The National Corridors Initiative, Inc.
Destination:Freedom

A Weekly North American Transportation Update

For transportation advocates and professionals, journalists,
and elected or appointed officials at all levels of government

Publisher: James P. RePass      E-Zine Editor: Molly McKay
Foreign Editor: David Beale      Webmaster: Dennis Kirkpatrick

February 11, 2008
Vol. 9 No. 6

Copyright © 2008
NCI Inc., All Rights Reserved

NCI Home Page: www.nationalcorridors.org

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IN THIS EDITION...   In This Edition...

  Conference Sumnmaries…
Transportation Advocates: We Must Act Now! - Hon John Robert Smith
  News Items…
French Railroaders Once Again Say: “Mangez-vous mon Poussiere”
   The 224-mph French AGV makes its debut
  Commuter Lines…
New York City Subway Ridership Soars To Highest Level in 40 Years
MBTA Appropriates Funds To Buy New Coaches,
   Gets Federal Funding For Repairs
Grants and Purchases Aside, The MBTA Is ‘Broke’
  Political Lines…
Bush Would Cut Amtrak Funding 40 Percent
  Selected Rail Stocks…
  Events…
DVARP Sponsors Northeast Rail Passenger Conference
   February 16-17 in Philadelphia
  Publication Notes …


CONFERENCE SUMMARIES... Conference Summaries...

The Carmichael Conference: Follow Up and Calls for Action

 

National Corridors Initiative Address at St. Louis, January 28, 2008:

Transportation Advocates: We Must Act Now!

By the Hon. John Robert Smith, former Chairman of the Board, Amtrak;
Mayor, Meridian, MS, and Chairman, the National Corridors Initiative

 

[ Publisher’s Note: This is the second in a series of addresses--- last week’s was by Bob Crandall, former CEO of American Airline --- from the Carmichael Conference on the Future of American Transportation held January 28-29 at the Hyatt Regency, St. Louis, MO; Destination:Freedom will publish addresses from this important American conference each week, so that those who could not attend can also participate in the debate, and also benefit from the thoughts of the impressive list of American transportation leaders who did attend, and spoke to us. It is also our intention to collect the speeches, and presentations, into a single CD-ROM so that the proceedings can be more widely distributed. ]

 

I wish to thank Jim RePass for organizing this timely and critical conference and choosing to host us in this grand old lady of railroad’s golden age [St. Louis’ Union Station, now a Hyatt Regency Hotel]. I remember the first conversation I ever had with Jim. He telephoned me to say, “You’ve never heard of me and don’t know who I am, but we’re going to be best friends.” I had testified before Senate and House committees regarding Amtrak’s long-distance service through my hometown, Meridian, and that service’s impact on rural and small-town America. Jim recognized the importance of a coalition that would be composed of Democratic senators and congressmen in the densely populated northeast and their Republican counterparts in the Deep South. The Northeast Corridor had discovered it needed the long-distance system through states like Mississippi to survive on Capitol Hill. An interesting study could be made of the congressional salvation of Amtrak as it has played out with senators and congressman reaching out not only across the aisle separating their parties but across the geography separating their states.

I would also like to thank Gil Carmichael for serving as an inspiration not only for this conference but for many of us who are now engaged in seeking transportation solutions for our people. I truly regret that my dear friend, Gov. Michael Dukakis, could not be with us today in person, although we will bring him in by telephone later. He is a gentleman and a truly gifted transportation proponent. I first met Gov. Dukakis in 1998 when I was appointed to the Amtrak Reform Board. We two, together with then-Gov. Tommy Thompson and Secretary of Transportation Rodney Slater, formed the initial board, and the four of us served as the board for the first six to eight months of its existence before other members were added. I can honestly say that in the five years we spent together as board members, never once did partisanship rear its divisive head. We were engaged in providing the best passenger rail service possible for this country regardless of our parties’ positions.

