Star-Telegram Op-Ed: Trains are the ideal stimulus

Wednesday, November 26, 2008

In a brilliant op-ed piece Monday in the Fort Worth Star-Telegram, Spending on rail would be a wise move, Andrew Warren makes the strong case that investments in commuter train systems represent an ideal form of economic stimulus, one that “generates multiple short-term and long-range benefits.” He hits on the necessarily domestically-sourced labor that would be put to work in a wide range of professions designing, building, and operating the systems, the environmental and energy efficiency benefits of trains, and the superior land use effects versus highway construction. He ends the column with this fine point on what’s worth our taxpayer money:

We could give tax breaks or refunds to be spent on Chinese shoes, Thai clothes and Korean TVs. Or we can invest in a better, cleaner, more secure future and create American jobs at the same time. Washington should fund this national security program that stimulates our economy and protects our environment.

This is essential reading as Congress and President-Elect Obama consider the optimal, most efficient uses of public funds in an economic stimulus package.

—Matthew Melzer

Posted by NARP

Tags: commuter rail, congress, economic stimulus, energy, environment, land use, president
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The Changing Transportation Construction Market

Wednesday, November 19, 2008

The growth in transit and Amtrak (and Greyhound) ridership has consequences for the transportation construction market.

As we have argued for months, it should mean good, new jobs for people building growing transit fleets and expanded train systems that America needs. One happy example is near Portland, Oregon, where United Streetcar LLC, a new subsidiary of defense contractor Oregon Iron Works, is building trolley cars for the city. Paul Weyrich highlighted this on July 6, 2007, the week after the firm got the contract. See also a Portland Tribune report from Jan 26, 2007.

The many transit bond issues which voters approved in November should mean still more transit jobs.

But the flip side of this is reduced demand for automobiles. Financial Times’ Lex column noted Nov. 6 that “the median American car is now 9.3 years old, 50% older than in 1990, which is an odd statistic given how easy it has been to buy a new one – until recently that is. The rate at which cars are scrapped should track sales in the long run but car sales have managed to exceed vehicles being retired by a third on average since 1990.” Part of the reason for that increased median car age, ironically, is an increase in the quality of cars sold.

The decline in car sales began earlier in the spring due to rising gas prices but in October hit levels not seen since World War Two, with General Motors down 45% compared with October 2007. The decline is only partly due to temporary issues. It also reflects growing awareness that greater reliance on public transportation saves money for households. People are increasingly willing to take advantage of pedestrian-friendly development patterns, and smart developers are building more. And more people are actually thinking about their environmental footprint. Lex: “Even if Detroit’s Big Three see their market share stabilize at 48%, down from 75% two decades ago, there may be demand for about 6.5m Detroit-made vehicles against 9m in 2006. That may only leave room for a Big Two.”

I can’t resist adding a note that, having watched the U.S. Chamber of Commerce (unlike many city chambers) oppose federal support for Amtrak over many years, it is ironic to see the national group supporting the Big Three automakers’ bail-out plea. Perhaps Amtrak’s crime was that, in the U.S. Chamber’s view, it did not fall into the “too-big-to-fail” category?” In any event, the Chamber apparently also has softened its edge on Amtrak in recent years.

—Ross B. Capon

Posted by NARP

Tags: amtrak, big three, general motors, streetcars
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Some early reflections on the election

Wednesday, November 05, 2008

There’s no question that, by all indications, including their Senate records, Obama/Biden hold the greatest promise for improving America’s passenger train system. And the environment in which they are operating is more supportive of trains than was the case in the 1990s, when close ties between the Clinton White House and the Amtrak Board prevented Amtrak from even requesting the full amounts authorized for it.

At the same time, the number of other urgent issues crowding the national agenda is greater—greater even than it was a few months ago. So we have to remember the words of FDR to his supporters: “You’ve elected me, now organize a movement to make me do what you want.”

Having supporters in the White House and Congress is no guarantee of success. Those supporters still have the same budget numbers and the same set of rules that were in place prior to the election. And, right now at least, lower gasoline prices are cited as a major reason for defeat of a Kansas City light rail ballot measure. Longer-term, the declines in energy investment now happening in response to those lower prices, could set the stage for another dramatic price rise—and still more pressure for passenger trains.

Right now, the task is to keep that pressure on in spite of low gas prices. Some of the strongest potential supporters may be Democratic legislators who initially were not thought to have a serious chance of winning and who, as a result, may not have been vetted (or “re-grooved”) by highway interests to the same extent as “strong” candidates were, and who therefore may come into office with more sympathy for our cause.

For the nation as a whole, it may be a good thing that Democrats did not achieve the 60 votes they need to cut off debate without Republican help. This lessens the temptation for Democrats to run roughshod over their colleagues, at the risk of paying dearly in future elections. But for passenger trains, it is not good that Capitol Hill Republicans as a group likely will be even less supportive in the next Congress than in the current one. It is a reminder that the new law contains many report requirements, most of which look like they were designed by people who don’t like passenger trains (or at least long-distance passenger trains). By the way, there will be many changes in key Republican positions…there will be a big shuffle as a result of the defeat of Rep. Joe Knollenberg (MI), top Republican on the House appropriations subcommittee. The same is true on the Senate side if Ted Stevens (AK), top Republican on the appropriations defense subcommittee, is not elected or does not continue to serve.

When David Gunn headed Amtrak, he used to nod towards Capitol Hill and say, “Those folks aren’t going to kill the trains. It’s the railroads growing inability to handle all their traffic.” Well, the railroads have made great progress in dealing with capacity and with dispatching passenger trains, thanks in part to the on-time performance ruckus NARP raised two years ago, and to the way Federal Railroad Administrator Joe Boardman and indeed Secretary of Transportation Mary Peters picked up that issue and ran with it.

Today, the greatest threat to the long-distance trains may be the age of the equipment, most dramatically illustrated by Amtrak’s inability or unwillingness to put full dining cars on the Lake Shore Limited. The real test for the national network will be whether Amtrak continues to push hard for new equipment for the long-distance trains and whether that push produces results.

For now, be sure to congratulate your new legislators on their victories and work hard to get our agenda in front of them, including full funding of the new law, and acquisition of the equipment needed to expand and update the long-distance trains. And press appointment of transportation officials who recognize the value of a more balanced transportation policy—one with a broader role for passenger trains, to improve overall record of U.S. transportation regarding safety, energy efficiency, and provision of good choices to citizens.

—Ross Capon

Posted by NARP

Tags: amtrak, congress, oil, presidential election, price of oil, usdot
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