand daily riders in California's anemic budget, even as plans for high speed trains in the same corridor proceed, threatening Caltrain on a variety of levels:

For many months, the people of the 14th Congressional District have
been worried -- and justifiably so -- about what high-speed rail
could mean to their communities. Now comes word of financial
difficulties that threaten the future of Caltrain, the spine of the
Peninsula transportation system and the little train that could, and
does so much, to serve us...

The High Speed Rail Authority has to hit the reset button, improve
its reputation and assuage Peninsula residents, who have every
reason to fear that this project will be a nightmare... We need to
see what high-speed rail will do for us, not only to us. In other
words, we need high-speed rail on the Peninsula to be a betterment,
not a detriment. One of the betterments we expect is an improved
Caltrain, and that is something that can be done right now...

Perhaps California will look at England's "Javelin" trains, the long-anticipated high-speed commuter trains that only recently replaced a large part of the usual fleet of electric trains between London and the southeast Kent coast. The /Evening Standard/ reports
:

The 140mph hour Southeastern trains linking Kent to London were
launched with great fanfare [in] December [2009]... [the fleet of]
29 Japanese Javelin trains were expected to be embraced by commuters
as they cut an hour from the London-to-Dover route...

But [train operator] Southeastern has now halved the length of six
of its trains because not enough people are using the services
following complaints they are too expensive and uncomfortable. The
fares cost a third more than those of conventional trains....

Commuters have complained the trains only take them to St Pancras
and they then must cram on to "normal" Victoria or Cannon
Street-bound services, which have been reduced to accommodate the
Javelin trains.

Commuter John Cherry, from Chatham, said the new service had proved
a "disaster" for many.

He said: "Passengers for Victoria lost their peak period services
and now pack on the remaining reduced services or the Cannon Street
services as people do not wish to go to St Pancras."

Another traveller said passengers have "rebelled against being
forced to use an even more expensive service with uncomfortable
trains which terminate in a place no one wants to be..."

This is exactly what could happen in California if new high-speed trains bypass many existing stations and run to a new terminal that does not connect to BART and Muni properly. One could also maintain the same thing has happened with Acela from its inception.

Finally this week we look at the wonderful world of Amtrak-o-nomics.
Bruce Chapman of the Discovery Institute wrote on June 1
of a "Developing scandal at Amtrak" --

I served on the Amtrak Reform Council ten years ago and was
frustrated, ultimately, by the failure of the Bush Administration
and the Republican Congress to press harder for changes to Amtrak
that would have made that entity more transparent in its finances
and more collaborative with the private sector...

The Bush folks knew we needed reform, but couldn't deliver it, and
wouldn't fund the transition to a public-private partnership. The
Obama people are prepared to spend plenty, but not to reform the system.

Now we are seeing the public beginning to a scandal

of unknown proportions at Amtrak. It broke in the /Washington Times/
today.

The scandal could be the grounds for a true new beginning in
passenger rail. America needs rail, not just as an alternative
choice to roads and airplanes in carrying freight, but also in
carrying people on many inter-city corridors.

The article to which he refers is from the /Washington Times/ via Mass Transit Magazine, and titled Amtrak 'Misled' Congress on Finance

When Amtrak assured Congress it was on a "glide path" to free itself
of federal subsidies early last decade [2001], a handful of top
executives secretly had reason to know better. In fact, the rail
service was on the verge of bankruptcy.But Amtrak's public
assurances were based on far more than overly rosy financial
projections... What authorities ultimately unraveled was that two
former Amtrak officials, in fiscal 2001, either booked false or
incorrect accounting entries in Amtrak's monthly financial
statements or failed to report the activities.

Mr. Chapman sees hope in this adversity, and perhaps there may be some; but let us remember that "Amtrak accounting," like "military intelligence," is at best a questionable subject. If you have not recently read Ayn Rand's /Atlas Shrugged/, please hasten to your local library or bookstore for a copy. This tome of over a thousand pages is well worth the reading, or re-reading. Published in 1957, and focusing on American national politics and economic structure, it recounts the tale of a Dagny Taggart who struggles to keep her family's transcontinental railroad afloat against a tide of socialism and nationalization, and a Hank Rearden who invents a revolutionary steel-replacing metal only to encounter the same destructive forces.

In the book, Wesley Mouch's Steel Unification Board is proposed to lift the heavy restrictions previously imposed on Rearden, with a Plan explained by the government representative:

"Our Plan is really very simple," said Tinky Holloway, "...every
company will produce all it can, according to its ability [with all
earnings collected and assembled by the government]; at the end of
the year... [we will] distribute these earnings by totaling the
nation's steel output and dividing it by the number of open-hearth
furnaces in existence... The preservation of its furnaces being the
basic need, every company will be paid according to the number of
furnaces it owns..."

Rearden, who heads the nation's only remaining innovative steel-making plant, retorts:

"Well, let me see," said Rearden. "Orren Boyle's Associated Steel
owns 60 open-hearth furnaces, one-third of them standing idle and
the rest producing an average of 300 tons of steel per furnace per
day. I own 20 open-hearth furnaces, working at capacity, producing
750 tons of Rearden Metal per furnace per day. So we own 80 'pooled'
furnaces with a 'pooled' output of 27,000 tons, which makes an
average of 337.5 tons per furnace. Each day of the year, I,
producing 15,000 tons, will be paid for 6,750 tons. Boyle, producing
12,000 tons, will be paid for 20,250 tons... Now how long do you
expect me to last under your Plan?"

You may recognize here the accounting basis for Amtrak's "Route Profitability System," which derived from the federal Interstate Commerce Commission's formulas for determining passenger train profits and losses. Amtrak, in a 1997 National Association of Railroad Passengers meeting, admitted that revenues were pooled, and expenses were allocated to trains "subjectively" [sic].

In this as in every instance where Karl Marx's "from each according to his ability, to each according to his need" has been applied, the doom of failure is not far off.

Case in point: My apartment complex sends me a water bill each month.
The total number of gallons used by the complex --- for each apartment, plus the pool and irrigation --- is added up, and divided by a formula involving the square footage of each unit and the number of registered occupants. This means that if I do my part and conserve water, I am punished because my parsimony is a microscopic fraction of the total, so I am charged effectively the same amount; yet if I squander water and let it run all day, my bill is again hardly unchanged. Clearly, then, the incentive is to waste water.

The manager of an Amtrak train is faced with the same quandry. Carry more passengers and you are allocated a much larger share of expenses, even though your revenues increase only slightly. Ideally you would carry zero passengers, because then your train would have zero expenses on an allocated basis.

Is it any wonder Amtrak has gone precisely no-where in its almost forty years of existence?

Please do read /Atlas Shrugged,/ for we will be looking at it again quite soon.

Meanwhile: The moment someone says, "Don't worry, I'm from the government, I'm here to help!" is the moment you should look for the exit.

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If you are reading someone else's copy of This Week at Amtrak, you can receive your own free copy each edition by sending your e-mail address to



freetwa@unitedrail.org



You MUST include your name, preferred e-mail address, and city and state where you live. If you have filters or firewalls placed on your Internet connection, set your e-mail to receive incoming mail from twa@unitedrail.org ; we are unable to go through any approvals processes for individuals. This mailing list is kept strictly confidential and is not shared or used for any purposes other than distribution of This Week at Amtrak or related URPA materials.



All other correspondence, including requests to unsubscribe should be addressed to



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Copies of This Week at Amtrak are archived on URPA's web site, www.unitedrail.org



URPA leadership members are available for speaking engagements.


William Lindley
c/o wlindley.com, l.l.c.
PO Box 3621
Scottsdale, AZ 85271
480-947-6100

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Thursday, April 22, 2010

This Week in Amtrak

Amtrak Train #49, the Lake Shore Limited, pull...Image via Wikipedia



Volume 7, Number 13
April 22nd, 2010



A weekly digest of events, opinions, and forecasts from



United Rail Passenger Alliance, Inc.

America’s foremost passenger rail policy institute



1526 University Boulevard, West, PMB 203 • Jacksonville, Florida 32217-2006 USA

Telephone 904-636-7739, Electronic Mail info@unitedrail.org • http://www.unitedrail.org



--------------------------------------------------------------------------------

Our desks being at last clear of the beloved IRS instruction booklets, and with last year’s tax forms safely snuggled in their bankers’ boxes, we turn now to how a few of our hard-earned dollars are — refreshingly — wisely to be spent in Ohio.


We hear this week from our Bruce Richardson who wrote the following just before (according to the Fort Wayne Journal Gazette), “Democrats on the state Controlling Board voted 4-3 along party lines to approve spending $25 million in federal stimulus money to complete final engineering and design work on” Ohio’s Three Cs corridor this Monday. This is a wise investment, giving planners the opportunity to prove the plan’s worthiness: “Future support from GOP lawmakers on the panel will be crucial. State law requires a supermajority vote for capital improvements on passenger rail development…” reports the Journal Gazette, so lawmakers will have the opportunity to weigh the merits of the complete design before committing to construction.

