Hotline #699 -- March 25, 2011

The U.S. Department of Transportation announced that an agreement reached between the North Carolina Department of Transportation and other vital stakeholders will make $461 million available for the state to begin projects to reduce travel times and increase reliability for rail passengers, creating jobs and fueling economic growth in the process.

“With this agreement in place, North Carolinians will soon be working on 24 rail projects in 11 counties, including the construction of double tracks between Charlotte and Greensboro and 12 new bridges that will eliminate 30 highway-rail crossings” said Transportation Secretary Ray LaHood in a prepared statement.  “This is the sixth agreement between the states and a host freight railroad for a major high-speed rail corridor funded under the Recovery Act, and it ensures that these grants will improve passenger rail service in North Carolina, while preserving the world class freight rail system we have today.” 

An agreement signed March 22 between the State of North Carolina, Norfolk Southern Railway, North Carolina Railroad, and Amtrak allows the federal government to distribute a significant portion of the North Carolina’s $545 million in Recovery Act funds.  North Carolina Railroad—the owner of the right-of-way—is a state-owned entity that leases the tracks to Norfolk Southern.  The program includes building 12 bridges and eliminating 30 grade crossings, restoring double track along 28 miles of the NS Greensboro-Charlotte mainline and adding five miles of passing sidings on the single-track Greensboro-Raleigh line, expanding stations in four cities and creating a passenger rail maintenance facility in Charlotte.  The investment is projected to create 4,000 good-paying jobs for North Carolinians while adding capacity for freight and passenger trains and improving the reliability of both.

Secretary LaHood’s statement is on the U.S. DOT website.  The NCDOT release can be found here.

“Rail is a critical component in North Carolina’s economic development infrastructure,” said Governor Bev Perdue (D). “Improving speed and efficiency for both passenger and freight services demonstrates our commitment to the future.”

Not everyone has responded with that kind of enthusiasm, however.  State Rep. Ric Killian (R-Mecklenburg) introduced House Bill 422 the day of the announcement.  This would penalize NCDOT for proceeding on any passenger train projects without legislative approval.  Killian argues that they are putting taxpayers and the state’s world-class freight train network at risk.

The funds are 100% federal in source, however, requiring no local match.  And the projects outlined in the plan will actually enhance freight rail mobility with the state.

“Norfolk Southern joins with the North Carolina Railroad in supporting improvements to North Carolina’s rail network, for the benefit of passengers and long-term economic development,” said Norfolk Southern CEO Wick Moorman.


Illinois Governor Pat Quinn (D) announced March 22 that a $685 million agreement has been reached that will clear the way for construction of the next phase of high-speed rail between Chicago and St. Louis.  The project will create an estimated 6,200 jobs for Illinois’ construction sector and supporting industries.

“Today’s agreement marks another major step towards making high-speed rail a reality in Illinois,” said Governor Quinn. “Bringing high-speed rail to Illinois has been a top priority of my administration because of the thousands of jobs and long-term investment it will bring to our state. This important partnership with the Union Pacific Railroad and the Obama administration will boost our efforts to make Illinois the high-speed rail hub of the Midwest.”

The federal investment—part of $1.2 billion in Recovery Act high-speed rail funds awarded to the state—will allow workers to modernize signaling systems between Dwight and Alton; and install new concrete ties and rail between the Mississippi River and Alton, and Lincoln and Dwight.  Construction is scheduled to begin April 5.

“High-speed rail is more than just an alternative mode of travel – it is a shot in the arm to today’s recovering economy, and an investment in infrastructure that will serve us for generations to come,” U.S. Senator Dick Durbin said. ‘With Chicago as its hub, the Midwest high-speed rail network will create an estimated $23.1 billion in economic activity and create 6,000 jobs over the next ten years. That economic boost is already being felt in and around Alton, where construction began several months ago.”

The plan to develop the Chicago to St. Louis corridor—which could see trains running at 110 mph as early as next year—is expected to support a projected 24,000 jobs (direct and indirect) throughout Illinois.  The state is also looking at a study that would outline the development of 220 mph service.


The North Carolina and Illinois announcements are part of the larger trend that has seen U.S. Department of Transportation payouts and obligations of Recovery Act funds gain momentum.

U.S. DOT has paid out $26.7 billion in Recovery Act funds as of March 11—up from $26.5 billion on March 4 and $26.3 billion Feb. 25.  That means the DOT paid out $521 million in stimulus project reimbursements in less than two weeks.

That’s out of the $48 billion the DOT was given to spend from the American Recovery and Reinvestment Act of 2009 for all forms of transportation.  It has obligated over $44.7 billion of that to construction and planning projects.  That number includes the $2.4 billion in high-speed rail funds that Florida’s Governor Rick Scott recently turned away.  The DOT has set an April 4th deadline for states to submit applications for that money.


