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China’s High-Speed Rail Debt Trap

By | | Transportation
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China’s high-speed system is caught a debt trap, having to borrow money to repay the loans taken out to pay for rail construction. Although a few lines claim to be profitable, most are not. As a result, says an article published by New Delhi think tank Observer Research Foundation, since 2015 interest payments on China State Railway debt has been greater than high-speed rail revenues.

The article (all but the last four paragraphs of which is used as the narrative for the above video) was written as a warning that “Poorer countries trying to emulate HSR must be mindful of the pitfalls.” But it is equally valid as a warning to richer countries, where construction costs are higher and where the value of passenger rail is lower due to extensive networks of intercity highways and airports. Continue reading →

An Open Letter to AmeriStarRail

By | | Transportation
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AmeriStarRail is a private company that wants to operate passenger trains in Amtrak’s Boston-to-Washington corridor as well as on nearby routes. It proposes to privately pay for construction of 76 new train sets consisting of 152 locomotives and 760 passenger cars, which it would use to replace all non-Acela trains in the corridor as well as extend service beyond the corridor.

Amtrak’s new Acela train, which is scheduled to go into service next year. AmeriStarRail proposes to use trains of the same make and design, but with 12 cars instead of 9 and locomotives with Diesel engines to provide power when operating on rails with no overhead wires. Photo by Simon Brugel.

AmeriStarRail also says it will spend $5 billion improving tracks in the Northeast Corridor in order to reduce the fastest trip times between New York to Washington from more than 2-1/2 hours to under 2 hours, with similar gains in the Boston-New York portion. The company says it has investors interested in paying for all of this but won’t reveal who they are. Continue reading →

Optimistic Road & Transit Forecasts

By | | Transportation
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“Billions Spent on Roads and Transit Projects Are Often Based on Optimistic Forecasts,” headlines the Wall Street Journal last week. “Researchers have found that transportation planners frequently expect more people to use their road and transit projects than ultimately do so,” said the article. “Yet those optimistic forecasts become part of the justification for spending millions or billions of dollars on such projects,” which, the article goes on to say, is “wasting resources.”

Toll road under construction in Texas. Photo by Larry D. Moore.

Recent FTA studies found that transit projects overestimate ridership by an average of 21 percent, which the article claims “was an improvement over previous years.” As I pointed out a few weeks ago, the “improvement” came about because the FTA changed its frame of reference. While older studies looked at ridership projections made when local transit agencies decided to build the project, the newer studies looked at the projections made when the FTA itself began to subsidize the project. These two steps may be separated by several years. Continue reading →

Build It and They Won’t Come

By | | Transportation
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It’s too soon to know what caused the Saturday derailment of Amtrak’s Empire Builder that took the lives of three people. What we do know is that a train that had room for at least 350 paying passengers was carrying fewer than 150 (reports vary between 141 and 147).

Amtrak’s Empire Builder in Montana.

This raises the question of how well individual Amtrak routes are doing now that highway travel has pretty much recovered to pre-pandemic levels and air travel in July was nearly 80 percent of pre-pandemic levels. I’ve reported that Amtrak was at 68 percent of pre-pandemic levels in July, but that could vary tremendously from route to route. Continue reading →

July Driving 98.2% of Pre-Pandemic Levels

By | | Transportation, Useful Data
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After June driving slightly exceeded driving levels in 2019, Americans drove 98.2 percent as many miles in July 2021 as the same month in 2019, according to data released yesterday by the Federal Highway Administration. The difference is probably because July had fewer business days in 2021 than 2019.

Airline numbers from the Transportation Security Administration; Amtrak numbers from July, 2021and July, 2020 monthly performance reports; transit numbers from the National Transit Database; highway numbers from the Federal Highway Administration.

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Automobiles: Low Cost and Socially Just

By | | Transportation
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An anti-auto, pro-cycling group called the Institute for Transportation Development Policy (ITDP) claims that Americans spend too much on transportation, and if only they lived more like Europeans they would save a lot of money. However, there are some fundamental flaws in their analysis.

According to the article, Americans spend 13 percent of their household expenditures on transportation while Europeans spend only 11 percent. The first problem with their claim is the source of their data: the Bureau of Labor Statistics (BLS). BLS compiles data based on surveys. While BLS data might be useful comparing cities and states within the United States, the surveys are not completely reliable.