This is a welcome development; Mr. Richardson explains why:

Oh, Ohio.
By Bruce Richardson
It’s a mad, mad, mad world in Ohio right now for rail fans, who for decades have been agitating for the creation of the Three Cs corridor. The rail fans are “this close” to having the Three Cs corridor recreated, tying Cleveland, Columbus, and Cincinnati together in one passenger train run after the feds opened the treasury and doled out $400 million in free federal stimulus monies to create the route.

Currently, Cleveland has dreary nocturnal service in each direction courtesy of the Lake Shore Limited and the Capitol Limited. Cleveland has a metropolitan area population of 2.25 million, yet Amtrak passengers entraining and detraining only total 39,371 for fiscal year 2009. Cincinnati fares even worse, with only three days a week nocturnal service provided by the Cardinal. Cincinnati’s metropolitan area is almost as large as Cleveland, with an area population of 2.15 million souls. Hardly anybody notices the Cardinal in Cincinnati, with only 14,777 FY 2009 passengers entraining and detraining.

Columbus isn’t even on Amtrak’s map. The metropolitan area population is 1.77 million, not a small city.

The plan is to right this wrong by creating a four round-trips day train between the three cities and Dayton, with some extra stops along the way. Here’s the problem: Ohio’s governor wants to do this, Ohio’s Department of Transportation wants to do this, and the feds want to do this. But, the majority party in the Ohio state senate doesn’t want to do this, and some members of a state commission which ultimately have to sign off on this don’t want to do it, either.

The naysayers say thanks very much for the $400 million, but what about the small state matching money and funds for operating the trains? They are afraid Ohio will be in the same position as charity recipients are on that silly ABC Television reality show, Extreme Makeover Home Edition: Some goofy looking guy with bad hair who for whatever reason nobody can figure out has become a celebrity hands you a nice gift, but you can’t afford to keep it up or pay the taxes on it year after year. So, rail fans in Ohio are gritting their teeth, and can taste the new Three Cs corridor it’s so close. All of this comes down to convincing just less than a handful of people of the wonders of intrastate passenger train travel, and the Three Cs will be a reality.

The question must be asked: Has anyone educated these recalcitrant public servants about other state success stories? Have they quizzed their next door neighbors in Illinois about how successful those state trains are? Did they take a look at the country’s most important state, Virginia, and see how in just the first quarter of operations of the new Lynchburg train, the state paid no operating subsidy in the second month to Amtrak because ridership and revenue passenger miles were so successful? Did anyone consult with North Carolina, home to the country’s most enlightened state department of transportation on rail matters about how to run state-subsidized passenger trains successfully so the subsidies remain low or nonexistent? What about California, and its giant, successful state rail program?

All of this boils down to education and the proper presentation of facts. Most likely, Ohio politicians are relying on past Amtrak studies, such as last year’s Three Cs report, which predicted low ridership and high expenses, as Amtrak always does to prevent later finger pointing claiming the company was too optimistic. Instead of doing their own homework, they incorrectly relied on the work of someone else. Had they done their own homework they probably would have come up with a completely different set of numbers and been able to make far different decisions.

Another point of contention is the alleged speed of the proposed trains. The alleged forces of evil claim the overall speed is too slow for the money being spent. visions of high speed trains dance in their heads. Nobody told these folks about incrementalism, using relatively inexpensive conventional rail such as found in the Three Cs proposal as a building block and later feeder system for high speed rail.

The war in Ohio will continue until someone figures out a way to educate these politicians about the realities of passenger rail and the promise passenger rail holds for a balanced transportation system in the future. Until that day comes, Ohio will be a state of highways, not a state of transportation choices.



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If you are reading someone else’s copy of This Week at Amtrak, you can receive your own free copy each edition by sending your e-mail address to


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Copies of This Week at Amtrak are archived on URPA’s web site, www.unitedrail.org



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Tuesday, March 23, 2010

This Week in Amtrak

Sunset Limited in Houston.Image via Wikipedia



This Week at Amtrak; March 23, 2010


A weekly digest of events, opinions, and forecasts from



United Rail Passenger Alliance, Inc.

America’s foremost passenger rail policy institute



1526 University Boulevard, West, PMB 203 • Jacksonville, Florida 32217-2006 USA

Telephone 904-636-7739, Electronic Mail info@unitedrail.org • http://www.unitedrail.org



Volume 7, Number 10



Founded over three decades ago in 1976, URPA is a nationally known policy institute which focuses on solutions and plans for passenger rail systems in North America. Headquartered in Jacksonville, Florida, URPA has professional associates in Minnesota, California, Arizona, New Mexico, the District of Columbia, Texas, New York, and other cities. For more detailed information, along with a variety of position papers and other documents, visit the URPA web site at http://www.unitedrail.org.



URPA is not a membership organization, and does not accept funding from any outside sources.


--------------------------------------------------------------------------------

Volume 7, Number 10
Before we begin this week, a note from Bruce Richardson:

Amtrak will lose one of its most important human assets at the end of this month. Cliff Black, long the public face of Amtrak and its long serving spokesman is retiring after decades of service. He will be greatly missed by all of us who have known him professionally, and by those who have worked directly with him.


During his tenure at Amtrak there have been too many presidents of the company who have come and gone to keep count of, but, through each change of leadership at Amtrak the one constant has been Mr. Black’s deft handling of the news media and corporate communications. Any of us seeking true, honest information knew Cliff Black was the man to talk to; while keeping on message for his employer, he never led anyone in the news media astray, an amazing feat in today’s world of journalism.

A phone call to or from Cliff Black is always a few moments of pleasant diversion. A written message from him is always an honest missive, whether it contains good or bad news.

So, Mr. Black heads into the next part of his life, leaving the corporate world behind. All of us thank him profusely for his service to Amtrak and good journalism, and wish him well for the future. If his successor is just half as good at what Mr. Black does, then his successor will be a great success.

# # #

An ocean liner does not turn on a dime, and neither does a large corporation. Some parts of Amtrak are definitely changing course while others have not yet caught up.

Starting with the positive, we hear a few weeks ago that real china, linens, and glassware are returning to the Coast Starlight. This is certainly a good bit of news, and part of a refocusing on passenger needs. One wonders, however, how many surveys are required to determine that folks shelling out the equivalent of a fairly posh hotel room in most American cities, for their “first class” railway accommodations, expect a table setting in the diner to more closely approximate something saying “Lenox” than “Dixie Cup Company.” We do extend a note of approval to Mr. Brian Rosenwald, Chief of Product Development, and all those involved in the recent changes on the Starlight.

Then we hear from Amtrak spokesman Mark Magliari that Amtrak is also evaluating the Capitol Limited in a not dissimilar manner, looking also at the schedule. An article in the Cleveland Plain Dealer invites residents of that city to request Amtrak consider changing the wee-hour stops to something more amenable to civilized travel. We further commend the company for such recent emphasis on listening to advocates, railfans, and (gasp!) even their own potential customers, and fervently hope to see more “doing more with what we have.”

The key to Amtrak solving its financial and public-relations challenges will be getting more people on its trains — not just “doing more,” but adding capacity. Again we see positive developments in the rehabilitation of wrecked Superliners and an order for Viewliners… the beginning of what needs to be a long road.

Speaking of alternatives to wee-hour schedules, and doing more with existing routes and stations, we can now thank www.timetables.org — a new web site which has scanned all Amtrak’s historic timetables — for providing proof that, once upon a time, Amtrak operated at least one of its Western long distance trains on a twice-daily basis. Page 52 of the June 11, 1972 timetable shows both the Chief and the Super Chief operating Chicago-Los Angeles, on schedules several hours apart. Any railfan younger than 50 years old probably never knew this; certainly the popular railfan magazines never mentioned the fact in all the years I read them. One could well imagine all long-distance routes past the Eastern seaboard with two daily trains, spaced by eight or ten hours, providing convenient times in most every origin-destination pair… doubling revenue with little increase in station or system costs.

David Carleton writes,

At the very beginning of Amtrak, the railroads were still the operating agents running trains “for” the National Railroad Passenger Corporation. The Santa Fe and the SCL did at first add trains to the schedule during periods when they knew there would be heavier traffic…

In 1971, the El Capitan / Super Chief ran with six Hi-Level coaches containing 424 seats, and six sleeping cars containing eighty rooms with a total of 132 berths.

The Chief which ran in 1972 carried three Hi-Level coaches containing 208 seats and two sleeping cars of various configurations.

By 1975 the same operation (but renamed the Southwest Limited when a disgusted Santa Fe withdrew the rights to the traditional names) was down to three Hi-Level coaches containing 208 seats and three sleeping cars containing fifty-nine rooms with a total of 88 berths.

