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Nov 06, 2009: Hotline #628Hotline #628 November 7, 2009 SEPTA bus, trolley and subway operators have been on strike for four days. They postponed their action until after the last World Series game in Philadelphia. After Gov. Rendell and Rep. Bob Brady (D-PA) failed to broker a deal, the Philadelphia Inquirer reported late Friday, the “union tonight offered to end its four-day-old strike and return to work immediately if SEPTA accepted binding arbitration on the divisive issues of wages and pensions. SEPTA did not have an immediate response to the proposal, suggested by council members Bill Green and Curtis Jones. If SEPTA declines, Transport Workers Union Local 234 president Willie Brown said, “we’re in for a long strike.” Regional Rail trains were overloaded as the electrified service has many stops within trolley-and-subway territory. The Inquirer said commuters at Suburban Station in Center City “were not allowed on the platform until their trains had arrived, instead organized in lanes designated by plastic yellow chains.” The independent report, commissioned by Governor Deval Patrick (D), classifies the deferral of 51 projects as ‘a danger to life or limb of passengers and/or employees,’ and puts the price tag at addressing just these most critical of maintenance issues at $543 million. “It’s fair to say that they are not keeping up with the safety standards that they themselves subscribe to,’’ David F. D’Alessandro, the former John Hancock chairman who led the review, told the Boston Globe. These 51 projects, however, constitute just the tip of the iceberg. While the transit agency spends $470 million a year on maintenance, it will need an additional $224 million to keep the backlog from growing. That is merely a fraction of the $3 billion in unfunded maintenance projects MBTA deems critical to keeping operations running as scheduled. A recent service shut down during rush hour, due to a fire caused by an old cable, drawing much bad publicity. The report predicts that the agency is also facing cumulative budget deficits of at least $550 million by 2014, a figure which could double if the Massachusetts state legislature decides next year not to renew $160 million in funding enacted this year as a stopgap. D’Allesandro does not generally lay the blame at the feet of MBTA management, though he is critical of accounting practices which deferred debt and masked the true magnitude of the problem. Instead, the independent report indicts the State Legislature’s 2000 decision to alter the way the agency was funded, giving them a fixed budgetary allocation instead of settling MBTA’s debts at the end of the fiscal year. While D’Allesandro applauds the intention to control costs, he criticizes lawmakers for drastically underestimating the kind of cost increases a transit agency would have to face. These cost increases include a 73% increase in employee health care costs over the first eight years (the state plan allowed for no growth), and fuel and electricity prices that more than doubled (MBTA is Massachusetts’ largest electricity customer). The report advises against a fare increase, pointing to the three increases transit riders have already had to face in the past 10 years. Rather than further burden passengers, it suggests more transparency, more direct oversight by the newly created state transportation board, and—above all—a more aggressive investment into the critical transportation assets which serve as the foundation for the state’s economic activities. In addition to providing much needed capacity expansion of MTA’s transit fleet, the $300 million equipment contract would have included $70 million for a local factory, produced hundreds of jobs, and created an estimated $368 million in local economic activity. Negotiators for the MTA and manufacturer AnsaldoBreda were in the process of finalizing the deal, but last minute demands by the Italian company was met with strong opposition from the transit agency’s representatives, and the deal fell apart on the night of the October 30 deadline. Relations between the two parties have been strained, due in part to 50-railcar order placed by MTA on which AnsaldoBreda is three years behind schedule. “We are looking for the president to announce the [American Recovery and Reinvestment Act] grants in his State of the Union speech in early 2010,” Mark Wolfgram, the administrator for WisDOT’s division of transportation investment management, told Trains Magazine. It was initially expected that the Federal Railroad Administration would begin to awarding funds for projects before the end of 2009, but the agency has delayed announcing grants until “winter.” A November 3 BNSF release stated, “Based on the number of outstanding BNI shares (including shares currently owned by Berkshire) on Nov. 2, 2009, the transaction is valued at approximately $44 billion, including $10 billion of outstanding BNSF debt, making it the largest acquisition in Berkshire Hathaway history. ‘Our country’s future prosperity depends on its having an efficient and well-maintained rail system,’ said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer. ‘Conversely, America must grow and prosper for railroads to do well.’ Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry. ‘Most important of all, however, it’s an all-in wager on the economic future of the United States. I love these bets.’