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Mar 05, 2010: Hotline #644Hotline #644 The vacant Tower Automotive Corporation plant in northwestern Milwaukee, Wisconsin, was chosen Tuesday as the site for Talgo North America’s new US train manufacturing facility. The Spanish-owned company, whose trains currently operate on Amtrak’s state-sponsored Portland-Vancouver Cascades service, reportedly could create hundreds of jobs thanks to a $47.6 million deal with the state of Wisconsin to build two 14-car trainsets to operate between Chicago and Milwaukee on Amtrak’s Hiawatha service. The state has the option to buy two more sets for the planned extension of service west from Milwaukee to Madison, the state capital. The plant will use largely US-made parts. Wisconsin Gov. Jim Doyle (D) announced the decision in a press conference Tuesday. Milwaukee beat out other Wisconsin cities that were under consideration, including Appleton. Transportation Secretary Ray LaHood announced the timeline Thursday morning at the annual “Washington Briefing” conference of the American Association of State Highway and Transportation Officials. The principles will form the basis for legislation that the White House is expected to unveil next year. LaHood would not say if the principles will contain recommendations for a revenue source. While reiterating his opposition to a higher gasoline tax, LaHood called on Congress and the Obama Administration to shift away from traditional funding mechanisms. He pointed to the successful Build America Bonds program as a model for transportation financing. “There are big projects around that country that people don’t have the money for,” LaHood told the transportation subcommittee of the Senate Appropriations Committee on Thursday. “We need to think outside the box.” This is the third straight year that general funds have “bailed out” the HTF, bringing the total to $34.5 billion in such funds which can only be used for HTF purposes—which do include transit but not other rail projects. The original version the House passed in December had $800 million for Amtrak fleet modernization. Hill leaders have indicated this is the first in a series of bills intended to spur growth in employment. NARP will continue to work to include passenger train investments in a future bill. HR 4714 would reauthorize NTSB through fiscal year 2014. Authorized spending on the Board, which currently has 400 employees, would increase each year. The NTSB is an independent agency charged by Congress with investigating every civil aviation accident in the United States and significant accidents in the other modes of transportation, and issuing safety recommendations aimed at preventing future accidents. NTSB reports include a determination of the probable cause of accidents. The bill makes it easier for NTSB to subpoena witnesses by allowing it to request evidence and information without formally scheduling a hearing. A loophole in current law allows potential witnesses to fight requests to testify. Thanks to an amendment introduced by Rep. Eleanor Holmes Norton (D-DC) in response to the fatal June 22, 2009 Metrorail crash, the measure would also clarify that NTSB does not need to wait until an investigation is complete to make preliminary safety recommendations, The Economist reports that the Denver Regional Transit District’s (RTD) FasTracks proposal was originally budgeted for $4.7 billion, but the latest studies raise the price tag to $6.5 billion because of higher construction costs and new safety requirements. Because of this, completion could be delayed until 2035 or the project could be scaled back to just one or two new rail lines. RTD is seeking to close the resulting $2.4 billion gap by asking voters in Denver and its suburbs to approve increasing the sales tax to 0.8%, a question it hopes will be on the ballot this November. The fact that the entire region would pay the tax, while the new lines may only benefit certain areas, is fueling criticism of FasTracks. On Thursday, Denver Mayor John Hickenlooper named Angie Rivera-Malpiede, a transit advocate who runs the Stapleton Area Transportation Management Association, to be the next RTD Director from District C. She calls FasTracks “essential for the city to have,” but has not decided whether to support putting the sales tax increase on this year’s ballot or delay it until next year. The audit, done at the request of Transportation Secretary Ray LaHood and Sen. Barbara Mikulski (D-MD, says train operators rarely know that workers are on the tracks until the operator can see them, that Metro has no process for communicating safety concerns across departments, that safety officials have been isolated and ignored within the organization, and that the weak and underfunded Tri-State Oversight Committee is denied access to information necessary to perform its duties. Sen. Benjamin Cardin (D-MD) called the audit “one of the most disturbing reports I’ve seen since I’ve been in Congress.” Sen. Barbara Mikulski (D-MD) called the audit “shocking, hair-raising [and] chilling.” “Stunning” is how Sen. Mark Warner (D-VA) referred to it. FTA Administrator Peter Rogoff cited “a fundamental violation of rail safety operations.” A front-page Washington Post report included this: “Rogoff, a daily rider on the Orange and Green lines, said the agency needs ‘radical restructuring,’ including ‘knocking some heads and putting some people on the unemployment line.’” The report recommends that Metro and the Oversight Committee rededicate themselves to safety, in part by establishing new methods for identifying and eliminating hazards. It says Metro and the inspectors should clearly identify the resources and expertise they require to make substantive improvements. At the same time, Metro is facing the prospect of further fare increases and cutbacks in bus and train service as it continues to close a gaping budget deficit. Riders will have the opportunity to comment in public hearings that run from March 22 through April 1. “From what I can tell, there is cautious optimism that we have bottomed out,” said AAR President Ed Hamberger. “Things are starting to pick up a little bit, but the concern is will that end when inventory restocking ends or will it be real? There are also concerns about the housing market, too.” Mar 12, 2010: Hotline #645Hotline #645 The New Orleans City Council convened a hearing this week to determine what can be done to restore passenger rail service between their city and the rest of the Gulf Coast states, a link that has been eliminated since Amtrak discontinued Sunset Limited service between New Orleans and Orlando, Florida in 2005 after Hurricane Katrina damaged sections of track. Council President Arnie Fielkow convened a hearing on March 9, at which NARP members Allan Thomas and John Sita Jr. testified in favor of immediate service restoration. The Council has already passed a resolution, citing the economic benefits restoration would bring to the city (you can see a report done by local news station WDSU here). The council, recognizing that local support existed, is looking to Washington to help give the effort momentum. “I think we have a great advocate in Congressman Joseph Cao (R-LA). We just need to get a unified regional effort and push this issue,” Fielkow said. If you live along the Sunset route, take a moment to encourage your city to show their support, and sign up for NARP’s My Gulf Coast campaign. Numbers released by the passenger railroad earlier this week show that Amtrak’s 15 long-distance routes have seen a 13% increase in ridership since 2006. These increases have persisted in the face of a severe recession and plummeting gas prices, with 4.2 million riders in FY2009. Increases in demand in China and India, in connection with lowered production following a glut of crude oil held in reserves, is stoking speculation that the price curve will begin an upward climb this summer. “What you have is a global balance that is tightening, and probably more quickly than a lot of people are expecting,” Amrita Sen of Barclays Capital said in a March 9 edition of the Financial Times. After two years of decline, the International Energy Agency is predicting that global oil use will grow by 86.5 million barrels a day in 2010, or around 1.8%. Goldman Sachs anticipates that prices could climb from the current average of around $80 a barrel to as much as $85-95 a barrel in the second half of the year. Adding to this, the oil refining industry is pondering a permanent contraction in capacity based on the possibility that demand for petroleum in the U.S. will never return to the levels seen in the early 2000s—an idea that only a short time ago seemed inconceivable. “Refineries will have to be closed,” Fadel Gheit, senior energy analyst with Oppenheimer & Co. told the Financial Times on March 12. “Unless this excess capacity is permanently shuttered, a recovery in refining margins is unsustainable.” These industry developments could complicate life on Capitol Hill. At a Senate hearing on accelerating transportation investment, even members of the GOP were asking representatives of the Obama Administration if now wasn’t the right time to raise the gas tax. At a Wednesday hearing, Senator George Voinovich (R-OH) argued to a senior Department of Transportation official that there was bipartisan support to raise taxes on gas to drive investment on transportation. President Obama has been adamant that he won’t support raising the gas tax while the recession is ongoing. However, securing the votes to increase taxes on fuel once they have returned to the $4 a gallon levels seen in the summer of 2008 will be an equally difficult task. Ppen to the public and moderated by Trains Magazine, this was an initiative of Joseph Boardman, Amtrak’s CEO, and the former head of the Federal Railroad Administration. “It is important for Amtrak senior management to hear directly from people who care deeply about improving and growing passenger rail in this country,” Boardman said. “Listening to their opinions and viewpoints with open ears and respect is crucial