Passenger Rail Doesn’t Work in Europe

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Paying for New Jersey Transit

Delays to commuters and Amtrak passengers caused by a bridge malfunction are putting pressure on the Trump Administration to fund the $20 billion Gateway project, which would reconstruct bridges and tunnels connecting New York’s Penn Station with north New Jersey. Although New York and New Jersey politicians claim that this project is vital to the region, none of them are willing to ask their constituents to put up a single cent towards its completion.

Instead, they want the federal government to pay half the cost up front, and to put up the other half in a federally guaranteed, low-interest loan. Considering that neither New Jersey Transit nor Amtrak have the revenues needed to repay that loan, there’s a good chance the federal government would end up paying for it all.

Though this seems ridiculous, transit advocates have tried to make it appear that Trump is the bad guy here. In fact, the bad guys are the local politicos who want someone else to pay for their pork-barrel projects. Continue reading

Paying for New York’s Transit System

Last week, the Antiplanner observed that the New York City subway system has a $40 billion maintenance backlog, a $40 billion debt, and a $20 billion shortfall in pension and health care funds. On top of this, CBS News reports that the Metro North and Long Island Railroad commuter-rail systems have a $20 billion maintenance backlog. As I read MTA’s budgets, it is paying off its debt at the rate of about $2.8 billion a year ($1.5 blllion of which is interest).

If the debt service is funded, MTA still needs another $80 billion as soon as possible; call it $4 billion a year. As noted in the CBS News story above, New York politicians are diligently looking for the funds using the time-honored principle of taxing the powerless. The problem with that is that the powerless usually have little money to tax. Continue reading

Turning Off Life Support

“Degradation of the U.S. passenger railroad system was not a natural development — it was a result of national transportation policies that invested billions of dollars into highways and air transportation,” argued Vukan Vuchic in his advocacy piece for high-speed rail. “Meanwhile, Amtrak is supported at the survival level.”

There is some truth to that. The billions of dollars spent on interstate highways virtually all came from highway user fees, so can’t really be considered an unfair competition with passenger rail. However, in the 1940s and 1950s, Congress spent about half a billion dollars — several billion in today’s dollars — on airport construction. Subsidies to airports continued on a large scale until 1970, when Congress allowed local airports to fund themselves out of ticket fees.

At the same time, the airlines were throttled by regulation. In 1960, domestic airlines carried only about 31 billion passenger miles. Today, when they have been deregulated but receive relatively minimal subsidies, they carry more than twenty times that many. There is little reason to think passenger railroads could have competed with deregulated and unsubsidized airlines. Continue reading

What We Know About High-Speed Rail

In early 2016, the Transportation Research Board (TRB) published a 187-page report on interregional travel, which it defined as trips between 100 and 500 miles. To help publicize the report, the federally funded TRB placed a five-page summary in the May-June, 2016 TR News.

In response, rail advocate Vukan Vuchic, who is an emeritus professor of urban planning at the University of Pennsylvania, wrote a lengthy diatribe, published as a letter to the editor in the September-October 2018 TR News, complaining that the TRB report had a “negative tone” about high-speed rail. Vuchic’s case is weakened by the fact that he appears to have only read the five-page summary, not the entire 187-page report. Yet even that summary had plenty to say about high-speed rail, and much of it in the Antiplanner’s opinion was far too optimistic.

Vuchic charges that the report makes an “incorrect claim that HSR might only be feasible for the Boston-Washington.D.C., corridor.” In fact, neither the summary nor the full report made that claim, but the report did conclude, after many pages of lengthy analysis, that “In the United States, the NEC is unique in having many of the geographic, demographic, and demand conditions that European and Japanese experience suggests are favorable to public investments in intercity rail” and thus “presents far less uncertainty [than other corridors] with regard to the potential for passenger rail investments, including investments in high-speed service.” “Uncertainty” and “feasibility” are two completely different things.

Contrary to Vuchic’s heated letter, the Antiplanner would argue that the interregional transportation report spends far more pages on high-speed rail than makes sense for the United States. By the modern definition of high-speed rail — trains with top speeds faster than 150 mph — high-speed rail has zero market share in this country. Based on what we know about high-speed rail in other countries, it is fair to say that it will never be relevant here outside of the Boston-Washington corridor, and even there it is only “feasible” if we ignore capital and maintenance costs. Continue reading

$1 Billion for What?

In anticipation of a Democratic takeover of Congress opening the floodgates of spending on rail boondoggles, the state of Oregon has written a draft environmental impact statement (DEIS) for more passenger trains between Portland and Eugene. The DEIS considered three alternatives in detail:

  • No action, which means continuing to run three trains a day (two of which are state-subsidized) taking 2 hours and 35 minutes (48 mph) between Eugene and Portland, all of which go on to Seattle;
  • Alternative 1, which would triple the frequency of state-subsidized trains and reduce travel times to 2 hours and 20 minutes (53 mph, the same time currently used by Bolt Bus);
  • Alternative 2, which would offer the same number of trains as alternative 1 but reduce travel times to 2 hours even.

