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Mar 06, 2009: Hotline #594

March 6, 2009


As of press time, the Senate has not yet voted on the 2009 Omnibus Appropriations Bill.  Congress today cleared another temporary extension—this time through Tuesday. March 11—to the continuing resolution (CR) that has kept the government functioning since October 1 of last year. 

The National Transportation Safety Board held a hearing this week on the September 12, 2008 crash between a Metrolink commuter train and a Union Pacific freight train.  There were 25 fatalities, including the Metrolink engineer.  The NTSB released cell phone and short message texting records of the Metrolink engineer, Robert Sanchez, making clear that he was texting just before the collision and that he on occasion brought teenagers in the cab and let them run the engine.  Here is one exchange between Sanchez and the teens: Sanchez: “yea…but I’m REALLY looking forward to getting you in the cab and showing you how to run a locomotive,” Teen: “Omg [oh, my God] dude me too. Running a locomotive. Having all of that in the palms of my hands. Its a great feeling. And it’ll do it so good from all my practice on the simulator.”  In response, Metrolink is installing cameras in all of its locomotives and cab cars to record engineers’ behavior.  It has also demanded that Connex, the private contractor that operates the service, fire the two managers most directly responsible for supervising Sanchez.

Amtrak CEO & President Joseph Boardman announced that the company is considering lowering fares for Northeast Regional trains in response to decreased economic activity, one month after announcing it would decrease its Acela fares.  Boardman told Bloomberg, “We’ve seen a shifting to some extent from the Acela to the Regionals because of the lower cost, and part of that shift we know is because the business climate itself is down.” 

While Northeast Corridor has suffered from the forces of a downturn in the economy, Amtrak has seen growth on many lines elsewhere.  “We’re continuing to see growth in long-distance ridership, which is interesting,” Boardman told a Bloomberg reporter.  “We wondered if people had already made their plans and were just carrying out their plans. We’re not entirely sure what that means yet.  We’re hoping we don’t see a drop-off as the year goes on, but we don’t have that answer yet.”

Members of Amtrak and British railroad police forces jointly-patrolled sections of the Northeast Corridor this week, in a best-practices program designed to improved security and antiterrorism procedures and increase passenger safety.  Amtrak Police Department (APD), Amtrak Office of Security Strategy and Special Operations (OSSSO) and British Transport Police (BTP) patrolled train stations, beginning Monday in Washington, D.C.’s Union Station.  The exercise is designed to improve both routine procedures and major incident handling by allowing police forces to learn from each other’s experiences.  The BTP has an over 180 year history of responding to a wide range criminal activity and emergency situations. 

In a news release, Amtrak Chief Operating Officer William Crosbie said, “The rail community continues to be a target worldwide, and protecting passengers from harm is paramount.  If one member of the community is targeted, we all feel the effects one way or another.  By sharing best police practices and lessons learned with our British counterparts and others, we can build a safer and more secure rail environment for riders internationally.”  In the same report, BTP Superintendent Phil Trendall said, “This trip represents a major opportunity for our two organizations to work and learn from each other.  We share a determination to protect the traveling public from the threat of terrorism and this gives us a chance to share best practices.  The message is clear: we are strengthened by our partnership and we look forward to working together in the months and years ahead.”

Governor John Baldacci (D) of Maine announced a $306 million bond package, which would trigger another $380 million in matching federal funds from American Recovery and Reinvestment Act.  The proposed borrowing would contain $127.8 million for transportation infrastructure projects.  Initial reports from Maine’s State House Reporter indicate the projects would include:

• Investments for the improvement of passenger rail lines, which includes a $2 million initiative to purchase track that would fill in the connection between Auburn and downtown Portland, where there is currently a gap;
• A study of Maine’s rail corridors for future freight use, and upgrades for state-owned rail-lines;
• Infrastructure upgrades for park-and-ride system and rail facility enhancements for the Rockland branch to extend the Amtrak Downeaster;
• $3.4 million for the second phase of the Acadia Gateway Intermodal Center, which would activate $9.6 million in federal funds;
• $5.5 million for the maintenance and upgrade of the Maine Department of Transportation’s fleet of 400 buses and transit vehicles, which are leased to local service-providers across the state.

The state legislature will study the proposal in the next few weeks, and there is expected to be pushback from Republicans on the size of the bill.  Senate Minority Leader Kevin Rayer (R-Perrey) told reporters, “We need to carefully assess the size of the bond and make sure we’re not borrowing more money than the taxpayers can pay for.”  Gov. Baldacci acknowledged the difficulty of asking taxpayers to take on additional burdens in hard times, but argued that these projects would create 4,500 jobs, on top of any jobs created by the federal stimulus package.

