Portland Commuter Rail 25% Over Budget

Portland’s Westside commuter rail is $33 million over its planned budget of $133. Although just $8 million of that is due to the cost of the commuter rail cars, a recent article in The Oregonian blames the manufacturer of those cars for having “cost TriMet millions.”

The Westside commuter rail line goes from nowhere to nowhere. Actually, it goes from Wilsonville to Beaverton, but neither endpoint is a major job center. That means commuters who use the commuter rail will probably change in Beaverton to a light rail train. Faithful Antiplanner ally John Charles says this line is a loser. It is so bad that Oregon’s congressional delegation had to pass a law exempting it from Federal Transit Administration cost-effectiveness criteria restricting funding to projects that only waste a lot of money instead of a whole lot of money.

Colorado Railcar’s original demonstrator unit.
Flickr photo by AaverageJoe.

Engineering, design, construction, right of way, and signals for the project cost about $22 million more than expected, which The Oregonian mentions only in a tiny chart. Instead, the story focuses on Colorado Railcar, a company that has been promoting the idea of Diesel multiple units (DMUs), which more or less means a light-rail-like car powered by a Diesel engine powerful enough to also tow one or two unpowered cars.

I’ve never met Tom Rader, the owner of Colorado Railcar, but as a railfan I’ve known some of his associates and products. Under the name Rader Railcar, he rebuilt old passenger cars into some interesting cars for various tourist rail lines in Alaska, Canada, and elsewhere. Some of these cars were great, but others were late and overbudget, leading to financial problems for both his customers and his own company.

Due to these problems, Rader was forced to reincorporate under a different name. He then decided to jump into the transit business and actively promoted Diesel commuter cars as a cross between conventional commuter rail (which typically operates only during rush hours) and light rail (which operates all day long but in shorter trains than commuter rail).

Some of the agencies that bought or planned to buy Rader’s DMUs expected to operate them all day long but less frequently than light rail. For example, Denver’s RTD planned to run light-rail trains every 7 to 15 minutes, but DMU every 15 to 30 minutes. However, Portland’s TriMet plans to operate only during rush hours.

By the way, RTDs original plan was to use DMUs on three new rail lines, but it has since cut this to only one. Is that because RTD had some inside knowledge about Rader’s financial troubles? Or is it just because Rader made only a small, last-minute donation to RTD’s 2004 FasTracks campaign?

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Florida Tri-Rail bi-level DMU demonstrator cars.
Artists’ conception by Colorado Railcar.

In any case, Colorado Railcar built a single-level demonstrator car that it showed to transit agencies all over the country. It drew artists’ conceptions of this car in various local colors. But as far as I know, the only cars it actually delivered to any agency other than TriMet were dual-level cars in use by Tri-Rail between Miami and Ft. Lauderdale, Florida. According to Wikipedia, Tri-Rail has so far purchased four powered and two unpowered bi-level cars.

Colorado Railcar claims that it also purchased the single-level demonstrator. However, Colorado Railcar’s web site really isn’t working (most of the links above are accessible through Google, but not from Colorado Railcar’s own home page), so it may not be credible.

And that’s the problem for TriMet. With Colorado Railcar nearly bankrupt, TriMet had to pony up $545,000 to Rader’s company just so it could meet payroll and build the cars for TriMet’s order. Then it had to “loan” another $5 million just to keep the company going. It has now received its cars, but it probably won’t ever see that loan repaid.

Reading between the lines, it appears that Rader is a railfan who acquired the skills to rebuild and eventually build rail passenger cars, but never had the real management skills to run a company or the financial backing to keep it going. Having successfully sold many cars to private rail tour operators, he probably also was not prepared to deal with the red tape and lengthy planning periods required to develop a new commuter-rail service.

It’s a sad story, but the subtext is that TriMet is setting up Rader to be the fall guy when in fact others are responsible for more than three-fourths of the cost overrun.

TriMet’s DMU in test service.
Flickr photo by Hardlinejoe.

To top it off, Diesel commuter trains use horns that are much louder than light rail. As TriMet started testing its new rail cars, residents along the rail line were stunned to realize that they will be blasted by 96-decibel horns hundreds of times each day. Cities can petition to be “quiet zones,” exempting them from federal horn requirements, but only after installing expensive grade-crossing safety equipment. Needless to say, TriMet didn’t include that in its budget either.

