Oct 24, 2008: Hotline #576

Thirty transit agencies were revealed as victims of the nation’s financial crisis in a front-page story in today’s Washington Post.  The Post reported, “American International Group had guaranteed deals between transit agencies and banks under which the banks made up-front payments that agencies agreed to repay over time.  AIG’s financial problems have invalidated the company’s guarantees, putting the deals in technical default and allowing banks to ask for all their money at once.” 

The question now is whether the Bush Administration will replace AIG as backer of the deals, “change tax policy to help the banks and keep them from demanding payments,” or leave transit agencies in severe financial jeopardy.  A Treasury Department spokesperson would say only that “Treasury is aware of the situation.”  Los Angeles County Metropolitan Transportation Authority said “the worst-case scenario is that we could end up having to come up with $100 million to $300 million overnight.”  Washington Metropolitan Area Transportation Authority (Metro) “could face up to $400 million in payments” according to its CFO, who also said, “If everyone acted like SunTrust, we might be able to work our way through this.”  Atlanta-based SunTrust, said the Post, “agreed to terminate one of the deals without demanding further payment from Metro.”

Connecticut DOT will hold public scoping hearings on proposed improvements to the New Haven-Hartford-Springfield line (owned and operated by Amtrak) for potential future commuter rail service and transit-oriented development.  For more information about the December hearings, see ConnDOT’s news release.

Maryland is planning to cut MARC and commuter bus services, following public hearings November 17-25.  Among the regular trains to be cut is the Brunswick-Martinsburg, WV segment of one train.  The proposal also includes elimination of all service on all three lines on Columbus Day, Veterans’ Day, the day after Thanksgiving, and the day after Christmas.  Details on the proposed train and bus cuts are available here.  They are to take effect “January 12, 2009 or sooner if the service reduction is based on a holiday.”  Transit agencies in the state also face budget cuts that may result in service cuts and/or fare increases.  Nonetheless, Maryland continues its highway building program.  A new widening of Baltimore-Washington Parkway was announced today, and Intercounty Connector construction continues amid controversy over whether the state can afford it, and official assurances that it can.

West Virginia Gov. Joe Manchin (D) announced a $285,700 grant to the West Virginia State Rail Authority last week.  The funds will go towards station platform and accessibility improvements at Harpers Ferry, served by Amtrak’s Capitol Limited and MARC Brunswick Line commuter trains.

Metrolink has sued the operations contractor who employed Robert Sanchez, the deceased locomotive engineer thought to be at fault in the September 12 collision with a UP train in Chatsworth, CA that killed 25 people.  Veolia Transportation subsidiary Connex Railroad LLC is the named defendant in the suit.  A Veolia spokesperson told the Los Angeles Times, “Connex has been operating within full compliance of their contract with Metrolink and they continue to operate the service at the request and confidence of Metrolink.”

Amtrak is celebrating the 25th anniversary of its operation of the Auto Train this weekend.  Tomorrow, there will be invitation-only media events at the termini in Lorton, VA and Sanford, FL.  As well, for the duration of tomorrow only, passengers can book discounted coach tickets on the Auto Train during the month of February 2009 using promotion code H784.  For more information, see Amtrak’s news release, which mentions plans for construction of a new terminal in Sanford next year.

Amtrak’s eastbound Empire Builder trains 8 and 28 will detour between Minneapolis-St. Paul and Chicago on November 4 due to Canadian Pacific track work.  All intermediate stops will be missed, and passengers will be covered by alternate transportation.  Delays of up to 90 minutes are possible along the detour route.

Holiday service on Amtrak’s Downeasters will vary from what is printed in the regular timetables.  On Thanksgiving Day, November 27, only trains 692, 693, 696, 697, 698, and 699 will operate.  On Christmas Day, December 25, only trains 692, 693, 696, and 697 will operate.

An Amtrak Thruway motorcoach in West Sacramento was stolen in the early morning of October 17 and driven to the Amtrak station in Roseville.  No passengers were aboard.  According to media reports, the offender was a disgruntled Amtrak “employee” who had been recently terminated.  From what NARP has been told, the man was in the employ of the Amtrak Thruway contractor of the stolen bus.

LTE International Airways, a discount and charter carrier based in Spain, ceased operations on October 17 after running out of operating cash.  The airline was formed in 1987.  About 800 passengers were stranded at Tenerife, Canary Islands before being accommodated on other airlines.

At its Fall Board of Directors meeting in Portland, OR, the NARP Board approved on October 18 a restructuring under which the 80-member Board of Directors is now the Council of Representatives.  Under a transition provision, existing council members will serve until state-by-state elections are held in 2012.  The smaller, former Executive Committee is now the Board of the Directors.  We will publish more details on the restructuring soon.

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