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1. A Tale of Two Train Disasters

By | | Policy brief
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In 2004, Denver-area voters approved a sale tax increase to pay for “FasTracks,” a plan to build 119 miles of rail transit lines in the metropolitan area. In 2008, California voters approved the sale of bonds to pay for the construction of a 520-mile high-speed rail line between Los Angeles/Anaheim and San Francisco/San Jose. FasTracks is within a metropolitan area and high-speed rail is supposed to connect several metropolitan areas, yet there are a lot of similarities between these two projects.

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

Both rely on technologies that were rendered obsolete years before they received voter approval. The agencies sponsoring both projects ignored early warning signals that the projects were not cost effective. Both had large cost overruns. Advocates of both lied to voters about the benefits and costs of the projects. Due to poor planning, both projects remain incomplete. Despite the failure of the projects to date, both have adherents who hope to complete them. Continue reading →

Honolulu to Cover Up Overruns with PPP

By | | Transportation
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Oxford has added a new word to its English dictionary: hammajang, which means something is “all messed up.” The word comes from Hawaiian pidgin, which is appropriate considering how messed up Honolulu’s rail project has become. Originally expected to open this year at a cost of less than $3 billion, the current projected cost is more than $9 billion and, since they don’t have funds to complete it, it probably won’t open until 2026 at the earliest.

The latest news is that the FTA has subpoenaed the Honolulu Authority for Rapid Transit (HART) for inside documents to find out what is going on. Meanwhile, HART wants to form a public-private partnership to build the last four miles. The private partner would raise the funds for construction and, when it is completed, would operate the entire 20-mile rail line. In exchange, the city would pay the private partner hundreds of millions of dollars a year for 30 years.

No one thinks the private partner will be able to save taxpayers any money or operate the trains more efficiently than HART itself. Instead, this scheme will save HART from having to raise the funds to finish the line itself. The city can’t afford it; the state can’t afford it; the feds won’t pay any more than they have already promised. So get a private partner to borrow the money — a debt that won’t appear on HART’s books — and simply repay the private partner out of future tax revenues. Continue reading →

The “New Normal”: Transit Is Off the Rails

By | | Transportation
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A wheel fell off one of the cars on a Boston commuter train Tuesday morning, leading to delays and frustrated commuters. The main injury was to the reputation of Keolis, the French company that has a $2.7 billion contract to operate Boston commuter trains for eight years.

Keolis may not be entirely at fault, however, as the Boston transit system has been neglected for years and has a multi-billion-dollar maintenance backlog. “It’s a really unfortunate situation that we inherited with this incredible dis-investment in the system,” says an MBTA official. “The good news is, we have tripled our expenditure to about $900 million a year.” The article quoting the official doesn’t say how they are spending $900 million a year, but given the context, he must mean maintenance and capital replacement. However, this is hard to verify considering MBTA hasn’t posted an annual budget since 2016.

Whatever they are spending on maintenance, it may be too little, too late. Boston transit ridership has been dropping, down 2 percent in the most recent quarter and 13 percent since 2014 (according to the most recent National Transit Database update). As an MBTA officials observes, “This type of ridership trend is in line with a national trend.” Continue reading →

Watch Romance of the Rails Live

By | | Transportation
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Today, the Cato Institute releases Romance of the Rails with a forum that starts at 11:30 am Eastern and continues to 1:30 pm. The Antiplanner will introduce the book, followed by comments on the book from Art Guzzetti of the American Public Transportation Association; Jim Mathews, of the Rail Passengers Association; and Marc Scribner, of the Competitive Enterprise Institute. If you can’t be in Washington DC this midday, watch it live here.

I don’t know if this is my best book yet, but it was the most fun to research and write. With so many railroad history books out there, I didn’t think I would be able to write something that hadn’t already been written a hundred times. In fact, I think a lot of the history in the book — and the book is more than half history, less than half policy analysis — will be new to even many ardent rail fans. Continue reading →

Light Rail Average Cost Is $202 Million/Mile

By | | Transportation
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Here’s a fun question to think about: what will be the last rail transit project built in America? Will it be one of the projects currently on the Federal Transit Administration’s current list of grant projects? Or will some other city come up with a doofus proposal after all of the projects on the current list are either done or, better, cancelled?

For fiscal year 2019, the FTA proposed to fund just ten projects, including eight new construction projects and two improvements to existing transit lines. One of the eight new projects, Portland-Milwaukie light rail, is actually already finished and many of the others are partly finished.

While the Trump administration’s official policy is that it will not give out any new construction grants, the process has several stages before projects reach the construction phase, including project development and engineering. The administration has added at least ten new projects to the development or engineering phases. The current list has a total of 66 projects. Continue reading →

Atlanta’s Transit Future

By | | Transportation
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“Mass transit is collapsing everywhere,” argues an op-ed in The Hlll. One such collapse is taking place in Atlanta, where ridership has fallen more than 20 percent since 2008.

