United Rail Passenger Alliance

Volume 3 Number 22

1. Well, we were all set to possibly hear about a new President and Chief Executive Officer for Amtrak, and instead the White House has given us two new nominees for the board of directors.Yesterday, the Bush Administration nominated R. Hunter Biden of Delaware, and Donna R. McLean of Washington, D.C. as board member nominees, for Senate confirmation.

   In case the first name sounds familiar, he is the son of Delaware Senator Joseph Biden.

   Here is his brief bio from his law firm’s web site:

   “A founding partner of Oldaker, Biden & Belair, Mr. Biden currently focuses on the Financial Services Industry, International Business Development, International Trade Policy and Information Technology Policy as it relates to intellectual property rights, consumer privacy and telecommunications. He has served as a Senior Vice President at a major financial services firm and most recently was a Presidential appointee at the U.S. Department of Commerce, where he served as the Executive Director for e-Commerce Policy Coordination under Secretaries Daley and Mineta. While with the Administration he also participated in a number of international business development and policy missions to Europe, Asia, Latin America and the Middle East. Mr. Biden has a B.A. from Georgetown University and a J.D. from Yale Law School.

   Contact Mr. Biden at (202) 728-1010 or at hbiden@obblaw.com.“

   Even though the White House identified him as a resident of Delaware, you may note that his office telephone number is a Washington area code.

   One Washington insider noted that Mr. Biden The Younger’s business area qualifications for being on the Amtrak board include that “he rides Amtrak a lot, like his father.” Mr. Biden’s brother, the senator’s other son, is running for Attorney General of Delaware.

   Ms. McLean has longtime Washington government connections, but is presently in the private sector as a consultant and lobbyist.

   Ms. McLean’s bio from her web site includes:

   “Donna McLean is President of DONNA McLEAN Associates, LLC, a Washington, DC based consulting firm specializing in transportation policy. Donna is known for her in-depth aviation and surface transportation knowledge and is an expert in federal financial issues.

   “Most recently, Donna was at the US Department of Transportation serving as the Assistant Secretary for Budget and Programs and Chief Financial Officer under Secretary Norman Y. Mineta. In her position, Donna was responsible for developing the President’s budget request for the Department of Transportation. This involved evaluating all of DOT’s activities and prioritizing the Secretary’s agenda for each year.

   “Donna was involved in the development of the Administration’s reauthorization proposals for both the aviation and the surface transportation modes. Donna was also intimately involved with the establishment of the Transportation Safety Administration (TSA). Until TSA transferred to the Department of Homeland Security, Donna made notable contributions in establishing the underpinnings of TSA, including establishing its overall objectives, budget structure, financial system, and key staffing decisions.

   “Prior to CFO of DOT, Donna was the Assistant Secretary for Financial Services and Chief Financial Officer of the Federal Aviation Administration. Donna was also a professional staff member of the U.S. House of Representatives, Transportation and Infrastructure Committee for nearly seven years. In addition, Donna has worked at the Office of Management and Budget on the President’s budget as well as the regulatory agenda. This distinguished career has made Donna one of the most eminent authorities on transportation trust funds and transportation funding issues.

   “Donna received her Masters in Public Policy from Indiana University’s School of Public and Environmental Affairs. Her undergraduate bachelor’s degrees in Political Science and Anthropology were also from Indiana University. Donna and her husband enjoy living in the District with their twin daughters.

   Ms. McLean may be reached at dmclean@cgagroup.com.“

   Among other things, she is a registered lobbyist for Boeing, and other organizations. From the House Clerk’s web site:

   DONNA MCLEAN ASSOCIATES, LLC (5)
   Client Name
   BOEING AIR TRAFFIC MANAGEMENT
   INDIANA UNIVERSITY
   PRICEWATERHOUSECOOPERS
   PROJECT ACTA, INC
   UNITE ALLIANCE

2. The reality of these two appointments, and the appointment of Secretary of Transportation Norman Mineta to be a member of the board for a full five year term is that two of the most qualified Americans possible to hold these positions have again been left out in the cold.Lou Thompson, previously nominated but “put on hold” by former Democrat Senator Tom Daschle, was never renominated after the senator was voted out of office. Mr. Thompson, retired from the World Bank, has a better concept of passenger rail that any other two experts put together.

   The other obvious nominee is former Federal Railway Administrator Gilbert Carmichael, also former chairman of the Amtrak Reform Council. A major power in railroading in this country, Mr. Carmichael is a great visionary that has much to offer his country and the railroad industry.

   The Bush Administration has missed two major opportunities by not nominating these gentlemen to the Amtrak board of directors.