because their support matters in determining how passenger rail moves forward,” he added. Passengers traveled from 28 states to attend, and listened to presentations on Amtrak’s policy on plans to expand its fleet of locomotives and railcars, improvements to the national network of long-distance trains, and restrictions to photography on its property. Attendees were also given a chance to ask questions of the Amtrak leadership. “It was a very good day and the first of what I hope will be a recurring activity to keep Amtrak officials in touch with the thoughts and concerns of passenger rail supporters,” said Chairman Carper. You can see the full statement on the NARP blog. The 335 mile route would run from London to Birmingham, Manchester, the East Midlands, Sheffield and Leeds, creating a “Y” shape with the base in London. The trains, which will connect into the existing conventional rail network, would allow trip times of less than 75 minutes from cities located in center of the island nation to its capital in the south. “The time has come for Britain to plan seriously for high speed rail between our major cities. The high speed line from London to the Channel Tunnel has been a clear success, and many European and Asian countries now have extensive and successful high speed networks. I believe high speed rail has a big part to play in Britain’s future” said the U.K.’s Minster of Transportation, Lord Andrew Adonis. “Over the next twenty to thirty years the UK will require a step-change in transport capacity and connectivity both to promote and respond to long-term economic growth.” The proposal was met with loud cheers from the English Midlands, a former manufacturing powerhouse that has seen its economy shrink with the outsourcing of blue-collar jobs to other countries, and has especially hard hit by the current global recession. And while the initial construction will certainly shore up job losses in the region, local leaders are looking to the transformative effects the train line will bring. “Improved connectivity to London will significantly benefit the region’s financial and business services sector with benefits equivalent to £106 (approximately $161) per worker per year,” Jerry Blackett, chief executive of Birmingham Chamber of Commerce, told the Financial Times. By enabling businesses travelers to commute between the Midlands and the capital, local businesses stand to benefit from the London’s advanced human capital and business infrastructure. According to the Greengague consultancy group, the benefits will be more pronounced when the line is extended farther north, with the U.K.’s northwest expected to see an increase in economic activity of around £10.6 billion (about $16.1 billion) a year and Scotland benefiting to the tune of £20 billion (about $30.4 billion) per year. Opportunities for the public, businesses, and environmental groups to provide input on the proposals will take place starting fall of 2010, with construction slated to begin in 2016. The National Union of Rail, Maritime and Transport (RMT) Workers are responding to the elimination of 1,500 jobs, and may be joined by the signalmen’s union. While they have not set a deadline for a possible strike, many in the industry are eyeing the Easter holiday, which is a three-day weekend in the U.K., and a popular time for travel. “Nobody should be under any illusions about just how determined RMT members are to win this dispute and to stop this reckless gamble with rail safety,” Bob Crow, general secretary of the RMT, told the Financial Times. The Capitol Corridor Joint Powers Authority (CCJPA) is hosting an online survey to hear from passengers about how satisfied they are with the channels of communication. If you are a rider on the Northern California Amtrak corridor, take a moment and let CCJPA know how they’re doing. With a “Parks in Your Backyard” theme, Amtraktoparks.com provides a trip wizard which allows users to customize searches based on geographic location and personal interests, and provides information on schedules and local accommodations. “Passenger rail and national parks have rolled through history in tandem since the 1880s,” said Dean Reeder, national tourism director of the National Park Service. “By facilitating visitor access to the many wondrous experiences available in many of our nation’s parks, Amtrak helps us advance the values of sustainable tourism.” You can follow Amtrak’s Twitter at @AmtrakUSA. Sanders co-founded the Action Committee for Transit in Montgomery County. He was known to many as “Father of the Purple Line.” A memorial service is planned for Saturday, April 17 at 11 AM at St. Luke Lutheran Church, Colesville Rd and Dale Dr, Silver Spring MD, with a reception to follow. He will also be honored at a March 22 fundraiser for the transit advocacy group, Purple Line NOW! which he co-founded and for which he served as President. Donations may be made to Purple Line NOW!, the National Multiple Sclerosis Society, or the Montgomery County (MD) League of Women Voters Citizen Education Fund. Mar 