Louisiana is requesting money for a high speed rail project from the pool of stimulus funds which Gov. Bobby Jindal (R) derided as pork during a nationally-televised speech last week.  He delivered the Republican response to President Obama’s first official address before a joint session of Congress.  Jindal was reiterating a groundless charge that some Republicans leveled against the high speed rail funds, accusing Senate Majority Leader Harry Reid (D-NV) of inserting the $8 billion at the last minute, and calling it tantamount to an earmark for an LA-to-Las Vegas maglev line.  The governor said, “While some of the projects in the bill make sense, their legislation is larded with wasteful spending.  It includes ... $8 billion for high-speed rail projects, such as a ‘magnetic levitation’ line from Las Vegas to Disneyland.”  The $8 billion was indeed a last minute addition, however the Washington, DC based Politico broke the story that it was actually inserted at the bequest of Rahm Emmanuel, President Obama’s Chief of Staff.  Moreover, the funds will be distributed by DOT secretary as competitive grants.

The Times-Picayune reported Feb. 28 that “New Orleans Union Passenger Terminal and an existing freight station near downtown Baton Rouge would be improved to handle passenger traffic” with the requested $110 million.  The improvements apparently relate to long-discussed New Orleans-Baton Rouge passenger train service.

The recent drop in Metrolink ridership has the service-provider actively seeking riders for the first time 2002, according to the southern Californian commuter rail agency.  The reeling economy has presented Metrolink with the dual problems of soaring unemployment figures (less people commuting to work) and plummeting gasoline prices (increasing the attractiveness of driving).  In an interview with the Los Angeles Daily News’ Sue Doyle, Metrolink spokesman Francisco Oaxaca spoke of a spring phone-survey which the company will use to gauge rider preference.  “We would use that information to better tailor our marketing programs to encourage non-riders to try the train,” said Oaxaca.  Metrolink has seen much of 2008’s ridership increase of 9%—which came when gasoline cost $4.50 a gallon—drop off in recent months.  The line has gone from a record-breaking high of 50,152 trips on a single day in July of 2008, to an average 47,078 daily trips in 2009.  Recently released figures place Los Angeles County’s unemployment rate at 10.5%—2.4% higher than the national average.  Henning Eichler, Metrolink’s Market Research Manager, was underscored that these numbers aren’t a public referendum on safety issues which the company has had to face since the deadly September 12th Chatsworth train crash.  While ridership did initially fall after that accident, they rebounded quickly, and increased by 5% in December.

Capital Metro Transit officials in Austin are warning Texas riders that the opening of the new line may be delayed, due to testing and training falling behind schedule.  Alternately, CMT might gradually introduce service by only running trains southbound from Leander to downtown-Austin in the morning and returning in the evening.  The 32 mile route was expected to open March 30, with seven trains heading south and three heading north in the morning, and the reverse in the evening.  However, the complexity of the shunting system (a method of sending electronic signals along the tracks to control the dispatching system and the operation of signal gates) and computer-controlled mechanisms for regulating traffic crossings are leading to delays; specialists have been brought in to iron out problems, and employees are spending extra time familiarizing themselves with the correct operation procedures.  In any event, the celebrations planned to commemorate the opening of the line will go forward March 30.

A CSX freight derailment and a major snow storm combined to result in a 16 and a half hour delay to Boston-Newport News Regional Train 99.  The train, which left Washington Union Station on time at 5 p.m. Sunday, March 1, was delayed north of Richmond, Virginia after a CSX freight train derailed.  Once the CSX train derailment was addressed, the train arrived at Richmond-Staples Mill Road just after midnight and five hours late.  However, the snowfall had begun in earnest, causing problem with the switches and the train struck a tree which fell on the right of way.  The train had power and heat during the entire delay, finally reached Newport News Monday at 1:30pm, 16 ½ hours late.

The New York Times today posted online today the lead story for its Sunday Travel section: a good write up of a cross country Amtrak trip by one of its travel writers.  The article and accompanying pictures and audio interviews with passengers, can be found on the Time’s website.

The March 2009 issue of NARP News has been uploaded to the members’ section of our web site.  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.

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Mar 13, 2009: Hotline #595

Hotline #595
March 13, 2009


Vice President Joe Biden announced a plan for the spending of Amtrak’s stimulus funds Friday, defending government’s involvement in passenger rail with blunt language. 

“Every, every, every, every passenger rail system in the world relies on subsidies,” said Biden told reporters at Washington’s Union Station, reported CBS News correspondent Mark Knoller. “We subsidize our highways and airports more than we subsidize Amtrak. So let’s get something straight here. Amtrak has not been at the trough. Amtrak has been left out.”

The economic recovery bill allocated $1.3 billion for Amtrak, requiring that the funds be obligated within 30 days of enactment.  $450 million of these funds are required to go for security, which apparently includes work on Positive Train Control safety systems.  The rest of the $850 million will go to capital improvements, no more than 60% of which can be spent on the Northeast Corridor.

