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	<title>United Rail Passenger Alliance &#187; Pullman</title>
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	<description>Almost anything is possible in a train ... - Paul Theroux</description>
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		<title>This Week at Amtrak; 2009-06-25</title>
		<link>http://www.unitedrail.org/2009/06/25/this-week-at-amtrak-09-06-25/</link>
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		<pubDate>Thu, 25 Jun 2009 20:36:19 +0000</pubDate>
		<dc:creator>brichardson</dc:creator>
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		<description><![CDATA[Volume 6, Number 18 Here at home in an adjoining county to the south is St. Augustine, which bills itself as the Ancient City. St. Augustine, Florida has been around as a point of civilization since 1565, and was pretty much a sleepy, colonial town, even after Florida statehood in 1845. It wasn’t until the [...]]]></description>
			<content:encoded><![CDATA[<h2>Volume 6, Number 18</h2>
<ol>
<li>Here at home in an adjoining county to the south is St. Augustine, which bills itself as the Ancient City. St. Augustine, Florida has been around as a point of civilization since 1565, and was pretty much a sleepy, colonial town, even after Florida statehood in 1845. It wasn’t until the notorious Henry Flagler, business partner of John D. Rockefeller (Some historians say Flagler was the smarter of the two ruthless business partners.) came vacationing in Northeast Florida in the 1878 that he noticed sleepy St. Augustine.<span id="more-545"></span>
<p class="inner">Mr. Flagler came to Jacksonville for the temperate climate. (A century ago, oranges were still a cash crop in Northeast Florida.) He crossed the might St. Johns River (The only major river in North America which flows north.) and traveled by passenger train to St. Augustine in 1883. There, he found a slumbering city of Spanish descent which afforded cooling ocean breezes, a pleasant bayfront view, and a rural county seat.</p>
<p class="inner">Mr. Flagler took a liking to St. Augustine, and starting building hotels and the Florida East Coast Railway. His first hotel, the Ponce de Leon – begun in 1885 and which today is the home of Flagler College – became an overnight success as a playground for the Gilded Age rich and famous. More hotels followed, with Mr. Flagler becoming St. Augustine’s most prominent part-time denizen.</p>
<p class="inner">Not content to stop at St. Augustine, Mr. Flagler pushed his new railroad and string of hotels and resorts southward, creating such famous Florida hot spots as Ormond Beach/Daytona Beach, Cocoa Beach, Melbourne, Stuart, Palm Beach (Where Mr. Flagler eventually built his permanent home and today’s world famous The Breakers hotel and resort, the only remaining asset of the original Flagler System.), Ft. Lauderdale, and, in partnership with Julia Tuttle and her family, Miami and Miami Beach. Mr. Flagler’s railroad entrepreneurship didn’t end in Miami; he gazed further southward and saw Key West, the southernmost point of the United States, and promptly in 1905 began building the Florida Overseas Railroad, one island at a time from South Florida to Key West, completing the huge project in 1912.</p>
<p class="inner">Depending on your favorite Florida historian, there is debate as to whether or not Henry Flagler or Henry B. Plant, who owned a freight shipping company and small railroads, and in 1879 combined his holdings into the Plant System (Later, the Atlantic Coast Line Railroad.), building to the west coast of Florida via Orlando, invented modern Florida by the strength of their iron horses.</p>
<p class="inner">Of course, it was the common use of residential air conditioning in the late 1950s which created the most modern version of Florida, and allowed inland cities and towns away from cooling ocean and Gulf of Mexico breezes to grow and prosper. The coming of the Space Age at Cape Canaveral on the Florida East Coast Railway really put Florida on the international map.</p>
<p class="inner">But, no matter who your preferred railroad robber baron was prior to the Florida Land Boom of the 1920s, it was the railroad which created Florida, and especially St. Augustine.</p>
<p class="inner">St. Augustine was the home of a violent and deadly railroad strike in 1963; FEC non-operating employees went out on strike over several issues. The FEC continued to run trains with management personnel, but the strike turned violent with numerous bombings of bridges and trains, resulting in deaths, permanent injuries, and general mayhem.</p>
<p class="inner">By the time of the strike, Florida was served by the Seaboard Air Line Railroad, the Atlantic Coast Line, the FEC, and, into the northeast corner of Florida, the Southern Railway.</p>
<p class="inner">While the Seaboard’s Silver Meteor, Silver Star, Palmland, Sunland, and a host of local trains traveled down the middle of the state on SAL’s mainline through Ocala, the Coast Line trains, the East Coast Champion, the Everglades, and the trains it operated in conjunction with the FEC, such as the famed Winter-only Florida Special, the Havana Special, and the trains from the Midwest, including the Royal Palm, Dixieland, South Wind, Seminole, and City of Miami all stormed through St. Augustine on their way to and from Miami.</p>
<p class="inner">The 1963 strike ended all of that. The FEC’s named trains simply disappeared, annulled because of the strike and the continuing violence and threats of violence. The trains handled by the Coast Line moved inland westward, from the FEC to soon-to-be merger partner’s SAL lines down the middle of the state.</p>
<p class="inner">By court order, train service briefly returned to the FEC from 1965 to 1968, with a lone locomotive and two trailing cars – offering coach seating and parlor car seating, but no food service – running up and down from North Miami to Jacksonville’s union terminal. (The main FEC station in downtown Miami had been torn down by 1965 as part of urban renewal in downtown Miami.)</p>
<p class="inner">Even FEC retirees who chose to come to Jacksonville from Miami when traveling by train, went via the Seaboard or Coast Line because it was safer, had more frequency offerings, and full train service.</p>
<p class="inner">In the late 1990s, in the George Warrington era of Amtrak, there was a brief flurry of activity in St. Augustine because discussions and negotiations were underway to return passenger train service to the FEC, courtesy of Amtrak and a ton of money (Now allocated elsewhere.) from the State of Florida.</p>
<p class="inner">Plans were laid, station sites were identified (The FEC, like so many other railroads which exited the passenger business had executives at the time who wanted to make sure those pesky passengers stayed away, so all but one or two FEC passengers stations were either demolished, sold, or had their tracks ripped up.), and cities and towns along the east coast competed to see whether or not they could snag one of the limited number of station stops planned for the new service.</p>
<p class="inner">St. Augustine, once the railroad king of Florida and still the corporate home of the FEC until 2008, decided to build a new station on the FEC main line directly across the street from St. Augustine’s general aviation airport, claiming it was creating an “intermodal” center of transportation. No one ever quite explained what the attraction would be for private pilots to fly into the St. Augustine airport, tie their planes down, and then board a passenger train, but that was the plan.</p>
<p class="inner">All of those plans came to a screeching halt when Mr. Warrington’s Acela bubble burst, and the Northeast Corridor Service which was supposed to save the entire company ended up having the company coming close to being liquidated.</p>
<p class="inner">Now, in the third century of trains through St. Augustine, once again there is talk of passenger trains calling at St. Augustine. Several local government groups along the FEC are petitioning popular Florida Governor Charlie Crist to apply for free federal monies to pay for restoring service between Jacksonville and Miami via St. Augustine, Daytona Beach, Cocoa Beach, Melbourne, Fort Pierce, Jupiter, and into West Palm Beach where a new connection would be built for the trains to join the former SAL main line (Now Tri-Rail commuter line and present Amtrak line.) to take the train into Amtrak’s Miami/Hialeah southern terminal.</p>
<p class="inner">The scary part of this is the news media is reporting these funds are being asked for to use for high speed rail, not conventional rail. While the FEC is a very good piece of railroad with excellent infrastructure, no one would ever confuse it with high speed rail. Some of the logic goes the incremental approach should be taken, first restoring service, and then eventually upgrading the service to high speed over a specified period of time.</p>
<p class="inner">What is interesting about this is the current ownership of the FEC, RailAmerica, Inc., which in turn is owned by Fortress Investment Group. RailAmerica, in addition to owning the FEC, owns nearly four dozen other short line and regional railroads in the U.S. and Canada.</p>