When I arrived on the Amtrak board, Tom Downs had been forced out as president and CEO, and George Warrington was hired to fill that role. At that time, if you remember, Amtrak had been forced by Washington onto that infamously ill-conceived “glide path to self sufficiency”—a mandate to seek zero operational investment from the federal government—in essence to live out of a fare box, a feat no passenger rail system in the world truly achieves. Notice I said “invest.” You see, we “invest” in highways. We “invest” in airlines. But we “subsidize” railroads. When I first became chairman of the board, the annual “subsidy” for all Amtrak operations was less than the annual “investment” in removing road kill from our nation’s highways. Acela, this country’s first high-speed rail consist was rolled out and, although initial problems arose, Acela remains an extremely popular transportation option in the northeast. George Warrington moved on to New Jersey Transit, and I hired David Gunn, a real railroad man, a highly successful railroad operator, who created accurate and transparent accounting for Amtrak and who invested in a capital budget which returned the railroad to its state of good repair. David did all of this without sacrificing our long-distance trains, the backbone of the passenger rail system in this country.

To demonstrate the lack of understanding at the federal level at that time, of how Amtrak is critically integrated into the delivery of all passenger rail service, I will share this story. Shortly after coming on board, David and I were called to Washington, D.C. by Secretary Norm Mineta for what was to be a two-hour board meeting at the secretary’s office. Secretary Mineta had decided to decline the approval of a $100 million loan that Amtrak desperately needed to see its way to the end of the year. The secretary informed us if we could not make it without the $100 million loan, then shut Amtrak down. David said we could do that but we would not only lose all long-distance service but the entire northeast corridor would cease to operate as well—no electrified catenary, no dispatching; therefore, no Amtrak, no commuters, no freight. Needless to say, the meeting lasted somewhat longer than two hours, and I stayed in D.C. not for two hours but for one week, successfully negotiating a $100 million loan with the Department of Transportation.

I’ll show you what kind of man David is. I had come to D.C. with no change of clothes because the meeting was supposed to last only two hours. Therefore, every night David would wash my shirt, socks and underwear and return them to me the next morning for another round of negotiations. Under David’s leadership, ridership, revenue and on-time performance improved remarkably, and each following year has set new records-- all of this accomplished, I remind you, with an administration in the White House grossly underfunding Amtrak and its proposed budgets even to the point of zeroing Amtrak out. But there was a shift on Capitol Hill. Amtrak’s credibility with Congress had been restored. My senator, Trent Lott, and New Jersey Senator Frank Lautenberg introduced Amtrak reauthorization and railroad infrastructure bonding bills. And, for all of his success, David was fired.

Now, Alex Kummant, Amtrak president and CEO, struggles to do much with little and has been most recently saddled with labor agreements for which insufficient revenue exists in 2009 to cover the cost. These labor agreements contain no work-rule changes sought by Amtrak. I remind you this presidential emergency board that constructed the settlement was appointed by the same administration that repeatedly recommends less than adequate funding levels for Amtrak. It sounds a lot like pharaoh’s order to “make bricks without straw.” But there is still hope. Senators Lott and Lautenberg have again won approval for reauthorization and bonding in the Senate. Chairman Oberstar assures me the House will pass similar bills. Then on to the appropriations battle.

This “Perils of Pauline” serial that is Amtrak’s continuing story line occurs simultaneously with highways that are overcrowded and highway trust funds in jeopardy, with airlines in meltdown, and all with the added layers of homeland security, an energy crisis and urgent calls for sane environmental choices in the face of a deteriorating planet. But out of crisis comes great opportunity. “Our unity as a nation is sustained by communication of thought and by easy transportation of people and goods. Together, the unifying forces of our communication and transportation systems are dynamic elements in the very name we bear—United States. Without them, we would be a mere alliance of many separate parts.” These words were spoken by Dwight D. Eisenhower in 1955. That is the last time we had a vision of what transportation investment means to this country. However, 53 years later, his words are still true. With reauthorization for rail, highway and air occurring concurrently and a new T bill ahead of us; with the presidential election upon us, with an engaged public concerned over increasing gas prices, global warming and threatened choices for transportation, I believe the confluence of these events provides unique timing for a new transportation vision.

