Jun 24, 2011: Hotline #712

The Chairman of the House Transportation & Infrastructure (T&I) Committee delayed the mark-up of proposed legislation that would privatize passenger rail, allowing stakeholders the chance to present serious concerns with elements of the plan.  The June 22 event instead was a full committee hearing, as Committee Democrats had sought.

Chairman John Mica’s (R-FL) witness list included two Democratic-requested witnesses—Amtrak President & CEO Joseph Boardman and Edward Wytkind, President, Transportation Trades Department, AFL-CIO.  Wytkind also testified on May 26, but Amtrak did not.  As currently drafted, the “Competition for Intercity Passenger Rail in America Act” would divest Amtrak of the Northeast Corridor—putting it in the hands of a multi-party executive committee that would oversee a public-private partnership to maintain the infrastructure.  The bill also would open up passenger rail operations nationwide to competitive bidding.

In a statement for the record, the National Association of Railroad Passengers highlighted serious flaws in the privatization plan, while recognizing that a directed and well-considered engagement between Amtrak and the private sector has the potential to benefit both parties involved and the public.

[Read NARP’s full statement here]

NARP President Ross Capon noted the difficulty for private operators to gain access to host railroads’ tracks at competitive rates and prohibitively expensive indemnification agreements on which host railroads would insist.  He cited an inconsistency between assurances that existing labor “wages and benefits” would be preserved and attacks on Amtrak because of its higher bid for operation of Florida’s Tri-Rail commuter train system, since a major reason for Veolia’s lower bid was that it is exempt from key labor laws.  Capon noted that fully allocated costs overstate what would be saved by a route or routes.

Capon encouraged the Committee to look at specific examples of how Amtrak might engage more with the private sector to the benefit of both parties.

“Consideration should be given to a possible connection between the need for redundancy in the power grid and the potential to construct new transmission lines along the Northeast Corridor where local opposition likely would be minimal,” wrote Capon.  “A private sector consortium could profit from selling power both to the railroad and to utilities along the route.”  Capon argued this kind of public-private partnership would benefit passenger train operations—intercity and commuter—replacing antiquated infrastructure and making the trains more energy efficient and more reliable.

Chairman Mica’s opening statement was angry.  He was visibly annoyed at the delay in the mark-up, declaring more than once, “We’ll have a hearing every week if we have to until we get this done.”  For her part, Democratic Subcommittee Ranking Member Corinne Brown of Florida began,

My notes say that I’m supposed to say, ‘Thank you Mr. Mica for holding today’s hearing.’ I don’t think so. Because I think legislation that affects the entire passenger and freight rail system in the United States deserves hearing, examination and debate. There are numerous legal, financial and operational questions that need to be answered before we auction off Amtrak to Wall Street investors.

Later on, however, Mica expressed doubts about some aspects of his draft bill.  “I’m not sure I want to create another entity.  I’m not trying to do away with Amtrak or national service.  [To Boardman] Do you have the authority to move forward to offer a turnkey project or to separate infrastructure?  Have your attorneys looked at this?  I don’t mind giving authority to Amtrak to do this.  Then I’m going to direct you to receive those offers.  I realize federal money is needed.”

[Watch a recording of the hearing here]

Mica also observed that, if Amtrak did not exist today Congress would need to create it.  This echoed statements made by Amtrak President Joseph Boardman:

In order for any public-private partnership to work, you need a partner that understands the key facts. That partner is Amtrak. That ensures that Amtrak will have a key role under any structure. Perhaps you will rename Amtrak, but it will be the same women and men who understand the situation today and understand the necessary solutions that will be required to carry out any plan.

[Read Boardman’s full statement here]

Boardman had more explicit criticisms for Mica’s plan, saying it would introduce “unrealistic time schedules and assumptions,” threatening service interruptions and delays to development on the corridor.  Key Democratic leaders and transportation labor leaders joined his criticism, voicing concern over the proposal’s constitutionality and adherence to labor agreements, respectively.

“The nonpartisan Congressional Research Service has determined that this proposal is unconstitutional because it violates the Appointments Clause of the Constitution,” said Representative Nick Rahall (D-WV), referring to the fact that the board that would oversee the NEC, as envisioned, contains no presidential appointees.  “It is also likely that the proposal violates the Takings Clause because it takes Amtrak’s private property without just compensation.”


The Massachusetts Bay Transportation Authority (MBTA), which operates all rail transit service in the Boston region, is drawing negative attention for a $305 million bond sale to cover an operating deficit, with critics accusing the transit authority of failing to address structural problems.

Critics have said the bond sale will do nothing to affect a long term trend of operating deficits, meaning Boston-area passengers should get used to seeing fare hikes, schedule reductions, and other budget cuts in the years to come.

Another possible solution would be expanded state support, most obviously in the form of new dedicated stream of tax revenue.

