Feb 05, 2010: Hotline #640

Hotline #640
February 5, 2010

Amtrak yesterday released its long-awaited fleet report [PDF], “Amtrak Fleet Strategy: Building a Sustainable Fleet for the Future of America’s Intercity and High-Speed Passenger Railroad.”  The projected total funding requirements (including project management, related infrastructure funding and overhaul costs), in 2009 dollars, ranges between $600,000 and $1 billion a year through 2040, except for the ramp-up years ($223 million this year and $401 million in 2011) and three years when needs will exceed $1 billion—2014, 2019 and 2039.  The peak is $1.35 billion in 2019.  None of this funding is in the budget request that Amtrak also unveiled this week (see below).  The report frankly acknowledged that finding reliable sources of funding remains a challenge.

“The fleet impacts on all aspects of Amtrak’s services including the customer’s perception of and willingness to use the product, the operating reliability of that product and the cost of maintaining and delivering the service,” the document notes.

The strategy envisions doubling the fleet over 30 years, based on a conservative secular ridership growth rate of 2% a year.  However, this is considered a living document, to be updated regularly based on the market and on funding availability.  That is, once the company establishes its ability to manage large-scale procurements, upward revisions of those procurements in response to market demand—sky-high gasoline prices or a collapse of short-distance air service, for example—becomes simply a matter of available cash.  The conservative growth rate was chosen to help insure the strategy’s credibility and inoculate it from criticism on Capitol Hill and elsewhere that it represents impractical railfan dreams.

Amtrak foresees acquiring about 100 cars a year beginning in 2012.  Growth will come initially because new additions will exceed retirements.  For example, in 2012, the company foresees introducing 65 single-level cars and retiring 49, introducing 35 bi-levels and retiring 25.  (That year also would see 25 new road diesels, 10 new switchers and 15 new electric locomotives.)  The percentage of bi-levels could rise if any corridors now operating with single-level equipment convert to bi-levels.  The report (at page 41) says bi-levels “should provide a lower per seat cost” but there is “resistance amongst some of Amtrak’s state partners to the use of bi-level equipment because of concerns about customer perceptions and acceptance.”

The document says that, over the next 14 years, Amtrak will need to purchase:

·  780 single level cars

·  420 bi-level cars

·  70 electric locomotives

·  264 diesel locomotives

·  25 high speed train sets

The focus is not on the replacement of like for like, but rather modernized equipment with improved fuel efficiency and reduced emissions.  Initial priorities include replacement of the approximately 90 Heritage cars with next-generation single level vehicles, replacement of the approximately 420 Amfleet Is with next-generation single level coaches, and the replacement of around 250 Superliner I vehicles with next-generation bilevels.

Funding sources considered include federal appropriations, the states, and federal loan programs, to be paid back by Amtrak through joint financing with state partners.  The plan does touch on commercial financing, but recognizes that this will be difficult given the current liquidity levels due to the recession.

“We have been concurrently looking at funding options” during the drafting of the fleet plan, Steve Kulm, an Amtrak spokesman, told Bloomberg News.  “And now we can focus all our efforts on funding options.”

NARP provided our own blueprint for fleet modernization in October.

President Barack Obama released his proposed budget for Fiscal Year 2011 earlier this week, and outlined a request for intercity passenger trains, commuter rail, and local transit that largely maintains the status quo, while repeating last year’s $1 billion request for high speed rail (HSR), which Congress upped to $2.5 billion.

The President requested $1.6 billion for Amtrak, $598 million below Amtrak’s request for $2.2 billion.  The White House asked Congress to appropriate $563 million for Amtrak operations—the same level as FY2010—$29 million below Amtrak’s request of $592 million.  Amtrak’s requirements for operations have increased in large part due to the bigger capital program, which drives costs in a way that it did not a decade ago.

The major shortfall, however, is the $539 million gap between Amtrak’s request for $1,025 million in capital funds plus $281 million for Americans with Disabilities Act work and the President’s recommendation of $767 million.  If the President’s figure holds, and Amtrak fully funds the ADA work, that would leave only $486 million for general capital, and the operation would begin to deteriorate.

The Obama Administration also requested a total of $40 million for railroad research & development, of which $12 million is technology research, planning and analysis for next-generation HSR.

NARP will continue to work with our coalition partners to push the Amtrak and HSR numbers up.

The Governor of Connecticut announced an increase in Shore Line East service to New London in a statement released on February 3.

“It is time to give the commuters in Southeastern Connecticut what they have been asking for: more service to New London,” wrote the Governor in Wednesday’s statement. “This is a crucial first step toward passenger rail expansion, and I am committed to making this happen.”

Beginning February 16, an extra train will run between New Haven and New London, making an additional four daily round-trips.  Ms. Rell said the expansion is part of an effort to ease automobile congestion, which is plaguing the region.

Amtrak, which owns the tracks and operates the Shore Line East service, has been working with the state to find room for the extra train in its busy Northeast Corridor.

“We now have an agreement with Amtrak, and I have directed the state Department of Transportation to continue to work with the Connecticut Marine Trades Association to establish a monitoring and performance measures program that strikes a balance for all requirements,” the Governor told the New Haven Register. Given the number of drawbridges along the route, rail operators must negotiate their schedules with marine traffic.

The new train will depart New London at 5:53 a.m., arrive in New Haven at 7:03, and continue to Stamford at 7:54.  The returning train will depart Stamford at 4:46 p.m., stop over in New Haven at 5:42, and arrive at New London at 6:52.

Public Transit Shortage a Cause of Mortgage Meltdown

From wired.com: “In yet another analysis of the causes behind the current financial crisis, it turns out that vehicle ownership and a lack of access to public transportation may be just as predictive of mortgage foreclosure rates as low credit scores and high debt-to-income ratios.”  Read the full article here.

NARP has posted updated Amtrak ridership data (through 2009) to the Info Links section of narprail.org.

It provides a number of different ways to look at ridership trends, including, by station, by route, and by Congressional district.

NARP hopes that this will provide a valuable advocacy tool for people looking to demonstrate the importance of trains to communities around the nation—to their local elected officials, as well as their members of Congress.

The February edition of NARP News is now available online, featuring stories about:

·  The President’s historic announcement of high speed passenger train grants during his State of the Union, and an overview of the projects that these grants will fund

·  New regulations for a more light-rail and streetcar friendly DOT

·  The President’s budget request for Fiscal Year 2011

·  The new Positive Train Control regulations recently released by the FRA

...and more.

NARP members can access a PDF version on NARP’s website (user account required).

Murrell Hogue, 70, longtime NARP member, passenger train activist and former Amtrak agent from Texarkana died February 3 in Commerce, TX.

Visitation is from 6 to 7 p.m. today at Jones-Walker and Son Funeral Home, 1209 Live Oak Street, Commerce.  A Mass of Christian Burial will be celebrated at St. Joseph Catholic Church, 1508 Cooper St, Commerce at 11 a.m. Saturday, Feb. 6, followed by a burial service at Rosemound Cemetery. NARP Member Mark Lowrance, a Methodist minister, will participate in the mass.

Longtime NARP Board Member Bill Pollard of Arkansas said Murrell’s “opinionated support for passenger rail, and his encyclopedic knowledge of railroad history will be missed.”

Murrell’s close friend John Mills of Kansas, who as an Amtrak official hired Murrell, said an announcement would be made at the church service inviting people to honor Murrell by making a gift to NARP in his memory.  Click here for to read and sign his online guest book.

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