From the Editors…
This Week at Amtrak returns to Washington for the two day
Passenger
Trains on Freight Railroads conference held by
Railway Age Magazine.
Reported by Daniel Carleton.
The fading perception of how the
future will moveWhat a difference a year
makes“I missed the first half of Stan Feinsod’s speech. I’m
sure he said that all future passenger service should be run by Amtrak.” -
Al Engel, then-Vice-President - High-Speed Rail, Amtrak
Irony has been
defined as “incongruity between what is expected to be and what actually is, or
a situation or result showing such incongruity.” It has also been implied that
irony has been the ethos of the last half-century or more. Perhaps it is because
of this ethos that we not only accept irony when we find it, but will expend
resources in order to maintain the irony, in the belief that all expectations
are valid.
The previous year’s conference had a buzz so loud one might
recommend hearing protection. Nothing brings in a crowd like money, and where
federal dollars are a possibility, there definitely will be policy wonks. It was
the first such conference following the President’s admonition to build
something called “High-Speed Rail.” The twelve months that followed were a
political rollercoaster for the socialized passenger rail faithful, with adverse
election results and cancelled projects in Ohio, Wisconsin and Florida. At this
year’s meeting, the buzz was replaced with a vacuum. HSR was mentioned,
repeatedly even, but it did not carry the same punch as it did last year. Even
though many of the faces were the same there was definitely a change in the
air.
This would be the eighteenth conference of this nature and it has
become something of a tradition, where the editor of Railway Age opens the
conference by asking how many in attendance have been to all of them. Every year
that number grows smaller. This year the overall attendance was smaller than
last, most likely due to the Railway Interchange gathering in Minneapolis the
previous month.
Picking up where he had left off just days earlier,
Association of American Railroads President and CEO Ed Hamberger gave the
keynote address, hitting upon many of the same points. He did add some
interesting anecdotes: Time magazine called the AAR, first time in 12 years, to
verify a rumor it had heard that the railroads actually owned their own track.
In a survey of business leaders, only 40% knew the railroads owned their own
track; 50% thought railroads were public-private partnerships. On the plus side,
the railroads handle one-third of all exports to their port of
departure.
But this was a conference on passenger trains, and he did
succinctly outline the railroad’s stance on expansion; there will be “no harm
done” to the existing flow of freight traffic on today’s railroads. If one
desires to operate passenger trains where none exist right now, there are four
things which need to be considered: Capacity, Liability, Safety and
Compensation. On the subject of compensation, and as was copiously illustrated
at last year’s conference, a new service does not fall under the Railpax
agreement of 1970; the price per mile for access will be higher and closer in
line with actual cost to the railroads for such access. That being said, the
railroads do have a goal of “getting to yes” when it comes to more passenger
trains. This is quite a paradigm shift from even just a few years ago, when the
answer was a qualified “no.” Apparently, the states have learned their lesson
and now bring appropriate quantities of cash along with a realistic attitude
when approaching the railroads with their passenger train
perceptions.
Hamberger made it clear that the lawsuit AAR filed as a
result of federal regulation, allowing Amtrak authority to promulgate the rules
with respect to the conduct of the railroads and timeliness of passenger trains,
was directed not at Amtrak, but at the Federal Railway Administration. A
decision on this is expected this Spring. He also repeated the official stance
of the railroads that the accepted operator of intercity passenger trains is
Amtrak. He neither explained nor elaborated on this.
Many will take
solace in the notion that the AAR has given its seeming endorsement to Amtrak as
the sole operator of non-commuter trains in the country. As the conference wore
on, however, it was clear that not all shared this opinion.
The
conviction of the old guardEugene Skoropowski, then a director
with HNTB, wears the mantle of elder statesman for state-sponsored passenger
rail. Therefore, it was something as a surprise, for him as well as for those in
attendance, when Railway Age approached him to write an article and make a
presentation on the idea of a private-sector role in intercity rail. The
article, as well as his presentation, made the argument that full operation by
the freight railroads is not in the cards:
Today’s freight railroads
might be expected to participate constructively in cooperative development of a
rejuvenated, higher performance passenger rail system, but their business model
no longer allows them to be sources of capital investment or operating support
for passenger services. To accomplish this would require the freight railroads
to pour billions of dollars into their infrastructure for double-tracking,
sidings, signaling, etc., and that’s not going to happen. - Eugene
Skoropowski, How private enterprise can strengthen Amtrak,
Railway Age
Magazine, October 2011
He went on to extol existing partnerships
between the railroads and passenger operators in New England, California and
North Carolina. What could private enterprise bring to the table of passenger
rail? No one knows the railroad business better than the railroads. But there
lingers the persistent belief that public money is necessary, and the
availability of such money is cyclical.
