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Jul 07, 2006: Hotline #457A reminder: contact your Senators and urge full funding of Amtrak without damaging micromanaging language. Go to our Action Alert Center for full details, including contact information. An upbeat, well-attended public forum was held in Rockford, IL on Monday regarding passenger rail expansion in Northwest Illinois. Buoyed by increased state funding for downstate passenger rail service, residents of the northwest corner of the state are clamoring for a reinstatement of Amtrak’s Black Hawk, which last ran in 1982. Amtrak Vice President of Government Affairs Joe McHugh told the attendees, “If you guys want the service, it’s not, ‘Should we do it?’ It is, ‘What are the next steps we need to do to get it done?’” There are several proposals for rail service, including an extension of existing Metra service and resurrection of the Black Hawk all the way to Dubuque, IA. Private freight railroads would lose their anti-trust exemption under a bill introduced late last week by Senator Herb Kohl (D-WI). The Railroad Antitrust Enforcement Act of 2006 (S. 3612) would repeal antitrust exemptions that, according to Kohl, “enable freight railroads to abuse their dominant market power and raise rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products.” Increasing freight rates and a decline in the quality and speed of service have many shippers angry and clamoring for Congressional action. The railroads argue that rates are already low. “Railroads move tens of thousands of rail cars to and from thousands of origins and destinations every day, at rates that shippers elsewhere in the world would love to have,” AAR President and Chief Executive Officer Edward Hamberger told Progressive Railroading magazine. The first anniversary of the London transit bombings was observed in the Financial Times (U.K.) with an editorial, “Policy challenges and the London bombings; We still know frighteningly little about home-grown jihadism.” From the editorial: “Although two of the July bombers were just visible on the fringe of Islamist radicalism, as a strike unit of four they might as well have emerged out of nowhere. Not even their families had registered their rage and alienation…The failures of integration are part of the problem…Along with greater focus on opportunity—mainly through better schools, eased labour laws and decent housing—must come a more assertive civic culture. In particular, Muslim and all other religious, political and civic leaders must speak out unequivocally against violence and bigotry…There remains, nonetheless, a phenomenon observable across Europe of second-generation Muslims, cut loose from their language and culture of origin before they are integrated…They are bombarded with images and information from satellite television and the internet showing the sufferings of their Muslim brothers from Chechnya to Palestine, to Kashmir to Iraq. This is a bit like being able to watch the Crusades, live…The urgent task of policy…is to…build the legitimacy needed to crush this violent extremist minority. That legitimacy will not come from Guantanamo, Abu Ghraib and Bagram, or from ‘rendition’ and trampling on the Geneva conventions…The best defence against jihadism everywhere is the defence of freedom and the rule of law.” The Department of Homeland Security announced $388 million in Fiscal Year 2006 grants to help “prevent, protect against, respond to and recover from terrorist attacks, major disasters and other emergencies that could impact this country’s critical infrastructure.” The package includes $136 million for transit and $7.2 million for Amtrak, bringing total DHS funding to $375 million for transit and $13.2 million for Amtrak. Transit security was in the news as today is the first anniversary of the London transit bombings. Rail and transit security was the topic last night when NARP Executive Director Ross Capon was interviewed on News Channel 8 here in Washington, D.C. He reported the calculation by American Public Transportation Association that federal security spending has amounted to nine dollars per airline passenger but less than one penny per transit rider. APTA surveyed its members and estimated security needs at $6 billion. Amtrak does not speak publicly about its security funding needs. The long-anticipated groundbreaking for the Warwick Intermodal Rail Station (serving Providence’s T.F. Green Airport) will be July 17 at 1:00 p.m. The project will include a parking garage, moving sidewalk to connect to the airport terminal, and additional track work to streamline passenger and freight operations. A key hurdle was overcome earlier this year when agreements were signed with six rental car companies to move their operations to the garage. China has opened the first rail link to Tibet. The $4.2 billion dollar, 