19, 2010: Hotline #646Hotline #646 In a speech given earlier this week to the heads of transit agencies from across the country, U.S. Transportation Secretary Ray LaHood expressed support for growing transit systems in American cities, but warned that a “lousy economy” would hinder efforts to increase levels of federal investment. The speech, given as part of the annual conference held by the American Public Transportation Association in Washington, D.C., included a question and answer session, where transit heads expressed frustration at the lack of a permanent, transit-friendly successor to the federal surface transportation policy which expired last fall (Congress has been passing a series of short-term extensions in the meantime). Passengers across the country have been hurt as transit agencies faced with widening budgetary shortfalls—due to decreased commuter traffic resulting from high levels of unemployment, and decreased tax revenue in general—are forced to choose between cuts in service and fare hikes. (New Jersey Transit, New York City’s MTA, and Washington D.C.‘s WMATA have all recently been faced with these decisions) You can read more about this story—and see Transportation For America’s interactive map of cuts to transit service around the nation—on the NARP Blog. The Southern California commuter rail agency is facing a $17 million budget gap for the fiscal year that begins July 1st, and is looking at changes in service to five counties within its network. Meterolink, like so many commuter and transit services around the country, is suffering from the depressed economy: with less people employed, there are fewer passengers traveling to and from work. However, as economic indicators suggest a bottoming out, it is vital that a robust and effective commuter service exist as an alternative to overcrowded freeways for people returning to the workplace. Towards that end, Metrolink’s board is holding a public hearing in Los Angeles on April 2 to receive comment on existing proposals. If you can’t make it, but will be affected by the changes, Metrolink is providing an eComment option on its website. Make sure your voice is heard! Boardman announced the decision in a company-wide memo to employees today, revealing that the new department will be headed by a vice-president who will report directly to him. “Specifically, this department will work on the planning and development activities that will allow us to significantly increase operating speeds above 150 mph (240 kph) on the Northeast Corridor” wrote Boardman. “It will also pursue partnerships with states and others in the passenger rail industry to develop federally-designated high-speed rail corridors such as the new projects moving forward in California and Florida.” Amtrak is seeking to respond to the spike in interest from foreign operators, a product of increased demand which has been made possible by 2008’s Recovery Act. Amtrak recently lost a contract to run Virginia Railway Express (commuter trains) to Keolis, a private company partly owned by the French National Railway. The input will be included in a report titled Wisconsin Rail Plan 2030. The survey seeks to discover Wisconsin’s needs, strengths, and concerns—for passenger, freight, and commuter trains. If you are affected by the Midwestern rail network, NARP encourages you to take a few moments to make your voice heard. China is far and away the biggest new market for rail, expected to spend around $300 billion on high speed trains over the next 10 years, and install around 30,000km (18,640 miles) of new railway over the next five years, overtaking Russia as the second-largest network in the world (behind the U.S.). There is even a Chinese government plan to connect China to Europe, through Russia, by high speed rail in 10 to 15 years’ time—a modern day Orient Express that would transport passengers from London to Beijing in 48 hours, at speeds of up to 200 mph. And while, initially, Chinese manufacturers were reliant on partnerships with the handful of manufacturing firms in Europe, Japan, and North America who were technologically advanced enough to produce truly high speed rail systems, they have proved to be quick learners, and are using China’s unmatched supply of cheap labor and demand for more trains to undercut the same companies who introduced them to the technology in the first place. “Chinese companies are changing the landscape of the global railway market because of the dimensions of their home market and because they are becoming involved in international tenders, which is new,” Dominique Pouliquen, Asia-Pacific manager for Alstom, told the Financial Times on March 10. “Price is their number one competitive advantage and they are very well organized, with financing support from Chinese state-owned banks.” While many European, Japanese, and North American high speed rail firms are privately angry that technology they developed is being used to compete against them, they are faced with a decision: compete with Chinese high speed rail companies at cutthroat