Search Results for: rail projects

Throwing Good Money After Bad

By | | Transportation, Urban areas
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Publicly funded transit projects are not the only ones that overestimate ridership and underestimate costs. The casinos that own the Las Vegas Monorail, which started operating in 2004 and went bankrupt in 2010, wants to borrow $110 million to extend the line about 0.8 miles. That’s a lot of money for a system that carries less than 13,000 riders per day.

Flickr photo by James Cridland.

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DOT Threatens Hudson River Tunnel

By | | Transportation
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The Hudson River tunnel project, which was started in 2009, then killed, then revived, now has been killed again by the Trump Administration, at least according to an article in Crain’s business journal. It would be more accurate to say that Trump’s Department of Transportation has challenged the project’s financing plan.

Originally projected to cost $2.5 billion, the project to replace tunnels used by Amtrak’s Northeast Corridor trains was killed by New Jersey Governor Christie when it inflated to $8.7 billion. The resurrected project is projected to cost $20.0 billion yet now has Christie’s support, probably because he doesn’t expect New Jersey to have to pay for much, if any, of it.

Most federally supported transit projects are funded on a 50/50 plan, where the federal government pays up to 50 percent of the cost of the project while state and local government pay the rest. The states of New York and New Jersey had agreed to a 50/50 plan for the Gateway project (as the Hudson River tunnel project is now known): 50 percent paid for with federal grants and 50 percent with federal loans. Continue reading →

Amtrak: Big Nuisance or Vital Service?

By | | Transportation
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Amtrak faces many of the same problems as urban transit: low gas prices, crumbling infrastructure, late trains, and declining service (Amtrak provided about 0.4 percent fewer seat-miles in 2017 than in 2016). Yet even as transit ridership is dropping, Amtrak ridership grew by 1.5 percent in F.Y. 2017. Moreover, ridership is growing in all three of Amtrak’s divisions: the Northeast Corridor, state-supported day trains, and long-distance trains.

Amtrak’s 2017 ridership growth was about twice the nation’s population growth, indicating per capita ridership is also growing. A lot of the new riders must have taken short trips, however, as passenger miles only grew by about a third of a percent.

Still, it is easy to overestimate the significance of Amtrak’s growth. Usage of many forms of transportation are growing. Domestic airline travel, for example, carries a hundred times as many passenger miles as Amtrak and is growing by 4 to 5 percent per year. Automobiles carry Americans 500 to 600 times as many passenger miles a Amtrak, and rural driving (the kind that competes with Amtrak) grew by 1.7 percent so far in 2017. Continue reading →

Why Does Everything Take So Damn Long?

By | | Transportation
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The collective stupidity of politicians and transportation agencies can be breathtaking. As of 2015, Boston’s transit system had a $7.3 billion maintenance backlog. But, instead of fixing it, the MBTA has been busy planning — and planning — and planning — a new rail line it won’t be able to maintain, the Green Line extension to Medford, Massachusetts.

Planning began, in fact, before 2005, which is the date of the project’s major investment study, which projected that it would cost $390 million. There’s been a little cost escalation since then: it is now up to $2.3 billion. That money could have done a lot to reduce the maintenance backlog.

Did I mention that the new line uses the right of way of an existing commuter rail line? Even with free right of way, it will cost $621 million a mile. And that doesn’t count all of the tens of millions spent on planning for more than a dozen years. Continue reading →

Helping Low-Income People Reach Jobs

By | | Transportation
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What is the best way to help low-income people — a group that disproportionately includes blacks and Latinos — get access to jobs? That question is certainly not answered by a report from left-wing think tank Demos. The report is aptly titled To Move Is to Thrive, but its subtitle, “Public Transit and Economic Opportunity for People of Color,” gives away its real agenda: more subsidies to the transit industry.

Written by Algernon Austin, the author of America Is Not Post-Racial, the report observes that “people of color” are less likely to own cars and more likely to be transit-dependent than white people. But Austin ignores the obvious and best solution, which is to give low-income people (regardless of color) access to cars. Instead, his report promotes “transit-focused infrastructure projects” into minority neighborhoods.

Since 1970, this nation has spent hundreds of billions of dollars on transit infrastructure projects. These projects have been disproportionately directed towards middle-class neighborhoods because middle-class people are the ones who pay for them through their taxes and the ones whose political support is needed to build them. Continue reading →

How Do You Define “Feasible”?

By | | Transportation
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Democratic Party hopes to retake Congress soon have been buoyed by this week’s election. Whether it is in 2018, 2020, or later, whenever they eventually regain control, federal funding for high-speed rail and other infrastructure projects will likely be back on the table. Since the sole criterion for funding such projects in 2009 was whether they had completed an environmental impact statement, numerous states are currently working on or have recently completed such statements.

An example of the Texas Department of Transportation, which just announced that its final environmental impact statement showed that a high-speed rail line from Dallas to San Antonio was “feasible.” A conventional rail line from Oklahoma City to Dallas and a higher-speed line from San Antonio to Monterrey, Mexico were also considered feasible. This is good news for rail buffs, as it means Texas is eligible for federal funding to do more detailed studies.

Before you buy your tickets for a high-speed ride from Dallas to San Antonio, it is worth asking what the state means by “feasible.” According to table 3-4 of the alternatives analysis, the Oklahoma City-Dallas segment would cost $650 million to start up, none of which would ever be recovered from fares. In fact, fares would only cover 27 percent of operating costs. That’s feasible? Continue reading →

Ready for More Subsidies

By | | Transportation
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Amtrak has kicked off a “ready-to-build” campaign, making it clear that the money-losing company faces close to $30 billion in major infrastructure projects in the Northeast Corridor on top of the corridor’s $11 billion “basic infrastructure backlog,” meaning tracks, signals, and power facilities. In addition to the $20 billion Hudson River tunnels project, Amtrak wants to spend $5 billion on a new tunnel under Baltimore, $1.7 billion on a new Susquehanna River bridge, $1.5 billion on another new bridge in New Jersey, and unspecified billions more for building or rebuilding train stations in New York (which alone is costing more than $2 billion), Philadelphia, Baltimore, and Washington.