In connection with Biden’s announcement, NARP President Ross Capon was interviewed on CNN Thursday afternoon for possible broadcast Friday late afternoon and over the weekend, and by CBS radio news last night for possible broadcast Friday morning.  He also gave a lengthy telephone interview to the Associated Press on Thursday.  Reporters are trying to make a connection between the $8 billion for high speed rail’s potential, and the reality of TGV-style trains running throughout the entire US.  One of NARP’s key points is to make the public understand that significant upgrades of conventional service will be heavily used by travelers, and provides good value for money spent.

“By and large, this organization has survived an incredible amount of low funding [for] years.” Capon told CNN’s website.

Responding to criticism from Sen. Tom Coburn (R-OK) that Amtrak was “poorly run and poorly managed,” Capon argued that, as there is little passenger rail service in states like Oklahoma, “it might not be surprising that one of Amtrak’s fiercest critics comes from a state that, relatively speaking, would not notice it if Amtrak disappeared tomorrow.”

But the Vice-President, likely responding to Coburn’s statement that the government shouldn’t “give additional money and reward incompetency and inefficiency,” spoke unequivocally of the Administration’s support for Amtrak.

“For too long, we haven’t made the investments we needed to make Amtrak as safe, as reliable, as secure as it can be,” Biden said. “That ends now. The funds in the Recovery Act for Amtrak will help create jobs and at the same time, repair and update critical needs of our nation’s infrastructure

Fiscal 2009 Funding Finalized.  Late March 10, Congress approved $1.49 billion in federal support for Amtrak for the current fiscal year, as part of the omnibus appropriations bill that President Obama signed into law on March 11.  This ends reliance on continuing resolutions.  Amtrak gets $940 million in capital funds, of which $285 million is for debt service; but only $550 million in operating funds, of which $75 million is dedicated to the remainder of the retroactive pay owed to Amtrak employees.  There’s another $90 million for Federal Railroad Administration capital grants to states.  All of this is in addition to the economic recovery funds, reported in the lead story of our March newsletter (available for NARP members online).

The lack of operating grant is problematic, in light of the fact that many transit agencies are cutting service for lack of operating funds even as the federal government throws extra money for capital improvements at them.

As Amtrak President Joseph Boardman told his employees this week, “I have conveyed to labor leaders and employees that it is among my highest priorities to seek the funds we need from Congress for the second installment of back pay.  The remaining back pay totals $145 million.  While we asked Congress for $114 million, we’re being provided $75 million.  I want you to know that we’re going to meet our commitment to deliver the back pay this year.  I have the full support of the board of directors on this.  We will identify the source of the operating funds that we’ll use to begin payment in May.  Keep in mind that we cannot use capital funds (typically used for investments in the company), including any of the funds from the stimulus legislation, for back pay.” 

Passenger rail will not be running through downtown Atlanta, announced state and city officials at a joint-press-conference last Friday

The announcement, a reversal from the Georgia’s Department of Transportation’s previous position, is a victory for some local activists who opposed trains running through their neighborhoods, and the City of Atlanta who argued that downtown service would negatively affect the value of their Beltline development project which would loop around the city. 

Passenger rail advocates, however, argue that excluding Atlanta’s downtown from rail plans will critically hinder growth of intercity service, ultimately making Atlanta a less competitive city, and hinder development of the Southeast High Speed Corridor.  Experiences elsewhere have shown that downtown stations command more ridership and have a positive impact on station area development.  This has been true in Schenectady, New York, where the station was returned downtown after several years in the suburb of Colonie. 

Conversely, removal of the Ottawa, Ontario station from downtown in 1966 has hindered intercity ridership and blocked development of commuter rail ever since.  Canadian National Rail executive, Garth Campbell, once wrote that the railroad lost 65% of its Ottawa passenger volume when the Union Station downtown location was abandoned.  In a similar case, Quebec City, upon seeing the result of cutting rail service to downtown, promptly reinstated the service.

Georgia’s Department of Transportation had previously cited the expansion and improvement of service between Charlotte, North Carolina and Macon, Georgia as a reason to link the rail corridor directly into Atlanta’s downtown. 

City officials, in often contentious exchanges, fought GDOT, saying it would negatively impact their Beltline project—a 22-mile loop around Atlanta of planned residences, businesses, parks, and trails, which the city hopes to develop over the next two decades.  They came out publicly against bringing rail service through downtown, fearing that an active rail line would make developers less likely to invest in contiguous neighborhoods.

The head of the Southern High-Speed Rail Commission (SHSRC) accused the Governor of Alabama, Bob Riley, of blocking high-speed rail along the entire corridor.  Richard Finley, Chairman of the SHSRC, told the Birmingham Business Journal the state’s decision to hold back rail funding was “embarrassing.”

The Journal reports that members of the Southern High-Speed Rail Commission from Louisiana and Mississippi are enthusiastic about securing funds from the $8 billion allocated for high-speed rail in the recently passed stimulus bill, but Alabama’s refusal to do the necessary studies has made the corridor ineligible for federal funds.