<p class="inner">RailAmerica is a solid company, with good financial performance. Fortress Investment Group is a giant fund which controls many companies, all on a private basis. This means there are no individual stockholders or Wall Street money managers demanding RailAmerica do this or that to shore up stock prices, and no public reporting of financial results. In other words, the managers are free to carry out any prudent business decisions they see fit (Within the framework of the law and overall regulations.), including striking a deal with Amtrak to run trains on their property.</p>
<p class="inner">If it makes money and doesn’t interfere with RailAmerica’s other mission of supplying outstanding freight service, then there is an interest.</p>
<p class="inner">If the State of Florida does strike a deal for stimulus money for this route, there isn’t much standing in the way of restored passenger service between Jacksonville and Miami via the FEC, with the exception of creating a new equipment pool.</p>
<p class="inner">Initial plans were to move the Silver Meteor from Orlando to the FEC, which is a very, very bad idea. Why would anyone want to take service away from one of the world’s busiest vacation destinations in Central Florida to serve the towns of Florida’s east coast?</p>
<p class="inner">A better solution is to find additional equipment, or, perhaps split a train in Jacksonville (Which Amtrak did from its very beginning until the horror of the common consist in the 1990s, and the closing of the Tampa crew and maintenance bases.), with half of the train traveling via Orlando and half of the train traveling via St. Augustine. Other options are to extend other trains from the Midwest or Northeast south to Miami via the FEC, such as the Capitol Limited or City of New Orleans via Mobile, Alabama. Extending an existing Superliner train would require less equipment than starting a complete new route.</p>
<p class="inner">As usual, it’s all going to come down to politics. Which state (Other than Illinois.) has the most juice in Washington? Which state has the best planning? Which state can move the quickest?</p>
<p class="inner">St. Augustine may or may not have train service again, 125 years after Henry Flagler became serious about hauling passengers into Florida to fill up his elegant hotels and resorts. If it does, yet another of the dozens and dozens of gaps in America’s passenger rail system will be rightly filled.</p>
</li>
<li>Inquiring minds want to know: With all of the money being thrown around Washington, and every city, town, village, hamlet, and their dog making plans to snap up as much money as possible to expand everything from local trolley systems (A good idea.) to major commuter rail systems to sprucing up stations, where are Amtrak’s plans for the future? What about fleet expansion, Rail Passenger Association of California President Paul Dyson wants to know? The single-level sleeping car order for the east coast trains doesn’t do anything to expand capacity; it just keeps enough new equipment floating into a maintenance-weary fleet to delay total breakdown.
<p class="inner">What about new routes? We know three restart routes are being studied (The Sunset Limited east of New Orleans, the Pioneer, and the North Coast Limited/Hiawatha.), but, what about bold, new plans to fill in so many of the other gaps in the country outside of the Northeast Corridor?</p>
<p class="inner">And, the easiest thing of all, what about all of the other dozens and dozens of pieces of equipment sitting around in the weeds on wreck line tracks, waiting to be re-loved and repaired? When will Amtrak ask for money to fix this stuff, too?</p>
<p class="inner">A dose of reality for True Believers is Amtrak is lagging behind everyone else in vision, if not outright bold management. Yes, Amtrak Interim President and CEO Joseph Boardman seems to be nudging things in the right direction – only marginally and slightly so – but, when is he or the Board of Directors going to give things a major shove in the right direction?</p>
<p class="inner">Wise gray head Gil Carmichael has called for at least 150 new trainsets to ready Amtrak for his brilliant Interstate II strategy. While to some that may seem a big number, it’s only a starting point.</p>
<p class="inner">Remember, Amtrak today has considerably less than 2,000 cars on its total roster, including active cars and cars sitting in the weeds on the wreck line. In the mid 1960s, just before the invention of Amtrak, there were over 5,000 passenger cars in the combined national fleet of America’s passenger carriers, and that was a depleted number from the halcyon post-World War II days of rebuilding the worn out war time fleet of cars.</p>
<p class="inner">Now is not the time for timidity and reliance on the graciousness of others for survival. Now is the time for bold plans, bold action, and an understanding of how easy it is to bring America’s passenger rail system from an asterisk on the charts of transportation output to a real figure representing growth and prosperity.</p>
</li>
<li>While we’re on the subject of history, News From 1930 blog on the Internet came up with this fascinating gem, reporting what was written in The Wall Street Journal from June 16th through the 21st in 1930:<br />
<blockquote><p>Pullman Company [Operator of the nation’s sleeping car business over the majority of passenger railroads.] purchases in the last year: 1,165,000 towels, 444,000 pillow slips, 387,000 sheets, 63,000 porter’s jackets, 5,786,000 paper bags for women’s hats. Launders 278 million items annually.</p></blockquote>
<p class="inner">That’s a lot of items, especially for the first year of the Great Depression. At one point early in the 20th Century, it was said the Pullman Company made up more beds every night than the largest hotel chain in the country.</p>
</li>
<li>Now, what? Amtrak’s highly respected Inspector General, Fred E. Weiderhold, Jr. suddenly retired from Amtrak after 35 years, including being the watchdog who kept the contractors honest when the NEC was electrified north of New Haven, Connecticut.
<p class="inner">This happened practically overnight, and was unexpected by most. The Boston Globe wondered in its news columns what brought on this sudden urge to retire, but no one is talking. It should be noted in the same several day period Mr. Weiderhold retired, at least three other government IGs were forced out of their jobs by the Obama Administration without reasonable explanation.</p>
<blockquote><p>National Railroad Passenger Corporation<br />
60 Massachusetts Avenue NE<br />
Washington, DC 20002<br />
www.amtrak.com</p>
<p>FOR IMMEDIATE RELEASE</p>
<p>ATK-09-047</p>
<p>Contact: Media Relations (202) 906-3860<br />
June 18, 2009</p>
<p>Amtrak Inspector General to Retire</p>
<p>Fred E. Weiderhold, Jr. Served Amtrak for 35 Years</p>
<p>WASHINGTON – Amtrak Inspector General Fred E. Weiderhold, Jr. today informed the Chairman of the Amtrak Board of Directors that he is retiring after 35 years of loyal service to the railroad.</p>
<p>&#8220;As Amtrak&#8217;s first and only Inspector General, Fred has made important contributions in helping the Board of Directors understand key issues facing the railroad and made useful recommendations to improve how we do business,&#8221; Amtrak Chairman Thomas Carper stated. &#8220;We thank him for his dedicated service to Amtrak and wish him well in his retirement.&#8221;</p>
<p>Carper added that under the federal Inspector General Act, the Amtrak Inspector General is appointed by the Chairman of the Board of Directors. Carper said he takes this responsibility seriously and will soon undertake a search for a replacement that can continue to maintain the integrity, independence and objectivity required of the position.</p>
<p>In addition, Carper said that he has confidence in the Inspector General staff and expects them to carry on their important work during this interim period, including providing effective oversight of how Amtrak is handling the stimulus funds it received from the American Recovery and Reinvestment Act.</p>
<p>Mr. Weiderhold has been the only person to serve as the Amtrak Inspector General since former Amtrak Chairman W. Graham Claytor, Jr, asked him to establish the Amtrak Office of Inspector General (OIG) in 1989. Previously, he was Amtrak&#8217;s first Special Assistant to the Chairman for Employee Relations, conducting special investigations and acting as the company&#8217;s first employee ombudsman. He has been one of the longer serving Inspectors General within the OIG community.</p>
<p>About Amtrak</p>
<p>Amtrak has posted six consecutive years of growth in ridership and revenue, carrying more than 28.7 million passengers in the last fiscal year. Amtrak provides intercity passenger rail service to more than 500 destinations in 46 states on a 21,000-mile route system. For schedules, fares and information, passengers may call 800-USA-RAIL or visit Amtrak.com.</p></blockquote>
</li>
<li>The Holland, Michigan Sentinel on Monday, June 22, 2009 reported ridership on Amtrak’s Pere Marquette is down 12.7% this May compared to a year ago, and a state senate committee which funds the service is looking to slash funding for the train.
