Good News for the Transit Industry

“The public transportation market is forecasted to grow by $90.07 bn during 2022-2027,” says a new report from someone called Infiniti Research. That represents an annual growth rate of 5.84 percent per year.

For a mere $2,500 ($4,000 for the “enterprise” version), you can read this fairy tale about how the transit market is going to grow once we install multi-billion-dollar hyperloops in every city.

“The development of hyperloop transportation systems [is] one of the prime reasons driving the public transportation market growth during the next few years,” claims the report, putting it in the world of pure fantasy land. Actually, 5.84 percent annual growth seems pretty modest considering how diminished the transit industry is today: at that rate, it would take 8 years to fully recover to pre-pandemic levels. At the same time, unless most employers force employees to stop working at home, even 5.84 percent seems unlikely. Continue reading

Why Save Obsolete Transportation?

David Zipper, who has a master’s degree in urban planning, writes on Vox about how transit agencies need to save themselves from a fiscal cliff. To do so, he says, they must “secure new and reliable revenue streams from state and regional sources.” To convince skeptical members of the public they need to provide those revenue streams out of their taxes, agencies need to “demonstrate an ability to replace car trips, not just serve economically disadvantaged people,” because only by replacing car trips can they prove they are “curtailing congestion, reducing auto emissions, and boosting economic growth.”

BART’s plea for more subsidies falsely claims that “BART was self-sufficient before the pandemic” when its own data show that fares covered only 71 percent of operating costs and zero percent of capital costs.

Yet Zipper never really says why we need to save transit. He claims that transit has been “indispensable” for major metros, but what he really means is that it is indispensable for major downtowns such as Chicago, Philadelphia, and San Francisco. In reality, the only metro area for which transit is truly indispensable is New York, and if it is so indispensable there, then New Yorkers should be the ones to pay for it. Continue reading

Transit Agencies Go Insane

Earlier this month, the Federal Transit Administration published its annual report on funding recommendations for transit capital improvement grants. Each year, I review the accompanying list of projects being planned or under construction to see how much construction costs have grown since the previous year. This year, however, transit agencies seem to have learned a lesson from the pandemic and have curtailed their wild spending on pointless projects.

Sound Transit is building light rail on what was once freeway lanes across Lake Washington. Photo by Sound Transit.

Just kidding. In fact, they are spending more than ever. In the 1990s, light-rail lines that cost $50 million a mile ($100 million in today’s dollars) were considered extravagantly expensive. A decade ago, the average light-rail line cost about $125 million a mile ($160 million in today’s dollars). Last year, average light-rail construction costs had risen to $278 million a mile (about $310 million today). Continue reading

Transit Ridership Falls in January

Transit carried 66.4 percent as many riders in January 2023 as January 2019, according to data released by the Federal Transit Administration earlier this week. Though this is a slight improvement from the 66.0 percent of December 2022, the total number of January riders was lower than December’s. This is unusual: normally, January sees more riders than December. January 2023 had one fewer working day than January 2019, which may have contributed to the decline in ridership from December.

Transit ridership has hovered around 66 percent of pre-pandemic (2019) numbers for the last five months, suggesting it may not grow much further. Early in the pandemic, I predicted that ridership would never recover to more than 75 percent of pre-pandemic levels, which I later revised downwards to 70 percent (a projection supported by McKinsey). That’s looking to be slightly too high. Continue reading

Re-Imagining Public Transit

A recent op-ed in the Baltimore Sun written by several elected officials proposes to “re-imagine public transit” in the Baltimore area. In particular, they want to revive the Red Line, a light-rail line that was cancelled in 2015. Among the strikes against it were that it would increase congestion and would carry so few passengers that, under FTA rules at the time, it wasn’t cost-effective and therefore wasn’t eligible for federal funding. (The rules have since been changed, but that doesn’t make it any more cost effective.)

Imagining the Baltimore Red Line.

