NARP
July 2004 Hotlines

#354 - July 2, 2004
#355 - July 9, 2004
#356 - July 16, 2004
#357 - July 23, 2004
#358 - July 30, 2004

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#354 - July 2, 2004

Senators Arlen Specter (R-PA) and Ernest Hollings (D-SC) are circulating among their colleagues a pro-Amtrak letter to their appropriations leaders. The letter is addressed to Senators Stevens (R-AK), Byrd (D-WV), Shelby (R-AL) and Murray (D-WA), the chairmen and ranking members of the full appropriations committee and its transportation/treasury subcommittee, respectively.

The goal is to collect signatures collected by Friday, July 9. All Capitol Hill offices can be reached through the switchboard 202-224-3121. For other contact information, go to the Senate website or NARP’s contact page. Republican offices who wish to sign or get more information should contact Mark Carmel (4-9009) in Specter's office; Democratic offices contact Stephen Gardner (4-5621) with the Commerce Committee.

Amtrak released its revised five year strategic plan on Tuesday.  It focuses on David Gunn's program to return the railroad to a state of good repair.  The report also highlights opportunities for corridor development across the country, focusing primarily on existing and future partnerships with states.  In addition, the report calls to attention the endangered status of pieces of the freight railroad infrastructure that Amtrak's long distance trains operate on.

It is important to note that the report does not call for elimination of any trains, rather, it aims to draw attention to specific segments of railroad that are heavily congested or candidate for abandonment or downgrade.  You can download a copy from Amtrak’s website (click on "FY 2005-2009 Amtrak Strategic Plan," the second link).  More details will come in our July newsletter.

Amtrak has won its appeal to prevent 8,000 of Amtrak’s 21,000 agreement-covered employees from walking off the job to protest inadequate federal funding, according to the Associated Press.  The judge rejected the unions’ arguments that the strike was a political action rather contractual issues, saying, “"We think it clear that, insofar as the subject matter of the unions' proposed strike is the level of congressional appropriations for Amtrak, the strike does 'grow out of' the major dispute between Amtrak and the unions over the formation of new collective bargaining agreements concerning, among other things, rates of pay and working conditions."

The White House on July 1 issued a release stating in part that "the President intends to recess appoint Floyd Hall, of New Jersey, to be a Member of the Reform Board (Amtrak), for a five-year term."  Hall is known as a leader of turn-around and growth companies (including K-Mart, 1995-2001; NARP News, December, 2003).  Recess appointments in effect substitute for a Senate confirmation vote, and can only happen when Congress is not in session, as is the case this week.  Recess appointments expire at the end of the next calendar year (in this case, 2005) unless the Senate votes to confirm.  Such appointments can be controversial, particularly if they involve high-profile judges.

The White House announcement came the day after a Boston Globe news story quoted former Amtrak Board Member Michael Dukakis saying, “To permit a situation to deteriorate to the point where you end up with the board consisting of the secretary of transportation's designee and one appointee of the administration is just irresponsible in my opinion.”  He was referring to expiration next month of the term of Sylvia DeLeon, which would leave the board with two voting members.

NARP submitted comments to the Federal Railroad Administration regarding their "Notice of Funds Availability and Request for Comment to Assist in the Development and Implementation of a Procedure for Fair Competitive Bidding by Amtrak and Non-Amtrak Operators of State-Supported Intercity Passenger Rail Routes," viewable on our website.

After publicity casting doubt on whether Amtrak’s Adirondack , which depends on State of New York funding, would continue past September 30, 2004, Amtrak now says the train is not threatened because the state has promised to pay the $4.4 million owed (two years) by the end of July.

On Monday, Virginia Governor Mark Warner announced his appointees to serve on the Commission for Rail Enhancement for the 21st Century. Their first meeting is being scheduled in July.  The commission's initial task is to find the vision and language for an acceptable Virginia Rail Development Authority bill that can get passed in the 2005 legislative session.  Among the appointees is Virginia Rail Policy Institute Director (and NARP Board member) Richard L. Beadles.

Minneapolis, Minn. opened the first segment of its Hiawatha light rail service this past weekend, offering free rides to the public.  The initial segment runs from Hennepin Avenue in the Warehouse District of downtown Minneapolis to Fort Snelling, southeast of town.  An extension to the Minneapolis Airport and the Mall of America is scheduled to open in December.

