National Association of Railroad Passengers: www.narprail.org

Hotline #602

Hotline #602
May 1, 2009

The Waxman (D-CA)/Markey (D-MA) climate change bill continues the effort to address the important issue of climate change.  Some version of this legislation with revenues, possibly from cap and trade or from a carbon tax, is likely to be enacted eventually.  Passenger train advocates should ask their U.S. representatives to insist that intercity passenger trains get a fair allocation from these revenues.  It is clear that polluting industries will. 


Roy Kienitz was confirmed as Undersecretary of Transportation for Policy and Joseph Szabo as head of the Federal Railroad Administration on the Senate floor the evening of April 29

Kienitz has a strong pro-environment record whose resume includes working for the late Sen. Daniel Patrick Moynihan (D-NY) and the Committee on Environment & Public Works that he chaired, and for the Surface Transportation Policy Project.  NARP President Ross Capon, Vice Chair Al Papp, and others met with Kienitz Thursday. 

Senator Dick Durbin (D-IL), a longtime Szabo friend, endorsed the former United Transportation Union officer and fifth-generation railroader by saying his background gives him a keen insight into difficult and sometimes hazardous work required to keep our nation’s trains moving.  Durbin also noted that Szabo’s enthusiasm for Amtrak will serve him well in his new role.  Szabo will be informally sworn in May 5th to allow him to start work right away, with a proper ceremony to follow later.


Secretary Ray LaHood testified before the Senate Committee on Commerce, Science at a hearing on the future of National Surface Transportation Policy this Tuesday.  The Secretary held up the allocation of modal funds in the recovery act as a model for how future surface transportation bills could handle mobility challenges, but said the Congress would have to commit to a new way of doing business.

There was widespread concern over the state of the Highway Trust Fund, and how to fix a program that is universally acknowledged to be broken.  While equitable distribution of funds between rural and urban areas was touched upon frequently, the primary worry was how to raise enough revenue to correct the underinvestment which has eroded the nation’s transportation infrastructure.  LaHood was unequivocal in stating that the current Administration would not consider an increase in the gas tax, citing the existing economic stressors on families resulting from the recession.  Steve Heminger, Executive Director of the congressionally mandated Metropolitan Transportation Commission, believed that the gas tax would have to continue to be the primary source of dedicated funding for transportation projects, and surface transportation policy should recognize this reality.

“Secretary (LaHood) said it was a bad time to raise the fuel tax, but $2 per gallon gas might be a better time than $4 a gallon gas, and it’s just a matter of time before we’re back there” he said.


The House Committee on Transportation & Infrastructure held the first of a series of planned progress reports on the American Recovery and Reinvestment Act this Wednesday.  It is 10 weeks since the bill was signed into law.  Chairman Jim Olberstar (D-MN) expressed the intent to use these public inquires to ensure Congressional oversight, to guarantee transparency and accountability in how the funds are used.

Secretary Ray LaHood, in his second appearance on Capitol Hill in as many days, said the DOT has already obligated $9 billion dollars in projects around the country, and promised that guidelines for other pots designated by ARRA would be coming in weeks, not months.

There was an emphasis on how many people were being put to work, with Oberstar declaring that job-creation was the primary criteria to be considered for every project.  While much of the evidence given about people put to work was anecdotal, Amtrak’s Chief Financial Officer, D.J. Stadtler, Jr., said that the $1.3 billion in stimulus funds targeted for the passenger railroad is projected to create 4,600 jobs this year alone.

There was a lot of interest among Representatives as to how the high speed rail funds included in the bill were to be spent, although LaHood could only promise that details would come this summer.  He did express confidence in America’s ability to create a state-of-the-art transportation system when the political will existed, and said that it isn’t impossible for the U.S. to displace Europe as the leader in passenger rail in two to three generations.

“We will be the (global) model for high speed rail if we use our money wisely,” he told the committee.


The Children’s Investment Fund (TCI) has sold its entire stake in CSX Transportation.  The financial advisory group has a history of aggressive self-insertion into companies that it perceives to be troubled.  Last year, in partnership with fellow hedge fund 3G Capital Partners Ltd., they won four seats on CSX’s board in a bitter fight.

Progressive Railroading reports that a filing with the Securities and Exchange Commission revealed that TCI sold its 17.8 million shares, which amounts to a 4.5% share of CSX.  TCI, ironically enough, made the move in response to financial troubles of its own, having lost around 40% of their value in global economic downturn.

TCI’s managing partner has announced he will give up his seat, but the other three TCI board members will endeavor to retain their positions during CSX’s annual meeting May 6.


The chief executive officer of Caterpillar has claimed there will need to be another stimulus if U.S. industry is to recover.  Jim Owens also criticized the Buy American provision in ARRA saying it wasn’t worth the concern it was creating around the world, and that the U.S. needed to focus less on protecting its industries and more on making its industries more competitive.
“A very small percentage of our stimulus was related to fiscal infrastructure, whereas in China a large percentage was… I would be surprised if we don’t need to come back and invest more in infrastructure—and invest is a good word—we’ve been under-investing for a number of years.  Now is a good time to do it, it creates jobs” he told the Financial Times.
Owens words are sure to carry weight; he is on President Barack Obama’s Economic Recovery Advisory Board, and is close with both the President and the Secretary Ray LaHood.  Additionally, Caterpillar is the world’s largest manufacturer of construction equipment and heavy engines, and is viewed as a bellwether of global manufacturing.