<p class="inner">Only 8,500 people boarded the route in May of 2009, or an average of 137 passengers per departure. All of the usual reasons were given for low ridership, including low gas prices and the slowed economy.</p>
<p class="inner">Here’s the problem no one seems to want to understand: As long as government funding as the primary source of revenue for these short, perpetually money-losing routes is necessary, politicians are going to always be looking for ways to cut budgets, and low return on investment programs are usually the first to go.</p>
<p class="inner">Too much of Amtrak relies on this very type of funding. There are unceasing stories from New England about those states wanting to cut funding for local trains (This, of course, does not include Amtrak Interim President and CEO Joseph Boardman’s home State of New York where he previously served as head of the state department of transportation. New York only funds one Amtrak train, the Adirondack, even though the entire Empire Service trains, with only an average load factor of 35%, gets a free ride with an all-federal subsidy.). Oklahoma pays big bucks for the tiny Heartland Flyer with even worse transportation output performance.</p>
<p class="inner">What will it take to make Amtrak and its True Believers understand a healthy and robust long distance system throws off enough excess cash (profits) these short distance trains can be mostly internally subsidized? Why perpetually fight these annual political battles when the simple answer is vision and expansion, even if it’s just making the existing skeletal long distance system train consists longer?</p>
<p class="inner">Why is this such a difficult concept to understand? Why do so many ill-informed people think it’s perpetually okay to support failure when success is within easy grasp?</p>
</li>
<li>Here’s some heartburn for those who believe the passenger business can never be profitable: Carnival plc, which owns Carnival Cruise Lines, Princess Cruises, Holland America Line, Cunard Line, and The Yachts of Seabourn in North America; Costa Cruises in Europe; P&amp;O Cruises, Cunard Line, and Ocean Village in the Untied Kingdom; AIDA Cruises in Germany; Ibero Cruises in Spain and Brazil; and P&amp;O Cruises Australia in Australia and New Zealand, operates 88 cruise ships with a passenger capacity of approximately 169,040 souls. Carnival also marketed and operated 16 hotels or lodges with approximately 3,500 guest rooms; approximately 560 motor coaches used for sightseeing and charters, 24 domes rail cars, which run on the Alaska Railroad between Anchorage and Fairbanks, Whittier and Denali, and Whittier and Talkeetna; 2 luxury dayboats; and sightseeing packages.
<p class="inner">Carnival plc, headquartered in London, when tracing its heritage back through P&amp;O Princess Cruises, was founded in 1850. Television fans may remember the real Princess Cruises happily loaned its ship, the real Pacific Princess, to Aaron Spelling and ABC to create the wildly popular television hit, The Love Boat, which spurred the modern cruise line renaissance.</p>
<p class="inner">All of this, by the way, is somehow accomplished without any government subsidies and is effected through private capital and entrepreneurship.</p>
</li>
<li>William Lindley of Scottsdale, Arizona has some thoughts on state passenger rail organizations. Mr. Lindley, a longtime professional associate of URPA, is a past president and treasurer of the Arizona Rail Passenger Association, and currently serves as a writer and editor for the group’s newsletter.<br />
<blockquote><p>What does a rail passenger association really need to do? A recent report illustrates how what looks like failure to uphold principles may have helped doom a major city&#8217;s plans for modern passenger train service.</p>
<p>In Atlanta, Georgia, a proposed green space called the &#8220;Decatur Beltline&#8221; would remove track connections which permitted trains to connect in all directions from Atlanta&#8217;s downtown yards and stations. According to the National Association of Railroad Passengers Newsletter of May 2009, this &#8220;pitted local environmentalists against passenger train advocates (Georgia ARP remained officially neutral to minimize bad blood among erstwhile allies.)&#8221;</p>
<p>Say, what? Since when would a responsible passenger advocacy group roll over and play dead when the future of any kind of sensible passenger train operations is threatened? When I saw that I had to do some digging.</p>
<p>According to a November 30, 2005 Associated Press report, Ed McMahon of the Urban Land Institute called for using Atlanta&#8217;s &#8220;unused&#8221; railway tracks for a linked system of parks, paths and transit. Now, while this is certainly an admirable goal, according to AP, &#8220;A panel of transportation experts raised concerns when it found isolated parts of the loop would not have riders to support trains, trolleys or whatever transit options are proposed.&#8221; In other words, here we go again with removing a vital railway link – which can&#8217;t be relocated – in favor of some green space which can be placed anywhere.</p>
<p>This conflicts with the goals of a long-proposed and eagerly anticipated downtown intermodal terminal at approximately the site of the original Atlanta Union Station, and with an immediate connection to mass transit MARTA&#8217;s hub, the Five Points subway station, from which trains radiate north, south, east, and west.</p>
<p>Atlanta&#8217;s other former main station, Terminal Station, on the Southern Railway, had south-facing stub-end platforms and was on Southern’s mainline just west of Union Station. Although the Richard B. Russell Federal Building replaced Terminal Station in the 1970s, a single through-track connection to the Union Station area still exists &#8230; but neither Terminal Station nor the current Peachtree station used by Amtrak can reasonably be expanded for the demands of an expanded modern passenger operation.</p>
<p>The Five Points site is within walking distance to Georgia State University buildings, the popular Underground Atlanta shopping and nightlife district, and the downtown sports arenas. Furthermore, there is potential at a downtown terminal for a building with visual and interpretive ties to Atlanta&#8217;s historic train stations and its growth as the key city to the &#8220;New South&#8221; – building on the idea of the station as gateway to the city.</p>
<p>The City of Atlanta, according to an Atlanta Journal-Constitution newspaper article of March 5, 2009, said that the State Department of Transportation&#8217;s &#8220;vision of high-speed rail would discourage future residential development.&#8221; Amazingly, the city seems thereby to value a few new apartments over connecting the entire metro area with its downtown transit center.</p>
<p>With the Georgia DOT&#8217;s March 2009 removal of its objection to the park project, trains will only be able to reach downtown via the west side connection. Amtrak&#8217;s Crescent and commuter trains from the north and east would have a two-mile backup move to reach a new downtown station.</p>
<p>Now, without the eastern loop connection, Amtrak would likely have to stop at a new station with a MARTA connection – a new stop miles further northeast from downtown than even the existing Peachtree Station. This would mean requiring longer trips for most users, and a<br />
change of subway trains for many. This site, like Peachtree, has little potential for filling the perceptual role of a Gateway.</p>
<p>So, now, let&#8217;s return to that quote again:</p>
<p>&#8220;&#8230; pitted local environmentalists against passenger train advocates (Georgia ARP remained officially neutral to minimize bad blood among erstwhile allies.)&#8221; – NARP Newsletter, May 2009.</p>
<p>I wasn&#8217;t privy to the discussions but this certainly sounds like a failure to uphold the principles which should govern a passenger rail association. Rail passenger associations are neither historic preservation groups (the National Railway Historical Society fulfills that goal) nor are they railfan groups. Our associations are not yes-men to Amtrak, the railroads, local transit operators, real estate interests, sports teams, or environmental groups.</p>
<p>Indeed, the whole point of such a rail passenger association, as a non-profit institution, is a fiduciary (meaning: a relationship of confidence and trust) and a moral obligation to guide the progress toward modern and expanded passenger rail service. This is a charitable goal because passenger trains improve our quality of life, offer transportation options to everyone, improve our economy, and improve our environment &#8230; everyone wins with better public transit.</p>
