NARP Blog

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

Friday, October 30, 2009

The auto subsidies roll on: GMAC, the financing arm of General Motors, is likely to get a $5.6 billion new capital injection from the US Treasury “in the form of preferred equity,” according to two unnamed sources. [Financial Times]

Columnist Dan Walters offers up reasons for his skepticism towards the viability of California’s planned new high-speed rail corridor. He shortsightedly limits his estimate of the line’s economic benefits to the direct construction and operation jobs created. The indirect boosts to the economies of the cities served by the route—as they are literally brought closer together—would be far greater than its direct impact on employment. The CAHSR Blog has a point-by-point rebuttal. Meanwhile, CAHSR’s list of backers is growing by the day.

Travel writer Rob Lovitt heralds recent expansions to the Amtrak network—including the Northeast Regional extension to Lynchburg and the addition of a Portland-Vancouver Cascades round trip—and the railroad’s second-highest yearly ridership total in its history, as signs that trains’ popularity is growing.

The Gulf States are set to spend over $100 billion on rail projects in the coming years—no, we’re not talking about Louisiana, Mississippi, Alabama and Florida (though we wish we were!).

CQ’s transportation reporter Colby Itkowitz contrasts political attitudes towards transportation in the US with those in Germany, where highways and inter-city rail receive equivalent funding because the country’s leaders recognize that transportation is a “major basis of prosperity and quality of life.” It is up to the majority of Americans who know this to be true to press as hard as we can to translate our vision into better public policy. [Streetsblog DC]

Amtrak’s study of returning service to the North Coast Hiawatha route is generating anticipation along the line, as reflected in articles in the Bismarck Tribune and the Missoulian.

LCL: An Amtrak service milestone reminds residents of Port Huron, Michigan, of the train’s importance to the area’s economy and quality of life. *** Transportation Secretary Ray LaHood issues an ultimatum to the Florida legislature, saying the state will lose federal funds for a “shovel-ready” commuter rail line if it doesn’t pitch in its share. *** My hometown newspaper strongly endorses North Carolina’s bid for Recovery Act high-speed rail funds, calling the expansion of passenger rail capacity “a critical infrastructure investment.” *** The Idaho Statesman explains local rail advocates’ concerns—echoed by NARP and Sen. Michael Crapo (R-ID)—with Amtrak’s Pioneer restoration report. *** A slice of life at a typical stop on a long-distance train.

—Malcolm Kenton

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NARP blog

The Changing Transportation Construction Market

Wednesday, November 19, 2008

Posted by NARP

Flag Stops: October 2009 Roundup

Friday, October 30, 2009

Posted by Malcolm Kenton

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