Remember, the year 1973 saw the Arab Oil Embargo, rationed gasoline, and folks looking for any alternative to driving. Little Japanese cars like the Honda CVCC (later the Civic) were all the rage, as Detroit rushed the Vega and the Pinto to market. Where were 1972’s second frequencies on 1973’s Amtrak? Mr. Carleton writes, “We can confirm based on our own direct observations that none of those trains ran empty!” Have we yet truly overcome obstacles to expanding our country’s passenger trains?

Judging by the past week’s Kansas rail study — no. The Lawrence (Kansas) Journal-World reports — http://www2.ljworld.com/news/2010/mar/11/amtrak-study-shows-routes-through-kansas/ — that “Ridership numbers have good potential, but [the] effort” to carry passengers between Kansas City and Fort Worth “will take years, officials say.” The study considered four options with start-up costs ranging from about $150 to $500 million (exclusive of stations), projecting 65,000 to 174,000 annual riders.

John Mills of Topeka noted in a forum elsewhere on the Internet that the study includes the addition of a second main track to 40 miles of the BNSF railway, at four million dollars a mile, rather than a more sensible six mile stretch of double-track and one new passing siding. Much more than that, he argues, is more a pure benefit to freight movement than a mitigation of the relative few minutes of delay introduced by a couple daily passenger trains, and thus should be partly paid for by BNSF itself. Bluntly, just as with last year’s flawed system expansion reports (the Sunset Limited east of New Orleans, the Pioneer and the North Coast Hiawatha) the Kansas study overstates the obstacles and understates the potential to get something moving quickly while seriously working with the railroads to improve even further. There’s much more to say about this, next time.

On the High Speed Rail front, Scott McCartney’s “blog” on the Wall Street Journal website ( http://blogs.wsj.com/middleseat/2010/03/09/lahood-to-airlines-get-onboard-the-high-speed-train/ ) noted that Transportation Sec. Ray LaHood, addressing the Federal Aviation Administration’s annual forecasting conference in Washington, D.C., said that within a few decades, American cities will be connected by high-speed rail – “whether airlines like it or not. ‘People want alternatives,’ he [LaHood] said pointedly. ‘People are still going to fly, but we need alternatives. So get with the program.’”

On the heels of Mr. LaHood’s comments comes an employee advisory from Mr. Boardman at Amtrak on Friday 19 March, regarding a new High-Speed Rail department at Amtrak to “be led by a vice president reporting directly to me.” The press release continues,

Specifically, this department will work on the planning and development activities that will allow us to significantly increase operating speeds above 150 mph (240 kph) on the Northeast Corridor. It will also pursue partnerships with states and others in the passenger rail industry to develop federally-designated high-speed rail corridors such as the new projects moving forward in California and Florida.

Amtrak’s leadership in this area is reaffirmed in the Passenger Rail Investment and Improvement Act of 2008 and we must make every effort to remain in that position.

That last paragraph sounds curiously aware of potential competition from the private high-speed railway operators of Europe and other shores. Who says competition is a bad thing?

Finally, and on this subject, we hear from Mr. Daniel Carleton. Until next week, gentle readers.

– \\/
William Lindley, Scottsdale, Ariz.

A Tale of Two (High-Speed) Rails; a lesson of pragmatism vs. phantasm
by Daniel Carleton
The awarding of the American Recovery and Reinvestment Act grants (ARRA) for High-Speed Rail projects has ended many months of speculation how the funds would be allocated. In all, $8 billion has been sown toward expanded and improved passenger rail service in America. The big winner is California with $2.3 billion going toward various projects, including a very small down-payment for their $45 billion HSR system. In comparison, Illinois, considered an early crony favorite, only picked up $1.1 billion; strange considering Chicago is the railroad hub of America.

However, there are two states which are poles apart in their passenger rail ambitions and ARRA grant requests: Wisconsin and Florida. Wisconsin is on tap to receive $822 million; the vast majority of this to reinstate service between Milwaukee and Madison, 80 miles. Florida sees things somewhat differently. The Sunshine State is bequeathed $1.25 billion for preliminary engineering on a high-speed railway between Tampa and Orlando, 84 miles. Why does four miles add $428 million to the tab? Moreover, the total estimated cost of the Tampa – Orlando route is $3.5 billion. Can both these plans be realistic?

In Wisconsin the idea is rather straightforward: reinstate passenger traffic between the state capitol, Madison, and the state’s largest city, Milwaukee. The right-of-way historically is former Milwaukee Road; part of the route, Milwaukee to Watertown, sees Amtrak’s daily Empire Builder. West of Watertown, the line is now governed by the Wisconsin & Southern Railroad, a local regional road. The Badger State has already committed $47 million dollars of state funds for two new fourteen-car TALGO trainsets to support their existing Chicago – Milwaukee service. Ostensibly, two more trainsets will be ordered to support this further expansion in service, and the concurrent increase in speeds to 110 mph, all of which is expected to be running by 2013.

Florida, in contrast, has opted to reinvent the flanged wheel by building an entirely separate railroad between Orlando and Tampa, as part of a larger goal of extending the system to Miami. The initial phase would see a new right-of-way established between or near the lanes of Interstate Highway 4. New stations would be built even though numerous ones already exist. A new station is planned for Walt Disney World even though Disney’s involvement has been the kiss of death for all previous HSR incarnations in Florida. Preliminary engineering is expected to be finished by 2011 and service by 2014.

The desire to utilize existing highway rights-of-way is manifold. On top of this list is the low-to-nonexistent cost of land acquisition. Yet, a brief look at the historical economic impact of highways should be reviewed before proceeding. When a new highway was built there was a positive financial influence; land at or near interchanges and exits became more valuable and businesses were built. However, over time traffic increased and transit times increased to the point of highway expansion. What was the economic impact of new lanes to an existing highway? Practically nil. The land at the interchanges and exits didn’t move and any extra business practiced comes no where near to paying for the lane addition. Does anyone realistically expect building a railroad adjacent to a highway, high-speed or otherwise, to have any different an effect? If built as planned, Florida’s HSR stations will be built at or near existing development. Whereas heavy construction will gain a short-term production there will be no long-term development. Is this worth $3.5 billion?

There is an existing railroad between Tampa and Orlando with a daily scheduled Amtrak train. The right-of-way is owned by CSX and is predominantly a secondary route to Tampa. (A small section between Lakeland and Auburndale will increase in importance once a new yard in Winter Haven is completed.) This former Atlantic Coast Line trackage rolls through the heart of numerous well established central Florida towns such as Plant City, Lakeland, and Kissimmee; Lakeland having built a brand new station in 1998. Anchoring the west end of this corridor is Tampa Union Station, which was completely renovated and dedicated also in 1998. Orlando does not currently have the best station for the riding public. This situation which will change with the coming of SunRail commuter train service and a new intermodal station built downtown; Lynx Central Station. As of right now none of this existing infrastructure is slated to be utilized for Florida’s HSR ambitions. Is this really an act of recovery or reinvestment?

What if Florida were to, instead of reinventing the flanged wheel, rebuild the existing corridor? The existing highway and its associated development will not go away; the fast food restaurants, big box stores and movie multiplexes are not likely to blow away with the wind. Rebuilding the existing railroad would mean an opportunity for growth to the towns and cities who owe their origins to the railroad. Downtown Tampa, where Union Station is already situated, could once again be made vibrant. Similar could be said of the smaller towns which atrophied or shrank in the highway age. What this means is jobs. Already development is seen, either on the ground or on the drawing board, around the area to be served by SunRail. There is no reason this cannot be expanded west. What does it say about governance when glitzy ambitions are placed ahead of the people’s needs?



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If you are reading someone else’s copy of This Week at Amtrak, you can receive your own free copy each edition by sending your e-mail address to



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Tuesday, September 29, 2009

This Week in Amtrak

A double-deck passenger sleeping car of China ...Image via Wikipedia

This Week at Amtrak; September 9, 2009



A weekly digest of events, opinions, and forecasts from



United Rail Passenger Alliance, Inc.

America’s foremost passenger rail policy institute



1526 University Boulevard, West, PMB 203 • Jacksonville, Florida 32217-2006 USA

Telephone 904-636-7739, Electronic Mail info@unitedrail.org • http://www.unitedrail.org





Volume 6, Number 36



Founded over three decades ago in 1976, URPA is a nationally known policy institute which focuses on solutions and plans for passenger rail systems in North America. Headquartered in Jacksonville, Florida, URPA has professional associates in Minnesota, California, Arizona, New Mexico, the District of Columbia, Texas, New York, and other cities. For more detailed information, along with a variety of position papers and other documents, visit the URPA web site at http://www.unitedrail.org.



URPA is not a membership organization, and does not accept funding from any outside sources.



1) Do you choose greatness, or mediocrity? Do you choose a healthy, robust passenger rail system, or a continuation of the shame of Amtrak as we know it today?



At the beginning of the 1950s, America still had the greatest passenger rail system in the world. By the end of the 1950s, that system, through the introduction of the Eisenhower Interstate Highway system and the Boeing 707, had started sliding first into depressing mediocrity, and then, by Amtrak Day in 1971, an abysmal black hole.