3386 mile railroad is the first land link to the area and—due to altitudes over 16,000 feet—the cars had to be equipped with supplemental oxygen systems, including airline-style drop-down masks. The journey from Beijing to Lhasa (in southeast Tibet) takes nearly 48 hours. An Amtrak Cascade train struck an automobile at a private crossing near Castle Rock, WA, on Monday, killing the four occupants of the car. The crossing was not equipped with lights, gates, or bells and apparently the driver’s vision down the tracks was blocked by a freight train traveling in the opposite direction. Washington State law requires lights and gates at public road grade crossings, but has no such requirement for private crossings. Full service has been restored to Amtrak trains west of Albany after repairs were made to a massive washout near Amsterdam, NY. Earlier this week, the Lake Shore Limited and Maple Leaf resumed operations. All trains can still expect delays at the site of the washout and due to other flood-induced speed restrictions. Jul 14, 2006: Hotline #458NARP sent a letter to the Surface Transportation Board this week requesting action on Amtrak on-time performance issues on freight railroads. The letter, written by Executive Director Ross B. Capon, discussed the severe delays facing many Amtrak travelers, most notably on New York-Florida service and the Coast Starlight. The problems are not confined to long distance routes: last week alone, Union Pacific accounted for 1800 minutes of delays to Cascades service in the Pacific Northwest. The 124-mile Eugene-Portland segment uses UP tracks, and has just two daily Cascades round-trips (the 1800 minutes do not include extensive Coast Starlight delays). The full letter can be viewed here on our website. The Senate Appropriations Committee still plans to markup the fiscal 2007 transportation appropriations bill next week (subcommittee Tuesday, full committee Thursday). Thus, the message to your Senators needs to be to 1) fully fund Amtrak, 2) keep damaging, micromanaging language out of the appropriations bill, and 3) press for consideration of S. 1516, the bi-partisan Amtrak reauthorization, by the full Senate. Go to our Action Alert Center for full details, including contact information. The two nominees to the Amtrak Board of Directors may be approved next Wednesday by the Commerce Committee. R. Hunter Biden and Donna McLean had their confirmation hearing on June 8 (see Hotline #453). If their nominations are approved, they would be sent to the full Senate for approval. A series of explosions rocked the commuter rail network of Mumbai (formerly Bombay), India on Wednesday, killing at least two hundred people and injuring many more. No blame has yet been laid for the incidents; the techniques have been used both by Al Qaeda and by Kashmir rebels, the latter regarding a long-standing land dispute between Indian and Pakistan. Last Friday, July 7, was also the one-year remembrance of the London Transit bombings. Despite the Mumbai tragedy and London memorial date, the Senate defeated an amendment to the 2007 Homeland Security Appropriations Bill that would have increased rail security funding by $1 billion. The amendment was offered by Senator Joseph Biden (D-DE) and was defeated on a 50-50 tie vote. Opponents of the measure argued that Biden’s amendment did not include any spending offsets and would violate budget caps. After the vote, Biden addressed the Senate, saying, “I’ll tell you what, folks, we’re going to regret this. We are going to regret this.” Senate Budget Committee Chairman Judd Gregg (R-NH) argued that the amendment was unnecessary, since Amtrak already receives federal funding (ignoring the fact that these funds are earmarked primarily for operations, capital investment, and debt service) and that State and Local governments have funds to invest in rail security. The fact remains, however, that the federal government spends $9 per airline passenger on security, while only spending about one penny per transit passenger on security. Today, the newly intensified Middle East crisis, and more attacks on oil facilities in Nigeria, helped drive oil futures to an intraday record of $78.40 a barrel. A barrel of light crude closed today up 30 cents at $77 on the New York Mercantile Exchange. Last Saturday, the lead headline on the Financial Times (U.K.) was: “US drivers push global oil price to record high”. The commodities column in the same edition said, “The US department of energy reported the seventh consecutive four-week year-on-year rise for US petrol demand.” The column quotes another analyst: “In spite of the higher price, it has not deterred [US] people from filling up their SUVs or cars.” Former Secretary of Transportation Norman Mineta will join the public relations firm Hill & Knowlton as vice chairman. Mineta’s focus will be primarily be on