I just arrived here from Washington, D.C. and the U.S. Conference of Mayors mid-winter meeting. Mayors are the most effective voice for our American cities on Capitol Hill, and transportation is about connecting from city center to city center. I see mayors of cities large and small energized and committed to address these issues. They are engaged in station development and addressing grade crossing concerns. Mayors see freight rail companies as important partners in economic development. I see states like Wisconsin, Illinois, California and North Carolina investing in all modes of transportation, including rail. I see freight railroads such as Norfolk Southern and Kansas City Southern embracing passenger traffic as a revenue source and an infrastructure partner. I see think tanks such as Reconnecting America convening the best minds in the transportation world to craft recommendations for our leaders. I see conferences such as this where we engage in open discussion and debate about our shared transportation future. All of these things give me great hope that we will finally see modes of transportation as feeding one another, not competing; as interconnected partners, not isolated silos unto themselves.

Consider this simple possibility—a citizen in Newton, Mississippi buys a ticket and boards a bus, his bag with him and a small container of La-Z-Boy recliners, made in his hometown, on the back of the same bus. Both passenger and freight travel to Meridian’s multi-modal station, where, still using the same ticket, that passenger and his bag board a higher-speed Amtrak Crescent, bound for the international airports in either Atlanta or New Orleans, with the container of La-Z-Boys on the same train. At either airport, he boards a jet bound for Orly Airport in Paris with the same ticket and, when he arrives, his bag is with him. What a novel concept.

The timing is right for this gathering, but if this conference is merely another convocation to puzzle over transportation’s navel and not act, then we have wasted time and energy. These issues are complex and daunting, but we must act and act now. Our children and grandchildren will hold us accountable. To fail them is to leave our great nation “a mere alliance of many separate parts.” This we cannot do.


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NEWS OF THE WEEK... News Items...

French Railroaders Once Again Say: “Mangez-vous mon Poussiere”

The 224-mph French AGV makes its debut

From Internet Sources, the BBC, and ALSTOM

French President Nicolas Sarkozy speaks at AGV unveiling

French President Nicolas Sarkozy speaks at AGV unveiling

LA ROCHELLE, FRANCE---The world’s newest high-speed train made its debut this past week in France, christened by none other than the President of France, Nicolas Sarkozy.

ALSTOM’s Automotrice Grande Vitesse (AGV) will supplant the famed TGV on France’s highest-speed electrified rail lines, traveling at speeds up to 360km/h (224mph), and powered not by locomotives but by under-floor mounted traction motors.

The roll out of the AGV pours gasoline on the competitive fires ranging around the world in France, Germany, Spain, and Italy, and in China, Japan and Korea, as manufacturers fight for the lead in an exploding 21st century market --- everywhere but in America --- for high speed rail. With the exception of the 155-mph Acela, built by Canada’s Bombardier, on Amtrak’s Northeast Corridor, North America has not been a competitor in this new 21st century market.

Sounding more like an American President of a generation ago than a Frenchmen, Sarkozy declared “That we are here today is testimony to the courage of ALSTOM, because during its worst period it decided not to sacrifice its research and development,” at the dedication at the La Rochelle plant.

In 2004, reported the BBC which covered the event, Sarkozy, then finance minister, intervened to save ALSTOM “…by partially privatizing the company and blocking a takeover by Germany’s Siemens which wanted to dismantle the French giant.”

“We need to entrench a simple message in people’s minds: industry is not over, industry is essential for the economy of a rich nation as much as an emerging nation,” Mr. Sarkozy said at the launch.

The new AGV trains will travel 600 miles in three hours, about the distance from, which is “a new stage in the competition with the airlines”, said ALSTOM’s Executive Chairman, Patrick Kron, at the ceremony.