...The transaction requires approval by holders of two-thirds of BNI’s outstanding shares (other than shares held by Berkshire Hathaway), and customary closing conditions, including Department of Justice review. Closing is expected to occur during the first quarter of 2010. BNSF Railway Company will continue to focus on providing outstanding service to its customers from its Fort Worth, TX, headquarters. Included in the transaction are all assets and subsidiaries of BNSF. “We are thrilled to have the opportunity to become a part of the Berkshire Hathaway family,’ said Matthew Rose, BNSF chairman, president and CEO. ‘We admire Warren’s leadership philosophy supporting long-term investment that will allow BNSF to focus on future needs of our railroad, our customers and the U.S. transportation infrastructure.’” The release, investor webcast and other information on the deal is at http://www.bnsf.com/investors/presentations/special.html Warren Buffet, the legendary chairman and chief executive officer of Berkshire Hathaway who is noted for his philanthropy and personal frugality, has long had a reputation on investing in traditional manufacturing sectors like steel, as well as in media and telecommunications firms, favoring a slow and steady return over more growth intensive industries. However, some commentators still expressed surprise at this move, citing the capital intensive nature of the railroad industry, with fixed, yearly infrastructural maintenance requirements. BNSF was an appealing target because of itsr history of excellent management. While Union Pacific—their only other major competitor in the western United States—maintained their system at existing levels in the early 90s, BNSF aggressively invested to expand capacity, allowing them to benefit from the freight boom in the following decade. Skoropowski brings over 40 years of experience in rail operations, and is given much of the credit for reinvigorating California’s Capitol Corridor during his 10 year tenure as managing director of the Capitol Corridor Joint Powers Authority Nov 13, 2009: Hotline #629Hotline# 629 NARP’s President, Ross Capon, was interviewed by Richard Uliano of CNN Radio on November 12 on the need for trains in general (and the history of NARP), and passenger train advocates concerns about Pew’s Subsidyscope report that magnified Amtrak’s per passenger subsidy. Selected portions of the interview aired today on CNN Radio; the podcast of the special report, titled “CNN Radio Reports: Amtrak and Federal Dollars,” is available on CNN’s website in the podcast section, under the heading “Audio Special Programming.” The Potomac and Rappahannock Transportation Commission and the Northern Virginia Transportation Commission voted to grant permission for VRE to enter into the five year, $85.7 million contract. VRE’s current contract with Amtrak will expire June 30, 2009. An Amtrak challenge to VRE’s October 16 decision to award the contract to Keolis was denied by the commissions, though the challenge was backed by Rep. Eleanor Holmes Norton (D-DC), a member of the Homeland Security and the Transportation and Infrastructure Committees. Norton wrote to Virginia transportation authorities expressing concerns that the foreign company had not provided the Federal Railroad Administration with documentation of its operational safety, or emergency evacuation plans for the nation’s capitol. An Amtrak spokesman stated that the Virginia railroad’s response to their challenge did not address the safety and security concerns they raised. Alves has over 35 years of government service, working variously at the Department of Transportation, FEMA, USAID, and the Government Accountability Office. Amtrak’s Chairman Thomas Carper issued a statement saying that Alves is “highly respected in the inspector general community and will provide the leadership, integrity, independence and objectivity required for the position.” He succeeds Fred Weiderhold, Jr., who resigned unexpectedly on June 18. The circumstances of his departure—and the selection of a sitting Amtrak vice-president as acting inspector general—led to allegations, including from some legislators, that the board had compromised the independence of the Amtrak Inspector General’s office. Alves official start date has not been released. “Expanding Wisconsin’s high-speed passenger rail service would be a boon to our economy, helping to create jobs when we need them the most,” Feingold said in a statement released jointly by the two Senators. “Wisconsin has been planning for this expansion for years and the state’s shovel-ready proposal provides a common sense investment to create economic activity and also address longstanding problems like traffic congestion in a responsible way.” It is projected that the Madison to Milwaukee rail service—which will build off the existing success of Amtrak’s Hiawatha—will create nearly 13,000 jobs in Wisconsin by 2013, and reduce automobile trips by 7.8 million over 10 years, saving an estimated 27.6 million gallons of fuel and reducing carbon dioxide emissions by 269,000 tons. The letter asks for consideration of the state of Wisconsin’s application to the Federal Railroad Authority (FRA) for a portion of the $8 billion in stimulus money available for high speed rail. However, the FRA has been inundated with 45 applications from 24 states, which total approximately $50 billion, so competition will be fierce. High speed rail grant recipients are scheduled to be announced in the winter of 2010. The report underscores that 224 million people use Boston’s transit system every year, compared to the just 26 million people who travel through Boston’s Logan airport. But, according to the American Public Transportation Association, the country has spent only $1.5 billion on transit security since September 11, 2001, judged against more than $30 billion on aviation security. “That translates to less than four cents on the dollars for public transportation versus aviation security,” Massachusetts Bay Transportation Authority (MBTA) transit chief Paul MacMillan told WCVB-Boston. “Terrorists have attacked mass transit systems overseas. It’s