Beginning with yesterday’s departure from Boston, Amtrak is again running trains 66 and 67 (formerly known as the Twilight Shoreliner and Federal) through to and from Newport News, Va.  Since the elimination of the Shoreliner in April 2003, passengers from points south of Washington heading to points north of Washington have been required to transfer in Washington, depressing ridership.  The change not only reflects these travel patterns, but will save Amtrak one set of equipment and allow for more efficient lounge car staffing.

The Heartland Flyer was disrupted on Wednesday by a BNSF derailment at Ponder, Tx.  The southbound Flyer was already en route to Fort Worth and was terminated at Gainesville, Tx., with substitute bus service provided to complete the trip.  That evening’s Flyer originated in Gainesville, with bus service from Fort Worth.  On Thursday, both trains were canceled, with bus service provided.

Regarding last week’s message about disruption to San Joaquin service due to the levee break near Stockton: BNSF has fully repaired the damage.  All trains are back to their normal operating patterns, starting today.

The Crescent is offering a “Kids Ride Free” summer promotion for travel between Greenville, S.C. and New Orleans (and all stops in between).  The offer is good for travel between July 6 and September 4 and a three day advance purchase is required.  One child per adult; a second child may travel at the regular ½ fare.   Request discount code H436.

Amtrak’s Capitol Corridor trains have teamed up with Coldstone Creamery.  Bring your Capitol Corridor train ticket stub to any Coldstone Creamery in Northern California and you'll receive 15% off your ice cream purchase. The promotion is part of the release of Coldstone’s new flavor, “All Aboard.”

In observance of the Independence Day holiday, NARP offices will be closed Monday, July 5.  We wish everyone a safe and happy 4th of July weekend!



#355 - July 9, 2004

Signatures are still needed on the Senate pro-Amtrak $1.789 billion funding letter, and the deadline for signatures has been extended through next week.  Click here to see if your Senator has signed and to read our action alert.

A letter similar to the Senate and House letters is now being circulated amongst Governors.  Please contact your state’s governor and ask him/her to sign.  The deadline for signatures is next Tuesday, July 13.  You can view text of the letter on our website, along with a list of who has signed.

The House Appropriations Subcommittee on Transportation, Treasury, and Independent Agencies expects to write (“mark up”) its FY 2005 bill -- including Amtrak funding -- Thursday, July 15.  Floor action could come as early as the following week.  The subcommittee chairman is Rep. Ernest Istook (R-Okla.), a long-time critic of Amtrak whose subcommittee approved only $521 million for Amtrak last year.  This time, he may support the Administration’s $900 million.  Amtrak says this figure, if enacted, would lead to a service shutdown.

Prospects for a higher Senate markup are likely, but the schedule for that is uncertain.  On Tuesday, Senate Appropriations Chairman Ted Stevens (R-AK) postponed his transportation/treasury subcommittee’s markup originally scheduled for yesterday.  Since Congress begins its summer recess July 23, and the Senate bill invariably goes to full committee within a few days of subcommittee action, the likelihood is growing that both actions will be postponed until after Labor Day.  Legislating has become difficult for Republicans because lack of a budget agreement means they can’t raise points of order against Democrat-proposed spending increases, and thus could face the uncomfortable roll call votes.  Particularly on the Homeland Security appropriations bill, but also transportation/treasury and other bills, Democrats will offer amendments many Republicans would be reluctant to be recorded as opposing.

The U.S. Conference of Mayors approved resolutions this week, including one supporting Amtrak and one supporting a gasoline tax increase. The Amtrak resolution’s “resolved” paragraphs state that the Conference urges the Administration and Congress to:

The gasoline-tax resolution has a single “resolved” paragraph, urging “Congress and the Administration to support a reasonable increase and indexing of the federal gas tax to ensure a well-funded and equitability distributed TEA-21 reauthorization bill that meets our nation’s surface transportation needs.”  Note their intentional use of the inclusive phrase, “surface transportation.”

The full texts of resolutions are on the Conference’s website in a huge pdf file, but by next week should be available in a user-friendly format.