“While we’re very much focused on implementing reform ... it would be extraordinary for the MBTA to tackle these issues alone,” said MBTA general manager Richard Davey.

Given the state of Massachusetts’ general budget as a whole, this is sure to be a difficult lift in the state legislature. 


U.S. Transportation Secretary Ray LaHood announced today that the Illinois Department of Transportation has the green light to begin work on Chicago’s Englewood Flyover, freeing up $126 million in grant money.

By separating Rock Island District Metra commuter trains from Amtrak and freight trains traveling on Norfolk Southern (NS) tracks, the Englewood Flyover will ease congestion on one of the most tangled sections of Amtrak’s national network.

“Untying rail congestion in Chicago is critical to developing a Midwest passenger rail network that will connect the 40 largest markets in the Midwest,” said Secretary Ray LaHood. “Building the Englewood Flyover will put Americans back to work this summer and create new orders in our domestic supply chain.”

This grade separation is part of the larger Chicago Region Environmental and Transportation Efficiency (CREATE) Program, a joint venture between the State of Illinois, the City of Chicago, freight railroads, Metra and Amtrak.  CREATE looks to ease the massive rail chokepoint that has built up around Chicago rail yards, which serve as the East/West gateway for a significant percentage of passenger and freight traffic.

“Not only will Illinois see the benefit of new construction jobs and some desperately needed congestion relief, this is a great opportunity for Illinois suppliers to bid on new orders,” said Federal Railroad Administrator Joseph C. Szabo. “Illinois has more railway suppliers than any other state in the country, and does more than $4.5 billion in sales each year.”


Secretary LaHood also announced yesterday that the California High-Speed Rail Authority (CAHSRA) has been authorized to begin spending a $16 million grant that will pay to design a positive train control (PTC) system for the San Francisco to San Jose corridor, increasing safety and efficiency on the line, which is owned by Amtrak and used only for Amtrak-operated Caltrain service.

PTC uses advanced monitoring and signaling technology to better track and control the movement of trains, allowing for a higher volume of train traffic with greater safety.  CAHSRA and the Peninsula Corridor Joint Powers Board will use the grant to develop a PTC system that will allow for improved schedule management along the busy line.

“Keeping people safe is our top priority and positive train control technology will ensure California’s rail network transports passengers more safely and efficiently than ever before,” said Secretary LaHood.  “This comprehensive safety technology will improve passenger service along the highly-traveled corridor between San Francisco and San Jose and will ultimately benefit the entire high-speed rail system in California.”

The upgrade is a necessary step to accommodate high-speed operations along the corridor, which plans call for Los Angeles-San Francisco high-speed trains to use.

“This $16 million in federal funds means faster commutes for our constituents,” said Representative Michael Honda (D-CA). “As a Member of the House Budget Committee and the House Appropriations Committee, I recognize that the only way for America to get back to work is for our nation to invest in a 21st century transportation system that will get us there.  Improving Caltrain and laying the ground work for high-speed rail has a direct, positive impact on my constituents, and these federal funds show that their hard-earned tax dollars are being efficiently and effectively returned to their communities in visible and meaningful ways.”

The announcement came the same day as a statement by CAHSRA Regional Manager Tom Tracy, who says the Authority has the money and is ready to get started.

“Now that we have funding from Proposition 1A that was passed by California voters in November, we now have a down payment to get this thing going,” said Tracy.  “We’re getting really good support from the federal government.”


A truck today drove into the side of the California Zephyr east of Reno, Nevada.  Initial reports indicate two fatalities, the truck driver and an Amtrak employee.


The Surface Transportation Board this week held two days of hearings on railroad regulation. The railroads and their labor unions strongly opposed changes in the laws, while shippers pounded the railroads on both rate and service quality issues.


Travelers’ Advisory:

• Amtrak, New Jersey Transit and SEPTA riders between New York and Philadelphia should see normal service return today after a rough week of delays caused by low-voltage power problems and fire. On June 21, a transformer fire in New Jersey caused delays along the Northeast Corridor.  Two days later, Amtrak experienced issues with its power transmission, delaying Amtrak and New Jersey Transit passengers.  Technicians were able to trace the problem to a converter issues resulting from an error in its primary and backup computer systems.  Amtrak announced today that the problem was resolved.
• Amtrak has suspended the Empire Builder between St. Paul/Minneapolis, Minnesota and Havre, Montana until July 19 due to severe flooding in Minot, North Dakota.  The flooding has forced evacuations in Minot, and is expected to worsen over the next few days. Trains 807 & 808 will run between Chicago and Minneapolis with only Superliner coaches and a sightseer lounge car.  Trains 7 and 8 will operate between Seattle and Havre, Montana, as full-service trains (coaches, a sleeper and a diner).  Bus service will be substituted for trains 27 & 28 between Portland and Spokane, with Cascades trains providing an alternate connection from Seattle to Portland.