<p>So was Georgia ARP&#8217;s failure to object to the removal of a vital transportation link a breach of trust for the objective of advocacy? Again, I wasn&#8217;t there so I can&#8217;t say, but if NARP&#8217;s account is correct, placing &#8220;not upsetting so-called environmentalists&#8221; above &#8220;fulfilling the confidence placed in your organization to preserve and enhance passenger train service&#8221; seems<br />
highly suspect.</p>
<p>Because detailed coverage has proven difficult to find in newspapers or on-line, I dearly hope one of our Gentle Readers more familiar with the subject can soothe my fears.</p></blockquote>
</li>
<li>Six months from today is Christmas Day!</li>
</ol>
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		<title>This Week at Amtrak; 2009-04-13</title>
		<link>http://www.unitedrail.org/2009/04/13/this-week-at-amtrak-2009-04-13/</link>
		<comments>http://www.unitedrail.org/2009/04/13/this-week-at-amtrak-2009-04-13/#comments</comments>
		<pubDate>Tue, 14 Apr 2009 01:07:26 +0000</pubDate>
		<dc:creator>brichardson</dc:creator>
				<category><![CDATA[This Week]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[Pullman]]></category>
		<category><![CDATA[railway post office]]></category>
		<category><![CDATA[RPO]]></category>

		<guid isPermaLink="false">http://www.unitedrail.org/?p=483</guid>
		<description><![CDATA[Volume 6, Number 10 A strong case can be made that often there is not a lot of intellectual honesty when it comes to discussing passenger rail in the United States.Different groups have staked out different positions, and they are sticking to those positions, no matter what happens to prove those positions are incorrect. Often, [...]]]></description>
			<content:encoded><![CDATA[<h2>Volume 6, Number 10</h2>
<ol>
<li>A strong case can be made that often there is not a lot of intellectual honesty when it comes to discussing passenger rail in the United States.Different groups have staked out different positions, and they are sticking to those positions, no matter what happens to prove those positions are incorrect. Often, the positions make no sense either ideologically or realistically, but are good for membership drives, which accomplishes very little other than to fatten organization coffers.<span id="more-483"></span>
<p class="inner">Such examples are &#8220;there are no passenger rail systems in the world which make money,&#8221; and &#8220;all Amtrak needs is more money and everything will be fine.&#8221; Both statements, of course, are completely wrong.The real head-scratcher is how the concept/ideology/operation of passenger rail passed from being the province of the very conservative world of the railroad industry to the socialist and liberal world of no one other than a government has the ability to operate passenger rail. Therefore, this unsavory theory goes, passenger rail should be treated exactly as roads and highways are treated, and funded accordingly, without an honest attempt for passenger rail to be as self-sustaining as possible, with government contributions only after other resources are exhausted, not the other way around.</p>
</li>
<li> Respected passenger railroad historian David Carleton has provided this very brief outline of recent passenger rail history [Note: a TWA guest columnist is working on a longer and more intricately detailed history of Amtrak, which we hope to bring to you sometime soon.]<br />
<blockquote><p>By David Carleton</p>
<p>In 1956 the Republican Eisenhower administration approved the Interstate Highway program. It was going to have serious implications for the passenger train, but Congress and the administration did nothing to alleviate it.</p>
<p>In 1967 the Democratic Johnson administration directed the Postal Service to remove all remaining Railway Post Office cars from passenger trains. Since this was the one remaining piece of passenger train business which was consistently profitable, the implications for passenger train service were dire. Still, the administration and the Congress did nothing to relieve it.</p>
<p>Then, in 1970 the Congress passed &#8211; and Republican President Nixon signed &#8211; the bill creating the National Railroad Passenger Corporation (NRPC), commonly known as Amtrak. In light of the previous inaction this would appear to be a dramatic turnabout. What events facilitated it? Here are three:</p>
<ol type="A">
<li>At the end of 1969 the venerable Pullman Company ceased operations and in 1970 was liquidated. Evidence of the impending demise of the Pullman Company became apparent in official Washington when it was necessary to assemble a funeral train to transport the remains of Senator Robert F. Kennedy. The large fleets of stand-by Pullman cars which had once been called upon to assemble campaign trains for candidates such as Roosevelt, Truman, and Eisenhower were no longer available and the railroads had to scramble to assemble a suitable train.</li>
<li>In 1970 the Western Pacific Railroad succeeded in winning a train-off case to stop running its segment of the California Zephyr, effectively killing the train. This was America&#8217;s train, the train of the movies, the quintessential post-war streamliner. Its discontinuance had symbolic meaning larger than the train itself.</li>
<li>The bankruptcy of the Penn Central Railroad threatened the stability of the entire railroad industry. The Penn Central was the largest passenger carrier, and that became an issue &#8211; not because of all the passenger train mileage that was being imperiled, but rather because of the size of the passenger train losses which showed up in the railroad&#8217;s reports to the Interstate Commerce Commission. If these reports were accurate, then these losses accounted for about ten percent of the railroad&#8217;s loss, but they were the most obvious item. Then, too, the Northeast Corridor Improvement Project (NECIP) was just then beginning to bear some results with new Metroliner trains moving swiftly over recently resurfaced Penn Central tracks.</li>
</ol>
<p class="inner">It is important to understand what happened to crystallize the thinking of both Congress and the Nixon administration when the decision was made to form the NRPC, because their reaction to those events continue to shape the national passenger train enterprise till this day.</p>
<p class="inner">First of all &#8211; The NRPC was to stand in the place of the Pullman Company and manage a fleet of cars that could be deployed as needed.</p>
<p class="inner">Second &#8211; The ICC and the railroads would be relieved of the complications of train-off litigation. That&#8217;s not to say that no more trains would be cut, in fact on Day One of Amtrak, half of all remaining private passenger rail service (Except for the services which opted not to join Amtrak, including the Southern Railroad and the Denver and Rio Grande Western.) was eliminated by the creation of Amtrak under rules governing what were &#8211; and were not &#8211; viable routes. But, the railroads and the ICC were no longer part of the process, from then on if the public was dissatisfied with changes to their service they would have to take their complaints elsewhere.</p>
<p class="inner">And, third &#8211; The NRPC (Amtrak) was to save the NECIP and the Metroliners from the bankruptcy of Penn Central. It is interesting to note Amtrak service has typically been meager throughout most of its system, even on the former Penn Central, with the exception of the Northeast Corridor.</p>
<p class="inner">In carrying out the above, the NRPC was formed and contracts were made with the various railroads. The contracts called for these railroads to operate certain designated trains &#8220;for&#8221; the NRPC, and also allowed the railroads to eliminate most of the rest. All the personnel, stations, etc. were to be provided by the railroads per the contract. The better railroads even continued to print timetables for &#8220;their&#8221; trains and distribute these to &#8220;their&#8221; stations. After a year even this began to fade away. What happened?</p>
<p class="inner">The NRPC acquired an upper management which proceeded to form it into a strong bureaucracy. They replaced the designation NRPC, which stood for something, with Amtrak, a word they made up. And, then they went to work building and reinforcing the Amtrak we know today &#8211; perfectly equipped to stand against the travails of 1969/70!</p>
</blockquote>
</li>
<li>Next, we visit a most interesting and thought-provoking white paper by J. William Vigrass. Through the years This Week at Amtrak has been published, we have been honored to publish the writing and speeches of former FRA Administrator Gil Carmichael, who, along with Andrew Selden, are the two greatest passenger rail visionaries in the United States today. Long-time railroad and transportation specialist William Vigrass has shared his thoughts of a vision similar to that of Mr. Carmichael and his Interstate II concept for the future of American railroading.