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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.

29 Responses to Portland Commuter Rail 25% Over Budget

  1. JimKarlock says:

    Of course this is another in a long line of rail projects brought in on time and on budget – just ask Trimet in a year or two.

    For more on-time-on budget Trimet examples see:
    http://www.PortlandFacts.com

    Thanks
    JK

  2. the highwayman says:

    Karlock, O’Toole, you guys sure enjoy whining.

    Just imagine if all this energy was put towards real problems!

  3. Frank says:

    If TriMet were a business, it would be bankrupt. Time to get government out of transit. Portland used to have efficient, inexpensive, PRIVATE transit companies. Government is taking “risk” with taxpayer money, so there is no real risk involved for TriMet. If private companies took these kind of risks, they would cease to exist. Well, unless the government nationalized them. Then it’s back to square one.

  4. Kathleen Calongne says:

    Interesting that RTD has failed to address this potential problem with the already faltering NW Corridor rail arm of Denver’s already faltering FasTracks project. The FT project has barely begun and is $2 billion short of funds.

    The NW Corridor, which was awarded two modes of transit — one rapid — BRT along US 36 and one lumbering — DMU, by the already faltering CO Rail Car company with almost identical routes. The rail portion has a revised ridership projection of only 4,400 per day (because of the more frequent and efficient duplication of route by BRT) and cost that has risen 60% to $900 million. Co Rail Car’s financial problems have so far been unmentioned as yet another hurdle mayors and commissioners along US 36 will have to jump to hold on to their precious means of land-grabbing to rezone for high density development. We’ll see how long they can keep this under the rug.

  5. Francis King says:

    Antiplanner wrote:

    “The Westside commuter rail line goes from nowhere to nowhere. Actually, it goes from Wilsonville to Beaverton, but neither endpoint is a major job center.”

    It sounds like TriMet needs to rethink their strategy. It also appears that, due to management difficulties, they could have bought the whole company for what they gave the company in the form of a loan.

    “promoting the idea of Diesel multiple units (DMUs), which more or less means a light-rail-like car powered by a Diesel engine powerful enough to also tow one or two unpowered cars.”

    That’s what it says on the company FAQ, and that bothers me quite a bit. The company seems to have confused two separate concepts, DMU and railway engines. DMU is supposed to be a number of self-powered units which can be coupled and uncoupled to meet demand – unpowered units just don’t come into it. It sounds like it is being over-built to meet a non-existant need.

    DMUs are a very popular choice in the UK, on the slower stopping services.

    “To top it off, Diesel commuter trains use horns that are much louder than light rail. As TriMet started testing its new rail cars, residents along the rail line were stunned to realize that they will be blasted by 96-decibel horns hundreds of times each day. Cities can petition to be “quiet zones,” exempting them from federal horn requirements, but only after installing expensive grade-crossing safety equipment. Needless to say, TriMet didn’t include that in its budget either.”

    Experience with the Orange Line BRT indicates that it doesn’t matter what the type of transit is. If it’s separate from the road network, some car drivers will try to beat the lights, and will get their vehicle crushed for their pains. They would do better to ditch the horn and build a proper crossing, for BRT and light rail, as well as commuter rail.

  6. the highwayman says:

    Frank: If TriMet were a business, it would be bankrupt. Time to get government out of transit. Portland used to have efficient, inexpensive, PRIVATE transit companies. Government is taking “risk” with taxpayer money, so there is no real risk involved for TriMet. If private companies took these kind of risks, they would cease to exist. Well, unless the government nationalized them. Then it’s back to square one.

    THWM: On the other side of the coin, streets are not being judged on some thing like a profit or loss basis. I don’t think they should as they serve an important purpose as a commons, though this is where the economic trouble begins with vulgar libertarians.

    If people like Cox, Zucker, Poole, Rubin, O’Toole or Karlock are going to judge things by using double standard economics. Then what they are saying is pretty much meaning less & a farce.

  7. prk166 says:

    Highwayman –> What are these double standard economics that they’re using?