“To the extent we can identify very good projects—be they rail, highway, airport, dams—now would be a very meritorious time to pull those investments forward and try to stimulate real economic growth” said Owens.  It is refreshing that he listed rail first!


California’s Business, Transportation and Housing Agency Secretary Dale Bonner has appointed NARP members Eugene Skoropowski and Lou Thompson to the eight member High-Speed Rail Independent Peer Review Committee.  The passage of Proposition 1A in last fall’s election required the creation of a peer review committee to aid in the planning, engineering, financing and other elements of the California High Speed Rail Authority, including the funding plan required for each corridor.

“With this Peer Review Committee, we are assuring our federal, local and public partners that high-speed rail in California will be planned with foresight, built and operated efficiently, and financed with accountability to the taxpayers,” said Governor Schwarzenegger in a prepared statement.

Skoropowski has served as managing director for the Capitol Corridor Joint Powers Authority since 1999, in addition to being a NARP Director.

Thompson worked for the World Bank where as railways advisor he reviewed rail plans around the globe, was a former nominee for Amtrak’s Board of Directors, and served as director of the Northeast Corridor Improvement Project for the Federal Railroad Administration under the U.S. Department of Transportation.

“With more than ten years of planning already completed and a commitment last November by voters to issue nearly $10 billion of state bonds, California is once again leading the nation as the first state to commence and fund high speed rail development. On top of boosting demand for jobs at a time when we need it most, federal investment in our high-speed rail system will help lay a sustainable foundation for economic growth, help us meet our environmental goals and improve our quality of life,” said Governor Schwarzenegger.  “We have already laid the groundwork for high-speed rail in California and with a boost from our federal partners, nearly 40 million Californians and millions of travelers from around the world will be able to experience the reality of America’s first high-speed rail system.”


A plan to improve the speed of Amtrak’s Vermonter could end up eliminating service to Amherst, MA.  The Pioneer Valley Planning Commission (PVPC), a regional planning body for western Massachusetts, is nearing completion of a $750,000 study of a plan to refurbish around 50 miles of track between Springfield and Northfield.  PVPC planner Dana Roscoe told the Amherst Bulletin this would allow the elimination the current detour through Amherst, saving 50 minutes on the daily trip from Washington, D.C. to New York City to St. Albans, VT.  The refurbishment would rely on stimulus funds.

Roscoe admitted that Amherst is the busiest station second busiest station in western Massachusetts—12,679 passengers got on or off in 2008–but argues that savings in time and the added stops in Northampton, Greenfield and Holyoke would more than offset the loss.  Another point of contention is that the State of Vermont pays 100% of the operating costs, and is likely to put more weight on overall route performance than the benefits to a particular Massachusetts community.

Advocates in Amherst have vocally opposed the plan, saying that the train has a positive economic and environmental impact that the town depends on.  Town Manager Larry Shaffer says he supports the plan for expansion of Amtrak service, but not at the expense of other communities.

“Plans that take our station out I will oppose vigorously,” he said.


Union Pacific has agreed to sell its Longview depot to the city of Longview, TX, opening the way for a new multimodal transportation center.  The City Council agreed to buy the facility for $125,480, which includes a 20 year lease of the land.  The city plans to refurbish the 9,300 square foot depot to accommodate passenger rail, freight rail, and bus and shuttle service.  They are pursuing ARRA funds to help pay for the renovation.

Amtrak, which already provides service to the building, praised the move.  Union Pacific also described the deal, which took less than a year to reach, in complimentary terms.

“Union Pacific understands the importance of the Longview depot to the local community and is pleased with the progress that has been made towards an agreement, which will help preserve this historic structure for future generations,” said Union Pacific spokeswoman Raquel Espinoza to the Longview News-Journal.

The City of Connellsville, Pennsylvania is getting a new train station thanks to ARRA.  Executive Director Michael Edwards of the Connellsville Redevelopment Authority said Amtrak will spend $14,000 to design a $1.25 million train station using stimulus funds, built on the site of the former station.  The new development is expected to be completed by December of next year, and will bring the station in compliance with the American with Disabilities Act.

“Amtrak sees this station as an economic development tool” Edwards told the Connellsville Daily Courier, saying the city is hoping to encourage transit orientd growth around the station.


Effective April 20, Amtrak Thruway bus service between Medford and Klamath Falls was extended out to the Pacific coast to Brookings, OR with multiple intermediary stops.

Several changes take effect on May 11 with Thruway bus service in California.  Buses 6417 and 6433 (Martinez-Santa Rosa), 6426 and 6446 (Santa Rosa-Martinez) are discontinued. Service to Benicia and Corning is discontinued entirely.  Santa Barbara – Oakland buses 4785 (overnight) and 4769 (daylight) add discharge-only stops at Emeryville and bus 4784 adds a board-only stop at Emeryville.  Several Sacramento-Davis-Suisun buses are discontinued, as well as Stockton-Redding bus 3717.  It is replaced by a new bus between Stockton and Davis.


Today is NARP Vice President David Johnson’s last day with NARP.  On Wednesday, he begins work for the State of Maryland as the Trainmaster for MARC Commuter Rail’s Penn and Camden Line.  You can read his farewell message to NARP members on our Blog.  Dave, we wish you all the best in your new endeavor!