Tag: Amtrak

At the beginning of last month, Paul Druce of “Reason & Rail” discussed the possible impact of the pending upgrade of the Amtrak Acela route in Acela II is the path towards Amtrak operational self-sustainability:

The forthcoming Acela II isn’t just supposed to be significantly faster than the current Acela service, cutting 24 minutes from the scheduled time between Washington and New York and 38 minutes between Washington and Boston, but it will also represent a significant boost in capacity. …

With an increase in seating capacity, Amtrak will be able to garner significantly more revenue, even if it lowers the price of Acela seating somewhat. This added revenue comes with no significant increase in operational cost and quite possibly a lowered cost, as there should be a higher rate of availability and lowered mechanical costs for what is essentially an off the shelf train, along with significantly lower energy consumption. With current averages for occupancy and passenger revenue unchanged, an Acela II train service could see $742 million in revenue, with $447 million in operational profit.

This will have an even larger effect upon Amtrak’s financial deficit than initially appears because starting in FY2014, the states bear a greater responsibility for the short distance train corridors. This had the affect of reducing Amtrak’s FY2014 budget request to only $373 million for the operating grant; 2013’s appropriation, by contrast, was $442 million.

Note that what Paul Druce refers to as “operational profit” is what I have been calling “operating surplus” in the Sunday Train, the surplus of revenues from operations over operating costs. This is nothing like an operational profit, at present, since a profit is a financial benefit from a difference between revenue and costs, and there is nothing in the current organization of the Acela services that make a surplus on their operations into a distinctive financial asset for any purpose … whether public or private.

Whether or not all or part of this operating surplus should be made into an operational profit is a question that goes to the heart of what is the purpose of Amtrak. The way that this surplus is spent can be the means to service a range of ends … but what are the ends that are a legitimate use of these means?

Since Amtrak was established, and exists, as a political compromise, this is not a question about what is the proper “End” for Amtrak activities, but what are the proper “Ends” for Amtrak activities.

The Southeast HSR corridor can be divided between the “real” SEHSR corridor, where there is actual, ongoing work on improving the speed and, even more critically, the capacity of the corridor in support of services that will begin operating within the current decade, and the “notional” SEHSR corridor, the land of feasibility studies and preliminary planning, where even if a pedal to the metal intercity rail investment program were to commence in 2017, any new services entering into operation before the latter half of next decade would be subsidized conventional rail service.

And given the importance of state governments in the current bottom-up process of intercity rail development, it should be unsurprising that the boundary between the two part of the SEHSR runs quite close to a state boundary. As discussed two weeks ago, Georgia lies in the middle of “notional” SEHSR country, with Rapid Rail connections to Birmingham; Columbus, GA; Savanna; Charlotte, NC; and Chattanooga / Nashville / Louisville at various stages of being studied, but without active ongoing investment. By contrast, there is current active investment and planned roll-out of new service throughout Virginia and North Carolina, all the way through to Charlotte, NC.

One reason that Virginia and North Carolina are engaged in ongoing investment is that they are well positioned for incremental development of Rapid Rail passenger service, with a legacy of through Amtrak corridors providing a platform to build upon, urban development taking place along urban arcs in both states, and close enough to the growing major metropolitan center of Washington, DC to use Washington as an anchor for longer distance intercity transport.

The greatest current focus of investment in the “real SEHSR” is the Piedmont Corridor in North Carolina, which is the focus of this week’s Sunday Train.

cross-posted from Voices on the Square

I saw on the twitter feeds of some transit/transport bloggers (twitter list) some interesting news about the ongoing All Aboard Florida project for a 3hr rail service between Miami and Orlando. They are seeking land for their Miami station complex:

Managers for All Aboard Florida, the project to build an Orlando-to-Miami passenger train service, are about to begin negotiations with Miami’s Community Redevelopment Agency to acquire two parcels in downtown Miami as part of the plan to build a massive train station and transportation hub downtown.

…

He [Michael Reininger, president and chief development officer for the train project] said the two parcels are key to the project, as they are integral to the planned station and transport hub, a project he said will dramatically transform downtown Miami and Overtown, where project managers expect to create jobs and new opportunities for area residents and businesses. “We are not just developing these two blocks,” Reininger said. “In fact, we’re developing a very major infrastructure and development program that will be transformative for the entirety of downtown Miami.”

Besides building the Miami station for the Miami-Orlando train, Reininger said, All Aboard Florida is also planning a transportation hub that would provide links between the intercity train and the Miami-Dade transit services there such as Metrorail, Metromover and Metrobus.

And are also bidding for additional develoment on a neighboring site, which would crosslink the All Aboard Florida Station to the MDM proposals for a new Marriot at Miami Worldcenter:

The company that is planning to build a 3-hour rail link between Miami and Orlando recently responded to an RFP by the Overtown CRA for a plot of land near a station that they are planning to build in downtown Miami.

All Aboard Florida proposes to build office, retail and residential uses, including a 24-story tower on the overtown parcels. It would be linked to a new Marriott at Miami Worldcenter proposed by MDM, as well as the All Aboard Florida station.

cross-posted from Voices on the Square

Congressman John Mica, Republican from the Florida 7th district and member (former chair) of the House Committee on Transportation and Infrastructure, has been on the attack against Amtrak again. During the testimony to the committee by John Robert Smith, head of Transportation for America and Reconnecting America, and former Republican mayor of Meridian, Mississippi, faced aggressive questioning by Congressman Mica promoting his desired defunding of Amtrak:

… But Mica spared his real invective for the next part, where he let Smith know he’s seen “your little memo that you sent to my mayor.” Something about the belittling, eyes-in-the-back-of-my-head tone there was just chilling, like he’s saying he found the love notes Smith was writing to his wife. “House of Representatives slash Amtrak funding, putting the future of the national system in jeopardy!” Mica read the line in a high-pitched tone, mocking the hysteria Smith was clearly exhibiting when calling Winter Park Mayor Ken Bradley’s attention to the House cuts.