With a motor under each carriage, the AGV - which translates as “high-speed railcar” - is unlike the TGV, which has motors only at the back and front.

It was also built using ALSTOM’s own funds rather than as a joint venture with the state rail firm SNCF as the TGV was.

The TGV’s maximum speed currently is 320km/h. But a modified TGV achieved a world rail speed record for a train on conventional rails last April, reaching 574.8km/h. The AGV’s new motors are more energy-efficient and the innovative multiple-unit design allows more passenger space, ALSTOM says.

It also reduces maintenance costs, the company says.

The Italian operator NTV has already bought 25 of the AGV trains, and will run them on the Italian high-speed network at a speed of 300km/h in 2011, said the BBC.

For a highly detailed story on the AGV, go to Green Car Congress: www.greencarcongress.com/2008/02/alstom-unveils.html.


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COMMUTER LINES... Commuter Lines...

New York City Subway Ridership
Soars To Highest Level in 40 Years

From the Internet and MTA

New York City ---New York City Transit has posted its highest annual ridership in almost 40 years, the agency reports.

In 2007, MTA New York City Transit (NYCT) carried 2.3 billion riders — the highest passenger count since 1969. Ridership increased 2.7 percent compared with 2006’s total.

NYCT officials attribute the ridership growth to a strong economy, record tourism and MetroCard discounts.

Total weekday ridership averaged 7.4 million, up 2.1 percent, and weekend ridership (Saturday and Sunday combined) averaged 7.7 million, the highest count in more than 35 years.

Subway ridership, which accounted for more than two-thirds of NYCT’s total passenger count, reached 1.56 billion — the highest annual figure since 1951 and a 4.2 percent increase compared with 2006’s total. Weekday subway ridership averaged more than 5 million passengers and weekend ridership, 5.1 million.

Brooklyn’s Canarsie L train registered the largest gain, posting an 8 percent weekday ridership increase. In 2007, NYCT added 23 weekday, 30 Saturday and 34 Sunday round trips on the L line.

Annual ridership on MTA’s Staten Island Railway rose 9 percent year over year to 4.13 million. Agency officials attribute the increase to a recently implemented strategic business plan and a comprehensive service improvement program implemented in 2005.


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MBTA Appropriates Funds To Buy New Coaches,
Gets Federal Funding For Repairs

Compiled by DF Staff from Internet Reports

WASHINGTON – Massachusetts Congressman John W. Olver has announced that $30 million has been obtained for upgrades and repairs to the MBTA’s Fitchburg Commuter Rail Line. The funds were included in President Bush’s fiscal year 2009 budget. 

The funding, part of a “Small Starts” grant from the US Department of Transportation’s Federal Transit Administration, will be used to make track improvements on the suburban line that feeds into Boston’s North Station. The Small Starts program awards grants for capital costs associated with light rail projects, streetcar, trolley, and commuter rail projects that do not exceed $75 million in Small Starts funds.  Small Starts projects may not exceed $250 million in total cost.

Grants and Purchases Aside,
The MBTA Is ‘Broke’

The MBTA’s general manager Daniel Grabauskas now says the transit agency is “broke,” despite last year’s fare increases.

In a statement released to the Boston Globe, Grabauskas stated that $70 million dollars the MBTA has raised by increasing fares within their service was not enough to prevent an estimated $75 million dollar deficit in the upcoming fiscal year.

Grabauskas said the MBTA has ruled out another fare increase this year, as well as any cuts in service.

He would not discuss how the agency would fill the budget gap until its board discusses it publicly.

The transit agency has heavy debt with 27 cents of every dollar it spends going to pay that debt off.

The MBTA has also been hurt by fuel and labor costs and slow growth in the collection of state sales tax, its primary money source.

“Only 13 Small Starts projects nationwide made it into the President’s budget, most of which were funded at $10 million or under.  The Fitchburg rail project stood up to rigid scrutiny, and was selected as one of the best Small Starts projects in the country.  All we are waiting for now is the state bond bill so this project can go forward,” said Olver.  “We can be in construction within 18 months after it passes,” he added.