<p class="inner">Mr. Vigrass completed 56 years on the transportation industry, including service with Rutgers &#8211; The State University of New Jersey, Edward J. Bloustein School of Planning and Public Policy; Hill International, Inc.; Port Authority Transit Corporation, Lindenwold, New Jersey; Battelle Memorial Institute, the Union Pacific Railroad Company, and the Erie Railroad Company. Mr. Vigrass is the past chairman of the Committee on Rail Transit A1E04 of the Transportation Research Board.Mr. Vigrass has an extensive background in both passenger and freight railroad operations and planning. The following paper was first presented in 2007 at the height of freight congestion in our country. While today many of the problems cited have abated simply because of a slackened economy, as the national and world economy start to improve, these problems will once again be all too prevalent.</p>
<blockquote>
<h3>A proposed National System of Interstate and Defense RAILROADS, as an infrastructure project for the next fifty years</h3>
<p>By J. William Vigrass, Member, Blue Ribbon Panel of Experts<br />
Project Manager (retired) Hill International, Inc., Marlton, NJ 08053.</p>
<p>To the National Surface Transportation Policy and Revenue Study Commission, USDOT Bldg., L&#8217;Enfant Plaza, 400 7th St. N.W. Conference Room 4200, Washington, DC, 20590, Tuesday, 10:00am February 6th, 2007.</p>
<p>Background: The scope of the Commission&#8217;s mandate is to provide policy direction for infrastructure for the next fifty years. This paper will expand upon the thoughts set forth in my December 7th, 2006 paper and will be confined to the railroad mode because all other modes have numerous advocates for government investment in highways, waterways and airways, all of which are owned by the public sector. All are used by private sector operators which have not invested any of their own capital in the infrastructure provided by government. They pay fuel and other taxes as operating expenses, and said taxes cover but a portion of the government&#8217;s investment and maintenance costs. Only the railroad infrastructure is privately owned, maintained and financed. Even though railroad property is devoted entirely to the public interest, the owning companies nonetheless pay real estate taxes on their properties. In urban areas these taxes can be substantial. Railroad freight rates must cover all operating, maintenance and ownership costs, something that competing modes have never had to do.</p>
<p>When railroad companies invest in improvements to their physical plant with internally generated funds, they must be assured of an internal rate of return equal to or better than the cost of borrowing money in the private market. In contrast, when the Corps of Engineers makes improvements to the inland waterways system, the barge operators do not put up any investment dollars. When the FHWA and state DOT&#8217;s improve highways, the trucking industry does not have to directly contribute to the investment. This unbalanced situation has led to under-investment in railroad plant with consequent congestion is many locations. Railroads presently have great difficulty adding new train services and have made it clear they are unable or unwilling to add timetable slots for additional passenger train services unless the public sector makes capacity available.</p>
<p>At the same time, an expanding economy has put pressure on freight railroads to add more service and some new services such as long distance run-through trains. The nation&#8217;s highways are congested in many places, and the expanding economy has added to the pressure for widening existing Interstates and building new Interstates where they do not now exist. Tests done under the auspices of the American Association of State Highway and Transportation Officials (AASHTO) have proven highway damage is geometrically related to heavy loads. There is good reason to divert heavy loads off highways onto railroads since the latter are engineered to handle heavy loads. With several good reasons to add more railroad service, why has not more been done? The answer is, very simply, the railroads cannot afford to make the necessary investments. Their margin of profit is held down by truck competition for the most part. Common carrier truck rates are held down by the ubiquitous owner-driver who often works for bare wages, fuel, a contribution to maintenance and little or nothing for depreciation.</p>
<p>The trucking industry is using an Interstate and Defense Highway System designed and built since 1956, and incorporating improvements in design from time to time. It is largely an up-to-date highway system. The enormous capital invested in the Interstate and federal aid highway systems has been generated by motor fuel and other motor vehicle related taxes borne by the entire motoring public. Past studies have found trucking does not cover about 30% of costs related to truck operation. This allows the trucking industry to offer rates less than their true economic costs. Every time taxes on trucks or trucking have been increased, the industry has lobbied intensely and successfully for increased length and weight limits which in turn allowed freight rates to remain lower than they otherwise would have been. This has attracted more freight to highways, which in turn caused more wear and tear and congestion.</p>
<p>It is recommended the Congress not approve any more increases in the size or gross weight of motor trucks in interstate commerce.</p>
<p>Trucking uses up to date highways.</p>
<p>Railroads use Nineteenth Century Alignments. In contrast, nearly all the US railroad network was designed and built in the 19th Century. Grading was done by manpower, horses and scrapers. Heavy excavation was done by manual drilling (sledgehammers on the drill someone was holding) and black powder. Such engineering achievements as the Horseshoe Curve, Tehachapi Loop, the Central Pacific (UP) over Donner Pass were all great achievements of that era, but they are circuitous compared to competing Interstate highways. No matter how fast railroad freight trains may run, they must go further than a truck in most cases. Curvature imposes permanent speed restrictions. Histories of those early projects often include drawings of proposed realignments that could not be carried out by the privately owned railroads. Major tunnels had been proposed, but not built. Many sharp curves remain although realignments had been planned.</p>
<p>Meanwhile in Europe, at this time, many kilometers of new high speed railways have been &#8211; and are being &#8211; built.  Several Base Tunnels are being built for railway use under the Alps and other mountainous barriers. These are:</p>
<ul>
<li>Lötschberg base tunnel &#8211; portals at Frutigen (Canton of Bern) and Raron (Canton of Valais) in Switzerland. 34.6 km (21.6 miles) in length. Scheduled to open this year (portions will be single track).</li>
<li>Gotthard base tunnel &#8211; portals at Erstfeld (Canton of Uri) and Biasca (Canton of Ticino) 57 km (35.6 miles) in length. Scheduled to open 2015-2017. They are running into geological problems. (This project has been covered on cable television&#8217;s The Discovery Channel.)</li>
<li>Combination bridge/tunnels connecting Sweden to Denmark provide an all rail connection between Scandinavia and Europe.</li>
<li>In project planning (length not yet established) &#8211; Mt. Cenis (France-Italy and Brenner (Innsbruck), Austria and maybe Bolzano/Bozen, Italy</li>
<li>Proposed tunnel connecting Spain and Morocco under the Straits of Gibraltar has been planned and is going into the engineering phase. This will connect the railway system of North Africa with that of Europe.</li>
<li>The Channel Tunnel (50 km, 31 miles long) is well known in the US. Less known in the US is the Japanese Seikan tunnel between the main island of Honshu and the north island of Hokkaido. It is longer and deeper than the Channel Tunnel, and passes through far more difficult geology. It has the following statistics:
<p class="inner" style="margin-left: +.25in;"><strong>Seikan Tunnel</strong><br />
Location: Honshu and Hokkaido, Japan<br />
Completion Date: 1988<br />
Cost: $7 billion<br />
Length: 174,240 feet (33 miles)<br />
Setting: Underwater<br />
Materials: Steel, concrete<br />
Engineer(s): Japan Railway Construction CorporationThe US has no railroad tunnels that compare.</p>
</li>
</ul>
<p>In all such cases, the railroads are owned by the public sector and such projects have national and/or European Union support. (Switzerland is not in the EU.) While European railroads offer much more frequent passenger train service than is found in the US, they carry a tiny percentage of freight ton-miles and are far less efficient than American freight railroads. Yet, with the superiority of American freight railroading, the companies cannot justify or afford the huge investment that would be needed to provide a 21st Century alignment. They need help!</p>