international projects like the proposed open skies agreement, security, and private-public partnerships for transportation infrastructure investment. Federal Aviation Administrator Marion Blakey, according to “insiders,” is “quietly seeking” to succeed Mineta as secretary, according to a small item in today’s Wall Street Journal. The Journal said that another rumored candidate denied any interest in the position: Ex-Kansas Gov. Bill Graves, now a top trucking industry lobbyist. Graves affirmed a recent extension to his contract. The company that owns and operates the rail tunnel under the English channel between England and France is in financial trouble. Eurotunnel is seeking the equivalent of America’s Chapter 11 bankruptcy protection while it restructures its debt and negotiates with creditors. Eurotunnel Chairman Jacques Gounon told the BBC, “If we cannot present plans before the end of September then the end of the story is easy to write…There will be a liquidation.” Critics point to the original construction of the tunnel and resulting delays and cost overruns and the fact that promised passenger and freight traffic has never materialized. One person was killed when a three ton piece of concrete fell from Boston’s “Big Dig” tunnel and crushed a car late Monday evening. The victim’s husband survived the accident. Inspectors have found 240 tunnel defects like the one that caused Monday’s accident. This is the latest problem facing the project, which even after its long-delayed completion has suffered from many problems, including water leaks. Although a cause has not been identified for this accident, six men were arrested in May and await trial on charges of supplying bad concrete to the project. Massachusetts Governor Mitt Romney signed emergency legislation this morning giving him power to conduct an investigation into the incident and also to determine when the tunnel is safe to reopen. Romney has ordered an independent inspection outside of the purview of Massachusetts Turnpike Authority, the government agency that operates the road. A Chicago Transit Authority Blue Line train derailed on Tuesday afternoon in a tunnel under downtown Chicago during the afternoon rush hour. The rear cars of the train derailed and quickly ignited an electrical fire. The tunnel’s escape system worked as designed as passengers were able to follow lights in the tunnel and climb up an escape hatch to street level. There is no indication that the accident was intentionally caused. The Warwick Intermodal Station at T.F. Green Airport (Providence) will have a groundbreaking Monday, July 17, at 1:00 p.m. in the airport’s long term parking lot. Speakers will include Sen. Lincoln Chafee (R-RI), Gov. Donald Carcieri (R), former Gov. Lincoln Almond (R) who was the project’s major champion through difficult times, and (invited) Acting U.S. Secretary of Transportation Maria Cino. NARP supported this project when its future was in doubt. Here’s something good rail passengers can say about Former U.S. Secretary of Transportation Norman Y. Mineta: he became a champion of the project, pushing it when the airport authority was opposed, and approving the crucial federal loan that is a key reason for Monday’s celebration. Today was the first day of operation for New Mexico’s first commuter rail line, the Rail Runner. Service is initially offered only at peak weekday hours, but future expansion of service levels and extensions both north and south of Albuquerque (including eventually to Santa Fe) are planned. Rides are free for the first three months. The website for Rail Runner, which features schematics of the eye-catching paint schemes (which will remind fans of Warner Brothers cartoons that they “shoulda taken that left turn [toin] at Albuquerque”), is www.nmrailrunner.com. Jul 21, 2006: Hotline #459The Senate Appropriations subcommittee and full committee approved $1.4 billion for Amtrak in fiscal 2007 this week. An amendment by Murray and Sen. Robert Byrd (D-WV) prohibiting Amtrak from outsourcing overseas was accepted at the full committee markup without objection. At the July 18 subcommittee markup, Bond offered language conditioning Amtrak’s funding on unions reaching new agreements, with fairly specific descriptions of what should be in those agreements. The language was not adopted. On July 20, Bond, citing “member objections,” said “we were not able to address labor issues in line with the Amtrak Board’s strategic plan. .. We are trying to nibble at reform, but this is like cutting off the puppy’s tail one inch at a time.” It is possible that the next step will be a House-Senate conference (skipping the Senate floor), and that this will occur after the November general election. However, you can still communicate to your Senators to support the funding level in the bill and keep damaging, micromanaging language out