 

Does Smith really think a cut of $1.4 billion to $950 million is such a big deal? Well, yeah, actually. “Don’t you think the United States is under threat when you’re in debt up to your eyeballs, when you’re borrowing 40 cents on the dollar to underwrite your service?” Mica exploded. “You’re aware that every ticket on Amtrak last year was underwritten more than $40 per passenger ticket? You’re aware of that?”

…

 

Mica railed against Amtrak’s “Soviet-style operations” and the money losses on food service aboard the trains and asked Smith if he should “go back and tell that mother [of the soldier not getting hot breakfasts], ‘You know, we need to put this money into Amtrak; we can’t take any cuts out of Amtrak.'”

 

To which John Robert Smith firmly replied: “That’s a false choice, Congressman.”

Indeed, you don’t have to take the word of DC Streetsblog about the exchange, as it has been put up on youtube:

While browsing the Midwest HSR Association site recently, I came across this story:

Midwest High Speed Rail Association Lauds Rep. Moffit’s Proposal for New Midwestern Amtrak Link

CHICAGO (May 23, 2013) — Midwest High Speed Rail Association Executive Director Richard Harnish released the following statement Thursday in response to Illinois State Rep. Donald Moffitt’s (74th District) proposal of a new bill proposing a study leading to the creation of a new east-west Amtrak line in Illinois:

“Rep. Moffitt has identified a missing link in our state’s mass transportation system.

“The addition of a new Amtrak route linking population and commercial centers would be a major enhancement of our rail system, and a stepping-stone to further expansion and improvement of the system.

“Today, if you need to travel between Chicago and Springfield, Galesburg, Peoria, Normal and Urbana-Champaign or over to the Quad Cities, you are most likely to drive.

… “This addition and the public’s utilization of it will help to lay the solid foundation for future modernization–especially for the full implementation of high-speed rail between Chicago and St. Louis and other major midwest destinations.

Burning the Midnight Oil for Living Energy Independence

crossposted from Voices on the Square

Back in early June, in Putting Steel into the Amtrak Long Distance Backbone, I looked at the Amtrak “PRIIA Section 210” upgrade plans for the five Long Distance services with the lowest operating cost recovery, mandated for Fiscal Year 2010 by the PRIIA legislation.

I also looked at the side-effects of the freight-oriented Steel Interstate proposal, which would offer the opportunities for dramatic improvements in the performance of Long Distance sleeper trains ~ not simply the financial performance but also, and more importantly for addressing the Petroleum Addiction of our intercity transport system, dramatic improvement in the delivery of service to the customers.

This week I look at the “middle” five long distance routes that were reported on for Fiscal Year 2011:

• The Lake Shore Limited from Chicago to Boston and Chicago to New York City via the Cleveland/Buffalo Erie Lakeshore route
• The Crescent, from the “Crescent City” of New Orleans, Louisiana to New York City via Atlanta, and
• the “Silver Services” ~ the Silver Meteor from Miami to New York via Charleston, SC, the Silver Star from Miami to New York via Tampa, Columbia, SC and Raleigh, NC, and the Palmetta from Savannah, Georgia to New York via Charleston, SC.

Burning the Midnight Oil for Living Energy Independence

Express HSR is sexy. Indeed, its sexy enough that when Big Oil propagandizes against it, they have to paint it as too expensive or something that America is too incompetent to handle, since the idea of sitting in an actually comfortable rail seat, watching a movie on a laptop or snacking on a sandwich while flying along at two to three times highway speeds, “just like in France or Japan or Spain”, that’s too appealing to convince a big majority of people that it would be anything but nice to have. So they have to con people into thinking of it as an unrealistic pipe dream that the US can do what Spain has been doing for a decade, France for three decades, and Japan for half a century.

Rapid Rail is not as sexy as Express HSR, but at least it is as fast as driving for most drivers on most corridors, and appreciably faster than driving on the corridor with the “best bones”, like either Cleveland / Columbus or Davenport / Des Moines / Iowa wold be at 110mph top passenger speed. And it is much cheaper than Express HSR, with lots of potential corridors that local residents will start lobbying for once the first of the Rapid Passenger Rail services come into service.

But conventional long haul rail? Surely plodding along at 50mph to as slow as 30mph on heavy freight rail corridors is an obsolete holdover from an earlier time?

Well, no. Conventional long haul rail has a 21st century role to play, if the United States should declare Economic Independence and start working to regain the economic freedom that we surrendered to the Big Oil and the oil exporting regions in the 70’s and 80’s.

And so, in this evening’s Sunday Train, we look at the “PRIIA Section 210” plans that Amtrak has developed for the five weakest of its fifteen long distance corridors: the California Zephyr, the Capitol Limited, the Cardinal, the Sunset Limited, and the Texas Eagle.

Burning the Midnight Oil for Living Energy Independence

The headline spin on House Chairman of the Transport Committee is that he is proposing to privatize the NEC to allow HSR to be built in this decade.

However, if you follow the money trail, while he proposes a process to do that, there is no funding proposed to do that. And without a funding stream for the federal share of anywhere from $40b to $100b to bring the NEC up to a state of good repair and then to make the improvements required, under current FRA regulations, to meet Mica’s modest speed targets … that part of it is not a real proposal yet.

The real proposal is to have talking points to use to object to any funding that gets out of the Senate to allow Amtrak to buy more equipment so it can expand the capacity and frequency to meet the steady increase in demand for its services.