One of the presumed roadblocks to
an outside agency operating a state-sponsored passenger rail service is the
necessity of indemnification. Amtrak currently is required to carry a $200
million policy for its services. Based upon his experience in California, Mr.
Skoropowski stated it was not legal for a state agency to obtain insurance for a
third party. At this point, Ray Lanman, Vice President, Corporate Development at
Herzog Transit Services, spoke up and stated that “anyone can buy $200 million
of insurance.” It is a cost of business and is priced into the cost of such
business. Amtrak already does this.
Ironically, Skoropowski would join
the Florida East Coast Railway five months later as its senior vice president of
passenger rail development. The FEC would later announce its intentions to
initiate passenger rail service between Central and South Florida;
“a
privately owned, operated and maintained intercity passenger rail service that
will be a solution for millions of business travelers, families, and
tourists.” -
http://www.allaboardflorida.comFrank Wilner,
well known author and Public Relations Director for the United Transportation
Union, also spoke on the possibility of the railroads resuming passenger rail
services starting, off with, “Islands of socialism don’t fit well in the ocean
of capitalism.” He followed this with the standard canard which states that
long-distance passenger trains exist for the sole purpose of political support
for funding the all-important Northeast Corridor. Railroads running passenger
trains would be a “second best solution,” but if they did run them, this would
remove the threat of losing access to private property.
If there was any
point to be taken away about the role of the private sector in operating
passenger trains, it may be simply stated that there are hurdles to overcome but
they are not insurmountable.
Al Engel, then Amtrak’s Vice President -
High-Speed Rail, addressed the gathering, spinning the same old yarn from the
well-worn songbook, “The Northeast Corridor generates a surplus which supports
the long-distance trains.” He then added that the NEC is at or close to capacity
with 2200 trains per day. After talking about other corridors in the country, he
was asked about the then ongoing negotiations with individual states for Section
209 of the Passenger Rail Investment and Improvement Act. At that time there
were still “a few stragglers” who had not yet signed on. When asked where the
long-tardy methodology for Section 209 could be found, he directed all of us to
the website for the American Association of State Highway and Transportation
Officials. Why this would be published with AASHTO, and not the FRA or Amtrak
websites, is anyone’s guess. In keeping with the irony, Al Engel would leave
Amtrak before the end of the year “to pursue other
opportunities.”
Federal Railway Administrator Joe Szabo and his deputy,
Rob Lauby, gave an update of the High-Speed Rail program even though there are
no active high-speed projects in the country. The FRA has basically taken the
stance of “If you don’t like what you see, lower your expectations,” and as a
result, 110 mph projects to Detroit and St. Louis are considered “HSR.” Be that
as it may, 98% of the American Recovery and Reinvestment Act funds have been
obligated and one-third of TIGER grant money is going toward freight
rail.
There were various updates from different states. Illinois is
studying 220 mph trains between O’Hare Airport and downtown Chicago. The
representative from North Carolina could not be there in person, but did send a
narrated Power Point program outlining the challenges of selecting a route into
downtown Raleigh. Regarding the upgrade in service between Chicago and St.
Louis, the procurement process for new trainsets is underway. There will be six
new sets of equipment consisting of five cars/two locomotives each. As for who
will own these, that is still up in the air. There was no mention of Amtrak in
this presentation.
In Pennsylvania, a shortline operating in and around
Pittsburgh proposed establishing a light-rail type service along one of its
routes. Following the presentation, this writer asked why a railroad would be
interested in starting something like this. The answer was because the line in
question has excess capacity. Immediately someone in the back of the room
yelled, “You didn’t answer the question! Why are they doing this?” The real
answer is that the owner stands to gain $30 million for the sale of the line,
while retaining the freight rights. Now that is a good
reason.