Yet, we, as the greatest nation on earth, have accepted Amtrak because we’ve been told time and again it’s the best we can expect. Falsely, we’ve been lectured to that it was a matter of money. So many people have blindly believed that annoying canard.



Falsely, we’ve been indoctrinated that passenger rail is rightly a child of government, because no one is smart enough to understand how to run passenger rail without the financial strength of government.



Sadly, as a nation we’ve bought into all of this degenerate rhetoric because the glamour and glitz of passenger rail was snuffed out with the last runs of the Twentieth Century Limited, Broadway Limited, Super Chief, North Coast Limited, and Florida Special.



We looked to the skies filled with jets from Pan Am, Eastern, National, TWA, and Braniff for our glamour and glitz. The Hunt Breakfast which used to be served in first class between Phoenix and the West Coast on Western Airlines replaced the spotless linen of the dining car on the Golden State of the Rock Island and Southern Pacific railroads.



The siren of the complete freedom of the automobile tugged at the restlessness in our breasts and souls, ever seeking to explore new places and stay along the way in always dependable Holiday Inns and Howard Johnson’s motels instead of the slightly swaying bed of a Pullman sleeping car. In every Holiday Inn or Howard Johnson’s room you had a private bath and a shower. On a Pullman sleeping car, you had a lavatory sink for bathing.



Instead of creating the next generation of long distance trains, we created child of government, Amtrak. Yes, Amtrak gave us Amfleet, but, really, is an Amfleet coach seat any more comfortable than a coach set on any previous Budd built or Pullman Standard coach? And, yes, Amtrak gave us Superliners and Viewliners, but, if left up to private innovation without the heavy hand of government regulation, what would we have had today instead from the private marketplace?



We already had the Metroliner on Pennsylvania Railroad’s Northeast Corridor. That was a huge step forward; what else would we have had? Perhaps, a still functioning Pullman Standard passenger car manufacturing company in Chicago? American ingenuity instead of Canadian, European, and Korean ingenuity? Would we have had the disappointment of Acela trainsets without them being created by a company that was a child of government? Perhaps, if complete accountability had come into the picture, would the many trials and tribulations of Acela never have occurred?



As a nation, we are on the cusp of perhaps the next golden age of railroading on many levels. Public and private partnerships are being forged where everyone is a winner. Private freight railroads are weathering the recession, and seemed poised to come back strong as business revives. In the meantime, more and more managers have come to understand there is money to be made in the passenger business. Most people have no clue how much activity there is currently in the private marketplace for new and innovative passenger plans. But, it’s there, all working in the glory of the free market system.



If we’re fortunate, we as peoples of North America will continue to come to rediscover the many advantages of passenger rail on every level. Those with vision will rise to the top, leaving shuffling bureaucrats and negative attitudes of “no, we can’t” back in the dust.



The day is coming. Are you ready?



3) Words, names, labels – they all matter when it comes to how we think about things. William Lindley of Phoenix, Arizona suburb of Scottsdale has a few words on the subject.



[Begin quote]



By William Lindley



There has been much hand-wringing about the terms "high speed rail" and "commuter rail" in the United States. This has occurred because most of the new "high speed" systems aren't really all that fast compared to Spain's, France's or Japan's, and because many of the new "commuter rail" systems have broken from the 1950s-think "inbound mornings, outbound evenings" schedules.



This is evident in the August 2009 Railway Age magazine. Railway Age writes more about expansion of passenger rail across the country – with the sometimes supportive, sometimes grudging approval of the Class I railroads – than would have even been seriously considered as a guest editorial in a "fan" magazine like Trains magazine 20 years ago.



Before we as a nation consider new services, let's look at how terminology and "old-think" have stifled the growth of passenger trains and transit for years.



In my college years at Northeastern University in Boston, Massachusetts, I grew to be friends with the late George Sanborn, the "puckish" – the Boston Globe's word, not mine – librarian of the State Transportation Library. George, who started with Boston’s transit service, the MBTA, when it was still the Boston Elevated Railway, seemingly knew everything about the history and future of transit in the Bay State. He got me not just understanding the past, but thinking about shaping that future – he turned me from a "railfan" into an "advocate."



Two things stand out which were gleaned from Mr. Sanborn – one, a 1904 map illustrating the "Steam Railroads and Street Railways of Massachusetts," and the other, the opening of the Alewife extension of the Red Line in 1984-1985. The latter made George laugh as he showed me the original plans to extend the Cambridge Subway – as the Red Line was originally known – very much along the 1980s alignment, to Arlington, and even as far as Lexington, and they were dated 1912! Clearly, the wheels of progress grind slowly. And as to that 1904 map – compare it to the modern MBTA "commuter rail" lines and the bus lines, and there are few differences. This despite that streetcars were in high competition with railroads for local passengers.



Indeed, even today, local and express buses in Boston exist in almost complete denial of commuter trains. In my old hometown of Bedford, Massachusetts, there is no attempt by transit to connect the town with train lines which operate in Concord – just a few miles west – or to the Burlington Mall, three miles to the east, or either to Mishawum station in Woburn, 10 miles to the east.



I then lived in Woodbridge, Virginia, where the onetime "Prince William [County] Commuteride" buses have been replaced by "PRTC" – which still runs express buses to the Pentagon, flying in the face of the fact Virginia Railway Express trains have existed since 1992. True, the Pentagon employs tens of thousands, but why is a public bus company designed to serve a single building, instead of the whole city? There are a couple local loop shuttles in Woodbridge, but they make paltry connections to the VRE station there... clearly, there is no thought of a transportation “system” – just a variety of disconnected bits.



Countless examples surely abound across the country. So long as our transit modes, even ones operated by the same agency, refuse to co-operate and work as a local matrix, they will never fulfill their proper roles, and will waste billions of taxpayer dollars on inefficiency.



Part of the problem is not just "we have always done it that way," but the terminology itself. Words are powerful.



In my current hometown of Phoenix, Arizona – since 1991 – the transit system has improved much in 20 years, but still has far to go. I fought for years to get a "drop-off only" sign at the Valley Metro Route 532 express bus stop at Scottsdale and McKellips Roads removed... because even though the Bus Book said the bus stopped there, the drivers wouldn't let passengers – who had departed the morning bus there from Mesa to go to Arizona State University in Tempe or to work in Scottsdale – back on in the evening! The bus was designed only to carry people downtown, and the drivers were told not to let paying passengers on who wish to make the return trip. Amazing.



This sort of foolishness persists today in newer "Rapid" buses, designed again as "commuter" routes. These Rapid buses run in from the west from 79th Avenue along Interstate10, about nine miles to the State Capitol at 19th Avenue, making local drop-offs downtown – and then turn around and run back to 79th Avenue empty... despite other Rapid buses from east Phoenix are arriving off I-10, making local stops downtown and running back empty to the east from the Capitol! Apparently, nobody is permitted to desire to wish to travel from west to east through downtown – as if there are no jobs in the west valley which attract east valley workers, or vice versa. Better to run empty buses in the mindset of transit managers!



The same "commuter only" mentality has been turned on its head now that the same Valley Metro has surveyed the riders of its new trolley system. Not only did a near majority of train riders rarely, if ever, use buses previously, but most trips were not "commuter oriented," but trips to lunch, to visit friends, or just for fun. These trips were utterly missed by all the traditional projection models in the original design.



Meanwhile, despite all indications these trains are used not for commuting, but for everyday, all-day travel – 35% of METRO riders surveyed are new to transit, and 40% use light rail to travel between home and a destination other than work – Valley Metro is forging ahead with an ill-conceived extension west in the median of I-10, which will have just two or three stops, each located unwalkably over a quarter of a mile from anything, with platforms surrounded by screaming, diesel-belching, tire-dust shredding-18-wheelers... stations sunken in the depressing concrete canyon which is a modern superhighway.



This scenario, despite that "commuter rail" surely will run on the parallel Union Pacific tracks a mile or so away within a few years, and despite that Thomas Road, parallel to, and a mile and a half to the north of I-10, has the highest bus ridership of any in the system – Thomas being fronted by apartments, shopping, and offices along its entire length. Valley Metro refuses to give up the misguided highway routing and put the trolley where it would actually serve real people, instead of the imaginary commuter traffic models projected.

Even more baffling, Valley Metro never gave its train stations any names – just intersection addresses. Instead of "Sun Devil Stadium," which is a landmark at Arizona State University, the adjacent station is called "Veterans Avenue and College Way" – a place even Congressman Harry Mitchell, formerly mayor of Tempe for years, had no clue where it was after he said he was off to ride the train. Is it any wonder the common man can't figure out how to talk about the stations? One magazine apparently gave up on such unwieldy names, and prints a map of the confusingly long names and then says, "This delightful restaurant is located at Station 7."