clear it is a vulnerable target and we have to do all we can to protect it.” The report references the 2004 terrorist attack on a Madrid train and a 2005 bombing in the London Underground, and cites a recently foiled plot to attack New York trains as clear indicators that these systems are vulnerable, and should receive security funding accordingly. Boston’s MBTA system has recently made headlines over an impending financial crisis (see Hotline #628), and any additional expenditures will need to be funded via legislative action. “The nation’s freight railroads maintain a strong commitment to the men and women who serve our country,” said Edward R. Hamberger, president and CEO of the Association of American Railroads. “We’re proud that we can provide steady, good-paying jobs to America’s veterans. It’s a win-win. Veterans are highly skilled and possess maturity, discipline and a strong work ethic.” Receiving special honors was Union Pacific who not only developed a new military task team to spearhead its military recruiting efforts recently, but was recently awarded the Distinguished Service Award by the Military Officers Association of America (MOAA) for the company’s support of our military men and woman, especially National Guard Members required to deploy overseas. The partnership involves Locomore Rail GmbH & CO. (a rail operator with a focus on intercity-services located in Berlin), Michael Schabas (a branch investor in London), and Railroad Development Corporation (a Pittsburgh-based international railway investment and management company which owns Iowa Interstate Railroad, whose chairman is Henry Posner III, a long-time NARP member). HKX is looking to begin service between Hamburg and Köln (Cologne) with three daily trains each direction, and will offer several classes of service to appeal to both business and leisure travelers. Overshadowed in the press by the Berkshire-Hathaway’s $44 billion acquisition of the freight railroad BNSF, this joint-venture demonstrates the potential for private economic development that exists when there is a foundation of quality public-funded infrastructure. Amtrak notified passengers that the severe weather conditions would not allow the train to reach its intended destination in New York City, but many passengers opted to take the Crescent as far as Atlanta and seek alternate transportation to their final destination. Nov 20, 2009: Hotline #630Key discount ends tonight! Amtrak is partnering with New York State’s tourism board to offer a 20% discount for fares within New York State, and to Montreal and St. Lambert, Canada, through November 23. Reservations must be made by tonight (Nov. 20) to meet the three days advance-notice rule, so act now and enter promotion code V122 to take part in this offer. Today’s Washington Examiner reports that the Council’s decision was hailed by advocates for the Johns Hopkins University-proposed 60,000-job “Science City” complex in Gaithersburg. David McDonough, a real estate executive with the university said the light rail vote “provides an overwhelming endorsement” for the university plans. Rail service for the complex is seen as an effective response to preservationist and environmentalist opposition to the development. Major obstacles remain. The Council’s endorsement of light rail faces tough competition from other Maryland transit projects, which is sure to be made acrimonious by Maryland’s budget crisis. The Council also voted to seek lower-than-planned tolls for the controversial Intercounty Connector highway whose first section is due to open in a year. State officials counter that lower fares will undercut $1.2 billion in bonds that are based on the current toll-rate proposal. Of the plea for lower tolls, Ross, leader of Mountgomery County’s Action Committee for Transit said, “We’re basically asking the people who use the Bay Bridge, Interstate 95, and the Harbor Tunnel to pay for [the ICC].” He was interviewed for the news report in the Washington Examiner. “I think that’s an unfair request to make of the state when we have other requests that are fair: the Purple Line [planned Bethesda-College Park-New Carrollton light rail], the Corridor Cities Transitway.” “The congestion will only get worse up there,” Lon Anderson, a representative for the auto club AAA Mid-Atlantic, told the Examiner. “Ultimately the County Council needs to say to the state, ‘Whatever you can get funding for, go get it built.’ We really are a beggar here.” SNCF said a firm contract could be signed by February, with the first trains due to enter service in mid-2013. Bombardier’s main competitor for the contract was Alstom. FT said Bombardier “has had more success in France than Alstom has had in Canada.” That 125,000 rider figure would make it the busiest single day for the railroad company—Amtrak carries 74,000 riders on an average Wednesday, which means they will need to prepare for a 70% increase in ridership. Amtrak is increasing capacity on existing trains in the Pacific Northwest, out of Chicago, and in the Northeast Corridor (NEC)—focusing on the traditionally busiest days of the day before and the Sunday after Thanksgiving. All NEC trains will be reserved including normally unreserved Philadelphia-Harrisburg and New Haven-Springfield segments. The NEC Thanksgiving Holiday Timetable is online and in stations. NARP suggests you take the following actions to make sure you have a smooth traveling experience:
Currently, transit systems are overseen by a patchwork of 27 state and local agencies that often lack the power to compel transit operators to grant them access to equipment and documents or to force compliance with their directives. Under the Administration’s proposal, states may continue to run their own regulatory bodies, but their practices would have to pass muster with the FTA. The cost of complying with new regulations would be borne by the affected transit agencies. Changing this will require the approval of Congress. U.S. Department of Transportation officials plan to present the plan to congressional committees in the coming weeks. Federal safety oversight was endorsed by Jim Graham, chairman of the Board of Directors of the Washington Metropolitan Area Transit Authority, whose Metro system witnessed a horrific crash on June 22 in which nine people died and dozens were injured. Graham called the current oversight scheme “absurd.” “After the [Metro] train crash, we were all sitting around here scratching our heads, saying, ‘Hey, we’ve got to do something about this,’ ” Transportation Secretary Ray LaHood told the Washington Post. “And we discovered that there’s not much we could do, because the law wouldn’t allow us to do it.” New York City subway riders interviewed by CBS were surprised to learn that the federal government has no authority to ensure the safe operation of such systems. Some observers have questioned the logic behind giving the new safety regulatory responsibility to the Federal Transit Administration, since Federal Railroad Administration has long experience in safety regulation of railroads, including commuter railroads. There is also the question of whether FRA authority should move to a new U.S. DOT Office of Safety which would have regulatory authority over all modes, just as the National Transportation Safety Board investigates and makes recommendations for all modes. The $5 million project to return service was paid for with state funds, and is expected to be an economic boon for the community’s real estate development and tourism industry. “The opening of this new station could not come at a better time with the 2010 Olympics right around the corner,” Paula Hammond, Washington’s Transportation Secretary told reporters. “Not only does the new stop give the community of Stanwood/Camano Island access to Amtrak Cascades intercity passenger rail service—which means more travel options to Portland, Seattle, and Vancouver, B.C.—but it provides Olympics-bound travelers an alternative way of getting to the games in Vancouver, B.C..” The station will be unstaffed, and will not have ticketing capabilities. Amtrak has reported that they have seen a 2.5% increase in tickets either departing St. Louis or arriving in St. Louis. “Some of that has to be because of the new, nicer station, probably the best station that we’ve had in St. Louis in upwards of thirty years. And a lot of it has to do with the increased popularity of our Chicago-St. Louis service. The Lincoln Service trains were able to increase ridership by about six percent over the last year,” Amtrak Spokesman Marc Magliari told St. Louis Public Radio. Magliari also pointed to a new long-term parking lot that opened recently. The lot was built for the downtown Gateway Transportation Center and is adjacent to Union Station, replacing the old facility that was several blocks away. Selected tickets between Washington and Boston will be discounted through March 31, 2010. Here are the discounts. Lowest standard fare is to the left of the arrow, promotional fare is to the right.
Rio Grande Scenic Railroad is the company that stepped up to fill the void left when the former operators of the ski train—Anschutz Co.—ceased runs, citing the lack of profitability. Rio Grande is confident it can make a go of it, as it will be running daily trains with 2,000 person capacity each, more than double what was formerly offered. The ski train would run from December 27 until March 28, and is expecting to run as many as 50 round trips on weekends, holidays, and select days. The tickets will run from $49 for basic fares to a $99 for a “premium” ticket, which grants access to the second level dome cars. Rio Grande is also offering a limited number of season passes listed at $600 each. The excursion company has already cleared the trains with Union Pacific, which owns the tracks they will use, and they are in the final process of securing Amtrak’s service as operator of the trains. “The Ski Train has a 69-year tradition that we are continuing,” Ron Perlman, Rio Grande’s vice president of sales and marketing, told the Denver Post. “It is a cultural icon and a rich part of Colorado history.” Nov 25, 2009: Hotline #631The Texas Department of Transportation’s (TxDOT) brand-new Rail Division has its first director. William “Bill” Galvin, P.E., was named Director of the Rail Division by TxDOT Executive Director Amadeo Saenz on Monday. Galvin has more than 30 years of experience in the rail industry, primarily with Burlington Northern Railroad, working most recently as a consultant with RVBA and Associates. He has lived in Texas since 1991. Galvin takes office Tuesday, Dec. 1. In a statement, Executive Director Saenz said, “Creation of the Rail Division will consolidate the department’s major rail responsibilities … under a single division.” The students’ action was prompted by Amtrak’s release of a study [PDF] of restoring the North Coast Hiawatha, which was mandated by a provision that Sen. Jon Tester (D-MT) inserted in the 2008 rail improvement law. The train would serve Montana State University, the University of Montana and Carroll College, and students would likely become regular riders. The report states that it would take 48 from 60 months from the time a service restoration plan was approved to start of service. Jordan Hess, a member of the ASUM transportation board, thinks the train would be “wildly popular.” “I thought that it would be a good fit for southern Montana,” he added. “My intention is to show policymakers how important this is.” |
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