3. What do we make of the appointments of Mr. Biden and Ms. McLean? Political appointees first come to mind. Unlike the other appointments of David Laney, Floyd Hall, and Enrique Sosa, these two appointments do not have deep business backgrounds and years of corporate experience of the three other board members. However, Mr. Biden has shown an interest in Amtrak, and has experience using the service, even if it is only on the Northeast Corridor.Ms. McLean is another matter. She will bring to the board a deep understanding of the DOT, Congress, and the inner workings of official Washington, and a broad understanding of transportation policy, even if it applies mostly to aviation. Perhaps she will be the board’s anchor in helping Amtrak better understand what is expected of it as a perpetual child of government, and how the company can work to become more independent.

   It’s just possible that a combination of Mr. Laney, Mr. Hall, Mr. Sousa, Mr. Biden, Ms. McLean and Secretary Mineta’s designee may prove to be a potent mixture of knowledge and experience that will help lead Amtrak to better utility and a more robust future.

   The best result is a higher percentage of the seats on the Amtrak board filled. It’s now up to the Senate to confirm all of the nominees.

4. There will be the usual huffing and puffing from Amtrak True Believers that again, the company is being run by a board of directors consisting of members other than railroaders.The question begs to be asked, where is anyone going to find railroaders in the 21st Century that have passenger experience? All of the executives with passenger experience prior to the inception of Amtrak are either retired or dead. Transit industry executives as a rule are not good candidates simply because long distance passenger railroading and short distance commuter transit are two completely different industries with little in common other than locomotives and cars moving over steel rails. We have seen what disasters are wrought with transit executives at the helm of Amtrak, why would anyone want to repeat that horrible mistake?

   Amtrak, as a corporate cripple, more than anything needs strong, professional management that understands profit and loss, customer service, and realistic corporate goals and structures. Before Amtrak can be viable in the real world, it has to be fixed internally. That job is ultimately up to the board of directors via the professional management hired by the board. We have seen what happens with the Transit Trio when a nonprofessional board makes bad hiring decisions. It’s doubtful Amtrak and the country can stand another dismal period like that with the worst results possible while spending someone else’s money.

5. DOT Secretary Norman Mineta has unveiled a new policy strategy to tackle the problems of highway, freight, and aviation congestion. There is little or no mention about the topics of passenger rail in the presentation. One TWA reader wrote to comment that this, along with some other actions, confirmed his beliefs that the Bush Administration is “out to kill Amtrak.” We keep hearing this, time and time again.Let’s sum this problem up with just a brief thought: Considering the condition Amtrak is in today, and what it will take to make it a healthy company, and the experience the federal and state governments have had with passenger rail as a result of the multiple failures of Amtrak during its 35 year history, what competent planner would include Amtrak and/or passenger rail in a plan to solve problems for the country when Amtrak already has more than its own share of problems?

   Until Amtrak Chairman of the Board David Laney and whoever is appointed the new President and CEO of Amtrak can unravel the mess left behind by the countless poor stewards of Amtrak and passenger rail in this country from the past, no sane person would include Amtrak as an “answer” to any problem. Give it some time. If the right things continue to occur, Amtrak will become an answer one day, instead of the definition of government programs gone very, very wrong.

6. A new book is now available that should be on everyone’s summer reading list if you want a better understanding of passenger rail. Alfred Runte, Ph.D. has written “Allies of the Earth, railroads and the soul of preservation.” (Truman State University Press, 176 pages, $29.95, http://tsup.truman.edu)Dr. Runte is a historian by training and vocation. All of his university work included majors in history, and minors in government. As a result, he brings an unique perspective to the discussion of passenger rail in the United States. Clearly, for all of his scholarly research and clear, crisp writing, the fact comes across that Dr. Runte loves passenger trains, and believes in the future of passenger rail not only in America, but the world.

   The book contains something for everyone. The main focus of the book, as depicted in the title, is the progressive environmental viewpoint, and how passenger trains are in harmony with nature and the land more than any other type of public transportation, including highways for private automobiles.

   Beyond that, the fascinating part of Dr. Runte’s work as someone who intimately knows history and government, is how Amtrak came to be, why there wasn’t a better national discussion of passenger rail in the 1960s leading up to Amtrak, and why Amtrak is failing today. Dr. Runte spares no detail, and no one’s feelings in this blunt book. He lists fact after fact, documents it all, and comes to obvious conclusions for anyone with an open mind.

   If you wish to understand more about the business of passenger rail, the history of passenger rail and how we ended up with Amtrak as it is today, and also environmental factors, read this book. You will be enlightened and entertained at the same time.