Amtrak Continues to Lie

Amtrak is maintaining the twin fictions that subsidies from state taxpayers are “passenger revenues” and that depreciation isn’t a real cost even though its accountants list it as an operating cost on its consolidated financial statements. Based on these fictions, Amtrak claimed that it was “on track to break even financially for the first time in its history” in 2020.

The pandemic derailed that fantasy, so now Amtrak claims that it lost $801 million in fiscal year 2020 (which for Amtrak ended on September 30). Yet a close look at its unaudited end-of-year report reveals that the actual operating losses were well over $2 billion.

The end-of-year report says that Amtrak received $342 million in state operating subsidies, up $110 million from 2019. It counts these as passenger revenues even though most of the passengers on state-supported trains would never have ridden those trains if they were asked to pay the full fares. Continue reading

Will Transit Get Back Its Riders?

Steve Polzin, a researcher with the Department of Transportation, estimates that transit will recover 90 percent of its prepandemic riders by 2023, but will never get much more than that. I think 90 percent is far too high, but he has access to more data than I have.

This chart is based on numbers on page 9 of Polzin’s presentation.

Polzin, who has been mentioned here many times before, made his projection in a presentation last week to the Transportation Research Forum. The presentation covered far more than just transit, and made good points about air travel, freight, and other modes as well. Continue reading

Bringing Our Best Wishes to You

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More Reasons Not to Ride Transit

Ridership on New York City subways may be down by 66 percent, but two things that haven’t declined on the subways are violent crime and vandalism. Homocides, rapes, and burglaries have all increased since the pandemic began, reports the New York Times.

Just last week alone, a woman was shoved onto the tracks in front of an on-coming subway trains; a man was also pushed onto the tracks; a Broadway actor was beaten severely enough to require surgery; and two men beat a woman for telling them to wear masks. And those were only the most horrific attacks of the week. Continue reading

The Obscure Origins of the Deep State

The idea that there is a “deep state” is strongly associated with Trump-loving conservatives. Many other people view this as a nonsensical conspiracy theory. But the United States does have a deep state. Another term for it is government bureaucracy.

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

The nation’s founders envisioned three branches of government: executive, legislative, and judicial. These branches had different powers and were designed to act as checks and balances against one another. It worked, more or less, for many years. Continue reading

New Jet Service a High-Speed Rail Killer

JSX, formerly known as JetSuiteX, is a new airline with a new operating model that will kill any idea that high-speed trains could compete with air travel in short-haul markets. The airline flies many routes that have been planned for high-speed trains, including Oakland-Los Angeles, Los Angeles-Phoenix, and — starting last week — Dallas-Houston.

JSX uses small jet planes with seats for only 30 passengers, allowing it to by-pass TSA requirements as it conducts its own airport screening. Technically, passengers don’t fly JSX, they make reservations and JSX charters a plane that happens to be owned by a JSX subsidiary, which is another way that it by-passes TSA rules. The result is that people can arrive at the terminal just 20 minutes ahead of their flight’s departure. Continue reading

Don’t Blame Congress for Transit Cuts

“D.C. Metro faces service cuts due to Congress,” says a recent headline. The Metro board decided yesterday to cut both bus and rail service, but said it wouldn’t have needed to make those cuts if Congress had passed another bailout bill.

But don’t blame Congress for not spending money the federal government doesn’t have to rescue transit agencies that have already had a $25 billion bailout and more than six months to adjust to the new reality of much lower ridership. Instead, blame the fact that most DC transit riders are able to work at home, with the result that ridership is down 81 percent as of September. Blame the fact that, instead of cutting service in parallel with the drop of ridership and revenues, Metro cut service by only 42 percent as of September.

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Watching the Sausage Get Made

Amtrak ridership is down by 87 percent, so Amtrak needs a $2.9 billion rescue from Congress, the company’s executive vice president, Stephen Gardner, told a congressional subcommittee yesterday. Transit ridership is down 70 to 90 percent, added American Public Transportation Association president Paul Skoutelas, so the transit industry wants a $32 billion bailout from Congress.

Those are just their short-term demands, as was made clear in the hearing held by the House Subcommittee on Railroads, Pipelines, and Hazardous Materials. Both Amtrak and New York commuter railroads want $20 billion for the Gateway Project, which would replace bridges and tunnels between Newark and New York City. Transit agencies want $106 billion to restore their backlog of poorly maintained rail systems. And even that is only the beginning. Continue reading

Vote No, They’ll Build It Anyway

In 1998, Portland-area voters rejected plans to build a new light-rail line. So TriMet, the region’s transit agency, built it anyway.

In the recent election, Portland-area voters rejected plans to build a new light-rail line. Now TriMet is salivating at the possibility that the next Congress will pass an economic stimulus bill that will allow it to build it anyway, perhaps by requiring only 20 percent local matching funds instead of the current 50 percent.

Portland’s first light-rail line, which opened in 1986, cost about $30 million a mile in today’s dollars to go east from downtown Portland to Gresham, Portland’s largest suburb. The second line, which opened in 1997, cost about $75 million a mile in today’s dollars to go west from downtown Portland to Beaverton and Hillsboro. Continue reading

Transit’s 93-Year-Old Technology

In an era when transit industry buzz is all about light rail, streetcars, bus-rapid transit, and similar exotic (and expensive) services, it is often forgotten that the workhorse of the industry is the conventional bus (which Federal Transit Administration jargon calls the motor bus). Plodding along at average speeds of about 12 miles per hour, stopping as often as six times every mile, conventional bus services carry more daily riders than any other kind of transit and almost as many as all other modes combined. They aren’t sexy, yet close examination reveals a lot of problems within the transit industry.

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

The first modern bus was developed in 1927 by the Twin Coach company. That in itself is a problem because it one of the newest technologies used by today’s transit agencies: streetcars, heavy rail, and commuter trains are all much older. Light rail is newer only as a slight variation of streetcars. The only technology that is really newer than buses is automated guideway systems such as peoplemovers in Detroit and Miami, but they are almost universally regarded as failures. Continue reading