<p>The present US railroad system is the most efficient hauler of overland freight in the world in terms of ton-mile costs. It is also the result of drastic downsizing that followed deregulation. The present system is carrying double or triple the number of ton miles that had been carried on a much larger network prior to deregulation. About one third the track miles are carrying two to three times the traffic. While efficient, this leaves little room for growth. It is also difficult for freight railroads to maintain their track when there is only one track on a given alignment. Trains must be delayed or rerouted over circuitous routes to allow track to be taken out of service for maintenance or replacement. This is not desirable, but it is necessary.</p>
<p>One may conclude that the present railroad system consists largely of 19th Century engineering, has greatly reduced track miles and route miles than existed in the 1950&#8242;s, yet is carrying twice the traffic. Expanding capacity to be able to handle increased freight traffic as well as increased passenger train traffic appear to be highly desirable national objectives. Excess capacity is desirable to handle an expanding economy as well as peak loads. Private companies cannot invest in excess capacity (unless they have large profit margins, which the railroads do not.) Redundancy is highly desirable to handle dislocations caused by natural disasters such as Hurricane Katrina or terrorist attacks that have not yet been experienced.</p>
<p>It is a point of historic fact the Prussian State Railways in what is now Germany were built in the 19th Century such that the network consisted of a series of triangles. Two routes were provided between strategic points so that the military would always have an alternative route in case of invasion. The US railroad system was not designed with such strategic objectives in mind. The mainland US was never threatened, but now this is a distinct possibility. The loss of a key bridge or tunnel here or there could cause great havoc to the US economy, as there are now fewer alternative routes than there were in the 1950&#8242;s. Some of the alternatives might be restored, or new ones created.</p>
<p>One may conclude the basic US railroad network is a product of 19th Century engineering with no thought to redundancy which may be needed to cope with natural or terrorist activity, or even routine maintenance or reconstruction. It is also circuitous compared to the Interstate Highway System, and thereby not as competitive as it might be. This all indicates it probably is an impediment to economic growth of the US rather than a lubricant for economic growth.</p>
<p>What, then, should be done?</p>
<p>It is proposed to create a National System of Interstate and Defense Railroads which would be multi-tracked, grade separated and suitable for competitive speeds. This would mean 75 mph for freight trains and 110 or 125 mph for passenger trains. A combination of tax credits and direct grants would be needed, since some strategic investments desired for passenger train use might not be needed or wanted by freight railroads. Those improvements would be provided by grants, and such grants would consist of federal and non-federal shares. Multi-track means at least double tracked, and where combined passenger/freight traffic requires, three or even four tracks.</p>
<p>Heavy Haul Routes Needed. This is not to ignore the need for separate heavy haul routes that would be (and are) designed for 25 &#8211; 40 mph. It is recognized such routes being capable of handling 15,000 to 25,000 ton coal or other heavy trains are needed. Energy needed increases with the square of the speed, such that it requires four times the energy to move a train at 80 mph as at 40 mph. The railroad companies have been relatively successful in generating internal capital for such investments in heavy haul routes. It is desired to keep such traffic off high speed freight/passenger routes to avoid delays to fast trains. It may be desirable to have separate heavy haul tracks alongside fast freight/passenger tracks where both share the same corridor as exist on portions of the Union Pacific Railroad and Burlington Northern Santa Fe Railway. For purposes of this paper, it will be assumed the railroad companies can continue to fund improvements for heavy haul traffic from their own resources. Exceptional needs might be handled on a case by case application for government aid.</p>
<h3>A Program to Create a National System of Interstate and Defense RAILROADS.</h3>
<p>A number of steps would be needed to approach, identify and quantify needs. This is not something which can be done by a few papers such as this, in which small numbers of man hours have been committed. A major research and planning effort will be needed. This might be done under the auspices of the Transportation Research Board with funding from USDOT.</p>
<p>Assumptions: Some key assumptions must be made upon which planning would be based. Among them would be the following:</p>
<ul>
<li>Population of the US would continue to increase as forecast by the Bureau of the Census. Legal immigration would continue at the same rate.</li>
<li>The US economy would continue to expand at the same overall rate. Shifts within the economy would be recognized to the extent data become available.</li>
<li>Petroleum would continue to become scarcer with consequent increases in price. Unusual or anticipated changes in the supply/price would be included to the extent data permit.</li>
<li>Efforts to control degradation of the environment will increase.</li>
<li>Population distribution will continue to flow to metropolitan areas.</li>
<li>Others, as may be developed during initial research.</li>
</ul>
<h3>A Proposed Research Program to Develop a National System of Interstate and Defense Railroads.</h3>
<p>Some factors which have come to mind and/or have been suggested by some of my many email friends and correspondents follow. They are in a more or less sequential (chronological) order.</p>
<ul>
<li>Identify corridors, and quantify traffic to the extent data permits as to what growth would be expected over the 50 year period under study for the Commission.</li>
<li>Identify where rights of way for double or multiple track remain. Determine when &#8211; and if &#8211; restoration would be desirable.</li>
<li>Identify abandoned rights of way that exist (more or less intact). Determine which ones could be rebuilt for modern use. Rank them in order of probable need. Establish a list of rights of way to be purchased and preserved for future rail use. This use might be freight railroad, intercity and/or commuter passenger railroad or rail transit in urban-suburban areas. Funding for purchase and preservation of such rights of way should be the first item to be implemented under the proposed program. Existing rights of way must be preserved especially in urban areas before they are disposed of to developers or other non-rail use.</li>
<li>Identify where railroads are essential for defense. It is established that railroads are the most efficient way to move an armored division. There are other areas where railroads have been used effectively.</li>
<li>Identify new areas where railroads might be useful or critical in combating domestic terrorism.</li>
<li>Identify areas/places where railroads should be protected from terrorism access. Devise means for such protection.</li>
<li>Identify corridors suitable for electrification in chronological sequence. Given that petroleum will become more expensive and scarcer, it follows that electrification of major corridors will be in the national interest and will contribute to the railroad system&#8217;s efficiency. This may well be a major contribution to reducing our nation&#8217;s dependency on petroleum and allow petroleum&#8217;s use where there is no alternative, such as for aviation. A major shift of freight and passengers from highway to railroad should be an objective to reduce domestic use of petroleum based fuels. No technological development would be needed. Electric locomotives would be similar to diesel-electric locomotives &#8220;under the floor&#8221; with similar traction motors. &#8220;Above the floor&#8221; devices such as transformers, rectifiers and inverters are all within the state of the art. Transmission and distribution systems have been developed in Europe and Japan and could be adapted to American conditions.</li>
<li>Identify where increased electrical generating capacity would be needed. Whether electrification would be nuclear or coal powered would be decided by research in that area and local policy. It may vary from one place to another in the US. Where convenient to waterpower or coal, those sources would be used. Nuclear power might be used widely provided that certain objections to it can be overcome.</li>
