Hotline #127 - February 25, 2000

An Amtrak oversight hearing was chaired by Sen. Kay Bailey Hutchison (R.-Tex.) of the Senate Commerce Transportation Subcommittee, February 23. She said, "Amtrak can and should be a vital part of our integrated transportation network." John Kerry (D.-Mass.) said, "It is stunning to me that people in this country are still arguing against this form of transportation." Citing high fuel prices and gridlock in other transportation, Kerry asked, "Do we make the rail passenger investment now or do it later at much greater expense?" He also endorsed a nationwide system. Max Cleland (D.-Ga.), noting Atlanta has the worst congestion in the South, said, "I think we're at the start of a rail renaissance."

The hearing was to try to resolve the Amtrak Reform Council's claim that Amtrak must cover depreciation and "progressive" equipment overhaul costs to meet the legal test for operational self-sufficiency. Hutchison, Kerry, and DOT Inspector General Ken Mead said this was against Congressional intent, and that Amtrak could not meet such a test. ARC Chairman Gil Carmichael ultimately agreed Amtrak need not cover depreciation if it is a "government agency." But Amtrak says it's a private corporation. Amtrak Chairman Tommy Thompson quickly responded, "We are not a government agency."

Also at the hearing, Mead noted that Amtrak Intercity's first quarter passenger revenues were down $2 million from a year earlier, and Governor Thompson admitted to Sen. Ron Wyden (D.-Ore.) that it may have been a "mistake" to discontinue the Pioneer.

Amtrak will release part of its Market-Based Network Analysis on February 29. This is expected to be a vision of what the system could look like, not a specific, immediate implementation plan. Service changes require negotiations with the host freight railroads (apparently already in progress).

The Midwest Regional Rail Initiative on February 22 released an updated Executive Report on enhanced corridor services in a nine-state area (the previous report was in August 1998). More detail is given on corridor top speeds and feeder buses. Total capital cost (infrastructure and rolling stock) has risen to $4.052 billion, "largely due to changes in routes, increased in operating speeds, and improvements to accommodate freight rail capacity needs." It is important for every Midwestern rail advocate to become familiar with the information in this 23-page document.

The Georgia House Transportation Committee on February 17 approved a bill to set priorities for proposed passenger rail projects. The bill, HB1348, contains a list of 18 projects and ranks them. The top two are the two closest to development, Athens-Atlanta and Macon-Atlanta, to be completed in 2004. Some in the Georgia DOT expressed concerns about the bill, pointing out that a delay to any given project would permanently stall projects lower down on the bill's list.

Meanwhile, the Georgia Senate Appropriations Committee on February 21 cut the $500,000 in planning money for ten passenger rail projects, and cut from $5.9 million to $2 million the funding for construction of an intermodal terminal in downtown Atlanta. The committee's chairman, George Hooks, said the money could be raised through bonds rather than appropriations.

The Oklahoma Senate Finance Committee unanimously approved Senate Joint Resolution 37 on February 15. This bill would put a question on the November state ballot asking whether to finance expanded passenger rail service in Oklahoma (and continue the Heartland Flyer) with a one-cent gas-tax increase. It is expected to pass in the full Senate. The sponsor is Sen. Dave Herbert, a long-time supporter of passenger rail.

Norfolk Southern is floating an idea to use state funds to expand its line parallel to I-81 in Virginia, according to the February 13 Virginian-Pilot. The state has plans to spend $3.5 billion over the next 20 years to expand that road from Winchester to Bristol. The road is notorious for its heavy truck traffic. However, for $900 million, Norfolk Southern says it could re-engineer and double-track its route and make it more practical for intermodal traffic, like piggy-back truck trailers and containers.

While about 200 independent truckers came to Washington this week to protest increases in diesel fuel prices, it's worth remembering that -- when adjusted for inflation -- gasoline is nowhere near historic heights. The national average this week is about $1.40, where it was about $1.53 in 1990, $1.93 in 1985, $2.55 in 1981, and $2.00 in 1975 (adjusted for inflation). Exacerbating the problem is the fact that gas-guzzling "sport utility vehicles" account for three times the share of the vehicle market now as in 1990.