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The DEIS briefly considered a true high-speed rail option of running trains as fast as 180 miles per hour on an entirely new rail line. This was rejected not because of its high cost but because it would require “substantial regulatory hurdles.” If I were a high-speed rail advocate, I would consider this a specious excuse, but at least the state isn’t currently contemplating a project that (given California’s experience in similar terrain) would cost at least $10 billion.

Yet alternatives 1 and 2 aren’t cheap. The state estimates alternative 1 would cost around $1 billion and alternative 2 would cost around $4 billion. The reason high-speed rail advocates should be upset is that none of the money spent on alternative 1, which is the state’s preference, would contribute to the cost of a true high-speed rail line, which would require all-new construction. Thus, a decision to go for alternative 1 effectively commits the state to not build a true high-speed rail line for a couple of decades at least. Continue reading

Subway Ridership Decline Is Accelerating

New York’s Metropolitan Transportation Authority revealed that August weekend numbers were nearly 9 percent below weekend ridership in August 2017 while weekday ridership dropped 2.5 percent. Since much of New York’s Penn Station was closed in August 2017, leading many riders to find other travel methods to avoid significant delays, the fact that ridership in 2018 was below 2017 shows that the system is in deep trouble. Worse, MTA says that ridership declines appear to be accelerating.

The problem is so bad that 60 Minutes devoted a segment to it yesterday, asking “Why has the New York City subway gone off the rails?” There’s really two possible answers to this question: 1. They haven’t spent the money needed to keep it going; or 2. It simply costs too much to keep it going. The first assumes the money is around but has been squandered on the wrong things (as Republican candidate for governor Marc Molinaro says, “ribbon-cutting projects”) while the second assumes that it is simply impossible to expect taxpayers to pay all of the costs of rehabilitating and maintaining the system.

Everyone from subway riders to politicians would like to believe that the first answer is right. But it is increasingly likely that the second answer is the truth. Continue reading

Deconstructing Commuter- & Light-Rail Data

The American Public Transportation Association has posted its second quarter ridership report, showing a 2.0 percent decline in ridership in the second quarter and a 2.9 percent decline in the first half of the year. This isn’t really new information since the FTA issued its version of the data in early August. However, APTA’s numbers provide independent confirmation.

According to both APTA and the FTA, all major forms of transit are declining except commuter rail. So why is commuter rail increasing? A close look at the FTA data show that, between FY2014 and FY2018, commuter rail numbers declined in Boston, Chicago, Philadelphia, and Los Angeles, but increased in Seattle, New York, and Denver. The increases in New York and Denver, however, were more than offset by declines in bus ridership.

New York commuter trains (including New Jersey Transit) carried 10.4 million more trips in FY 2018 than 2014. However, New York MTA alone lost 72.6 million bus trips in the same time period. New Jersey Transit lost another 5.5 million. It is unlikely that people substituted commuter train trips for buses, so this suggests that ridership is dropping most in the urban core, which would be consistent with the idea that ride hailing is cutting into transit. Continue reading

DC Metro’s Regressive Transit System

The sales and other taxes recently imposed to help restore the DC Metro rail systems are highly regressive, according to an op-ed in the Washington Post written by scholars from the Maryland Public Policy Institute. The op-ed didn’t say so, but Metro’s ridership is equally regressive in that the riders are increasingly wealthy.

As can be found in Census Bureau data posted by the Antiplanner a month ago, Metro ridership has been growing fastest among people whose incomes are $65,000 and up. In 2010, the median income of DC transit commuters was 94 percent of the median income of the DC region as a whole. By 2017, it had increased to 112 percent of the region’s median income. So poor people are being forced to subsidize rides taken by high-income people.

The tilt towards high-incomes among transit commuters is celebrated by transit advocates as a good thing because it makes it easier to convince high-income people — who tend to have more political power than poor people — to support transit boondoggles. But anyone who thinks that government transit is anything but a way to swindle taxpayers out of their money for the benefits of a few well-off people simply hasn’t been paying attention. Continue reading

Inputs vs. Outputs

An article in CityLab purports to show “why public transit works better outside the U.S.” However, it never actually demonstrates that public transit does work better in other countries; it merely shows that governments have attempted to make it work better.

Many American visitors to major European cities come away thinking that transit works great in Europe. Travelers can reach most major tourist attractions by taking trains between cities and metros and trams within cities. But they are necessarily constricting themselves to a small slice of life on the continent, and the reality is that Europeans don’t use transit all that much more than Americans do.

The CityLab article by Jonathan English argues that, whereas Levittown and other American postwar suburbs were auto-centric, European governments required that suburbs there be built around rail stations. In other words, where the U.S. government gave people the freedom to live the way they wanted, European politicians felt it was their duty to socially engineer people’s lifestyles. Continue reading