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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. |
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