of the appropriations bill. Go to our Action Alert Center for full details, including contact information. The Senate Committee on Commerce, Science and Transportation on July 19 reportedly favorably the nominations to the Amtrak Board of Democrat R. Hunter Biden and Republican Donna R. McLean. Their nominations next go to the Senate floor, possibly as early as next week. NARP’s letter to the Surface Transportation Board regarding on time performance of Amtrak trains (discussed in last week’s hotline) was the focus of a Baltimore Sun editorial on Thursday. “For the most part, it`s a problem (on time performance) not of Amtrak`s own making…passenger rail advocates…question whether freight companies such as CSX and Union Pacific have given priority to Amtrak trains as federal law requires…That`s a question raised by the National Association of Railroad Passengers, a nonprofit that advocates for Amtrak passengers. In a recent letter to the federal board that regulates freight rail service, NARP Executive Director Ross B. Capon called for an investigation into the behavior of freight carriers that regard Amtrak as a “costly nuisance.” The major freight railroads have responded to a Surface Transportation Board request for plans to handle business during the peak shipping season. The letters are at the STB website. Quick summaries follow. Not surprisingly, they are all upbeat, and do not necessarily address the question of how much traffic the right transportation policies would put on the rails. BNSF: Does not forsee any systemic congestion issues for the rest of the year, including peak season. Focusing on increasing velocity and expansion including 94 miles of double track on the Transcon. An additional $10 billion to maintain the quality of infrastructure and to provide additional capacity. The Wall Street Journal today (page A2) reported that UP President/CEO James Young “said he expects this year’s peak season ‘to stress the network,’ though he added that the Omaha company will be better prepared than in the past to handle the surge. ‘I think we will stay on top of it,’ he said.” The British Conservative (Tory) Party has officially conceded that the mid-1990’s privatization of British Railways was a mistake that “inflicted costs on both passengers and the taxpayer as well as hindering expansion.” The Conservatives, who are vying to return to power in Britain, have vowed not to work to re-privatize the system if they win in upcoming elections. Chris Grayling, shadow Secretary of Transport, told a group of rail industry officials, “We think, with hindsight, that the complete separation of track and train into separate businesses at the time of privatization was not right for our railways. Too many people and organizations are now involved in getting things done—so nothing happens. As a result, the industry lacks clarity about who is in charge and accountable for decisions.” Yet another stumbling block for commuter rail in Georgia has been encountered in the form of a request for a full audit of commuter rail funds by State Representative Ben Harbin (R-Evans). Harbin argues that ten years of funding the Georgia Rail Authority has produced no results and that a public accounting of the monies spent is needed. The Georgia Association of Railroad Passengers points out that Harbin has been one of the most anti-rail legislators in the State House and was responsible for the “Great Train Robbery” last May (which inserted anti-commuter rail language at the 11th hour forcing a halt to all planning and spending on the Atlanta-Lovejoy line). “Harbin’s audit request is just the latest evidence he’ll stop at nothing to deny Atlanta-area commuters the option of riding trains,” said Steve Vogel, President of GARP. The Federal Transit Administration has given a green light to the preliminary engineering study for the “Access to the Region’s Core” project in New York City. The two main features of this project are two additional tunnels under the Hudson River, and Long Island Railroad access to Grand Central Terminal. The plan was featured as the cover story of the June Railway Age but is controversial with some transit advocates. In response to a series of heat-induced track defects and resulting derailments, BNSF Railway has begun a program called “The Heat is On: Success Through Managing Stress.” It will remind track workers and other employees responsible for right of way maintenance through emails and voicemails to be on the lookout for signs of a pending track defect. “Because there’s no ‘holy grail’ to prevent track buckles, BNSF stresses education, proper procedures and thorough track inspections,” said Mike Armstrong, general director of maintenance planning. Commuter rail will be a reality in Austin, Texas in the near future. A series of public information sessions were held this week to introduce residents