HSR: Another Roadblock Another chapter in the saga of high-speed rail between Las Vegas and the Los Angeles exurbs:
Two influential lawmakers have written
to DOT Secretary LaHood complaining that the $5.5 billion loan requested from the FRA to help the HSR Express West (formerly the Desert Xpress) project presents an “unten- able” risk to the taxpayer. House Budget Chairman Paul Ryan (R-Wisc.) and Senate Budget Ranking Member Jeff Sessions (R- Ala.) urged the secretary to find other more worthy transportation projects. High Speed Rail supporters have written a rebuttal to the secretary outlining several factors which they say would argue for the federal loan. Under the signatures of Daniel Kraus of Californians for High-Speed Rail; Ross Capon of the National Association of Railroad Passengers; Rick Harnish of the Midwest High Speed Rail Association; and Andy Kunz of the U.S. High-speed Rail Asso- ciation, the letter makes the following points: 1) Los Angeles-Las Vegas is the sec- ond busiest end-point pair in the United States; 2) Xpress West will be a convenient, energy efficient alternative to Interstate 15, “a congested and dangerous highway;” 3) It will help speed up and enhance the Califor- nia HSR project with extensions to Palm- dale, 70 miles from L.A.,(currently served by Metrolink commuter trains) where the two systems will seamlessly integrate “thus in- creasing ridership;” 4) It will expand the market for American HSR manufacturing; 5) It will be “consistent with the desire of Americans for good train travel. Other interests are proposing to operate luxury/casino-centric service between L.A. and Las Vegas. That would include the X- Train, which has been described in this space. Negotiations between the X-Train company and Union Pacific for the rights to its tracks have been ongoing for several months as of this writing.
Speaking of Federal Loans Last month, we took a “wait and see” posi- tion on the intriguing plan of Florida East Coast Industries to build and operate in the private sector a passenger train linking the Orlando Airport to South Florida. Since then word has reached us that the builders of the project have applied for a federal loan to help pay for the $1.5 billion undertaking. The FRA has confirmed the receipt of the re- quest to the Orlando Sentinel. No further details were available as we went to press, but such loans can have a term of 35 years with reasonable interest rates. FRA policy aims to encourage trains as an alternative to air and highway travel, the main rationale for that being relieving congestion on the latter two modes.
Bloggers (some of whom advocate the cause of rail labor, which believes privatiza- tion means a dead end and lost jobs) have said something on the order of “Aha! This was supposed to be the “great break- through” for privatizing passenger trains. But see — they still have to go the federal government, hat in hand, for a loan.” Well, hold the phone on that. We ourselves last month suggested giving this project a break and lots of encouragement while at the same time reserving judgment until the venture is “up and running” or has had plenty of time to prove its viability. Seeking a loan is quite different from a handout, and passenger
railroading (Amtrak notwithstanding) still has been on the receiving end of pennies compared with the billions of taxpayer dol- lars poured into highway and air travel.
Living Near Transit
During some of the worst days of the reces- sion (officially considered 2007-’09, but leav- ing after-effects in its wake), if you lived within a half mile of high-frequency public transportation service,
chances are your
property held its value during that economic slump compared to properties in other re- gions. The study, released by the National Association of Realtors (NAR) and the Amer- ican Public Transportation Association (AP- TA) focused on five metropolitan regions — Boston, San Francisco, Chicago, Minneapo- lis-St. Paul, and Phoenix. These areas, ac- cording to the study, illustrated the types of U.S. high-frequency transit systems includ- ing subway, light rail, and bus rapid transit (BRT). The study apparently does not break down the findings by mode, but the chances are that the two rail modes involved do con- siderably better than the BRT. We’ve previ- ously discussed here how BRT, without fixed trackage, is more vulnerable to pressures to “get out of the way of the automobiles.” Rail transit is the reliable key to attracting de- velopment, residential and commercial. Not included in the APTA/NAR report is Salt Lake City, about which this column re- ported last year following a trip there. Since then, the TRAX light rail system has com- pleted construction and (as of April 14, 2013) will have started operation of a line extend- ing from downtown SLC to the Salt Lake In- ternational Airport. Also the Frontrunner commuter train has increased its service area by 44 miles from Salt Lake City to Pro- vo, adding to its runs between Salt Lake and Ogden. The TRAX light rail has been in op- eration since 1999. Both the TRAX light rail and the Front- runner commuter rail lines have been a phe- nomenal success and have played a major part in defining downtown Salt Lake City as the place where — as the Salt Lake Tribune reports — “people want to be.” A major at- traction in Salt Lake is City Creek, a devel- opment that is one of Utah’s biggest ever re- al estate projects. Babs DeLay, a real estate agent who specializes in downtown sales, tells the Trib that “The condos have provid- ed more people on the streets who go out to dinner and ride TRAX. Some of them have ventured out to local businesses and are be- ginning to support local merchants outside of the mall.” Truly an example how rail has participated in reviving downtowns of urban America.
The Book Shelf
Amtrak has been treated as a political foot- ball since its very inception. Now the prover- bial push is coming to shove. Frank Wilner, a longtime railroad guru regarding the ins and outs of the politics, economics, and soci- etal effects of the industry, has given us a book that explores the history, issues, trials and tribulations in a new book Amtrak: Past, Present, Future. This encyclical volume tells the reader anything and everything there is to know about America’s inter-city passenger rail- road, why it is a political stepchild in Wash- ington, and how it has survived in part be- cause of public demand that the United States of America not become the world’s on-
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