    “By the way, RTDs original plan was to use DMUs on three new rail lines, but it has since cut this to only one. Is that because RTD had some inside knowledge about Rader’s financial troubles? Or is it just because Rader made only a small, last-minute donation to RTD’s 2004 FasTracks campaign?” — antiplanner

    That could be. One has to wonder why RTD was so eager to stick with Siemens LRT cars, cars that are not properly designed for American adults. I suspect part of it could be, as pointed out, the financial troubles the company is. Also strangely a small but very vocal portion of the public seems to throw an absolute tantrum if it’s not LRT with overhead wires and powered by electricity produced at some coal plant off of Arapahoe or up in Sterling. Now maybe I’ve mistook some of that as being over the vehicle when it was more about the schedule and frequency.

    The DMU actually strikes me as nice solution. You could hold some costs down in not having to build overhead wires. And some cars would be powered and cost more but others wouldn’t be and would cost less (both in terms of up front costs and maintenance).

    They seem handy for the argument that while traffic on a line may not constitute enough today to build it, it will eventually grow to that level. You spend less up front and then in 10-15 years when traffic levels have increased enough to warrant making the next round of improvements, you can do so. And if things don’t grow enough you haven’t sank so much money into that project and can use it on others.

  8. Kathleen Calongne says:

    Highwayman,

    What about the cost of creating quiet zones for DMU? Many people who vote for transit plan to use it to stadiums and to go downtown on occasion and not have to pay for parking. Once they figure out there is any cost whatsoever to them — in terms of inconvenience and noise — that they aren’t just the recipients of extraordinarily expensive free parking several times a year, the tune changes. a.k.a the NW Corridor, Longmont/Boulder to Denver.

  9. Dan says:

    What about the cost of creating quiet zones for DMU? Many people who vote for transit plan to use it to stadiums and to go downtown on occasion and not have to pay for parking.

    Do you ride RTD? SRO at peak 4-5 x a week on numerous lines. But yes the parking is free for now.

    Nonetheless, RTD (and many other LRs) is in same corridor as highway. Off peak, the highway is far noiser over a constant period than occasional LR.

    DS

  10. Kathleen Calongne says:

    DS

    We aren’t talking about light rail.

  11. Dan says:

    Perhaps I’m confused about all the mixed logic involved then. DMUs, RTD, downtown…RTD goes downtown/Mile High, but doesn’t use DMUs…

    DS

  12. Kathleen Calongne says:

    We were talking about noise from commuter rail, DMU’s, which will go downtown. Sorry for the confusion, however, I was speaking in general terms about rail projects around the country when I said that people only want them if they feel they’ll have all the benefit and none of the cost.

    Along US 36, to cite a particular instance, there is growing opposition to commuter rail because of the costs that were not realized, because they were only tacitly addressed. For example, the term “commuter rail” was typically used, so that the general public would not think “diesel rail.” It was intimated that electric might be used — when RTD knew full well that the additional millions in infrastructure changes to raise structures for electric wires would make it out of the question.

  13. the highwayman says:

    Francis King Says: Antiplanner wrote:

    “The Westside commuter rail line goes from nowhere to nowhere. Actually, it goes from Wilsonville to Beaverton, but neither endpoint is a major job center.”

    THWM: Mr.Cox has used the same moronic to no where to no where coments regarding Amtrak. I could mention two obscure points along I-5 and it would be just as meaning less as most of the bull shit that ROT writes. This was set up as connecting service.

    FK: It sounds like TriMet needs to rethink their strategy. It also appears that, due to management difficulties, they could have bought the whole company for what they gave the company in the form of a loan.

    “promoting the idea of Diesel multiple units (DMUs), which more or less means a light-rail-like car powered by a Diesel engine powerful enough to also tow one or two unpowered cars.”

    That’s what it says on the company FAQ, and that bothers me quite a bit. The company seems to have confused two separate concepts, DMU and railway engines. DMU is supposed to be a number of self-powered units which can be coupled and uncoupled to meet demand – unpowered units just don’t come into it. It sounds like it is being over-built to meet a non-existant need.

    DMUs are a very popular choice in the UK, on the slower stopping services.

    “To top it off, Diesel commuter trains use horns that are much louder than light rail. As TriMet started testing its new rail cars, residents along the rail line were stunned to realize that they will be blasted by 96-decibel horns hundreds of times each day. Cities can petition to be “quiet zones,” exempting them from federal horn requirements, but only after installing expensive grade-crossing safety equipment. Needless to say, TriMet didn’t include that in its budget either.”