to the new service. Diesel light rail cars, similar to those in operation on New Jersey Transit’s River Line, are on order from a Swiss company and station construction will begin soon, with a target service startup in 2008. Improvements upon the original design have come to fruition: the line will be grade-separated at its junction with Union Pacific’s freight line and a station at Highland Mall previously cut from the plan will be built. The at-seat AC electric outlets on Acela Express trainsets are out of service for the moment. Amtrak has identified the problem and ordered the necessary parts, but no date for service restoration has been set. Amtrak has committed to getting the outlets back into service as soon as possible. Acela Express trains are now processing credit cards in Bistro cars through wireless technology. Attendants can now get instant authorization instead of filling out a manual form. A pilot program on a couple of trains has been taking place for several weeks and showed that the average transaction time was 15 to 20 seconds. Amtrak plans to expand the credit card readers to all Northeast Corridor Regional trains within the next year, and then on to corridor café cars and Amtrak dining cars system-wide. A reminder: the deadline to submit comments to the Notice of Proposed Rulemaking for passenger rail platform heights is next Friday. This was discussed in our February 17, 2006 hotline and March issue of NARP News. More information is available on the DOT website (note that the site provides an older due date no longer valid; July 28 is the correct date). The July issue of NARP News was uploaded to the members’ section of our website today. Click on “Login” above, just below “E-mail Signup” to access the newsletter, or click “Register” if you have not yet signed up for members’ access. Be sure to include your membership number when registering. Jul 28, 2006: Hotline #460Senator Trent Lott (R-MS) and Kent Conrad (D-ND) introduced a bill this week to provide incentives for railroads and shippers to expand capacity. The Freight Rail Infrastructure Capacity Expansion Act, which does not yet have a bill number, would provide tax credits as high as 25% for infrastructure investment. A new twist in this legislation is that shippers also would be eligible, not just railroads. For example, according to a release by Senator Lott’s office, “A shipper, such as a Target or Home Depot, that builds a rail spur from a distribution center to a main line would be eligible for a credit.” This legislation is separate from Lott’s passenger rail bill, S. 1516 (The Passenger Rail Investment and Improvement Act), which is still pending. And, of course, fiscal 2007 appropriations are left to be determined, with a clear need for killer language about food and beverage to be removed from both bills. Go to our Action Alert Center for the specific details you need to contact your Senators and make your voice heard. NARP submitted comments to the Department of Transportation today regarding their Notice of Proposed Rulemaking on passenger rail platform height. The full text of our comments is available here on our website. In brief, NARP (along with many transit agencies, State DOT’s, Amtrak, and the Association of American Railroads) strongly opposes the proposed rulemaking because it would impose undue, unreasonable burdens on passenger rail and would likely lead to less passenger rail service, when America needs more. The full Senate approved the nominations of Democrat R. Hunter Biden and Republican Donna R. McLean to the Amtrak Board on Wednesday. The board now has bi-partisan representation for the first time since the summer of 2004. Eurotunnel’s request for bankruptcy protection was delayed until August 2 by a Paris court on Tuesday. A proposed restructuring by the company’s debt holders was rejected earlier in the week, prompting the action. One source close to the negotiations told the Financial Times, “The parties are still quite a long way apart. Despite what has been said nothing has moved very much.” The delay in establishing bankruptcy protection requires Eurotunnel to make a £78 million ($144 million) payment prior to August 2; failure to make interest payments could derail all efforts to restructure the company’s debt. Former White House Chief of Staff Andrew Card has been appointed to the Board of Directors of Union Pacific. Card has an extensive transportation background, including serving as Secretary of Transportation under President George W. Bush in the early 90’s and as chief executive officer of the American Automobile Manufacturers Association. Norfolk Southern, one of the countries largest freight railroads saw the price of its shares fall as much as 12 percent early Wednesday. The dramatic drop was attributed to the railroad operator posting a second-quarter profit that was