Governor Riley counters that his state lacks the funds to complete the studies.

The corridor would run from Atlanta to Birmingham, and the initial phase of the project is estimated at $400 million.

The Florida High Speed Rail Authority on Feb. 26 approved a resolution asking the State of Florida to provide staff and funds to enable the authority to “compete aggressively for federal funding” in the economic recovery law.

The next surface transportation reauthorization bill will focus heavily on the concept of “livable communities,” Secretary of Transportation Ray LaHood told a reporter from Congressional Quarterly last Friday. 

Secretary LaHood will begin to look to the connection between the way America plans neighborhoods and the way people travel, and work to create an unprecedented level of cooperation and coordination among the federal agencies that oversee these issues—including the Departments of Transportation, Housing and Urban Development, and Health and Human Services, among others.

This move was hinted at during his confirmation hearing, when he told the Senate Committee on Commerce, Science, and Transportation that “the era of one-size-fits-all transportation projects must give way to one where preserving and enhancing unique community characteristics, be they rural or urban, is a primary goal rather than an afterthought.”

This is an idea that has been recognized by many metropolitan agencies, where road-building as a way to sure economic growth has been eclipsed by the interest in light rail and bike- and pedestrian-friendly street layouts.  There hasn’t been much success, however, in engaging with this issue at the federal level, where the focus has remained on highway construction.

The new Administration has signaled this might change.  Joel Szabat, LaHood’s Deputy Assistant Secretary for Transportation Policy, told Congressional Quarterly that both Cabinet Secretaries LaHood and Shaun Donovan, of Housing and Urban Development, are “on board.” 

“In a perfect world, you build where people live and want to live,” said Mr. Szabat, predicting that “you will see an administration proposal focused around livable communities.”

Whether Obama’s Administration is as committed to bringing about significant change as the President suggested in campaign speeches will become more obvious as negotiations over the next surface transportation bill begin in earnest.  But early signs have many public transportation advocates hopeful—if realistic about the difficulty of the task.  Congress will have to play a major role in the drafting, and while Congressional leaders of key committees have indicated their support of an integrated approach, the American Road and Transportation Builders Association (ARTBA) has already signaled it will not look kindly on the reallocation of highway funds.

“We should not be focusing on one mode at the expense of others,” said Jeff Solsby, a spokesman for ARTBA. “I think that would be the mistake to view shifting funds to one category as absolving you from the problems of the other category.”

Green transportation advocates contend that the overemphasis has—in reality—been for too long on car travel, and signaled that they will push for the types of communities that allow for real choices in mobility, which should reduce highway investment needs compared with business as usual.

“When you are ready to give up your keys, you need to have other options,” said James Corless, campaign director for Transportation for America (of which NARP is a coalition partner). “Those departments should break down silos… This is not about Congress telling communities they need to become more livable, it’s about them providing the resources.” 

Transportation for America launched its campaign with a reception at the Columbus Club in Washington Union Station on February 25.  When Corless was introduced, one of his first comments was that he began his work in transportation at the National Association of Railroad Passengers as an intern, and for the League of American Bicyclists.

Choosing public transportation over driving can save the average rider $8,498 per year, or $708 dollars a month, according to a report released this week by the American Public Transportation Association (APTA).  The study is based on nationwide averages of March 5, 2009 gas prices and unreserved parking rates, and includes the monthly public-transit benefits offered by employers—increased by the recently passed economic recovery act.

APTA broke down the savings by city—researching the cost of a monthly public transit pass, and using data from American Automobile Association and the 2008 Colliers International Parking Rate Study—to compile a list of top twenty cities for money saved through use of public transit.  The top three were Boston at $1,036 per month; New York City at $1,032 per month; and San Francisco at $960 per month.

To find out if your city is in the top 20, or to read more about APTA’s methodology, you can read a copy of the report on their website.

Amtrak has reported continued growth in ridership for the Silver Star, the New York-to-Miami service.

The Silver Star ridership increased to 32,894 passengers in the month of December, from all of its stops—an increase of 4% over last year’s riders.  From last year through February 2009, long distance ridership is up 9.3% on the Silver Star, and 6.8% nationwide.

In an interview with the Tampa Tribune, NARP President Ross Capon noted there has been an increase not only on this line, but in overnight trains as a group, which he attributed in part to the improvement in on time performance.  He predicted that, due to consumer cautiousness over the price of gasoline, and increased awareness of the total cost of driving, trains would continue to see high numbers of riders. 