<li>Determine where by-pass freight routes are desired around urban areas. These are desired for carriage of hazardous materials and as ways around urban railroad congestion. In recent months, carriage of hazardous material through Washington, DC has stirred up opposition by local residents and their political representatives. There are few options other than very circuitous routes that would bring the shipments through other communities which would object.Input from local planning agencies will be desired, but oversight by a steering committee appears to be desirable and necessary because many planners have not had academic training or experience in evaluating what railroad rights of way might be used for. They might want a hiking trail on what might be a strategic interstate freight corridor.</li>
<li>A nationwide survey is needed to determine where such by-passes are desired. The survey would include identification of existing abandoned or underused alignments that could be incorporated.</li>
<li>Costs and benefits from such by-passes should be identified and quantified. They could be strategic redundant routes.</li>
<li>Create a &#8220;Greater Amtrak&#8221; route structure and overlay it on a proposed fast freight network. Determine where multiple track would be needed, multiple meaning three or more tracks. It used to exist, and roadbeds remain in most places, primarily New York &#8211; Cleveland on the ex-New York Central and New York &#8211; Philadelphia &#8211; Pittsburgh on the ex-Pennsylvania Railroad. Short segments did exist in other places such as on the Pittsburgh &amp; Lake Erie between Pittsburgh and Youngstown where the heavy industry that was served has disappeared. Some multi-track routes may not be needed to be replaced, but new multi-track may be needed where none existed, such as has occurred for the Powder River Coal Field in Wyoming. Other new needs will occur for multiple track.</li>
</ul>
<p>The sum of all the above efforts will be a very large research effort. It might be separated by task into contracts, or it might be awarded to an agency that could manage and coordinate the entire effort, subcontracting out tasks. The latter appears desirable because of the huge depth and breadth of scope and need to coordinate tasks.</p>
<ul>
<li>Financing of such a National System of Railroads will be a major and continuous undertaking. In the recent past, TRB and USDOT/FHWA have sponsored meetings/seminars/symposia on the subject of innovative financing of transportation projects. There is no need for duplication. Rather, research toward financing the National System of Interstate and Defense Railroads should build upon work already done. This new research effort will be separate from but in parallel with research to define and quantify the proposed system.Win/Win: A key point to be kept in mind is that financing must be acceptable to all parties to any agreement to improve the national railroad system. With win/win in mind, it is suggested that improvements funded by the public sector be owned by a public entity and leased to the railroads so that the improvements should not be subject real estate taxes.Some assumptions here may be in order, but they should be confirmed before work begins.</li>
<li>Whatever is proposed must be acceptable to the freight railroads which own nearly all the national railroad system. It must be a win/win combination that benefits the owning railroads, as well as public sector needs.</li>
<li>Tax credits as proposed by the Association of American Railroads may well be a primary source of capital funds from the private sector. It is suggested a basic percentage be established for all railroad infrastructure, primarily heavy haul routes, and a somewhat higher percentage be allowed for multi-tracked lines handling passenger trains operated by public entities or on behalf of public entities.</li>
<li>For very large projects (which would be common) having very long pay off periods, precedent of the Alameda Corridor might be followed. A public entity would be owner, and would issue long term bonds to fund the project. Using railroad(s) would pay a fee (a toll) per car, per ton, per ton-mile or whatever logically fits the project for the use of it. If such fees would not cover interest and amortization, public financing of the balance might be used, covered by a port authority or whatever the owning agency might be assuming it has cash flow from other sources.</li>
<li>Multi-purpose corridors might be established, especially in urban areas, in which a corridor might include separate freight and passenger railroad tracks along with fiber optic cable, electric power lines (especially if the railroad is or is to be electrified), water or other pipe lines, and perhaps truck-only roads. Fees from all users would be applied to bond issues. If forecast revenues were found insufficient, direct grants from relevant public agencies might be sought. The nature of each project would guide choices of funding. It is likely funding will be project specific, although similar projects might well employ similar funding methods. Innovative, new, financing methods should be an objective of research.</li>
<li>Legislation at the federal and state levels will be needed to implement the proposed National System of Interstate and Defense Railroads. It would be the objective of a final research task to draft such proposed legislation for review by representative staff of relevant legislative bodies.</li>
</ul>
<p class="inner">The above program is ambitious and will require much investment over a period of years. It need not be done all at once. Much of it is already in place, and needs only improvement. Restoration of double track where rights of way exist could be an early development. Some bottlenecks are already apparent, and are the topic of another panel discussion. Elimination of such bottlenecks would be a natural inclusion in the proposed National System. Identification of defense needs is the subject of still another panel that will be fit into the National System.</p>
<p class="inner">Task 0: A preliminary first task will be to estimate the funds and time needed to undertake the research outlined above. A source of such funds must then be identified and found. Some money or services in kind might come from the railroad industry itself, as a key beneficiary and would also give them seats on any steering committee. Much must come from the public sector, most likely USDOT through its FRA, FHWA or other appropriate agency. An independent research organization would manage the effort, and this would logically be the Transportation Research Board which already has much experience in some of the proposed tasks. Tasks would be advertised and awarded to research foundations or consultants in the usual manner. This effort might take up to three years and might cost on the order of $3 to $5 million. Output would be a conceptual engineering type of result defining a National System of Interstate and Defense Railroads and putting tasks in prioritized order for implementation.</p>
<p class="inner">A sense of urgency is needed to create a National System that will reduce the nation&#8217;s dependence upon imported petroleum for its basic interstate transportation needs. The world&#8217;s petroleum supply is being used up at an ever increasing rate, and many of its sources are in insecure areas. President Bush&#8217;s state of the union message January 23, 2007 included an objective of greatly reducing the US&#8217;s consumption of petroleum for surface transportation purposes. The proposed electrified railroad system would contribute to this objective in a big way. Freight railroads are one of the larger users of diesel fuel, much of which must be consumed on main lines which are most conducive to electrification. It has been estimated that railroads consume about six percent of the nation&#8217;s consumption of petroleum. Railroads are the only interstate mode that is suitable for electrification using existing technology. We should save petroleum for uses in which there is no readily apparent alternative such as aviation.</p>
<p class="inner">If we don&#8217;t get started promptly, we will regret it in the not too distant future. The future is approaching rapidly. It is recommended the research proposed above be authorized and funded at the earliest opportunity. It took fifty years to build the Interstate and Defense Highway System as defined in 1956 legislation and amended from time to time. The railroad system envisaged would take approximately the same length of time.An improved railroad system will benefit the economy.</p>
<p class="inner">An electrified railroad system would reduce petroleum use and will also contribute to faster and more efficient operation.</p>
<p class="inner">An unimproved railroad system will be a hindrance to economic growth.If the United States is to continue its role as the world&#8217;s leading economy, it must have a 21st Century System of Interstate and Defense Railroads.The time to begin is now!</p>
</blockquote>
</li>
<li> One highway interchange to be rebuilt in New Jersey using stimulus funds appropriated earlier this year connects an Interstate Highway with a US Highway and a New Jersey state road. The cost of rebuilding this single interchange is $900 million. Amtrak&#8217;s average annual free federal monies appropriation is $1.3 billion, just $400 million more than the single interchange in New Jersey.