The fact that Maryland’s governor approved the DC-area Purple Line at the same time as he cancelled the Red Line has stuck in the craw of Baltimore transit officials. Since then, the Purple Line has suffered numerous delays and cost overruns, but that doesn’t worry Baltimore’s mayor and the county executives who wrote this op-ed. Heck, they probably see cost overruns as a good thing as they would bring more money into their communities. Continue reading

Failing to See the Forest for the Trees

New York University’s Transit Costs Project has issued its final report on why it costs so much to build transit infrastructure in the United States. While some of the answers appear reasonable at first glance, the report suffers from the researchers not asking the right questions.

Click image to download a 26.4-MB PDF of this report.

In its review of Boston’s Green Line, the report notes that “Understaffed agencies lacking experience with large capital construction projects struggle to manage consultants.” One result is less than half the costs of the project went into construction; the rest went to pay consultants. We’ve seen that happen with Honolulu and other rail projects as well. Continue reading

Transit Carries 67.5% of 2019 Riders in November

Transit ridership in November 2022 was 32.5 percent below November 2019, according to data released late last week by the Federal Transit Administration. This is in spite of the fact that November 2022 had one more work day than November 2019.

Amtrak and highway data are not yet available but this chart will be updated when they come out.

U.S. airlines saw 94.3 percent as many travelers in November as in the same month in 2019, down slightly from 94.5 percent in October. Amtrak data should be available soon; highway data seem to take a little longer. Continue reading

An Opportunity to Reinvent an Obsolete Industry

As illustrated by the tweet from Stanford economics professor Nick Bloom, it’s beginning to sink in that transit ridership is not going to recover to more than about 65 percent of what it was before the pandemic. However, instead of raising “concerns over the survival of public transit systems,” we should see this as an opportunity to reinvent an industry that was already obsolete years before the pandemic.

The 2021 National Transit Database reveals that many transit agencies are spending as much per rider as it would cost to send those riders in taxis, Uber, or Lyft. Counting both operating and capital costs, the average cost per light-rail trip was more than $40. Even just counting operating costs, the average cost per light-rail rider in San Jose was more than $53 and in Pittsburgh was almost $49. Continue reading

2021 Transit Data

Transit agencies carried 45 percent as many riders in 2021 as in 2019. To do so, they operated vehicles 81 percent as many miles as in 2019. However, they managed to spend 98.5 percent as much money on operating costs, according to data released yesterday by the Federal Transit Administration.

Nearly empty transit buses and trains don’t save energy or reduce greenhouse gas emissions. Photo by Jim Fischer.

The annual National Transit Database reports are based on the fiscal years of the transit agencies, which can end anywhere from March 31 to December 31. This means the 2021 data are the first full year since the pandemic began. By mid-2022, transit ridership had recovered to about 60 percent of pre-pandemic numbers, but it is likely that transit agencies are still spending as if they were getting 100 percent of riders. Continue reading

August Transit 63.4% of 2019 Numbers

Transit in August 2022 carried 63.4 percent as many riders as in August 2019, according to data released yesterday by the Federal Transit Administration. This is the second-highest since the pandemic began (the highest being in June) and only the third time in the last two years that transit has carried more than 60 percent of pre-pandemic numbers. One reason for the increase may be that August 2022 had one more business day than August 2019.

Amtrak and the Federal Highway Administration have not yet published August data, but airlines carried more than 91 percent as many passengers in August 2022 and August 2019, according to Transportation Security Administration counts. I’ll post the Amtrak and highway data when they are made available.

When compared with July 2022, the biggest gains among major urban areas have been in Phoenix (24%), Denver (22%), Cincinnati (21%), and Riverside-San Bernardino (16%). Urban areas that are still lagging include Chicago (55% of 2019 numbers), Washington (56%), Atlanta (53%), Detroit (24%), and Minneapolis-St. Paul (49%). DC and the Twin Cities are doing poorly because their downtown are among the slowest to recover and I presume the same is true for the others. In addition, the Twin Cities light-rail system has the most transit crime, per passenger-mile carried, of any in the nation, which is discouraging both ridership and downtown recovery. Continue reading