“They don’t want to replace their car as early as they might have in the past, so they are looking at train travel as an alternative when possible”

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Mar 20, 2009: Hotline #596

Hotline#596
March 19, 2009


Joe Szabo has been nominated by the Obama Administration as head of the Federal Railroad Administration.  Szabo had previously worked as the Illinois State Legislative Director for the United Transportation Union.  Edward Wytkind, President of the Transportation Trades Department for AFL-CIO, issued an immediate statement of support, urging Congress to confirm the nominee.  “Joe Szabo’s background and work experience make him uniquely qualified for this position. Because of his first-hand knowledge of the industry, he will hit the ground running to maximize the safety of our nation’s railroads for workers and the public.”

The Department of Homeland Security (DHS) has used only a small fraction of the $750 million appropriated to them in 2006 by Congress to improve security on trains, according to the Newark Star-Ledger, and Congressional leaders are reportedly furious.  Over $700 million of the money allocated to augment security for the nation’s rail infrastructure—which includes everything from long-distance Amtrak trains to metropolitan subways—remains unused over the last three years.  In 2006, only $8.2 million of the $127.8 million was used (6%); in 2007, only $9.8 million of the $262.9 million (less than 4%); and in 2008, only $5 million of the $359.5 million (1.4 percent).  Despite recent concerns about the size of the budget deficit, there appears to be bipartisan condemnation of the lack of movement on the issue by DHS.  Representative Hal Rogers (R-KY) told Braun that $1.3 billion of the $1.5 billion appropriated for mass transit security grants program has been [languishing], asserting that “the taxpayers are getting screwed.”  Representative Steven Rothman (D-NJ) claimed “heads should roll” at the Transportation Security Administration and Federal Emergency Management Agency offices of the DHS.

Milwaukee light-rail advocates may finally have the leverage they need in the stimulus bill to bring a street-car line to the city. While state and county officials have long stood in the way of the city’s efforts to create a light-rail line, Senator Herb Kohl (D-WI) and Rep. David Obey (D-WI) have inserted language in the recently passed FY2009 omnibus bill that dedicates $91.5 million for Milwaukee, approximately $55 million of which is to go to beginning construction of the street car line (the remaining $35 million will go to upgrade Milwaukee County’s bus network).  Milwaukee’s Mayor, Tom Barrett, has long fought opponents, who cite the cost and inflexibility of light-rail, to get a downtown street-car loop, saying the service could be an engine for economic growth.  The proposed line would connect the Amtrak and Greyhound station with other key downtown destinations, and would be a starter-system which would allow expansion if the line proves successful.  The $55 million will cover a large part of the cost of construction, but supplementary state and local funds will have to be identified.

A second daily train from Seattle to Vancouver, BC could start operating this summer if scheduled talks between Washington state and Canadian officials go as planned.  Vickie Sheehan, a spokesman for the Washington Department of Transportation was optimistic about the potential for Amtrak’s Cascades line.  She said of the meeting—which will happen within the next few weeks in Canada—“it’s the first real step forward in getting the second train situation ironed out.”  The second Cascades to Canada was planned to start running a second train last year, and the necessary track improvements were approved and completed.  The increase in service was set back by a disagreement over payment for immigration and customs inspections at the border.  The Canada Border Services Agency says they will need a daily payment of $1,500 (about $1,170 U.S.).  Amtrak, who is operating the service under contract for the states of Washington and Oregon, doesn’t want to pay that, and points to the fact that there is no fee required for the current train.

Last Sunday marked the 10th anniversary of the deadly Bourbonnais, IL train wreck which killed 11 people and injured 122.  The accident took place on March 15th, 1999, when Amtrak’s southbound City of New Orleans train slammed into a semi truck loaded with steel that was blocking a grade crossing. The Kankakee Daily Journal reportedreported that a memorial was held on Sunday, with more than 60 survivors, family members, Amtrak officials, and rescuers in attendance.  The event both served as an observance and honored the bravery of the first responders—many of whom were steelworkers from a nearby steel mill.

Illinois Governor Pat Quinn (D) has expressed a commitment to construct a third airport near Chicago. The move reportedly drew praise from many local lawmakers, despite the airline industry’s recent struggles with their business model in the face of high fuel prices, subsequent contraction in service, and the focus on more environmentally-friendly modes of transportation, including high speed rail.  The Associated Press reported that the Governor told lawmakers during his Wednesday budget address in Salem: “we will build a third airport in the south suburbs of Chicago and we will build it as fast as humanly possible.”  Quinn argued that the airport will be part of a state-wide development plan to provide much-needed economic growth.  The proposed airport—a major focus of Rep. Jesse Jackson, Jr. (D-IL), who originally created the Abraham Lincoln National Airport Commission—would be built in Peotone, over 45 miles south of Chicago.

Massachusetts’ Pioneer Valley Planning Commission (PVPC) has proposed a plan to realign Amtrak’s Vermonter.  The train would be returned to the former route of the Montrealer along the Connecticut River, through Springfield, Holyoke, and Northampton.  The Vermonter’s trip-time would be reduced by an hour; the train currently goes east to Palmer, MA and then north to Amherst and other Vermont points.  “In addition to the existing Amtrak service, it’s the opportunity for a commuter rail…having more trains operate, go the shorter distance” said PVPC planner Dana Roscoe to Springfield, MA WWLP-TV.  The plan would cost an estimated $30 million, and the PVPC is hoping to secure federal funds from the American Recovery and Reinvestment Act.