In short, taxpayers are looking at a bill of well over $40 billion just to keep the supposedly profitable Northeast Corridor running. Amtrak must believe that “ready to build” sounds like a more positive message than “we need at least $40 billion just to keep the wheels turning.” No doubt Amtrak is relying on the image it has create that its Northeast Corridor trains make money, when in fact they merely cover operating costs, not the costs of maintenance or depreciation. Adding maintenance and depreciation not only eliminates profits, it brings subsidies to at least 10 cents per passenger mile–and that’s before counting the $40 billion or so needed to bring the corridor up to a state of good repair.

Amtrak divides its operations into three categories: the Northeast Corridor, state-supported day trains, and overnight long-distance trains. In addition to claiming that the Northeast Corridor makes money, Amtrak strongly implies that subsidies to the day trains are entirely covered by the states, leaving only the long-distance trains requiring federal subsidies. In fact, before adding depreciation and maintenance, federal taxpayers fund more than 20 percent of the subsidies to the day trains, and after depreciation and maintenance, it is more than half. Continue reading →

Portland’s Transit Experiment Has Failed

By | | Transportation, Urban areas
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As in most other cities, Portland transit ridership is declining, and TriMet, Portland’s transit agency, promised to tell its board of directors why in last Wednesday night’s meeting. Before the meeting, one TriMet rider tweeted, “because it’s unreliable and unsafe. It’s not a mystery.” The “unsafe” part partly referred to last May’s murder of two people who were trying to defend a teenage girl from a bigot on a light-rail train.

The report to the board ignored the safety issue but listed all the other usual suspects: low gas prices; competition from Uber and Lyft; late buses due to traffic congestion. But then it added a new one: rising housing prices. Graphics on pages 21 and 22 of the board report (actually a PowerPoint show, so there’s no explanatory text) show a correlation between neighborhoods with the fastest rising housing prices and the biggest declines in transit ridership. TriMet staff apparently suspect that housing costs are forcing transit riders to move to lower-cost neighborhoods that are less accessible to transit.

It is interesting to note that two of the region’s policies for boosting transit — densification (which makes housing expensive) and congestification (which makes buses late) — are now suspected of hurting transit. Of course, no one at TriMet would ever suggest that these policies be reconsidered. Continue reading →

Honolulu Boondoggle Recovery Plan

By | | Transportation, Urban areas
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The Honolulu Authority for Ridiculously-expensive Transit (HART) has submitted a recovery plan to the Federal Transit Administration seeking to release $1 billion in federal funds for the project. You know you are in trouble when you have to write a recovery plan for a project that isn’t even half built. Billions of dollars of cost overruns had led the FTA to question whether HART could even finish the rail line, much less operate it, and this plan seeks to answer those doubts.

The 20-mile rail line was originally projected to cost less than $3 billion, but now even HART admits that it will cost $8.2 billion ($9.0 billion including finance charges). For perspective, that’s considerably more than the projected cost of Denver’s 110-mile FasTracks program–a program that many think will never be completed because Denver Regional Transit District lacks the funds to extend one of the lines to Longmont. The Denver-Boulder area has more than three times as many people as the Honolulu urban area, so the per capita cost of Honolulu rail is several times greater.

To cover the cost overruns, Hawaii’s governor called a special session of the legislature. After rancorous debate, the legislature agreed to raise a variety of taxes to help fund the rail line. Most importantly, if you stay in a hotel in Hawaii–even if it is in Kaui, Maui, or the big island and you never visit Oahu–about 1 percent of your hotel cost will go to support the rail line, which is another good reason to try Airbnb. Continue reading →

Transit Ridership is Declining–So Why
Pay Transit CEOs So Much Money?

By | | Transportation
2 Comments

Transit ridership is declining, and that decline appears to be accelerating. Nationally, ridership declined by 4.4 percent between 2014 and 2016 and by 4.5 percent in the first six months in 2017 compared with the same period in 2016.

Despite these losses, transit agency CEOs get paid staggering amounts of money. Here’s a few examples.

  • Los Angeles Metro lost 10.5 percent of its riders from 2014 to 2016, and another 5.8 percent in the first six months of 2017. Yet the agency’s CEO pulls down a salary of more than $430,000, plus nearly $48,000 in benefits.
  • San Francisco BART ridership has been flat for the last several years, and it lost 4.9 percent of its riders in the first half of 2017. Its CEO collected $498,000 in pay and benefits in 2016.
  • Even better paid was the CEO of San Mateo County Transit, who also runs the commuter trains between San Jose and San Francisco. From 2014 to 2016, SamTrans lost 4 percent of its riders and another 7.6 percent in 2017, while CalTrains ridership has been flat through 2016 and lost 7.9 percent in 2017. Its CEO received $492,500 plus $24,000 in benefits in 2016, for a total of more than $516,000.
  • Atlanta’s MARTA lost 4.8 percent from 2014 to 2016 and 2.1 percent in 2017; its CEO (who recently resigned) earned $369,000 in 2016.
  • Honolulu Area Rapid Transit (HART) has yet to carry a single rider, but its CEO will earn $379,000 this year.
  • Boston’s transit system, the MBTA, is falling apart and it lost 4.0 percent of its riders from 2014 to 2016 and another 3.2 percent in 2017. Its CEO collects about $384,000 plus benefits.

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