Hotline #688 -- January 7, 2011

The National Association of Railroad Passengers spoke out against the inaccuracies and deceptions contained in an anti-passenger rail study issued by the Reason Foundation this week.  Reason is attempting to persuade Governor Rick Scott to kill the Orlando-Tampa high-speed rail project.

The Reason Foundation trying to drum up fears about Florida taxpayers being saddled with unspecified annual operating costs.  However, Reason’s ambiguously formulated fears are baseless.

“The seven international private-sector groups bidding to win the right to operate high-speed trains on this corridor have indicated they are willing take the ridership and revenue risk,” said NARP President Ross Capon. “There would be no state subsidies required for operations, the state of Florida will still own the system, and the travelers will have access to a world-class travel choice—this is the definition of a win-win for the public.  This is the first segment of the State of Florida’s plan to extend the line to Miami, where it can operate at its maximum 220 mph speed potential.”

Reason’s report also ignores that this is an opportune time to initiate construction.  Less than a year ago the U.S. DOT revealed that “due to heightened competition among contractors for recovery construction work, Transportation agencies across the nation are receiving project bids substantially lower than engineers’ initial estimates.”  Contractors in Florida are eager to begin work, and would bid at levels favorable to Florida’s taxpayers—creating much-needed jobs in a construction sector that has seen heavy losses due to the recession.

You can find NARP’s full press release here.


Amtrak California announced this week that train ridership is booming.

The state-sponsored service carried over 5.1 million passengers in fiscal year 2010—or 18.8% of the Amtrak’s 27.1 million intercity train passengers carried this year.

Amtrak California’s routes—the Capitol Corridor, San Joaquin and Pacific Surfliner—rank among the top five busiest passenger rail corridors in the entire nation.

And Amtrak California reports that ridership is continuing to grow.  In the month of November, the Capitol Corridor experienced a 10.6% increase in ridership over November 2009, the Pacific Surfliner saw 4.2% more riders, and the San Joaquin had 2.3% more passengers.


The Florida Public Interest Research Group released a study January 4 attacking the misconception that roads pay for themselves, claiming that the U.S. has subsidized road construction by around $600 billion of the last 60 years.

Florida PIRG’s analysis shows that, between 1947 and 2005, taxes raised through user fees fell about $600 billion short of the money spent on them.  The shortfall was subsidized through property taxes, sales taxes, bonds, and other sources.

“Highways do not—and, except for brief periods in our nation’s history—never have paid for themselves through taxes that highway advocates label ‘user fees.’”

The group says their goal is not to undermine the value of investment in roads, but correct misconceptions about how we pay for transportation infrastructure, to put roads in proper relation to passenger rail and mass transit.

You can read the report here.


The United Kingdom’s business leaders began the New Year with a prediction about the economic benefits that would attend investment in expanding the country’s high-speed rail network.

The document, issued by the Confederation of British Industry (CBI), argued that better connecting the U.K.’s northern cities to the rest of the country would generate additional economic activity, providing tax revenue that would serve to offset the public infrastructure investment.

The report examined the government’s proposal to connect London to Birmingham and Manchester via a Y-shaped high-speed rail corridor, pointing to shorter travel times, increased productivity, and reduced congestion.

“By enabling more long-distance journeys to be made by rail, a new high-speed line could also contribute to the UK’s carbon reduction targets,” CBI director-general Richard Lambert added.


Jolene Molitoris announced January 6 that she would resign as director of Ohio’s Department of Transportation on January 9, as John Kasich takes over as governor of Ohio.

Molitoris, the first woman head in ODOT’s 100-year history, presided over record levels of multi-modal transportation investment.

Appointed by outgoing Governor Ted Strickland (D), Molitoris was informed by Kasich’s Administration that they would not be looking to have her continue her role at ODOT.  The move was widely expected; Molitoris was a key actor in securing federal funds for the Cincinnati-Cleveland-Columbus (3C) train project, which Kasich terminated upon winning this November’s election.


Missouri is asking for public input to help determine a plan for the state’s rail future.

The Missouri Department of Transportation (MoDOT) announced it will be looking for feedback from Missourians to help determine future rail services—as well as identify possible challenges, opportunities, costs, and benefits.

“We’re launching efforts to develop a state rail plan for Missouri,” said MoDOT Director Kevin Keith, “and we need your help to plan properly for the future. 

Residents of Missouri can take the survey here.


The Surface Transportation Board has proposed a new regulation that would give Amtrak emergency access to freight lines to ensure the continued operation of intercity passenger trains in a scenario where a catastrophe knocks out a service corridor.

In case of an emergency, the STB could designate a freight line as a temporary alternate route.  The rule would also provide the STB with authority to indemnify the freight railroad against liability in case of an accident where passengers were harmed, which has been a major obstacle to such a plan.

The rule would vest the STB’s authority in the board chairman, followed by the vice-chair, and then the remaining board members in case the primary is unavailable.


The North Carolina Department of Transportation announced this week that the popular Piedmont and Carolinian services will be temporarily affected by track work being done by Norfolk Southern Railway, from February 14 through April 21.

Beginning Monday, February 14, mid-day Raleigh-Charlotte trains 74 and 75 will be cancelled Monday through Thursday for the duration of the track work.  During that same time, Trains 73, 76, 79, and 80 will operate on adjusted schedules, as will 74 and 75 on Fridays, Saturdays and Sundays.

You can see the details of the altered schedules here [PDF].


The Chinese government is contemplating merging the country’s two largest railway equipment manufacturers as part of the nation’s effort to become the world’s largest exporter of high-speed rail technology.

The merger between China North Locomotive & Rolling Stock Corp. (CNR) and China South Locomotive & Rolling Stock Corp. (CSR) is far from official.  But if the merger is approved, the newly formed entity would control over 90% of the burgeoning Chinese passenger rail market—with eclipsing such international high-speed rail powerhouses as Bombardier, Alstom, and Siemens.

The merger is supported by China’s railway ministry and the government commission in charge of supervising state-owned assets.  They argue that since neither company owns any of the necessary core-technology in question (instead using technology leased from foreign manufacturers eager for access to China’s domestic market) it is wasteful for the companies to use resources on research and development competitively.

However, the Financial Times reports that both CNR and CSR oppose the move.  So does the government’s powerful central planning agency, which wants to maintain a competitive domestic manufacturing sector.

The Chinese market for passenger rail will remain the world’s largest market for the next decade, at least—with a planned expenditure of $300 billion through 2020 on high-speed rail alone.  Annual investment will peak in 2013, however, and Chinese companies will soon have to think about turning their focus abroad to maintain their growth—whether as competitors or a single entity.