All this shows why "old think" and the associated buzzwords "commuter rail" – even modern buzzwords like "regional rail" and "high speed rail" – need to be discarded. They encourage "wrong-think." (Please excuse my temporary lapse into Orwell's Newspeak.) The old ways and ill-chosen words lead not just in unease in the public's mind, but in the planner's mind, as well.



Instead, let us take a cue from what worked before. Instead of "commuter rail" and "regional rail," consider Local Trains. Some of these, yes, serve commuters – but the emphasis is local, all day, every day, cross-town connectivity.



Instead of "high speed corridor" trains, let us have Express Trains. And overlaid on this, instead of thinking "intercity train," which locks us into the early 1970s mindset – Limited Trains.



Both historically in the United States and across modern-day Europe, it is the network – the matrix – of a variety of trains, which make a viable system. Europe's fast TGV, Thalys, or AVE trains depend on connections with local trains, streetcars, and buses to feed and distribute passengers to endpoints. In France, SCNF trains code-share with numerous airlines, permitting through-booking to a variety of French cities.



Most important, high-speed operators like Thalys and AVE run both types of trains which make just a few stops between their endpoints, as well as some serving a few suburban stops and intermediate cities.



Amtrak has attempted on several occasions to run non-stop endpoint-to-endpoint trains, such as Metroliners in the Northeast Corridor and in the Pacific Surfliner corridor. All these attempts suffered low ridership, partly because few passengers wanted to go only from downtown to downtown, but also because of missing, or poorly coordinated local train service.



Perhaps today, with proper integration with Pacific Surfliner partner train services of Coaster, Metrolink, and Los Angeles subways, an express Surfliner might make more sense than a decade ago, but unless major intermediate stops like Oceanside are added, the matrix effect is so greatly diminished, such a service only would be reasonable as a supplement when the regular trains become over crowded.



The Matrix effect – not just among trains of equal class but among all trains and local transit, is the driving force behind a successful national transportation system. Ideally, at major gateway cities – spaced across the country in a grid, each no less than 150 miles apart – limited trains from multiple directions would converge several times a day to permit transfers to all points... not unlike what airlines do with hubs. At these gateway cities, local trains would provide the links to the surrounding suburbs and smaller cities, while Express trains would give fast links for connecting passengers to nearby metropolitan areas.



As the matrix of different trains and transit increases, and the number of daily trains increases, the need for Clever Scheduling decreases. Amtrak, traditionally having just one train a day on most routes, needs Clever Scheduling to operate its skeleton system. Yet, when each route sees two to four daily trains, there is always a train in a few hours... which solves many problems, from minor delays causing major inconveniences, to crew rest times and expensive overnight hotel stays at Amtrak's expense. When stations are staffed full-time, they cost less per passenger to run – even with a larger staff – than a station open just a few hours a day.



The single factor hobbling rail ridership today is that you simply can't get there from here, with the exception of a few places depending where "here" is. If you live in Dallas, you can get to Oklahoma City, St. Louis or Chicago, El Paso or Los Angeles – and basically nowhere else. Let's see how that changes with a matrix.



I've placed a sample "timetable" of sorts at http://unitedrail.org/images/20090908.html which shows just some of the places you can get to, with a single connection from a train in Texas, under the late Dr. Adrian Herzog's updated plan, as featured in this space in August.



Indeed, in this snapshot chart, there are far more transfer points and far more intermediate destinations than can be shown on a single chart – but, if you compare this to today's connections (shown in red), there are many more x's in Dr. Herzog’s proposed matrix.



As the number of destinations increases dramatically, and convenience increases when there is more than a single train a day to most places, the train becomes a serious transportation option for more and more travelers.



Dr. Herzog wrote in 2000, "...interconnecting a network into a complex matrix of origin-destination pairs even at constant levels of market penetration drives increases in transaction volume (ridership) exponentially."



Serious growth is unprecedented on trains in America since the advent of subsidized highways, but across Europe, ridership in many places is at or above historic highs, even as highway and air travel continue to be strong and grow.



True, air ridership has dropped dramatically in places where high-speed trains now run; and indeed, Air France may bid to operate trains on SNCF's lines; but realistically, operating jetliners for distances of much less than 500 miles makes little economic sense. Once a plane and crew has spent the time and fuel to climb to altitude, it costs relatively little to fly a few more hours. This doesn't even count the maintenance expense and ground charges incurred with each takeoff and landing. Airplanes do what they do very well, and so do trains; but there is little overlap.



In each metropolitan area, then, we begin with a base matrix of pedestrian access, bicycles, city buses, streetcars, and subways. Overlaid on this is a matrix of local trains, serving a greater metropolitan area with all-day, in addition to peak period, service. Overlaid on that are express trains which start on one side of a city, call at the downtown station and again on the other side, and make a few more stops into one or more cities down the line... calling at airports and selected city or suburban transit hubs, passing through the final downtown, and terminating on the far side of the destination city.



The final layer is our limited trains – somewhat like today's intercity services – which connect the country from west to east, south to north, in a matrix, a grid so you can get there from here. Often these Limiteds may call only at one or two stations in each city besides the main downtown terminal, but they almost never make a single stop, except for major intermediate cities or destinations.



The Limiteds must connect with the Express and Local trains, and directly with the airports, where possible. And, almost every Limited train, because there will be two to four of them each day on each route, will continue to serve small town America – places like Deming, New Mexico; Whitefish, Montana; and Alpine, Texas. In the wide open spaces of America, these trains become a mix of long-distance and local.



You can already see this on today's Amtrak trains... sit in the lounge car and chat with a German tourist on one side and the college kid from Green River, Utah going to Lincoln, Nebraska on the other. The Limiteds are not endpoint-to-endpoint services – that's the oldthink – rather, they are the interconnection which make the whole underlying matrix work.



[End quote]



3) The latest from Ken Orski, at Innovation NewsBriefs. This is Volume 20, Number 17. For more information, visit www.innobriefs.com.



[Begin quote]



September 8, 2009



Congress Will Most Likely Extend the Existing Transportation Authorization



Among the pressing legislative priorities facing Congress this autumn – besides the highly visible health care and climate change bills – is an extension of the federal surface transportation program. The program authority expires on September 30 and its renewal is essential to keep the federal transportation money flowing. As we reported in our NewsBrief of August 8 on the eve of the congressional adjournment, the House and the Senate have been on divergent paths in their approach toward renewing the program. The House Transportation and Infrastructure Committee, under the leadership of Chairman James Oberstar (D-MN), has been intent on passing a six-year $500 billion surface transportation measure ($450 billion for highways and transit, $50 billion for high-speed rail) during this session of Congress. In late July, a bill to this effect was reported out by the House Highways and Transit subcommittee. Chairman Oberstar announced at the time that he would hold a full committee mark-up soon after the House returns from its summer recess.



The Senate, on the other hand, has been working toward an 18-month extension of the existing surface transportation program. Its rationale for doing so was succinctly stated by Sen. Barbara Boxer (D-CA), chairman of the Environment and Public Works Committee and Sen. James Inhofe (R-OK) ranking minority member. There simply is no way, the two senate transportation leaders concluded, that Congress could pass a multi-year authorization of the surface transportation program before the program’s expiration at the end of September. "There are just too many big questions left unanswered, not the least of which is a lack of a consensus on how to pay for it," Boxer and Inhofe stated. A better approach, they said, would be to pass an 18-month extension as recommended by the Obama Administration. Left unsaid were probably two other motives for wanting to postpone enactment of a long-term legislation: (A) an 18-month extension would allow the Senate to take a more active role in shaping the legislation and influence the nation’s future transportation policy; and (B) by early 2011, a more favorable economic climate might allow a significant boost in federal fuel taxes – a boost that both the Senate and the House leaders have ruled out during the current economic recession.



Three Senate committees having jurisdiction over the surface transportation program (the Environment and Public Works (EPW) Committee; the Commerce, Science and Transportation Committee; and the Banking, Housing and Urban Affairs Committee) completed action on their bills to extend the existing program before the recess. Also approved was a measure that would effectively ensure adequate funding for the 18-month extension. The bill in question (S. 1474), sponsored by Finance Committee Chairman Max Baucus (D-MT), would replenish the Highway Trust Fund through a transfer of $26.8 billion from the General Fund. The funds were said to represent reimbursements for lost interest payments owed to the Fund since 1998 and for past disaster emergency expenditures.



This briefly summarizes the situation as it appeared when Congress adjourned for the summer recess. What follows is an attempt to assess the likely course of events in the days ahead. Our analysis is based on conversations with sources on Capitol Hill and members of the Washington transportation community. The report presents a snapshot view of the situation as we see it at the time of publication in early September. Nothing can be asserted with certainty, however, until the Senate and House leaders have sat down and hammered out a negotiated compromise sometime during the month of September.