A poll released this week revealed that 79 percent of the public would choose high-speed rail over air travel if the option existed.

The poll, done by SilverRail Technologies, found a number of responses betraying a favorable sentiment towards high-speed trains:

• 86% of people would accept having the entire time from door-to-door be longer to avoid the process of checking in, security and boarding.
• 66% would willingly add an hour or more of total travel to their trips to avoid the hassles of long lines, airport security and baggage fees.
• 61% would choose rail over air if the cost was the same or better.

Additionally, 90% of people would like to see rail options displayed alongside flights when researching travel.  This should bode well for SilverRails, a company that specializes in developing technical solutions that help railways and travel distributors to easily connect with each other.  In fact, the company just announced a partnership to provide rail travel options to Orbitz business travel customers.


A group of 11 lawmakers and businesses has called on Ohio Governor John Kasich (R) so support a public-private partnership that would connect 6 million people—including 150,000 students—by high-speed trains.

The “TechBelt Initiative” focuses on development of a Cleveland-Akron-Youngstown-Pittsburgh rail corridor to better connect the region through passenger and freight rail.  The proposal was announced in a press release issued by Representative Tim Ryan (D-OH).

“Recent feasibility and economic studies by the state of Ohio show the construction and availability of higher-quality rail services in the TechBelt corridor would create up to 6,000 new jobs, increase household income by nearly $400 million and boost property values by $1.125 billion, according to the Ohio Hub System Feasibility Studies begun under Governor Bob Taft,” wrote the group.

One of Kasich’s first decisions upon coming into office this January was to kill Ohio’s Cleveland-Cincinnati-Columbus (3-C) train.  However, it is hoped the private-public nature of the initiative will be effective in swaying the Governor.


A report published by the Orlando Sentinel on March 23 shows that Florida Governor Rick Scott’s (R) decision to delay approval of funding for the SunRail commuter service could increase the cost by almost $5 million.

The Sentinel obtained documents through a public records request that verifies that Scott’s decision to postpone the project while he reviews it has driven up the cost by $4.8 million.  Ironically, the Governor enacted the delay in a self-described attempt to protect Florida’s taxpayers.


Governor Deval Patrick’s administration told Massachusetts lawmakers during a March 21 briefing that, based on an environmental impact study, they are proposing that the South Coast rail expansion to Fall River and New Bedford be routed via Stoughton, effectively extending the existing Boston-Stoughton service.

“I didn’t have any doubt even before they started this whole process,” responded Rep. Antonio Cabral (D-New Bedford). “I think that’s very good news. Now, we can move forward, the state can move forward.”

State Rep. Louis Kafka (D) represents Stoughton, and is publically opposed to extending the line through his community, citing concern over environmental and public impact.  Kafka is instead proposing a bus route.

Proponents of the line say that rail will carry more people using less fuel at a significantly higher speed.  While the Patrick Administration has yet to identify a source of funding for the commuter line expansion, there is certainly a strong coalition supporting the project.

“For those of us in that region of the state, we are always impatient,” state Representative William Straus (D-Mattapoisett)—co-chairman of the Legislature’s Transportation Committee—told reporters. “I’m very happy and I wish it had been years ago. It’s an important step that needed to be accomplished.”


Arizona’s Surface Transportation Board adopted a statewide, 20-year rail plan on March 18 that would bring back long-distance trains to Arizona passengers.

The plan says that “a fast, frequent and reliable passenger rail service between population centers and tourist destinations across the State that is competitive with automobile and air travel times is important to the State’s economic and environmental well-being.”

The first phases of the plan call for the reestablishment of intercity passenger trains in Phoenix.  It is hoped that the network will eventually be developed to link Arizona with Las Vegas and Los Angeles through high-speed rail corridors.

You can read the full plan here.


Freshman Rep. Tom Reed (R-NY), in the wake of another field event held by House T&I Chairman John Mica, has announced his opposition to high speed rail. 

He appeared to leave the door open a crack with this sentence: “Funds should be dedicated to rail improvements in Upstate and Western New York only after the Tier 1 EIS study has determined where our tax dollars will make the biggest impact.” His full release can be found on his website.


Travelers Advisory

• Amtrak is offering Guest Rewards members a chance to earn double and triple AGR points this spring with its “Spring Ahead” promotion, good for free travel and other rewards. AGR members can earn double points on Amtrak travel now through May 7.  And members will be able to earn triple points starting National Train Day, May 7 through May 21, 2011 (see Amtrakguestrewards.com for qualifying travel). Passengers must be members of Amtrak Guest Rewards; you can register online at Amtrakguestrewards.com, or by calling 1-800-307-5000.