less than what Wall Street analysts predicted. However, NS said that revenue rose 11 percent to $2.39 billion during the three month period that ended on June 30. The company also said that commodity groups posted “significant” revenue increases in the quarter, led by metals and construction products, which gained 25 percent. Coal revenue only increased 1 percent to $497 million. NS recently increased its stock dividend. Energy experts expect the price of US gasoline to remain close to $3 dollars per gallon for the duration of the summer. The price of one gallon of gasoline is up 71 cents from the same time last summer, and could continue to rise with the continuing crisis in the Middle East and the occurrence of any natural disasters such as hurricanes. However, the Energy Information Administration has pointed out that “gasoline prices are still far below the monthly average of about $3.20 a gallon posted in March 1981.” Price reductions are “not likely to occur before September when demand typically drops sharply.” As gas prices continue to rise, more citizens are turning to rail in order to save money. Several states that operate on a July-to-June fiscal year reported ridership figures this week. Nearly 955,530 people rode state-supported Amtrak trains in Illinois during fiscal year 2006, an increase of 11%, setting a new record. This is the second straight year for an increase in ridership on these routes. Individually, ridership was up 13% on the Hiawathas, 10% on the Illini, 9% on the State House, and 4.6% on the Illinois Zephyr. The increases in ridership are very encouraging, especially as the state of Illinois plans to double its fiscal 2007 support to the tune of $24 million. The Downeaster, which provides service from Portland to Boston, finished its fiscal year with 329,265 passengers, an increase of 31 percent over the previous year. This increase in ridership occurred before the recent problems with Boston’s Big Dig. According to an Amtrak spokesperson, “the passenger growth was the biggest on a percentage basis anywhere in the Amtrak system during the period.” The second highest increase in percentage based ridership was experienced by the Piedmont train in North Carolina. The Piedmont train, which runs between Charlotte and Raleigh, experienced a 22 percent gain in ridership. Talk of commuter rail in South Carolina is heating up again. The state’s Department of Transportation has been considering operating commuter trains in the state for some time now, but as of recently the plans have been receiving more attention. The increase in attention can be attributed to the instability of the Middle East and an increase in national gas prices. The South Carolina DOT recently held a meeting with railroad representatives, transportation planners, city officials, and state lawmakers to discuss the issues surrounding the addition of commuter rail to the state’s transportation system. The group discussed the possibility of commuter rail systems from Camden to Columbia, Batesburg-Leesville to Columbia, and from Newberry to Columbia. The city of Charleston is also studying the feasibility of a line from Summerville to Charleston. Not to be left out, the city of Anderson is exploring the idea of rail service from Anderson into Seneca and Clemson. According to a transportation planner who took part in the meeting, “it’s going to take local, state and federal money, along with a lot more planning.” The long awaited renovation of Milwaukee’s downtown Amtrak station started July 24 when construction crews began demolition on the building’s facade. The renovations, at a cost of $15.8 million, are long overdue and will be a welcome change for the ever-growing Hiawatha route. On July 26, New Jersey’s main commuter rail route into Manhattan was disrupted for almost 90 minutes causing delays for thousands of people trying to get in and out of the city. The almost century old bridge carries Amtrak and New Jersey Transit trains across the Hackensack River at a rate of 450 trains with about 162,000 passengers aboard each day. The delay was caused when the 96 year old Portal Bridge became stuck in its open position shortly before 3:30 p.m. Technicians manually closed the bridge at 4:51, allowing regular service to resume. This is not the first trouble with the 960-foot bridge that is owned and maintained by Amtrak. The bridge caught fire last May, leading to its closure for almost 10 hours. Amtrak officials are not sure what led to the problem and are investigating the matter. Amtrak is offering special rates to passengers traveling to the Missouri State Fair which is being held in Sedalia from August 10-20. Round-trip rates from St. Louis or Kirkwood are $54, includes the cost of a shuttle and fair admission. Rates are less for children and older adults. |
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