The U.S. freight rail industry is finally feeling the negative effects of the economic downturn, according to a report by London’s Financial Times.  Freight volumes were down 14.5% across the industry in February, compared to a year earlier—some major freight companies reporting even larger drops.  The industry had, until recently, found itself relatively resilient in the face of the recession.  In an interview with the Financial Times, Anthony Hatch, an independent rail analyst, said what while he believed the freight rail industry was better positioned to weather the recession, it was facing a decline in shipment orders not seen since 1982.  “In the fourth quarter, the railroads were able to avoid being part of the real world. In the first quarter of 2009, this isn’t true,” said Hatch. 

The decline in volume is due to decreased demands for goods seen in all sectors of the economy.  The Association of American Railroads reports a drop in both manufactured goods—motor vehicles carried down 51.5%—as well as raw materials—metal products carried down 52.2%, and there is less demand for grain shipments as the demand for ethanol production has dropped.  The Financial Times article reported that “John Gray, senior vice-president of the AAR, made a plea for the industry to be granted some of the economic stimulus funds being spent by the new US administration…Obviously, it’s still a very difficult economic environment out there for railroads and their customers.”

Deutsche Bahn has doubled its profits from its high speed passenger rail operations, according to anonymous sources familiar with the company. Reuters reported that the German railroad company has had better than expected income from it’s fast-IC and high-speed-ICE trains in 2008, on both the long-distance and short-distance passenger routes.  Freight rail numbers purportedly saw a decline.  The report cites anonymous sources, and did not provide concrete figures.  A spokesman for Deutsche Bahn declined to comment on the disclosure, and said official numbers would be released by the company on March 30.  Bahn’s CEO, Hartmut Mehdorn, had recently given an interview where he said he expected revenues of 35 billion Euros in 2008 (the company posted revenues of 31.1 billion Euros in 2007).  The German government had originally planned to begin the process of privatization of the company by submitting an initial public offering (IPO) of stock last year.  However, the governing legislative body reversed course last year, citing the poor economic conditions.  The timeline for privatization has remained in doubt, and last Saturday the German Transportation Minister Wolfgang Tiefensee moved the potential date further back, saying he didn’t think the IPO should go forward in the current legislative session.  In addition to a global recession, the matter is additionally complicated by Germany’s general elections, scheduled for this September.

There are four NARP membership meetings tomorrow: Baltimore, New London, Detroit, and Chicago.  Next Saturday, there is a meeting in Essex, MT and the Saturday after that (April 4), meetings take place in Bordentown, NJ and Cheyenne, WY.  We added a new meeting to our list this week: May 2 in Los Angeles with, among others, Amtrak President and CEO Joe Boardman as a confirmed speaker.  Any NARP member is welcome to attend any membership meeting and we strongly encourage you to do so!

Claude Brinegar, the U.S. secretary of transportation under the Nixon Administration, died March 13 at the age of 82. Mr. Brinegar, who in 1972 was named the third Secretary of the newly created Department of Transportation, led the effort to revitalize a group of bankrupt railroads in the Northeast, which ultimately resulted in the formation of Conrail.  He also helped create legislation to restructure Penn Central, which had declared bankruptcy in 1970.  Brinegar served as Secretary of the DOT until 1974, staying on six months after Nixon resigned.  In addition to acting as founding director of Conrail, he served on the company’s board, on the board of the CSX Corporation, and as both Senior Vice President and Executive Vice President & CFO of Union Oil (later renamed Unocal Corp.)

NARP Council of Representatives member George Billmyer died suddenly on March 9 (the NARP office was notified of his passing today).  George served on the NARP Board and then Council since 1990.  Virginia Association of Railway Patrons President Michael Testerman recalled that “George worked for the New York Central in his early years and later in life traveled the world extensively, to observe best practices in railroading. He was an early advocate for the Virginia Railway Express and after its start-up, was a daily commuter on VRE to his job at the Department of the Navy.”  Testerman also eulogized Billmyer, saying that he “advocated for high-performance rail corridors that would allow through trains to bypass congested urban centers. He believed that ultimately, rail infrastructure should be designed and maintained for high levels of service, used by multiple operators, providing benefits that the private sector alone does not offer.”  Billmyer was 73.