The Surface Transportation Policy Project yesterday held briefings on Capitol Hill on a new report, “Aging Americans: Stranded Without Options.”  Some key findings:  21% of people over 65 don’t drive; 20% of over-65 drivers don’t drive at night;  28% of African-Americans over 65 live in car-less households (vs. 7% whites; 19% Latinos).  Conversely, 20% of African-Americans and Latinos use transit often or occasionally (vs. 9% whites, 16% Asians).  STPP says the Census Bureau predicts that our population of over-65s will rise from 35 million today to more than 62 million by 2025.  “As people grow older, they often become less willing or able to drive, making it necessary to depend on alternative methods of transportation.”  The full report is on STPP's website.

Alfred J. Broadbent, Sr., has been hired by Amtrak as the Vice President, Corporate Security.  Broadbent comes to Amtrak from the Washington (D.C.) Metropolitan Police Department where he worked in the Special Services Command.  Mr. Broadbent developed the Metropolitan Police Department’s Terrorism Response Plan and was the operations commander for several high profile events in Washington, including the World Bank conference and George W. Bush’s January 2001 inauguration.  His duties at Amtrak will include, among other things, corporate and passenger security issues.

Yesterday, the Silver Star derailed in Auburndale, Fla . while traversing the railroad junction there.  The derailment occurred at approximately 10 mph and resulted in the locomotive and baggage car derailing, but remaining upright and inline.  No passenger or crew injuries were reported and no other cars derailed.  Passengers were transported to points south by motorcoach.

The Empire Builder was stopped in Portage, Wisc. , on Tuesday after a bomb scare was phoned into local authorities.  The train was delayed 6 ½ hours while the train was searched.  Passengers were taken to a local elementary school during the search.  While one man was arrested on an unrelated charge and several fireworks were discovered in carryon and checked baggage, no bomb was found.

Amtrak and AAA have teamed up to offer a kids ride free promotion from August 1 through December 15, 2004 (blackouts around Labor Day and Thanksgiving) for up to two children with each fare-paying adult.  The discount is not valid on the Downeaster, the Canadian portion of the Maple Leaf, certain thruway busses, and peak Acela Express/Metroliner service.  Request discount code H413 when booking.

The Amtrak station in San Francisco (101 The Embarcadero, east end of Mission Street) has been reopened, after repair from flood damage.  The station once again offers full ticketing and checked baggage service and is open daily from 6:00 a.m. to 6:00 p.m. and 7:00 p.m. to 11:00 p.m.



#356 - July 16, 2004

The Subcommittee on Transportation and Treasury and Independent Agencies of the House Appropriations Committee approved $900 million for Amtrak. But since the subcommittee draft also would require Amtrak to repay its $100 million DOT loan, the bill effectively has only $800 million and thus is $100 million below the Bush Administration’s request.  Chairman Ernest Istook (R-Okla.) has made clear on several occasions that he is not in favor of increasing Amtrak funding beyond the administration’s level.  The only silver lining here comes from comparing yesterday’s action with the $521 million that Istook’s subcommittee approved a year ago.

A NARP release issued after the markup included these comments from subcommittee member John Sweeney (R-NY):  “Today was the first step in an ongoing fight.  We are going to continue fighting throughout this process to get Amtrak the funding it needs to support the millions of passengers each year that rely on its services.”  NARP Executive Director Ross B. Capon:  “It is high time that the House responded to public support for a balanced transportation system in which intercity passenger rail plays a major role.  Passing a ‘shutdown’ budget for Amtrak takes the nation in exactly the wrong direction.”

It appears that the full Appropriations Committee will take its action next Friday (July 23).  Please urge your representative to work for the committee to pass a pro-Amtrak-funding-increase amendment (and to vote for it if a committee member). To contact House members, call the Capitol switchboard at 202-224-3121 or go to the House website.

The prospects for renewal of TEA-21, the six-year broad surface transportation bill, are murkier than ever.  This week, two planned meetings of the conference committee were cancelled at the last minute (Tuesday and Thursday).  Legislators must pass an extension before recessing for August break: the current extension expires July 30.  Some are pressing for a 60 day extension (to keep pressure on legislators to finish prior to the election); others are pressing for a five to six month extension (to move further debate to after the election in hopes of a bigger funding increase).