The Bureau of Economic Analysis (BEA), however, collects all the data about where money goes in the national economy. According to the BEA, only 9.2 percent of “personal consumption expenditures” went for transportation in 2019. This includes motor vehicles, transit, airlines, and other forms of mass transportation. These data are more comparable to the European data cited by ITDP. Continue reading →

Seven to Become Six

By | | News commentary, Transportation
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There was a time when every region and almost every major city in the country was served by at least three major railroads. The Northeast had Erie, Lackawanna, New York Central, and Pennsylvania, among others. The Southeast had Atlantic Coast Line, Seaboard, and Southern. The Midwest had the Burlington, Chicago & North Western, Milwaukee, and Rock Island. The Northwest had the Great Northern, Milwaukee Road, and Northern Pacific. The Southwest had Santa Fe, Southern Pacific, and Union Pacific.

Canadian Pacific and Kansas City Southern meet at only one point, so a merger between them preserves competition. Kansas City Southern photo.

Then came the merger movements of the 1960s, 1970s, and 1980s, and now we are down to just seven class 1 railroads: two in the East, two in the West, two in Canada making various incursions into the United States, and Kansas City Southern, which connects Missouri with Texas, Louisiana, Mississippi, and Mexico. Continue reading →

End Planners’ Obsession with Ending Driving

By | | Transportation
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Planners and planning advocates are obsessed with manipulating people’s behavior, and in particular with reducing the amount of driving we do. One dictionary defines “obsess” as “Preoccupy or fill the mind of (someone) continually, intrusively, and to a troubling extent,” and it is certainly troubling that so many planners believe their goal is to destroy one of the major engines of our economy and spend much of the effort towards achieving that goal.

One simple trick improves the fuel economy of this minivan by almost 50 percent, but planners ignore such improvements in favor of simply demonizing auto driving. Photo by Kevauto.

A case in point is an article in Vox titled, “How to end the American obsession with driving.” The article was written by journalism student Gabrielle Birenbaum, who believes that driving is destroying the planet. Wildfires and hurricanes (which seems to think never happened before) prove that global warming is happening; transportation is “the biggest sector of pollution”; and automobiles produce 58 percent of that pollution. Therefore, she reasons, we must reduce driving. Continue reading →

National Obsolete Transportation Month

By | | Policy brief, Transportation
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From San Francisco to North Carolina, transit agencies have declared September to be “Transit Month.” “This month is all about celebrating the vital role of public transit for our communities,” says one transit agency, which means “getting elected leaders to make transit a priority issue.”

Click image to download a PDF of this four-page policy brief.

From a transportation viewpoint, agencies don’t have much to celebrate this year. Cities have proven they can get along quite well without transit. With more than half of all American employees working at home at the beginning of this year, roads are less congested so people who continue to work outside of their homes can more easily drive to work. While driving recovered to 100 percent of pre-pandemic levels by June 2021, transit remained stuck at 50 percent in June and July. Continue reading →

Mag-Lev May Be Dead; TX HSR on Life Support

By | | Follow up, Transportation
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A Maryland circuit court judge ruled last week that the Baltimore-Washington Rapid Rail Company did not have the power of eminent domain and could not stop a development on land that the maglev promoter needed to use for its proposed line. The judge rejected the company’s argument that its purchase of a franchise previously granted to the long-defunct Washington, Baltimore and Annapolis Electric Railway gave it the power to condemn other people’s land.

The maglev promoter didn’t actually have the money to buy the land in question, but it wanted to halt a developer from building a mixed-use development on the property, which would have made condemnation a lot more expensive when and if it has the power and money to do so. The judge said that the company’s argument contained “a lot of factual inaccuracies.”

The prospects for building a maglev in the corridor have been further hurt by announcements from local officials such as Baltimore Mayor Brandon Scott and Prince George’s County executive Angela Alsobrooks that they oppose the project. The mayor’s office suggested that, since the Senate just authorized $2.4 billion to improve the Northeast Corridor, it would be foolish to back a project that threatened to take customers away from Amtrak. Continue reading →