prices (and risk being shut out of the booming Chinese train market), or partner with Chinese firms on projects (and reveal more of their technology to Chinese manufacturers). Recently, the German rail supplier Siemens has taken the latter course of action, withdrawing their bid for a $7 billion Mecca-to-Medina high speed railway in Saudi Arabia, instead choosing to partner with the state-owned China South Locomotive & Rolling Stock Corporation on a bid for the project. The FT also reported, “Analysts say Chinese companies are already very active in bidding for projects in the Middle East and Latin America. They are also targeting projects in Australia and the US…” The Request for Qualifications (RFQ) is a preliminary step; there will have to be a second RFQ for onboard train information systems and a national request for a proposal for implementation before work on installation is completed. But as internet access continues to become the norm rather than the exception—New York’s Metropolitan Transportation Authority is reportedly evaluating plans to establish Wi-Fi services at Grand Central Terminal and Penn Station in Manhattan, and for Metro-North and Long Island Rail Road trains—it is good to know that Amtrak is taking action to catch up. BNSF spokesman Gus Melonas told the Spokesman-Review that passenger trains were stopped north of Seattle as precaution after the slide was detected by a sensor fence on Friday morning. Freight trains were able to continue using a parallel track. Debris had been cleared by Sunday morning. Mar 26, 2010: Hotline #467Hotline #647 NARP submitted a statement on March 22 to the House Appropriations Subcommittee on Transportation, Housing and Urban Development, supporting $4 billion for capital grants to states for intercity passenger train development, and full funding of Amtrak’s budget request. Amtrak has requested $592 million for operations; $1.752 billion for capital (including $446 million for fleet development and $281 million for Americans with Disabilities Act station compliance work); and $305 million for debt service. Amtrak President Joseph Boardman appeared during a March 23 hearing before the House Appropriations Subcommittee on Transportation—along with Federal Railroad Administrator Joseph Szabo and Federal Transit Administrator Peter Rogoff—in a conversation on the funding needs for rail in the coming budget. Although Chairman John Olver (D-MA) and Ranking Member Tom Latham (R-IA) were the only members in attendance throughout—due to the White House’s event for the health care signing—Boardman was generally well received by both men. As Mr. Latham questioned whether the $8 billion in Recovery Act funds might not have been better spent on Amtrak, it was clear that—for the moment, anyway—America’s passenger train company has the ear of Congress. Things did briefly become tense when the Representative from Iowa expressed irritation that the company spent tax payer dollars running trains through areas of Iowa that were sparsely populated. Boardman was firm in his defense of a national network, however, saying that “Amtrak is America’s railroad,” and they could no more terminate a train at a state line than one could terminate a highway at a state line. The first, HB 2552, ratifies the creation of the Midwest Interstate Passenger Rail Compact, formalizing partnerships with other states to create a fully-realized Midwestern high speed rail corridor. The second, SB 409, requires the Kansas Department of Transportation (KDOT) to implement a passenger rail service program, and authorizes them to enter into contracts with Amtrak and other rail service providers. “Passenger rail service in Kansas would create economic opportunities for the future, but the planning must begin now,” Parkinson said at a press conference. “A strong public infrastructure system helps attract businesses and jobs to our state and a high speed rail service is another piece in furthering our economic recovery.” The goal of these bills is to allow Kansas’ passenger rail program (which has been virtually nonexistent up to this point) to catch up with programs in other states. This would give Kansas a greater chance of receiving federal train funds in the future. Of the roughly $8 billion in Recovery Act grants U.S. DOT announced on January 28, Kansas got money only for planning studies—initial reports from KDOT put the figure at around $250,000. The study looked beyond those companies directly associated with rail, to secondary and tertiary companies that supply components and services to the rail sector. Taken together, these 225 companies employ more than 26,000 workers in Ohio alone. This data should counteract critics of Ohio’s 3-C line, who complain that it is unfair for taxpayers to pay for a system that serves only a selection of the population. The 3-C line will link Cleveland, Columbus, Dayton, Cincinnati and some intermediate points. “This demonstrates that moving people and freight by rail means more to Ohio than just the trains rolling through town”, ORDC Chairman James