A short term extension would hamper states’ ability to plan long term.  Some also feel that a short term bill would increase the chances of House and Senate leadership attempting to ram a bad bill (gutting environmental, planning, and transit provisions) through in the short September legislative session, daring opponents to vote against  “jobs” in an election year.

Since Senate action on Amtrak appropriations apparently has been delayed until the September session, signatures are still being collected on the Senate pro-Amtrak $1.789 billion funding letter. Click here to see if your Senator has signed and to read our action alert.  If you encountered difficulty contacting your Senator this past week regarding the letter, please try again (several high profile non-rail legislative issues flooded Senate phone and fax lines).

Reminder: a letter similar to the Senate and House letters is now being circulated amongst Governors.  Please contact your state’s governor and ask him/her to sign.  The deadline for signatures is now next Tuesday, July 20.  You can view text of the letter on our website, along with a list of who has signed.

Reuters reports that Standard & Poor's Ratings Services said on Wednesday it raised the debt ratings of Amtrak from “BBB-minus” to “BBB.”  S&P cited Amtrak’s stable outlook and improved financial position.

The third phase of the Transportation Security Administration’s Transit and Rail Inspection Pilot (TRIP) program will begin on Monday.  This phase will feature screening on board a train while it is en route.  Passengers on the Shore Line East commuter rail service (New Haven-Old Saybrook-New London) will enter the train through one door in a specially-outfitted car, be screened, and then allowed to proceed into the body of the train.  Shore Line East was selected because of its smaller ridership and ease of testing.

Las Vegas opened the first segment of its monorail system on Thursday.  The system, plagued with delays and cost overruns, is being run by a private consortium and is not related to Las Vegas’s existing bus transit system.  One way tickets are $3.50, round trip $5.00, and a day pass costs $10.00.  Extensions to downtown Las Vegas and the airport are being considered.

VIA Rail Canada has reached an impasse in contract negotiations with its employees represented by the Canadian Auto Workers (all VIA employees except train engineers).  The workers are in a position to strike “before month’s end.”  The main issues in the negotiations are pay raises, pension plan benefits, and sick leave regulations.

NARP’s Ross Capon wrote July 14 to The New York Times in response to a July 13 column “On the Road” column by Joe Sharkey, praising him for highlighting the strong points of European and Acela Express trains.  However, Capon explained why it was misleading for Sharkey to juxtapose an Acela Express “net contribution” figure with fully allocated losses of the Sunset Limited and of all long-distance trains.  Capon said, in part that  fully allocated figures, “include a broad array of overhead and other expenses that would not disappear with the discontinuance of those routes.  Ending the Sunset would not save $30 million; many costs would simply shift to other trains.  Acela Express also has a fully-allocated loss -- a projected $63 million.”

The New York Times ran two, long, front-page articles on grade crossing safety, heavily critical of the major freight railroads on July 12 and 13.  A rebuttal column appeared in the July 15 Houston Chronicle under this headline:  “Other side of story: good news about rail crossings, drivers are safer then ever, despite rising traffic…”  Writer Ian Savage, on the Northwestern University faculty, is the author of a 1988 book, “The Economics of Railroad Safety.”

Vincent Nesci is now Amtrak's Acting Chief Mechanical Officer, due to the resignation of Jonathan Klein.  Nesci has been Deputy CMO and responsible for Equipment Standards and Compliance.

Amtrak has announced that, effective November 1, 2004, all of its trains except for the Auto Train will become non-smoking.  The Auto Train is retaining smoking for two reasons: its non-stop trip makes smoke stops impractical and the 33100-series lounge cars have proven reliable and able to contain smoke odor.

Less than three weeks remain before the 2005 Amtrak Wall Calendar "Picture Our Train" Photo Contest ends. Friday, July 30 is the deadline for submitting your original color photograph featuring an Amtrak train with the current Amtrak logo and livery visible (no digital images accepted). You may be an amateur or professional photographer. The winner also will get a $1,000 travel voucher. See Amtrak's web site for more about the contest, entry rules, and safety issues.