    THWM: You have to remember that we have a lot more point less red tape on this side of the pond. There are no real problems with having LRV’s on railway lines, just as lorries & bicyclists can share the same streets.

    FK: Experience with the Orange Line BRT indicates that it doesn’t matter what the type of transit is. If it’s separate from the road network, some car drivers will try to beat the lights, and will get their vehicle crushed for their pains. They would do better to ditch the horn and build a proper crossing, for BRT and light rail, as well as commuter rail.

    THWM: The MTA’s Orange Line BRT system has been a boondoggle.

    It would make more sense to turn it back rail line and run suburban trains.

    For that matter the Gold line should have been a suburban train operation too.

  14. the highwayman says:

    prk166 Says: LRT with overhead wires and powered by electricity produced at some coal plant off of Arapahoe or up in Sterling.

    THWM: These power plants are also making the electricity to run traffic lights at intersections(street lights as well), pump gas at gas stations(the refinery where your gas came from uses electricity too) and run the computer that you used to type in this so called blog.

    Though the power grid isn’t just composed of coal fired plants.

  15. the highwayman says:

    Kathleen Calongne Says: What about the cost of creating quiet zones for DMU? Many people who vote for transit plan to use it to stadiums and to go downtown on occasion and not have to pay for parking. Once they figure out there is any cost whatsoever to them — in terms of inconvenience and noise — that they aren’t just the recipients of extraordinarily expensive free parking several times a year, the tune changes. a.k.a the NW Corridor, Longmont/Boulder to Denver.

    THWM: To upgrade grade crossings the FHWA or local road department needs to kick in the funds.

  16. the highwayman says:

    Kathleen Calongne Says: We were talking about noise from commuter rail, DMU’s, which will go downtown. Sorry for the confusion, however, I was speaking in general terms about rail projects around the country when I said that people only want them if they feel they’ll have all the benefit and none of the cost.

    THWM: Every thing comes a with cost, freeways come at a great cost too.

    Along US 36, to cite a particular instance, there is growing opposition to commuter rail because of the costs that were not realized, because they were only tacitly addressed. For example, the term “commuter rail” was typically used, so that the general public would not think “diesel rail.” It was intimated that electric might be used — when RTD knew full well that the additional millions in infrastructure changes to raise structures for electric wires would make it out of the question.

    THWM: Electrification only adds about an extra 10% at most to a suburban rail project.

  17. prk166 says:

    When you’re 50% over budget, an extra 10% is hard to find.

  18. the highwayman says:

    This is coming from the contractor side, the same crap happened with Big Dig.

    Maybe the folks at the RTD ought to contact Deseret Power, since they operate the only electric railroad line in Colorado. Also it’s only 25 years old. http://www.deseretgt.com/index.php

  19. JimKarlock says:

    the highwayman said:
    THWM: Mr.Cox has used the same moronic to no where to no where coments regarding Amtrak. I could mention two obscure points along I-5 and it would be just as meaning less as most of the bull shit that ROT writes. This was set up as connecting service.
    JK: As usual THWM is wrong. WES does not connect to anything, unless you like to walk. Admittedly there is a nice Fry’s in Wilsonville. the end of the line. And the North end is an opportunity to transfer to a MAX train.

    Of course taxi fare is about he same as WES’ actual cost (that is why it took a act of congress to override- the rational approval process) and a whole lot more convenient and available other then twice a day.

    Thanks
    JK

  20. the highwayman says:

    JK: The North end is an opportunity to transfer to a MAX train.

    THWM: The MAX goes east-west, while the WES goes north-south.

  21. JimKarlock says:

    the highwayman said: The MAX goes east-west, while the WES goes north-south.
    JK: that is why I said:
    The North end [of the WES]is an opportunity to transfer to a MAX train.

    thanks
    JK

  22. the highwayman says:

    An other idea would be just to extend the MAX redline on to the track where the WES is going to operate.

  23. prk166 says:

    Highwayman, did you actually just claim that Fastracks is over budget because of the contractors? That is, that RTD had no control over it’s budgeting and management of the project?

  24. the highwayman says:

    The same crap can happen even when doing a home renovation.

    http://www.goldhawk.com/channel_article.php?channel_id=23&article_id=101

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