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Mar 27, 2009: Hotline #597

Hotline #597
March 27, 2009

A major freight railroad company has said it is willing to play a significant role in bringing high-speed rail to the state of New York, Sen. Charles Schumer (D-NY) said on Wednesday.  He met with CSX Chief Executive Officer Michael Ward in Washington, D.C. to discuss potential for rail in the state, and what part CSX might play.
Schumer urged CSX to take an active role in partnering with the New York State Department of Transportation (NYSDOT), the New York state Congressional delegation, and U.S. DOT Secretary Ray LaHood to ensure that New York gets a substantial share of the $8 billion designated for high-speed rail in the American Recovery and Reinvestment Act (ARRA).  Schumer is particularly focusing on the Empire Corridor, a 430-mile line which runs from Niagara Falls to Albany, and then down to New York City.
Given the substantial costs of high-speed rail development, and the 10 federally designated high-speed rail corridors across the U.S., there likely will be a high level of competition for the $8 billion in ARRA high-speed rail funds.  NYSDOT has already completed a feasibility assessment on the construction of a passenger-only track alongside the existing multi-use track in the Empire Corridor, which would allow passenger trains to reach the 110 mph threshold that ARRA calls for.  CSX, however, owns the right-of-way, and its cooperation—or lack thereof—would be a key element in assessing the Empire Corridor’s immediate suitability in investment.
Schumer said of his meeting, “This is the first stop on a long journey, but it is a terrific first step. I am very optimistic that all parties are committed to working together and that we can start moving down the track that will lead us to fast, efficient and affordable rail in Upstate New York.”
CSX expressed a willingness to work towards a mutually beneficial outcome, but Mr. Ward noted that planning is still in the preliminary stages.  Senator Schumer promised Ward that he would lead the effort to keep the channels of communication open between the interested parties, in order to ensure the progress of the venture.

NARP President & CEO Ross Capon appeared on the internet TV show The Money Message with Marc Sussman on Wednesday to talk about the future of passenger rail in America.  The unedited show can be seen at the website Mogulus.com—click the “On Demand” button at the bottom of the video player, and scroll down to the bottom of the side-bar to begin streaming Capon’s interview (Adobe Flash Player is required, and can be downloaded for free).  Air America will broadcast an edited, audio-only version of the show at 9 AM EST, Saturday, April 4th, both online, through their affiliate stations, and on XM Satellite Radio channel 167.

Amtrak has announced the allocation of $80 million in stimulus funds to upgrade Illinois train terminals and facilities, including almost $50 million to improve their maintenance facilities and train terminal near Chicago’s Union Station.  The funds come will come from the $1.3 billion designated for Amtrak in ARRA. 
The 14th Street Repair Station—built in 1980, and not renovated in over a decade—is one of the Amtrak facilities that will benefit from the money.  This facility has been one of the key factors in Amtrak’s weather-based delays during Illinois’ harsh winter, with outdated technology and a lack of storage space for engines and rolling stock in freezing temperatures being a major difficulty.
Amtrak spokesman Marc Magliari told the Chicago Tribune that the upgrades to the service station “will improve our four-season reliability, which has not been satisfactory to us or to our customers.”

Two new Amtrak facilities will be built in Seattle using $35 million from ARRA, according to a news release issued by Senator Patty Murray’s (D-WA) office Wednesday.
Senator Murray—who chairs the Senate Transportation Appropriations Subcommittee—revealed the two new structures will be built in the Seattle King Street Maintenance Yard, and will be used for inspection and maintenance, storage, and employee welfare.  The facilities will be used primarily to service the Cascade line, as well as long-distance trains, and will expand Amtrak’s repair capacity and lower maintenance costs.
“This project is going to create and save construction jobs in the Puget Sound at a time when our unemployment rate continues to rise,” said Senator Murray. “It will also address some of the long-term transit needs of our state by ensuring that Amtrak can service and maintain additional trains.  This project is just one part of a comprehensive recovery approach that will help get our state’s workers back on the job and our economy back on track.”

A fight is brewing between Virginian lawmakers over the recent expansion of intercity passenger rail service.  Senator Mark Obenshain (R-Harrisonberg) has created an online forum to highlight wasteful spending by the Virginia Department of Transportation (VDOT), and—although the $25.2 million contract for Amtrak to run daily trains from Lynchburg and Richmond to Washington, D.C. did not actually come from VDOT—he is railing against the new train link, calling it a “pet project” that shows the misplaced priorities of the state’s transportation officials.
Obenshain has criticized the project on a Facebook group he created called “Help Expose VDOT Waste,” writing that “at a time when VDOT says it can’t afford to plow, repair or maintain roads, this is an outrage.”  He has proposed that a better use of the money would be on highway rest areas; VDOT has suggested closing 25 rest areas, which would produce a savings of $12 million a year.
A variety of lawmaker and business leaders have come to the trains’ defense, including state delegate Shannon Valentine (D-Lynchburg), who argues that Obenshain is presenting the project out of context.
“It gives Virginians an option of knowing there are other solutions to our transportation troubles,” she told the Lynchburg News & Advance. “Many people don’t realize what the cost of roads is, and that we are never going to build enough highways to solve all of our transportation and economic need.”  Valentine put the cost for planning and constructing one mile of road at $20 million, and pointed out that for about the same price the state has presented a much needed alternative.
“There’s a whole new highway of rail being developed in this country, and we need to be in a position to contribute to the 21st- century economy” she said.  “We need to make sure that we’re connected to this vital economic system that’s being developed”
Rex Hammond, president of the Lynchburg Regional Chamber of Commerce, presented a different perspective, calling a well balance transportation system an economic necessity.
“[Kershaw] has many worthy projects in his district. I hope he looks at the needs of other parts of the state and realizes that our needs are as great,” he said.  “It’s essential that we diversify our transportation portfolio in Virginia.  Passenger rail is an excellent way to move forward.  It’s not the solution to Virginia’s transportation problem, but it’s part of the solution.”