#357 - July 23, 2004

Yesterday, the House Appropriations Committee approved the FY05 Transportation/Treasury bill with few changes from what Istook’s subcommittee approved on July 15, and no change regarding Amtrak.  Because the bill requires Amtrak to repay its $100 million DOT loan, the committee is actually:

National Journal Daily AM reported that Rep. John Olver (D-MA) said Amtrak “can’t end the [2005] fiscal year and still maintain its operations and maintenance needs,” and that Rep. Ernest Istook (R-OK) said the House would continue to treat Amtrak this way until needed “reforms” are made—[NJDAM paraphrasing Istook] “mainly by ending unprofitable long-distance services to cities in the hinterlands.”

NARP issued a news release, viewable on our website.

Senate action will come after Labor Day, with a real possibility of President Bush signing a single bill—a continuing resolution for transportation and most other appropriations bills, and yet another TEA-21 extension.  Last night, Congress approved the latest TEA-21 extension, which reauthorizes highways through September 24 and transit and other programs through September 30.

Amtrak President David Gunn and Pennsylvania Governor Ed Rendell announced a new $145 million investment program for the Keystone Corridor (Philadelphia-Harrisburg).  This program will raise top speeds on the route to 110mph by renewing the long-neglected roadbed and restoring all-electric service to Harrisburg.  Also, service frequency will increase, primarily by implementation of push-pull operation and more efficient operating crew assignments.  In an interview with the Philadelphia Inquirer, NARP Executive Director Ross B. Capon said, “This is not pie-in-the-sky stuff; it is a practical project that is going to bring short-term results.”  Unclear at this point is the implementation of food service and the restoration of service to Penn Center-Suburban station in Philadelphia (eliminated when the Keystone Corridor went to dieselized operation).

The Governors’ pro-Amtrak letter to House and Senate Appropriators has been sent with 19 signatures--a diverse, bi-partisan selection of governors.  Notable for their absence, however, are the Governors of New York, California, and Michigan.  The list of who signed, plus text of the letter, can be viewed at our website.

Senate staff has decided to extend the deadline for the Senate pro-Amtrak letter until August 11.  There’s still time to contact your Senator.  Go to our Action Alert page for more details.

The City of Baltimore and the Baltimore Orioles baseball team have filed separate lawsuits against CSX Transportation for damages resulting from the July 18, 2001 freight train derailment and subsequent fire in the Howard Street Tunnel in Baltimore, which crippled the city for nearly five days and forced an in-progress baseball game to be cancelled.  The city suit specifies damages of $10 million.  To this point, CSX has only reimbursed the city $350,000.

The 9/11 Commission released its report on Thursday.  A New York Times summary of the transportation section (today’s page A13) begins:  “The nation’s investment in improving transportation security has been too focused on passenger airlines, the commission said, arguing that the Transportation Security Administration was trying ‘to fight the last war’…Opportunities to do harm are as great, or greater” in maritime or surface transportation, or cargo aviation or general aviation, the report says.  Over 90% of the agency’s $5.3 billion budget goes to aviation security, the report says, and it is time to make hard choices in allocating limited resources.”  The report says perfect security for mass transit is “unattainable” but spending should be based on a systematic analysis of risks, costs and benefits, and the mere fact that “terrorists…perceive that potential targets are defended” can have a deterrent effect.

Due to the unreliable performance of Amtrak’s Sunset Limited , a policy has been established for the thru cars from the Sunset to the Texas Eagle.  If train #2 is one hour late or less at El Paso, the train will proceed as normal.  If train #2 is between one and three hours late, passengers will be bussed from El Paso to San Antonio to board the Eagle.  If train #2 is more than three hours late, passengers will be bussed between El Paso and Dallas to catch up to the Eagle.  These steps are being taken to ensure an on-time departure of the northbound Eagle from San Antonio.  There are no changes at present to the south/westbound Eagle and its thru cars.

Amtrak Train #170 was stopped at Newark (NJ) Penn Station on Thursday morning after a note threatening Jews was discovered in a lavatory.  The train was held for approximately one and a half hours while police and K-9 units boarded the train and questioned all passengers.  Carry on luggage was inspected as well.  The train was released at 9:30 a.m.

Two separate problems with Northeast Corridor power lines this week led to severe service disruptions.  On Tuesday at about 4:30 p.m., power was disrupted between Newark and New York Penn Station, causing massive delays to Amtrak and New Jersey Transit trains.  The cause of this outage has been blamed on a “sectionalizing switch” which directs power from a sub station to the overhead wires.

