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The Carmichael Conference: Follow Up and Calls for Action
Transportation Advocates: We Must Act Now!
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 sufficiencya mandate to seek zero operational investment from the federal governmentin 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 nations highways. Acela, this countrys 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 secretarys 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 wellno 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.
Ill 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 Davids 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. Amtraks 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 pharaohs 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 Amtraks 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 bearUnited 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 possibilitya 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 Meridians 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 transportations 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.
French Railroaders Once Again Say: Mangez-vous mon Poussiere
The 224-mph French AGV makes its debut
French President Nicolas Sarkozy speaks at AGV unveiling
ALSTOMs Automotrice Grande Vitesse (AGV) will supplant the famed TGV on Frances 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 Canadas Bombardier, on Amtraks 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 Germanys Siemens which wanted to dismantle the French giant.
We need to entrench a simple message in peoples 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 ALSTOMs 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 ALSTOMs own funds rather than as a joint venture with the state rail firm SNCF as the TGV was.
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.
Conference Summaries...
Mayor, Meridian, MS, and Chairman, the National Corridors Initiative
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News Items...

LA ROCHELLE, FRANCE---The worlds newest high-speed train made its debut this past week in France, christened by none other than the President of France, Nicolas Sarkozy.
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New York City Subway Ridership
Soars To Highest Level in 40 Years
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 2006s 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 NYCTs total passenger count, reached 1.56 billion the highest annual figure since 1951 and a 4.2 percent increase compared with 2006s total. Weekday subway ridership averaged more than 5 million passengers and weekend ridership, 5.1 million.
Brooklyns 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 MTAs 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.
WASHINGTON Massachusetts Congressman John W. Olver has announced that $30 million has been obtained for upgrades and repairs to the MBTAs Fitchburg Commuter Rail Line. The funds were included in President Bushs fiscal year 2009 budget.
The funding, part of a Small Starts grant from the US Department of Transportations Federal Transit Administration, will be used to make track improvements on the suburban line that feeds into Bostons 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.
The MBTAs general manager Daniel Grabauskas now says the transit agency is broke, despite last years 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.
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 Presidents budget for the FTA still needs to be approved by Olvers 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 Administrations 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 MBTAs commuter rail fleet to 215 in total.
Bush Would Cut Amtrak Funding 40 Percent
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 dont 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 Richmonds Staples Mill Road Station to Washingtons Union Station. Its unclear how the proposed cuts would impact Virginias 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.
Id 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 Bushs request.
In the House, Rep. James Oberstar, D-Minn., the transportation committee chairman, will introduce a separate bill to boost Amtraks 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 nations multimodal transportation system, Oberstar said in a statement.
Most of the money in Bushs 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 publics 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.
Grants and Purchases Aside,
The MBTA Is Broke
Only 13 Small Starts projects nationwide made it into the Presidents 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.
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Political Lines...
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Source: www.MarketWatch.com
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DVARP Sponsors
Northeast Rail Passenger Conference
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 Advocacy11:00 a.m. Expanding the Network 1:30 p.m Session 4
1. Convenience3:00 p.m. Break 3:15 p.m 2. 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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