Amtrak’s Acela service saw a 17% decline in ridership in the month of February according to figures released by the company (although part of the reason was that February 2008 had 29 days, due to a leap year).  America’s fastest train carried 226,551 passengers last month, down from February 2008’s number of 265,064.  This drop came despite Amtrak’s recent move to lower Acela fares.
The ridership for the Northeast Corridor as a whole fell 15%, and ridership on regional services within the Corridor fell 14%. 
This decrease is part of the larger recession, with the U.S. facing the worst economic contraction it has seen since 1982 during the last fiscal quarter.  “A great deal of the ridership in the Northeast is business travelers,” Amtrak spokesman Cliff Black told Bloomberg News on Monday.  “Business travel is down on all modes” of travel.
The drop in volume on rail lines hasn’t been all bad news for Amtrak.  Long-distance trains running outside of the Northeast Corridor have seen increases in ridership.  “Our long-distance trains are up and have continued to go up even in the midst of the recession and declines in other areas,” Black told Bloomberg.  The trains have seen improved on-time performance.

A campaign to restore passenger train service to Burlington has emerged, just a few days after the Ethan Allen Express was spared from the budget cuts proposed by Vermont Governor James Douglas.
The plan would restore service to Burlington—Vermont’s biggest city—from Rutland, which currently has access to Albany, New York, and New York City via the Ethan Allen Express.  The link between Burlington and Rutland is a 45-mile section of track, and it would cost $60 to $80 million in upgrades to bring the plan to reality says Robert Ide, Rail Director with the Vermont Agency of Transportation—though he noted that consultants are still in the process of analyzing the numbers.
Representatives from the Chambers of Commerce along the three counties between Burlington and Rutland have voiced their support for the plan.
“There is a groundswell of momentum building up around this issue,” Tom Torti, president of the Lake Champlain Regional Chamber of Commerce, told the Burlington Free Press, saying that the proposed rail link would spark “a large explosion for tourism to our area.”
The plan calls for a trip time of no more than one hour and 45 minutes between Rutland and Burlington by 2012 (it takes one hour and 20 minutes by car).
Ide admits that the proposal has some challenges, calling one section of the rail an “engineering nightmare.”  But he is hopeful that the state of Vermont will be able to secure rail funds from ARRA for the project.  “A lot of stars would have to align and a lot of people would have to keep their courage.”

The Empire Builder has been rerouted in North Dakota for two to three weeks due to flooding in the Red River Valley, bypassing Grand Forks, Devils Lake, and Rugby.  Service will continue at Fargo and Minot, Rugby station manager Duane Veach told the Minot Daily News.
According to Veach an average of 18 people board or disembark at Rugby every day, or about 6,600 people a year.  The Mayor of Rugby, Dale Niewoehner, told the Minot Daily news that the town depends on the line, which provides a connection to the outside world not only through passenger service, but also through freight trains.  “Every day there are people getting on and off,” he said. “(P)robably it`s a better situation for us than it is for Grand Forks and Devils Lake.  But that’s how it is when we have weather problems.”
The reroute, which took effect on Tuesday, March 24th, affects the Empire Builder numbers 7 and 8 (departure times can be found by calling Amtrak at 1-800-872-7245).  Due to concurrent flooding on highways, Amtrak will not be able to provide alternative transportation for Grand Forks, Devils Lake, or Rugby.

Amtrak gave free rides to active and retired police officers traveling to and from a memorial for four Oakland police officers killed in the line of duty.  The memorial took place at the Oracle Arena on Friday, March 27th, and honored the officers who were shot when trying to take a man linked to a rape into custody; the suspect was shot dead by the police.  Thousands of people were in attendance, and officers were encouraged to take the train after Caltrans and the California State Highway Patrol issued a traffic advisory.

The through sleeper on the Boston section of the Lake Shore Limited will be restored effective with train 448’s departure from Chicago on April 2 and train 449’s departure from Boston on April 4.  Through coaches were restored last October.  The inventory has been loaded into Amtrak’s reservations system and bookings are being accepted.

The April 2009 issue of NARP News has been uploaded to the members’ section of our web site.  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.

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