On Wednesday morning, an empty Metro-North commuter train returning to New Rochelle to pick up rush-hour travelers snagged the catenary wires at New Rochelle, N.Y., causing all four tracks to be taken out of service at this critical junction.  One track was restored about an hour after the incident, but the other three tracks remained out of service most of the day.  Delays to Amtrak trains ranged from 45 minutes to eight hours (Train #95 from Boston to Newport News, which got caught in the worst of the delays).

San Joaquin trains were disrupted on Wednesday due to a BNSF freight train derailment at Antioch, Calif.  After it was deemed safe to pass, trains were permitted to operate through Antioch yard, incurring delays.

The State of Tennessee on Wednesday agreed to participate in the long-proposed Nashville – Lebanon commuter rail project by contributing all but $8 million of the $39.7 million needed to complete the project.  The target date for the first train is now October 2005.

Union Pacific’s congestion woes were the subject of a front-page article in the Wall Street Journal on Thursday, which chronicled severe congestion on UP lines, including trains stuck for days in yards and trains parked on the main lines with no crews to operate them.  The article, which did not mention Amtrak, concludes that UP’s congestion could have a severe impact on the upcoming holiday shopping season because UP cannot handle the traffic and goods may not make it to stores.

When Federal Reserve Chairman Alan Greenspan testified July 21 before the House Financial Services Committee, Rep. Spencer Bachus (R-AL) asked:  “Did you calculate the present inefficiencies in our transportation network…for instance, our transcontinental railroads are jammed.  Our velocity in train speed is actually decreasing. Our interstate highways are heavily congested.  Our transit times in the last 10 years have decreased significantly.”  Greenspan:  “I think the deregulation of trucking, railroads and airlines and air transport unwound what was, I thought, the really serious set of problems which very significantly reduced the flexibility of our system.  I think we've got problems, obviously, with rail transport, specifically, endeavor to subsidize an Amtrak system and related sorts of rail transport. But we are, remember, very heavily a passenger car, light truck, SUV society.”  Clearly, Greenspan, like many Americans, does not understand the threat that the Union Pacific meltdown symbolizes, or the need for public investment in freight rail capacity to keep our economy vibrant and prevent the highway system from being paralyzed with trucks.

A poll conducted of Los Angeles-area residents states that 57% are in support of high speed rail, the Palm Springs Desert Sun reports.  The survey also indicates that nearly 80% feel that air pollution is either a “big problem” or “somewhat of a problem.”  55% of residents surveyed statewide said the environment should be a priority even at the expense of curbing economic growth.

Albuquerque, N. Mex. area commuter rail service should begin in November 2005, thanks to the approval of the release of $75 million of state funds for the project last week.  The Albuquerque Journal reports that seven of the eight stops in that first phase have been identified: Belen, Los Lunas, South Albuquerque (shuttle connection to airport), Downtown Albuquerque’s Alvarado Transportation Center, North Albuquerque, Sandia Pueblo, and Bernalillo.  An extension to Santa Fe will occur in a later stage.

NARP has uploaded copies to its website of the two “endangered route segments” maps from Amtrak’s Revised Five Year Strategic Plan.  This enables you to view and download the maps without downloading the huge Amtrak report itself, although we also have a link to the full report.



#358 - July 30, 2004

Candidates for the House and Senate, not just incumbent legislators, need to hear strong support for adequate Amtrak funding, preferably in person.  Members will be campaigning at home throughout August, and new candidates of course will be doing the same thing.

Even though “non-incumbents” would not take office until next year (and then only if they win!), their willingness to speak up for Amtrak now can have an impact on how hard incumbents work to save the nation’s passenger railroad.  To review, the House Appropriations Committee approved only $800 million (plus $100 million to repay the DOT loan).  Amtrak says:

Most legislators are home now during the August recess.  Watch your local news outlets for Town Hall meetings and attend them!

A reminder: Senate staff has extended the deadline for the Senate pro-Amtrak letter until August 11.  There’s still time to contact your Senator.  Go to our Action Alert page for more details.