The total project cost is estimated at $150 million, split evenly between state and federal funding.  To date, Congressman Olver has secured $7.86 million in federal earmarks that count toward the $75 million federal commitment.  Added to the $30 million New Start grant, the current federal contribution amounts to $37.86 million.

The goals of the project are to reduce travel time from approximately 90 minutes to an hour, to improve service reliability to an over-95% on-time schedule adherence, and to attract new riders to MBTA.

The President’s budget for the FTA still needs to be approved by Olver’s subcommittee and the House and Senate before funding will actually be made available.

Also in early February, the MBTA Board of Directors approved the purchase of 75 new bi-level commuter rail coaches with increased seating capacity and improved lavatory access to commuters.  The coaches will be fully compliant with the Americans with Disabilities Act and feature flip-back seats at designated wheelchair positions.  Under a $190.2 Million contract, the bi-level coaches will be manufactured and delivered by the Rotem USA Corporation, Inc. of Philadelphia, Pennsylvania.

This purchase will allow for the replacement of a number of aging coaches that are reaching their useful life expectancy of 25 years, with bi-level coaches equipped to meet increasing service demands.  “This contract is vital in continuing with the [Governor] Patrick Administration’s commitment to providing better public transportation service for customers,” said Transportation Secretary Bernard Cohen.  “These new bi-level coaches will accommodate the growing popularity of commuter rail while dramatically improving the commuting experience for our customers.” 

“With the Board of Directors’ approval, we can now move forward with the purchase of brand new, state-of-the-art, bi-level coaches that boast modern amenities,” said MBTA General Manager Daniel A. Grabauskas.  “More seating, improved accessibility, and on-board lavatories are conveniences customers deserve.  This is great news for the thousands of customers who rely on commuter rail service.” 

Rotem Corp. a part of Hyundai Inc., will deliver four coaches by the end of 2010 with the remaining 71 coaches slated for delivery by 2012 after the first units are tested and approved.  When all the new coaches are delivered, it will bring the number of bi-level coaches in the MBTA’s commuter rail fleet to 215 in total.


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POLITICAL LINES... Political Lines...

Bush Would Cut Amtrak Funding 40 Percent

Compiled from internet reports

WASHINGTON, FEBRUARY 8 – President Bush is again seeking major cuts in funding for Amtrak, a proposal which appears to be a continuation of his efforts to sink Amtrak.

The budget proposal for 2009, which Bush sent to Congress last week, calls for $800 million for Amtrak – a 40 percent cut from last year.

The proposal is likely to meet with stiff resistance on Capitol Hill, where lawmakers especially along the Eastern seaboard support adequate funding to keep the railroad running.

The cuts “could potentially cripple Amtrak,” said Rep. Rob Wittman, R-Va. “I don’t want to see that happen. I want to see Amtrak operate efficiently.”

But the Bush administration argues that the rail system has been run inefficiently for too long and “hemorrhaged” taxpayer subsidies, while failing to make changes that could put it on sounder financial footing.

“The idea is for Amtrak to run as a business. It is a for-profit corporation,” said Steve Kulm, Federal Railroad Administration spokesman.

The 2009 proposed funding level is “inadequate to operate national passenger rail service as it is currently configured,” Amtrak spokesman Cliff Black said.

Amtrak operates seven trains a day from Richmond’s Staples Mill Road Station to Washington’s Union Station. It’s unclear how the proposed cuts would impact Virginia’s service.

Passenger rail advocates blasted the proposal. At a time of heightened concern about traffic and the environment, railroads remain a viable alternative to congested highways, they said.

“If their $800 million proposal stands, the company would not have enough to operate,” said Ross Capon, executive director of the National Association of Railroad Passengers. “The whole thing would shut down and there would be a fight over how to keep parts of it, like the Northeast corridor, running.”