<p class="inner">This does not speak of the unattractive bugaboo of modal envy, but makes business sense for the spending of government resources for the highest and best use of funds and return on investment. While the highway interchange will serve perhaps less than two million citizens in New Jersey, that same $900 million, applied to Amtrak&#8217;s national system, would easily serve over 20 million Americans and international tourists, based on Amtrak&#8217;s unacceptably skeletal system.</p>
<p class="inner">Which is the best return on investment?</p>
<p class="inner">Where is the vision in federal, state, and local governments to start seriously including passenger rail in government planning?</p>
<p class="inner">Where is the vision in Amtrak to start realigning corporate resources to reach out to the various government agencies to create awareness and programs which benefit everyone involved in domestic network transportation planning?</p>
</li>
</ol>
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		<title>On Privatization</title>
		<link>http://www.unitedrail.org/1997/09/20/on-privatization/</link>
		<comments>http://www.unitedrail.org/1997/09/20/on-privatization/#comments</comments>
		<pubDate>Sat, 20 Sep 1997 15:51:21 +0000</pubDate>
		<dc:creator>brichardson</dc:creator>
				<category><![CDATA[Commentary]]></category>
		<category><![CDATA[Amtrak]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[president]]></category>
		<category><![CDATA[privatization]]></category>
		<category><![CDATA[Pullman]]></category>
		<category><![CDATA[VIA]]></category>

		<guid isPermaLink="false">http://www.unitedrail.org/?p=722</guid>
		<description><![CDATA[For now, Amtrak is the only game in town regarding long-haul trains. As California has on many occasions concerning many other subjects, they have shown the way to regional self-reliability through willingness to tax themselves for local concerns. And they should be applauded for this. They wanted more rail, so they were ready to pay [...]]]></description>
			<content:encoded><![CDATA[<p>For now, Amtrak is the only game in town regarding long-haul trains. As California has on many occasions concerning many other subjects, they have shown the way to regional self-reliability through willingness to tax themselves for local concerns. And they should be applauded for this. They wanted more rail, so they were ready to pay for it, along with the necessary equipment to operate services. All other areas of the country should take note. And, don&#8217;t forget the commuters of the Midwest in and out of Chicago have been doing this very thing successfully for years.</p>
<p><span id="more-722"></span></p>
<p>As to the question of privatization of long hauls, ask someone who has gone through this complete exercise. Thank you, I&#8217;m glad you asked. In 1990 a group of us took VIA Rail Canada apart and put it back together again on paper. This was not an amateur or academic exercise, but a real-world study to determine the future of rail transportation in Canada. The result? Over a eleven year period, the VIA long-hauls (national system) could be privatized and turn a modest profit. But, this only occurred if their version of the NEC between Toronto and Montreal stayed in government hands. Other details include radical changes in the way the company was operated by senior management, and even more radical changes in marketing practices. It also required new bi-level equipment and the operation of MORE daily trains, not tri-weekly or less trains. The project did not go forward because of the necessary huge capital investment needed and a change in federal government from conservative to the present liberal government.</p>
<p>The same can be done with Amtrak, but it will take far beyond 2002 to do it. And, before it can be privatized, the Amtrak corporate culture must undergo radical surgery to harmonize the company and eliminate many hurtful and wasteful things which now occur on a daily basis.</p>
<p>Also, Amtrak ownership will have to be structured similar to that of the old Pullman Company. Own equipment and motive power, have reservations and marketing, but leave everything else to others, including the NEC. The NEC should remain a government agency because it operates more like a highway than anything else.</p>
<p>Dr. Adrian Herzog of URPA has created a thoughtful White Paper on the future of passenger rail in our country, and he envisions tax credits and a number of other issues, including perhaps cheerful participation by the managements of present freight railroads. Dr. Herzog put much effort into this work, and it is an admirable document, in fact, the only long-term plan now on the horizon.</p>
<p>If others with to think differently than Dr. Herzog, they should put the same time and effort into possible solutions. This could only have a positive effect, with new ideas being openly debated.</p>
<p>As someone who in the regular course of business has conversed with more than one freight railroad president on the subject of passenger rail, it is my opinion &#8211; and please read the word opinion again &#8211; that the senior management of the major freight railroads today do not wish to become any further involved with passenger rail beyond a commuter capacity. When a workable national play is drawn where the freight railroads can participate on a basis they can justify to their stockholders, then they will come to the table. Before that, they will stick to what they know best now, which is hauling boxcars.</p>
<p>From a non-emotional, business standpoint, the present senior management of Amtrak has a series of problems which must be addressed immediately. These problems were created by their past actions since 1993. Who will answer these remains to be seen.</p>
<p>The next president of Amtrak must be a risk-taker, who is willing to put in place sound principals and be a student of history. Amtrak&#8217;s history is spotty at best, and to know where the company has failed before will help in not making the same mistakes again.</p>
<p>When Graham Claytor became president of Amtrak, he did so as the capstone to his career. He had &#8220;been there, done that&#8221; in about every capacity in the railroad industry, and therefore, was able to go to Amtrak and use his personal credibility to bolster the entire company.</p>
<p>Someone of his stature, age, and wisdom needs to do this again. It us unlikely someone from the freight industry will view moving to Amtrak as a career enhancement on the way to higher position. Too many risks that are too great and too many chances of failure are present. The best candidate will be someone who knows innovation and is far-sighted, but also does nothave a personal agenda for the extended future.</p>
<p>The next president of Amtrak should be someone who is willing to put a lifetime of talent and wisdom into stabilizing Amtrak, and then start it to grow again. Amtrak&#8217;s problems will never be solved by cost cutting, but only by orderly growth through revenues from passenger miles, state or regional tax support, and other ways, such as a rational plan to increase express business in such a way everyone can accept it.</p>
<p>Congess appointed a Blue Ribbon panel earlier this year which came up with several good ideas about the future of Amtrak and passenger rail in general. What has happened to this document? Was it only a &#8220;feel good&#8221; exercise that will never again see the light of day?</p>
<p>Let&#8217;s don&#8217;t destroy Amtrak now. Let&#8217;s work with our politicians to make instrumental change and have a long-term view of solving passenger rail problems. Let&#8217;s stabilize and take what we have and build from there. Let the regional needs be met by their own constituencies, and let&#8217;s together face the national challenges.</p>
<p>Thanks for taking the time to read this.</p>
<p>Bruce Richardson<br />
Jacksonville, Florida</p>
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