Where the Matter Stands in the House



Chairman Oberstar says he has a commitment from the House leadership to bring the bill to the House floor by the third week of September if the Ways and Means Committee can come up with the revenue title to the bill. That's a big "if". So far, the W&M Committee has given no indication where the money might come from. According to press reports, a majority of the members of that committee are opposed to any tax increases as a means of funding the proposed $500 billion bill. Significantly, only 15 of the 41 committee members went on record in a July letter to committee Chairman Charles Rangel (D-NY) supporting "prompt action" (i.e. in September) on a revenue package for the bill.



In the opinion of many observers, hope for the enactment of a long term transportation bill this year all but vanished when Rep. Oberstar himself acknowledged that he does not favor raising the fuel tax at this time to pay for the $500 billion transportation program. He made this admission in testimony before a hearing of a House Ways and Means Subcommittee on July 23. "Although increasing and indexing the gasoline and diesel user fee is a viable financing mechanism, ... I do not believe that the user fee should be increased during the current recession," Oberstar stated in his opening statement, echoing the posture previously taken by the White House and Transportation Secretary Ray LaHood. Although he suggested other potential sources of supplementary funding, Oberstar deferred to the Ways and Means Committee. "The Committee on Ways and Means," he said in concluding his testimony, "must undertake the difficult task of identifying the revenue to finance this bill...We’ll take any dollar you can scare up for us for the trust fund."



By taking the gas tax increase off the table, Rep. Oberstar acknowledged a political reality but also removed from consideration the most logical source of additional revenue. Other funding options appear limited. One solution could be to use general tax revenue to fund a transportation-focused "Stimulus II" bill . Such a measure might conceivably be rationalized as helping to bring down the level of unemployment – should high joblessness persist. A second option could take the form of a major bond issue to be financed by additional revenue generated from indexing the gas tax at some future date. Both options have been hinted at by Rep. Oberstar and Rep. DeFazio (D-OR) in past interviews. But political analysts do not consider either option as plausible, since both lack congressional and Administration support. Neither Congress nor the White House are eager to add to the already sky-high budget deficit. Several other funding options suggested by the T&I Committee leaders — such as imposing a fee on imported and domestic crude oil; taxing crude oil futures transactions (the subject of a DeFazio-sponsored bill, HR3379); and a flat sales tax on the purchase of gasoline — stand even less chance of congressional approval.



The Senate is Poised to Take Action



According to Sen. Inhofe, he and Sen. Boxer have obtained a commitment from Senate Majority leader Harry Reid (D-NV) to schedule the 18-month extension bill for early floor action, possibly as early as the week of September 7. The bill also will serve as a vehicle for repealing the $8.7 billion rescission of federal highway program contract authority required to take effect on September 30. Prompt action on the extension bill is necessary, say Senate sources, before states take irreversible steps to cancel existing contractual commitments to comply with the spending cutback. Pressure to repeal the scheduled rescission has been intense. In late July, AASHTO sent a letter to members of Congress noting that failure to promptly repeal the provision would lead to "devastating consequences" for the states. Sen. Kit Bond (R-MO), author of an amendment to repeal the scheduled rescission, has been equally emphatic: All 50 states will face "drastic cuts" to their highway programs, he said, if the highway rescission is not promptly repealed. The cuts could lead to 250,000 jobs lost in the construction industry, Bond noted.



Given an almost certain approval of the extension/rescission measure by the full Senate, the transportation community is rife with speculation as to the ultimate resolution of the Senate-House conflict. Undoubtedly, an extension of the existing program authority would provide more time to develop a broad-based consensus among the stakeholders on the needed policy changes and program reform. Such a consensus hardly exists today as our survey of transportation stakeholders has shown (see, NewsBrief, July 11.) Postponing the enactment of a multiyear authorization would also offer the Senate and the Administration a chance to participate more fully in the overhaul of the nation's transportation policy. This argument, we suspect, while seldom expressed openly, is probably in the back of the minds of many Senators and senior Administration officials. The current House version of the authorization bill has been developed with virtually no substantive input from the Senate or the Administration, sources tell us.



Whether a full 18-month extension is needed or appropriate is a matter of judgment. It may be argued that a postponement until the spring of 2011 makes sense because passage of a gas tax increase will be politically more feasible in a post-recession economy. But others argue that getting a gas tax increase enacted in the spring or summer of 2011 is not going to be politically any easier. An 18-month extension would expire a mere three months after the start of a new Congress. With new faces and a possible political realignment in Congress, the extension could easily morph into a two-year or longer delay. This point of view has been emphasized by Rep. Oberstar: "An 18-month extension will just take us into the next presidential election cycle," he observed, "so it [the extension] will turn into four years."



Since both houses and both political parties are anxious to keep the transportation money flowing, the current conflict will be resolved through a compromise. The House will most likely drop its insistence on passing a multi-year transportation bill during this session of Congress; in return, the Senate will probably consent to a shorter extension of say, 8 or 12 months— especially as there already is some sentiment for a shorter extension among certain senators. The compromise will be sought in a Senate-House conference before the end of September in order to avoid any disruption in the federal transportation program.



Searching for a Consensus on a New Reform Agenda



Postponing the enactment of a long term transportation authorization does not have to mean a pause in searching for a broad consensus on a new vision for transportation policies and programs. Indeed, a National Transportation Policy Conference, to be held September 9-11 at the University of Virginia’s Miller Center of Public Affairs in Charlottesville, may mark the beginning of such a search. Co-chaired by two former Secretaries of Transportation – Norman Mineta and Samuel Skinner, and directed by former Undersecretary of Transportation Jeff Shane, the Conference will aim to develop "an informed, forward-looking, credible agenda to guide the legislative process." Panelists and invited participants include some of the best known and most highly regarded members of the transportation community.



The Conference will begin by reviewing the current state of thinking about transportation policy reform by examining the recommendations of the two congressionally-chartered transportation commissions, and the reports of the Brookings Institution and the National Bipartisan Policy Center. It will then focus on four problem areas: funding, urban congestion, freight movement and multi-modalism. The Conference will conclude with a roundtable in which participants will develop a set of "clear, credible and achievable legislative and policy recommendations for a new transportation authorization." The Conference findings and recommendations will be presented to leaders in Congress and the Administration and to the editorial boards of major newspapers (they also will be featured in a special edition of the NewsBriefs).



We think the conference will mark an auspicious beginning to a dialogue that will reach across ideological lines and develop a true bipartisan consensus on a "transformative" national transportation policy and program.



[End quote]



4) Some of the old silliness and modal envy is still hanging around, particularly in organizations which allegedly claim to help Amtrak.



There is still whining about all of the horrible unfairness of it all; those mean, nasty, ugly highways are sucking up all of the money, and there is no money left to shovel into rail. After all, these ill-informed people say, no passenger system in the world makes money, right? So, why can’t passenger rail have more free government money?



Such unabashed hogwash.



The only people saying silly things like that are people who believe in the nanny state, and government is the cure-all for everything, and government can solve all problems by spending someone else’s money.



None of these people stop to have a rational thought or (Gasp!) come up with a real reason to support passenger rail. The real reason is not because highways get all sorts of money. The real reason is because a true case for passenger rail can be made through a rational business plan.



It’s all about having a solid business plan which provides the greatest return on investment. It’s not about forcing people involuntarily out of their private automobiles, and it’s not about taking money away from air traffic control. It’s about showing people investment in rail provides a desirable alternative which produces results.



The reality is, in this big, huge, endless horizon country of ours, automobiles are never going away. While smaller, more efficient cars may be suitable for city driving, big, brawny, oversized trucks and SUVs are best for rural driving and real work. Telling drivers of either to leave their vehicles at home and get on a train will only generate stares at you, with people wondering if you’re from another planet.



Making comparisons to small-space countries like those in Europe, or pint-sized spaces with big populations like Japan makes no sense, either. After the devastation of World War II and the subsequent rebuilding, those spaces were rebuilt based on existing rail and rail cultures.



After WW II here in North America, we, as a nation, chose to create the Eisenhower Interstate Highway system, and paired that with the Boeing 707 jetliner.



Those choices created our current culture of transportation, which will last for generations to come. Nothing is going to change overnight.



However, wise people such as former Federal Railroad Administration Administrator Gil Carmichael have come up with a plan, which he dubbed Interstate II.



Interstate II take the innovation and formulas of the Eisenhower Interstate Highway system and applies it to rail for the twin benefits of freight and passengers.



It’s a plan which makes a lot of business sense. It combines many of the best features of free markets and capitalism with the strengths of government to create a fluid, practical system of moving freight and passengers.



Stop making the case for passenger rail based solely on what someone else receives in free federal monies. Make the case based on hard, cold, facts such as the overall lower cost of building rail infrastructure, better operations costs, and the automatic benefits which come with passenger rail development. Leave the whining to the other guys who have to work much harder to make their case.



It has been demonstrated time and time again, whether on a local, regional, or national level, when the traveling public is offered a reasonable choice through passenger rail, enough travelers willingly choose rail without provocation, but simply through free choice.