“I’d like to see Amtrak service expanded, not contracted,” said Rep. Rick Boucher, D-Va., who called the service to Virginia “valuable.”

Last year, Bush threatened to cut funding to Amtrak, but, instead, Congress allocated $1.3 billion to the railroad.

In 2006, President Bush proposed cutting government funding for operations to zero. Congress ignored the request and restored enough funding to keep the railroad functioning

Once again, key lawmakers plan to again ignore Bush’s request.

In the House, Rep. James Oberstar, D-Minn., the transportation committee chairman, will introduce a separate bill to boost Amtrak’s funding above requested levels, committee spokeswoman Mary Kerry said.

“The traveling public has embraced passenger rail service as an alternative to high gas prices and airline delays, and that has made Amtrak a critical player in the nation’s multimodal transportation system,” Oberstar said in a statement.

Most of the money in Bush’s proposal would go to maintaining tracks, trains and signals.

The budget also calls for Amtrak to become more efficient, requiring Amtrak to reduce financial losses by focusing more on services that make money.

The budget reflects that “Amtrak has taken few steps to align its business with the traveling public’s demand for intercity rail service and that it consequently continues to hemorrhage taxpayer funds,” the administration wrote in the proposal sent to Congress.

Amtrak spokesman Black said the company plans to submit its own budget proposal to Congress later this month.


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STOCKS...  Selected Rail Stocks...

Source: www.MarketWatch.com

   This
Week
Previous
Week
Burlington Northern & Santa Fe(BNI)88.0388.30
Canadian National (CNI)50.7352.11
Canadian Pacific (CP)69.4969.63
CSX (CSX)48.0249.93
Florida East Coast (FLA)62.5162.51
Genessee & Wyoming (GWR)27.1127.86
Kansas City Southern (KSU)37.9438.03
Norfolk Southern (NSC)54.4156.29
Providence & Worcester (PWX)18.9619.75
Union Pacific (UNP)125.35127.97


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EVENTS... Events...

DVARP Sponsors

 

Northeast Rail Passenger Conference
Set for February 16-17 in Philadelphia

From the Delaware Valley Association of Rail Passengers

PHILADELPHIA---Issues of Northeast Corridor ownership and management, its target market, and operational issues are all on the agenda this weekend at Philadelphia when the Delaware Valley Association of Rail Passengers meets at Logan Hall, 34th and Spruce streets, at the University of Pennsylvania.

The agenda for the conference, which follows a 10 a.m. NARP Region 1 meeting, is:

Saturday, 16th, February 2008
10:00 a.m.Session I
NARP Region 3 Meeting
(12:27 p.m., #195, Amtrak Regional, arrives 30th St. from Boston)
1:00 p.m.Lunch
2:30 p.m.Session 2
1. Who Should Own and Manage the Corridor?
3:30 p.m.2. Who Is the Service For?
4:30 p.m.Break
4:45 p.m.3. How Can We Resolve?
4:30 p.m.Break
5:45 p.m.Saturday Wrap-up
Sunday, 17th, February 2008
9:00 a.m.Continental Breakfast.
10:00 a.m.Session 3
1a. Cost Allocation
1b. Practical Advocacy
11:00 a.m.Expanding the Network
1:30 p.mSession 4
1. Convenience
3:00 p.m.Break
3:15 p.m2. Dispatching & Planning
4:15 p.m.Wrap-up
(5:20 p.m., #168, Amtrak Regional, departs 30th St. for Boston)

For more information and to register email: conference@dvarp.org or phone 1-215-RAILWAY.


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END NOTES...  Publication Notes...

Copyright © 2008 National Corridors Initiative, Inc. as a compilation work and original content. Permission is granted to reproduce content provided acknowledgements to NCI are given. Return links to the NCI web site are encouraged and appreciated. Color Name Courtesy of Doug Alexander. Content reproduced by NCI remain the copyrights of the original publishers.

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