Bradley told Dayton’s WHIO. Much of the economic activity is preparation for expanded levels of investment for intercity and high speed rail that federal and state leaders are promising. And it’s not confined to Ohio—the German company Siemens announced it is expanding manufacturing plant in Sacramento, California, to meet future demand for trains and train based technologies. “The current urban rail market for passenger trains has averaged near $1.5 billion nationally for the last several years,” Dennis Harwig, business development director for Columbus-based Edison Welding Institute, told reporters. “Current projections indicate a $2-$3 billion market within the next two to five years, which grows to $4 to $5 billion as the national High-Speed Intercity Passenger Rail and Amtrak Fleet Replacement programs mature, and more urban rail systems come on line.” Boardman argued that transportation planning should be mode-neutral, targeting investment towards whatever projects reduce emissions and increase efficiencies on and within transportation corridors. “We believe that legislation to address climate change should recognize both the transportation sector’s existing contribution to the problem and the ability of lower-carbon modes, if properly developed, to contribute to the solution,” Boardman said. “The environmental advocacy community is ideally placed to play a pivotal role in that discussion.” Amtrak’s CEO also pointed to specific projects Amtrak could undertake to tackle emissions: taking over from airlines on high-traffic, short-haul routes (similar to what exists today in the Northeast Corridor), and electrifying more of Amtrak’s system. The launch is two years behind schedule and $15 million over budget, but local officials and commuters are excited now that the line is up and running. “Austin is a world-class city, but traffic threatens our quality of life. MetroRail is part of our region’s solution to protect our quality of life,” said Austin Mayor Pro Tem and Capital Metro Chairman Mike Martinez. [Click through for video of the train] Caltrans reported March 16 that during a four month period—November 1, 2009 to February 28, 2010—the line carried 310,000 passengers—a record, and 6.6% above the same period in 2008-2009. This achievement—all the more impressive for coming during a severe recession that is depressing travel—shows what can be accomplished with proper levels of funding. California has invested more than $1.3 billion for passenger rail infrastructure and equipment, and about $1 billion for operating support, since 1990. The $23 billion state budget for fiscal year 2011 cut funding to many government programs in an attempt to reconcile Missouri’s looming budget gap. Legislators, however, rejected attempts to gut money slated for state-sponsored Amtrak service, as well as local transit funding. A budget passed by the Virginia state General Assembly removes a requirement for a 30% local match for the use of state Rail Enhancement Funds, allowing the cash-strapped local government to move forward on a Richmond-Norfolk train route; officials say there is ample money in the Rail Enhancement account, which is funded by taxes on rental cars. The proposed route would run from Richmond to Petersburg (roughly adjacent to I-95), then to South Hampton Roads, terminating in Norfolk (roughly following U.S. 460). “I would describe this as a watershed event,” Barry Bishop, executive vice president of Greater Norfolk Corp., told Mass Transit. “It gets us in the game… This is a beginning, not an end. It’s far more likely we’ll get federal funding with some rail service in place. High-speed service will come incrementally.” The schedule being outlined by Virginia Department of Rail and Public Transportation officials would have construction beginning within a year, and trains running within three. Transportation officials will have to clear the use of the tracks with the freight railroads which own the tracks, Norfolk Southern & CSX, who have expressed cautious approval of the plan in broad terms. Amtrak customers can earn double points on qualifying travel between now and May 7, and triple points on qualifying travel between May 8 and May 29. Passengers must be a member of the Amtrak Guest Rewards program to qualify. Go to Amtrakguestrewards.com. The decree–titled “On Measures to Develop High-Speed Railway Transport in Russia”—set equipment standards, goals and benchmarks, and budgetary directives for a national high speed train system. Russian Railways—which is currently operating and developing the high speed route between Moscow and St. Petersburg, a route that is running at 90-100% capacity after only three months of service—is designated as the exclusive ordering party for Russian high speed rail. “The provision of high-speed services in Russia will enable us to alter the entire national transport system, providing Russians with freedom of movement while minimizing travel times,” said Russian Railways President Vladamir Yakunin. |
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