Free choice always make the most difference.



5) The always superb and informative Passenger Train Journal magazine has hit the news stands with its latest issue, 2009-3, Issue 240. Discerning readers may be interested in pages 30-33, “A fresh look at Amtrak’s map,” which is a condensed version, with a delightful map, of a previous This Week at Amtrak issue from earlier this year.



As always, the gentle hand of editor Mike Schafer has produced a most satisfying product.







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J. Bruce Richardson

President

United Rail Passenger Alliance, Inc.

1526 University Boulevard, West, PMB 203

Jacksonville, Florida 32217-2006 USA

Telephone 904-636-7739

brucerichardson@unitedrail.org

http://www.unitedrail.org

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Sunday, August 09, 2009

This Week in Amtrak

This Week at Amtrak; August 10, 2009



A weekly digest of events, opinions, and forecasts from



United Rail Passenger Alliance, Inc.

America’s foremost passenger rail policy institute



1526 University Boulevard, West, PMB 203 • Jacksonville, Florida 32217-2006 USA

Telephone 904-636-7739, Electronic Mail info@unitedrail.org • http://www.unitedrail.org





Volume 6, Number 29



Founded over three decades ago in 1976, URPA is a nationally known policy institute which focuses on solutions and plans for passenger rail systems in North America. Headquartered in Jacksonville, Florida, URPA has professional associates in Minnesota, California, Arizona, New Mexico, the District of Columbia, Texas, New York, and other cities. For more detailed information, along with a variety of position papers and other documents, visit the URPA web site at http://www.unitedrail.org.



URPA is not a membership organization, and does not accept funding from any outside sources.



1) The magnificence of the wisdom of other allows us to think beyond normal boundaries. This issue is devoted to thoughts and information from three impeccable sources.



First, the latest issue of Innovation NewsBriefs from Ken Orski, Volume 20, Number 14, dated Sunday. Mr. Orski can be reached at www.innobriefs.com.



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August 9, 2009



What Can We Expect from Congress in September?



Congress has adjourned for the summer recess with neither house taking action to extend the federal surface transportation program. Understandably, the transportation community is rife with speculation about what is likely to happen in September when the existing program authority is scheduled to expire. Here are our thoughts, based on informal conversations with congressional sources and members of the Washington transportation community.



Hope for a timely enactment of a long term transportation bill this year all but vanished when Rep. James Oberstar (D-MN), chairman of the House Transportation and Infrastructure Committee, acknowledged that he does not favor raising the gas tax at this time to pay for the $500 billion transportation authorization ($450 billion for highways and transit, $50 billion for high-speed rail). He made this admission in testimony before a hearing of a House Ways and Means Subcommittee on July 23. "Although increasing and indexing the gasoline and diesel user fee is a viable financing mechanism, ... I do not believe that the user fee should be increased during the current recession," Oberstar stated in his opening statement, echoing the posture previously taken by the White House.



Instead, the T&I Committee chairman and Peter DeFazio (D-OR), chairman of the Highways and Transit Subcommittee, suggested several potential sources of additional revenue to supplement the gas tax and close the funding gap. Among them were: (1) Restoring funds to the Highway Trust Fund owed to it for Emergency Relief and forgone interest; (2) Issuing $60 billion worth of Treasury bonds (the bonds would be repaid over a period of ten years, possibly using additional revenue generated from indexing the gas tax); (3) Imposing a fee on barrels of imported and domestic crude oil; (4) taxing crude oil futures transactions (a bill to this effect has been introduced by Rep. DeFazio in the House, HR3379); (5) Freight-related fees to finance freight-related infrastructure improvements. None of the options, however, come near to raising the $214 billion in additional revenue needed to finance the six-year program.



Committee Ranking Republican John Mica (R-FL) took a somewhat different view. "The gas tax is basically dead," he declared. Instead, he said, we should adopt a flat sales tax on the purchase of gasoline. Mica also saw added revenue potential in public-private partnerships, expansion of the Transportation Infrastructure Finance Innovation Act (TIFIA) credit assistance program, and the creation of an infrastructure bank.



U.S. Department of Transportation Undersecretary for Policy Roy Kienitz, testifying at the same hearing, threw cold water on all such proposals. The Obama Administration will not back any new funding sources at this time, he said.



In the end, Chairman Oberstar deferred to the Ways and Means Committee. "The Committee on Ways and Means," he said in concluding his testimony, "must undertake the difficult task of identifying the revenue to finance this bill...We’ll take any dollar you can scare up for us for the trust fund."



Meanwhile, in the Senate...



In the meantime, the three Senate committees having jurisdiction over the surface transportation program (Environment and Public Works (EPW) Committee; Commerce, Science and Transportation Committee; and Banking, Housing and Urban Affairs Committee) completed action on their bills to extend the existing program for 18 months, as proposed by the Administration. These bills are to be merged with a measure (S 1474) introduced by Finance Committee Chairman Max Baucus (D-MT) to replenish the Highway Trust Fund through a transfer of $26.8 billion from the General Fund. The funds are said to represent reimbursements for lost interest payments owed to the Fund since 1998 and for past disaster emergency expenditures.



Shortly before adjourning for a month-long summer recess, the House and the Senate approved a transfer of $7 billion from the General Fund to the Highway Trust Fund's Highway Account to avert an immediate cash shortfall in the Trust Fund. The transfer represents about one-third of the amount requested by the Administration for its proposed 18-month extension. As approved by the House and the Senate, the bill does not contain an extension of authority for the federal surface transportation program. That issue will be considered in September, after Congress returns from its summer recess. In the Senate, committee action has been largely completed. All that remains is pulling the 18-month extension bill together (with its proposed $26.8 billion funding authorization, probably reduced by the $7 billion transfer) and bringing it up to the floor for a full Senate vote. Senate approval of the measure is virtually assured.



As for the House...



In the House, the situation is more complicated. Rep. Oberstar has announced that he will hold a full committee mark-up of his $500 billion, six-year surface transportation authorization bill when Congress returns from its summer recess. Sources tell us he has a commitment from the House leadership to bring the bill to the House floor by the third week of September if the Ways and Means Committee can come up with the revenue title to the bill. That's a big "if". So far, the W&M Committee has given no indication where the money might come from. According to press reports a majority of the members of that committee are opposed to any tax increases as a means of funding the proposed $500 billion bill. Significantly, only 15 of the 41 committee members have gone on record in a letter to committee Chairman Charles Rangel (D-NY) supporting prompt action (i.e. in September) on a revenue package for the bill.



By taking the gas tax increase off the table, Rep. Oberstar acknowledged a political reality but also removed from consideration the most logical source of additional revenue. Other funding options are limited. One possible solution would be to use general tax revenue to fund a transportation-focused "Stimulus II" bill. Such a measure might conceivably be rationalized as helping to bring down the level of unemployment – should high joblessness persist. A second option could take the form of a major bond issue to be financed by additional revenue generated from indexing the gas tax at some future date. Both options have been hinted at by Rep. Oberstar and Rep. DeFazio in recent interviews. But political analysts consider them a remote possibility because of a lack of congressional or Administration support. Neither Congress nor the White House are eager to add to the already sky-high budget deficit.



Another alternative would be to reduce the size and scope of the transportation program to match the expected income to the Highway Trust Fund (HTF). According to Rep. Oberstar's testimony before the House Ways and Means subcommittee, the fuel tax and other excise taxes are expected to generate $236 billion at current rates over the next six year period – or roughly $40 billion/year. However, the appropriation bills for FY 2010 (as approved by the House and the Senate appropriations committee) contain respectively $51.6 billion and $53.6 billion for highways and transit, suggesting that congressional appropriators are prepared to supplement the HTF income with some general tax revenue. Scaling down the program to the proposed FY 2010 levels might find lukewarm support from Rep. Oberstar – but it cannot be taken off the table.



There remains the Senate option: to postpone enactment of a multi-year authorization legislation for a period of 18 months. Supporters of this option argue that by early 2011, a more favorable economic climate might allow a significant boost in federal fuel taxes. To cover the full annual $35.6 billion shortfall in a $450 billion program would require an increase of 20 cents/gallon. In the meantime, the proposed authorization of some $20 billion in the continuing resolution, combined with the stimulus funding that still remains unspent, will provide more than an adequate level of funding in the interim period.



But others contend that delaying the bill past the midterm elections would solve nothing. As one colleague remarked, "The U.S. presidential race will begin in earnest the day after the November 2010 elections. Given this reality, do you really think getting a gas tax increase or any other new transportation revenues is going to be any easier politically? No way!"



This is essentially correct. There may be no such thing as "a good time" for passing a substantial gas tax increase. But postponing the multi-year authorization until 2011 would offer two other benefits. It would provide more time to develop a broad-based consensus among the stakeholders on the nature of the needed reforms – a consensus that, as our survey has shown, has not been convincingly demonstrated to date (see, NewsBrief, July 11.) And it would give the Senate and the Administration a chance to participate more fully in the overhaul of the nation's transportation policy. These two points, it may be argued, provide a good and sufficient reason for adopting a more deliberate pace of reform and not trying to rush an important piece of legislation without bicameral congressional support.



