The Downward Spiral Continues

The Washington Metropolitan Area Transit Authority (WMATA) is increasingly dysfunctional. DC’s subway system is designed to run eight-car trains but due to lack of equipment two-thirds of the trains operating during rush hour have only six cars even though they are packed full of people. WMATA has asked Virginia, Maryland, and DC for nearly $1.5 billion so it can purchase new equipment and upgrade its system to allow a return to eight-car trains.

The Maryland secretary of transportation, Pete Rahn, says the state is reluctant to give hundreds of millions of dollars to an agency as poorly run as WMATA. As an example of poor management, Rahn pointed to a dispute among the agency’s board over what kind of person should replace the agency’s general manager, Richard Sarles, who retired from his $366,000 a year job in January.

Some on the board wanted to hire a “turnaround expert” who could restore the agency’s fortunes. Others wanted to hire someone with more experience in the transit industry. The dispute became so serious that the mayor of Washington proposed to dismiss board member (and last year’s board chair) Tom Downs, who favored hiring someone with more transit expertise, because he disagreed with the mayor’s desire for a turnaround expert. In response, three candidates who were being considered for the job withdrew their applications.

It isn’t really clear what someone who has had experience turning around for-profit corporations would be able to bring to the job of transit agency CEO. So much of the agency is fixed–infrastructure, union agreements, local budgets for tax subsidies–that someone who is used to fixing sick companies by selling off assets or cutting staff wouldn’t have many opportunities to fix a transit agency.

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Apparently, the agency had failed to apply for federal grants in a timely manner, leaving it short of cash. So it took out short-term loans to carry it over until federal grants came through, leading its short-term debt to grow enough to exceed its long-term debt. Debt payments are due in June and Moody’s hinted that the agency might not be able to make those payments.

One piece of good news was that WMATA was able to restore computerized train operation to the Red Line last year, more than five years after a crash in which nine people died when a computer-controlled train going nearly 50 miles per hour slammed into a stationary train. A relative of one of the people killed in that accident fretted that, “you can’t risk human beings to some computer,” but it isn’t clear that human-driven trains are any safer considering a Chicago train crash that took place when the operator fell asleep on the job.

On a recent trip to DC, the Antiplanner was on a Blue Line train that stopped at a station and sat for at least five minutes without opening the doors. Finally the train started up again and proceeded to the next station without ever loading and unloading passengers at the five-minute stop. The only explanation I could think of was that the operator had fallen asleep at the station.

Short of a sugar daddy coming up with billions of dollars, it isn’t clear that there is any fix for WMATA’s woes. Trains are expensive and getting more expensive to run every day. The system is at capacity in many places and expansions to resolve those capacity problems would cost tens of billions of dollars. Since WMATA can’t even afford to maintain the lines it has, spending billions building new lines would just be one more example of mismanagement.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

9 Responses to The Downward Spiral Continues

  1. Frank says:

    “On a recent trip to DC, the Antiplanner was on a Blue Line train”

    Uh…why?

  2. OFP2003 says:

    It is a mess, a filthy dirty mess also. The whole system needs a complete power wash. I slipped on the carpet in the train today, I looked down to see why, the carpet was matted down slick with dirt ground into it. I could go on and on about the smells, delays, train dysfunctions, and the high cost. But, I almost always get a seat, and I can do something I can’t do when driving to work…… sleep…. and something I can’t do when riding a bus….. read. That surely is one of the things I most appreciate about the train – I don’t get motion-sickness on it.

    Put me in charge, I’ll straighten it out. After Power Washing it, the first thing I’d do is put in “First Class” cars where you can pay more to travel more comfortably. Then we’d close about 1/4 of the stops, then start running express trains. That awful Redline tunnel problem has to be fixed, probably have to close it for a year or more to fix it correctly. Oh well….

  3. bennett says:

    “It isn’t really clear what someone who has had experience turning around for-profit corporations would be able to bring to the job of transit agency CEO. So much of the agency is fixed–infrastructure, union agreements, local budgets for tax subsidies–that someone who is used to fixing sick companies by selling off assets or cutting staff wouldn’t have many opportunities to fix a transit agency.”

    I’m not sure about so called “turn-around experts” but savvy private sector executives often make great transit agency directors. The key is poaching the right industry. Some of the most innovative and financially stable transit agencies were run by people formerly employed by the packing and shipping industry. They know how to move units efficiently and deal with unions.

  4. Dave Brough says:

    Why bother? UberZero, a free, ad-supported tier of service that’s cheaper than UberPool and UberX will replace transit, period.
    More here http://andrewchen.co/this-is-what-free-ad-supported-uber-rides-might-look-like-mockups-economics-and-analysis/
    and
    http://gas2.org/2014/11/19/will-lyft-and-uber-replace-public-transportation/

  5. JOHN1000 says:

    I don’t get upset that “Apparently, the agency had failed to apply for federal grants in a timely manner…”

    I get upset that the agency must rely upon federal grants to operate and stay in existence.

    If the new general manager is nothing but a skilled grant seeker, we have not accomplished anything. The agency will operate as always, providing bad service and wasting huge sums of money, for the sole purpose of keeping their inflated salaries flowing.

  6. bennett says:

    I’m not sure about trains, but for bus service, large urban systems get no federal assistance for operating costs.

  7. ahwr says:

    http://www.ntdprogram.gov/ntdprogram/pubs/profiles/2013/agency_profiles/3030.pdf

    In 2013 “federal assistance” was 2% of operating revenue, 66% of capital revenue for WMATA.

  8. bennett says:

    Sorry, virtually no operating assistance.

  9. Sandy Teal says:

    The whole point of a DC subway system was to milk money from the entire country to subsidize the DC metro area. DC does this in a dozen other ways. All those “free” world-class museums. All those 4th of July and other spectacular events. and concerts All those “national” parks that are just local parks like Rock Creek and . All those “national” roads like Suitland and GW Parkway.

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