In 1980, transit carried more than 9 percent of Atlanta-area commuters to work, and ridership peaked in 1985 at 155.7 million trips. Since then, the Metropolitan Atlanta Regional Transit Agency has added 28 miles of rail lines, more than doubling the length of its heavy-rail system. The region’s population has grown from less than 1.9 million to 5.0 million people, an increase of 166 percent.

So how many rides did transit carry in 2017? About 131.3 million, a 15 percent decline from 1985. Worse, transit trips per capita crashed from 82 in 1985 to just 26 in 2017, a 68 percent decline, while transit carried just 3.8 percent of commuters to work in 2016. Continue reading →

Expressing Opposition After It Is Too Late

By | | Transportation
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Perhaps encouraged by the Trump administration’s opposition to wasteful transit projects, it has now become popular for politicians to come out in opposition to those projects when it is clear they are boondoggles. Some of them, however, are expressing their opposition only after it is too late to stop the projects.

For example, Broward County wants to build an inane streetcar line in downtown Fort Lauderdale. Someone twisted Secretary of Transportation Chao’s arm to actually provide federal funding for the project. But when bids were opened to build it, they came in much higher than projected.

Now, all three candidates to be the next mayor of Fort Lauderdale say they oppose the streetcar. But the decision to build is in the hands of the county commission, not the city council, and the county is going to have another bid process. So it is safe for the mayor and council candidates to oppose something they can’t actually stop. Continue reading →

Washington Metro, Meet the Titanic

By | | Transportation, Urban areas
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Plagued by years of deferred maintenance, the Washington Metro system will have to undergo severe cuts in service if new funding isn’t found. General manager Paul Wiedefeld is asking Maryland, Virginia, and DC to increase their F.Y. 2019 contributions to Metro by $165 million, which is more than 10 percent of what they are giving in 2018. But Wiedefeld’s hopes for a “dedicated fund,” meaning a sales tax paid by all the regions’ residents, have been dashed by Maryland’s governor, who says there is no chance of that happening before 2019.

Ridership reports indicate that rush-hour ridership has recovered since Metro ended the “safe tracks” maintenance program that delayed many trains, but off-peak ridership has not. Moreover, the rush-hour recovery has been to 2015 levels, which themselves were 4 percent lower than the system’s peak in 2008. Weekday ridership in FY 2017 was 18 percent less than in 2008.

Since a large part of this decline is due to competition from Uber, Lyft, and similar services, some are beginning to doubt whether a full recovery will ever be possible. Metro board member David Horner notes that financial reports to the board repeatedly use the phrase “unsustainable operating model,” and he suggests that the rail system may be obsolete. Wiedefeld’s efforts remind Horner of “the expression about deck chairs on the Titanic.” Continue reading →

Some People Never Learn

By | | Transportation, Urban areas
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Denver’s FasTracks plan to build 119 miles of rail transit has failed, reports an article in The Hill — and you know it must be true because the Antiplanner wrote it. The rail lines went way over budget, construction is late, two of the lines that have opened have so few riders that RTD has had to reduce service, and a third line is suffering from technical problems that were solved by the private railroads more than 80 years ago. Despite, or because of, the new rail lines, the share of Denver-area commuters taking transit to work has declined from 5.4 to 4.6 percent.

All of this was totally predictable, and in fact it was predicted by Ralph Stanley, former administrator of the Urban Mass Transit Administration (predecessor to the Federal Transit Administration), in a speech given in Colorado in 1996 and that someone coincidentally sent me yesterday. This speech is interesting enough that I’ve reproduced it below.

Despite this clear failure, rail die hards want even more obsolete transportation in Colorado, as there is now a proposal to run trains from Ft. Collins to Pueblo. Supporters point to the fact that Albuquerque and Salt Lake City both have long-distance commuter trains, but neglect to mention that, by any reasonable measure, those trains are failures too. Continue reading →

Transit Today: Marketing Over Mobility

By | | Transportation, Urban areas
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Denver’s Regional Transit District (RTD) won an award for its airport rail line. But the award was not for the line itself, which continues to suffer from technical failures more than a year after it opened, but for the agency’s marketing campaign for the train.

This is a sad commentary on the state of the nation’s transit industry: marketing is more important than mobility. Agencies have successfully marketed themselves as deserving of increased tax dollars (more than $50 billion in 2016), yet they are increasingly failing their supposed mission of improving urban mobility. RTD, for example, is under pressure to build and operate rail lines with low ridership (one carries just 1,600 a day), forcing it to cut bus routes that carry many more riders.
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To discuss the future of transit in detail, next Wednesday the Antiplanner will be at the Cato Institute in Washington DC. Joining me on the platform will be Art Guzzetti, vice-president of policy with the American Public Transportation Association. While I will argue that transit’s decline is irreversible, Art–an intelligent man who previously worked for New Jersey Transit–will offer an alternative view. If you are in DC, please register and I hope to see you there. If you are not in DC, you can watch the event on livestream starting at 11 am ET.