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2) Wise gray head Gil Carmichael, former Chairman of the Amtrak Reform Council, made an appearance in the commentary section of the Journal of Commerce on July 27, 2009. The JOC can be accessed at www.joc.com.



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INTERSTATE 2.0: GETTING RAILS ON TRACK



PRESIDENT OBAMA’S PROPOSED high-speed, intercity passenger rail network is a major step toward creating a sustainable, ethical, 21st century solution to our nation’s badly congested, polluted and eroding transportation system. High-speed intercity passenger rail is a logical and necessary next step forward from President Eisenhower’s massive Interstate Highway System of the last century.



Many in the rail freight industry have mixed emotions about allowing passenger trains on their rail network because it involves using their largely single-tracked rail system. They don’t understand how they can successfully partner with the rail passenger industry to ensure with the nation.



While this new intermodal transportation vision would utilize their wide, existing freight rights-of-way for safe passenger transit, these two transportation sectors are not mutually exclusive if the rail network is properly upgraded for both highspeed freight and passenger use.



As far back as 1912, when many of our cities were born out of railroad expansion, approximately 80 percent of intercity passengers rode the trains. So did 80 to 90 percent of the nation’s freight.



By the 1970s, with a rapidly growing population, mobile society, low gas prices and our love affair with automobiles, this new highway system became the darling of the federal and state governments, and passenger transportation segued to the nation’s roads.



At the same time, many freight railroads were downsizing or bankrupt and asked the federal government to take over passenger transportation. The railroads, with this covenant, helped create Amtrak for passenger movement, and promised to give passenger trains priority.



With the economy in recession, massive energy and environmental concerns, and a badly stressed, underfunded and congested U.S. transportation system, it is again necessary for passenger trains to operate on freight railroads’ rights of way.



This vision of a shared rail system offers a superb opportunity for developing commuter, intercity and light-rail services in addition to solving the much-needed freight capacity problem. We have a 240,000-mile rights-of-way network in North America that government and private railroads have invested in for 150 years.



But after years of downsizing, it is probably operating at only 20 to 25 percent of its true capacity. By double- or triple-tracking at least 20,000 to 30,000 miles of the railroad mainline, we can build an ethical, rail-based transportation system in the next 20 years.



Concerns such as liability, grade crossing safety, signaling, train-control requirements and capacity constraints remain within the freight industry. But there are solutions. Amtrak for years has operated on 20,000 miles of freight track and has generally indemnified freight companies for every accident. It can continue to do so.



The new high-speed tracks can be grade-separated, enabling Amtrak and its partners to run 110- to 125-mph passenger trains frequently and safely. With global positioning systems and positive train control, we have the technology to do this. It should cut highway fatalities by at least 50 percent. The degree of additional freight capacity built into a transportation system like this is obvious because freight train speeds can increase.



If we are to alleviate highway congestion, develop new energy alternatives and improve economic conditions, our rail network must reliably move people and freight. By 2050, there will be 400 million in the United States. Population density will continue to be a mobility problem. For this reason, we must build “Interstate 2.0” — 20,000 to 30,000 miles of high-speed rail in partnership with the private freight railroads and state transportation departments.



Private railroads should be encouraged to upgrade and double and triple-track their mainlines to increase speeds and double freight capacity by providing them with the 25 percent tax credit they requested.



The Interstate Highway System was paid for with a highway trust fund gas tax that is outdated and expiring. We should support this new intermodal freight and passenger transportation system with an “intermodal trust fund,” one that taxes and supports all four modes of transportation. We should have an “intermodal freight trust fund” and an “intermodal passenger trust fund.”



By using existing rail rights-of-way to run modern, intermodal freight and passenger trains, we will have a high-speed rail network that reconnects our center cities, major airports and ports, and recaptures the vital role of the intercity bus and transit industries, all in concert with freight operations.



This efficient, ethical transportation system will be safe, will not pollute and can be environmentally benign; it will not waste fuel, will not cost too much and will not destroy more green electrify this rail network, providing the cleanest source of energy for our transportation system.



By building “Interstate 2.0,” the U.S. can have a better transportation system than Europe has built or Asia is building, and one the freight industry, railroads and shippers alike, can depend on and grow with.



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Mr. Carmichael is Founding Chairman of the Board of Directors of the Intermodal Transportation Institute at the University of Denver. He can be contacted at: gil@ missouth.com.



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3) And, by great coincidence, Jim Coston, the former Vice Chairman of the Amtrak Reform Council, appeared in today’s issue of Crain’s Chicago Business. More information at www.chicagobusiness.com.



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From this week's In Other News



Locals line up for rail bonanza



By: John Pletz August 10, 2009



Jim Coston is betting that the billions of federal dollars aimed at a high-speed rail system could reassert Chicago's place as the nation's rail center — and jump-start his attempt to resurrect a business that flourished here a century ago: building passenger rail cars.



Mr. Coston, a Chicago lawyer and railroad veteran, is just one of the entrepreneurs and business owners lining up to share in what could be a huge boon to the region, in terms of jobs and transit improvements, once President Barack Obama unleashes $8 billion in high-speed rail funds.



"This is the real deal," says Joe Schwieterman, director of the Chaddick Institute for Metropolitan Development at DePaul University. "The Midwest has become the odds-on favorite to bring home big dollars."



The competition could be fierce. Already there are about 300 applications from around the country with a collective price tag of more than $100 billion chasing the feds' $8 billion.



But insiders say Illinois could snare as much as $2 billion, leading to thousands of jobs in manufacturing, construction and railroads.



Much of the high-speed rail money likely will be spent on laying track, says Joseph DiJohn, director of the metropolitan transportation support initiative at the University of Illinois at Chicago. "The first step toward high-speed rail is to separate passenger traffic from freight."



The Chicago-St. Louis corridor, for instance — at the top of the Midwest's high-speed rail plans — would require a second line of track from Joliet to St. Louis that would be laid by railroad employees. Such an extensive project would require hiring, says Mike Payette, vice-president for governmental affairs at Union-Pacific, which owns the line.



The plan also would require investment in new cars. The Chicago-St. Louis route alone would double the number of trains to eight daily from four. That's where Mr. Coston comes in.



With the stimulus, he figures, the state of Illinois will finally have the money to order the dozen Amtrak trains that have been on its wish list since last fall. "We see the stimulus as a way to restart the rail-car industry in this state," says the head of Chicago-based Corridor Capital, an investment company that bought options on 50 former Amtrak cars that he says could be rebuilt within the two-year time frame required for stimulus projects.



If he won even part of the order, Mr. Coston says, he could immediately put 25 people to work, doubling employment at Gateway Railcars in Madison, near St. Louis, a contract partner. Since Pullman Co. ceased production in 1981, Gateway is the state's sole maker of passenger rail cars.



New train orders also could help National Railway Equipment Co., a locomotive manufacturer based in Downstate Mount Vernon, return to full employment of about 1,100. Its workforce has dropped 20% since last year because of the downturn. "It would fill the void," Vice-president James Wurtz says.



Stimulus funding also would mean additional hiring at Kustom Seating Unlimited Inc., a Bellwood company that makes seats for Amtrak, Metra, the CTA and rail operators across the country. Employment already is up about 20% to 120 workers because of a surge in mass-transit spending, says Gene Germaine, director of business development, and stimulus funding is fueling additional demand. The company expects to boost its payroll by another 20% next year.



Illinois hasn't put a number on the jobs that stimulus money would create if its projects were funded, though the Midwest's high-speed rail plan could generate up to 15,000 construction jobs and 57,000 permanent ones, Michigan Gov. Jennifer Granholm has estimated. Chicago is at the heart of that plan, which includes high-speed lines to St. Louis, Madison, Wis., and Detroit.



CREATE A WINNER



The biggest stimulus winner likely will be the six-year-old Chicago Region Environmental and Transportation Efficiency program. It includes 78 rail projects to speed up freight traffic, separating passenger and cargo trains from each other and from vehicles. Until now, it only had about $200 million in funding, mostly from five freight railroads and the federal government, to pay for an estimated $1.5 billion in improvements, leaving the major construction projects waiting for backing.



Already the state has set aside $322 million in its capital budget to fund projects under the program. If the big-ticket items, such as highway overpasses and railway "flyovers," get stimulus funding, it will trigger a flurry of work for construction companies, says Tom Livingston, a vice-president at CSX Corp.



And while it would take years to complete all the rail work, more jobs could be in the offing once the trains start rolling.



"Eventually, after all the infrastructure work is done, that means operating jobs at the back end," says Bob Guy, legislative director in Illinois for the United Transportation Union, which represents railroad workers. "If everything comes through, it should be a boost in railroad employment across the board."



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