This week, the price of West Texas crude oil briefly exceeded $43, due to what The Economist magazine termed “the erratic behavior of Russian prosecutors” towards Yukos, which accounts for 2% of world output.  And, says The Economist, “there is little OPEC can do to relieve the [price] pressure:  it is already operating within 5% of capacity.  There are even rumors that Saudi Arabia’s state oil company is experiencing production difficulties, suggestions the kingdom strenuously denies…Despite the fact that the price is at a two-decade high, the real price (adjusted for inflation) is around half of the level in the early 1980s.”  The magazine said investment bank Dresdner Kleinwort Wasserstein calculates that if the price remains above $40, U.S. growth could be cut by 0.5 percentage points and Japan’s by a full percentage point.  The Economist continued, “But the biggest impact of a high oil price could be on the American voter.  Petrol is lightly taxed in America, and so its drivers feel the force of any price rise more than in other rich countries.  If the price climbs much further, they may even be angered enough to vote in a new president.”

Meanwhile, the House Appropriations Committee’s FY05 transit provisions reflect the same mentality as the Amtrak provisions:  an apparent desire to deprive Americans of the rail travel choice.  The Committee’s transit level - $7.249 billion - is a $16 million reduction from FY04, and would mean the third straight year of essentially flat funding for transit.  “New starts” (primarily rail) are preserved only by using rescissions - money previously allocated to projects that have not been implemented; this funding “method” will not be sustainable in the future.

Given the continuing failure of House-Senate conferees to agree on a new TEA-21 bill, the risk grows that Istook’s rail-hostile approach to transportation will become law, by virtue of “his” appropriations bill getting enacted before TEA-21.  Even in the TEA-21 conference, the concept of giving transit one dollar for every four that goes to highways is under attack.

The bad news continues.  Istook-authored appropriations language seeks to undermine rail by relying more on the “cost-effectiveness” criterion and less on land-use.  This ignores a basic principle of rail:  once a system is built, future expansion can take place with little or no additional land taking or environmental impact.  The Istook philosophy seems to be:  transit is not an appropriate use for the gasoline tax and if you don’t have roads you shouldn’t be spending gasoline tax money.

Only a few miles from the Capitol, however, is a corridor (Wilson Blvd., Arlington, Virginia) where—thanks to Washington’s Metro—traffic levels are lower than they were 24 years ago even though 12,000 new households and extensive retail and executive businesses have been added (attracted largely by transit).  Already, Arlington is “rewarded” for its transit reliance by getting only 20% of the average per capita transportation dollars in Virginia.  The Istook approach would drive that even lower.

At the same time, the committee boosted highways to $34.6 billion, equal to the FY05 level in the ambitious House-passed authorization, and $1 billion (3%) over both the President’s request and the FY04 level.  (Highways in FY04 more than recovered from a 2% decline in FY03, with funding up $715.3 million from two years earlier.)

“The White House has agreed to let New York use $2 billion in Sept. 11 aid to help build a $6 billion rail link connecting the World Trade Center site to the Long Island Rail Road and Kennedy International Airport,” according to today’s New York Times.  The project, set for 2013 completion, would use existing AirTrain tracks at Kennedy, run to Jamaica on a viaduct in the middle of the Van Wyck Expressway, and be carried to the LIRR tracks towards Brooklyn. The three-mile tunnel under Brooklyn and the East River would begin just before Brooklyn’s Atlantic Terminal.

New York’s MTA yesterday (also reported in today’s New York Times) announced an average five per cent increase in fares on Metro-North and LIRR, increases in monthly MetroCards (9% to $70) and other increases in fares and tolls.

Service interruptions for the Republican National Convention (August 30 to September 2) at Madison Square Garden in New York City (directly above Penn Station) are beginning to come to light:

Thursday’s Wall Street Journal , in an article entitled, “Railroads’ Results Mixed Amid Freight Growth,” lamented the congested state of much of our nation’s freight rail infrastructure.  Regarding CSX, the Journal said, “Its freight network has been bogged down, resulting in higher overtime and other crew expenses, along with headaches for customers.  CSX said its on-time arrival rate fell to 34% in the third quarter, down from 78% two years ago.”

At a meeting last Thursday (June 22), the Ohio Rail Development commission endorsed a plan to begin moving forward with the planning for the “3-C” corridor (Cleveland-Columbus-Cincinnati).  Among the recommendations was to change the long-standing nickname for the project from “3-C Corridor” to the “Ohio Hub System.”  A series of public hearings and information sessions at key points along the route will likely take place after November.


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