Finally, a breath of fresh airA
highlight, if not the highlight, of this gathering was the luncheon speech given
by Stan Feinsod, a long-time transit contracting specialist with experience in
project development and management, planning and engineering, operations and
even streetcar specialties. He is currently a Business Development Advisor at
Ratp Dev USA, serves as Secretary Treasurer of the Association of Independent
Passenger Railroad Operators (AIPRO), and Co-Chair of the APTA Commuter Rail and
High Speed and Intercity Passenger Rail Subcommittee. The full text of his
discourse was reprinted with his gracious permission back in November 2011, and
may be seen here:
http://www.unitedrail.org/2011/11/08/the-path-forward-creating-an-american-high-performance-integrated-intercity-passenger-rail-system/What
he outlines is simple:
- A system based on the American economic model of
competition.
- A system based on the private sector, and cooperation with
the pre-eminent American freight railroads who own the most important
rights-of-way.
- A system developed by a broad public-private partnership
with the states and the federal government.
- A system that strives for
continuously-improved performance and the reduction of travel time; a system
that has excellent connectivity to the urban transport systems it
serves.
No, this is not rocket science. Still, there were those present
who believed he was asking for the moon.
A sample of
successIt is really hard to argue with a company whose workout
model is “only buy dogs.” Yet that is exactly what Iowa Pacific is doing under
the careful hand of Amtrak alum-turned-entrepreneur Ed Ellis. An amalgam of
shortline railroads, Iowa Pacific recently concluded a windfall with the sale of
its Arizona Eastern line to another company. Although freight pays the bills,
its passenger tourist line business is not a drag on the core.
Ellis
pointed to the over 300 tourist railroads in the United States, and all of them
-- at the very least -- cover their costs. Last year, Iowa Pacific commenced a
new passenger service in upstate New York, the Saratoga & North Creek
Railroad. This is no backwoods operation isolated from the rest of the network.
It runs out of the same municipally-owned station as Amtrak trains in Saratoga
Springs, and operates over a short stretch of Canadian Pacific mainline before
diverging onto the branch to North Creek. It complies fully with 49CFR238, the
Federal Code governing passenger trains. By the time of the conference, the
S&NC had 30,000 boardings in the first three months of service.
Iowa
Pacific has its own national reservation center and maintenance facilities. The
vision for its fleet of rolling stock is “return to zero age.” Cognizant of its
responsibilities, the Iowa Pacific is very clear that the burden and reward for
its services rests solely on its own shoulders. Last year. the S&NC covered
all costs above-the-rail , this year it expects to cover all fully-allocated
costs. The S&NC receives no subsidy.
The quest for
realityLongtime conference attendee and presenter Al Fazio
projected pictures of the Concorde SST and Boeing 747 with the subheading
“defining a purpose.” Both had their first flights in 1969 and both carried the
dreams representing the future of transportation. Whereas only 20 SST’s were
built (and all were since retired), over 1400 copies of 747 variants have been
constructed and continue to be built. In short, Boeing was right; the future was
not about speed but rather efficiency. And now, four decades later, it is time
for passenger rail to face this stunning if simple reality: While sleek and sexy
bullet trains make for great models and posters, it is the everyday
high-performance passenger trains which will get the job done.
But who
will operate these new trains? Outside of the New York metropolitan area, most
commuter rail systems are contracted out to private operators or, as is seen in
Chicago, the freight railroads. Amtrak is currently the default-operator of
choice for all other services, and sells itself as the sole keeper of the
American passenger railroad. Is there any real reason to maintain the status
quo? This conference successfully challenged that notion, making it very clear
that there are entrepreneurs waiting in the wings for the opportunity to flex
their experience and acumen for the benefit of the operation and expansion of
the nation’s passenger rail network.
Perhaps it was multiple generations
of science-fiction television that raised the expectations of the modern
populace. Many who are at or past “middle age” believed flying cars would be the
travel mode of choice at least by the Twenty-first Century. That expectation is
easily dismissed, however, because individually we make an accounting of our own
coffers and recognize our financial limits. This is the personification of
fiscal responsibility. Even so, many still expect passenger trains to be
something out of a futuristic novel; and upon arriving at the station, are then
disappointed by what they see. A steady diet of fast-train phantasms by
well-meaning but grossly-mistaken politicos feeds this disappointment, and the
incongruity between fantasy and reality effectively sours the public to
passenger train travel. There are those who feed off this incongruity by selling
fast trains that are at best superfluous -- at worst, exorbitant. There are
others, however, who endorse fiscal responsibility by offering efficient,
well-thought-out-service that satisfies the need and covers its costs. We
applaud them. Loudly.
________________________________________________________________________________________
If
you are reading someone else's copy of This Week at Amtrak, you can
receive your own free copy each edition by sending your e-mail address to