This Week at Amtrak; May 19, 2008

A weekly digest of events, opinions, and forecasts from
United Rail Passenger Alliance, Inc.
1526 University Boulevard, West, PMB 203
Jacksonville, Florida 32217-2006 USA
Telephone 904-636-7739, Electronic Mail info@unitedrail.org
http://www.unitedrail.org



Volume 5, Number 16



Founded over three decades ago in 1976, URPA is a nationally known policy institute that focuses on solutions and plans for passenger rail systems in North America. Headquartered in Jacksonville, Florida, URPA has professional associates in Minnesota, California, Arizona, New Mexico, the District of Columbia, Texas, and New York. For more detailed information, along with a variety of position papers and other documents, visit the URPA web site at http://www.unitedrail.org.


URPA is not a membership organization, and does not accept funding from any outside sources.


1) Here’s a followup to the saga of commuter rail in Central Florida, as reported in the previous This Week at Amtrak.

After-action news reports and analysis brought to light several interesting aspects indicating the fight for commuter rail is far, far from over. The contract between CSX Transportation and the State of Florida to get the deal done is still more than a year away, a lifetime in politics.

CSX wrote a letter to Florida Governor Charlie Crist indicating it had no intention of killing the deal, and reassured the governor some of the plans will continue to fruition, including creating a new intermodal center in Winter Haven, as originally planned in the commuter rail deal. This will be a huge economic boom to largely rural Polk County, the home of Winter Haven, bringing lots of jobs and related money flowing into the county, and will help boost real estate prices for commercial land.

In the end, whether or not commuter rail does come to Central Florida on 61 miles of the old Atlantic Coast Line mainline through downtown Orlando, there will be increased rail traffic through another part of Central Florida which hosts the old Seaboard Air Line mainline through Ocala. Work is continuing on upgrading both lines for increased traffic.

What won’t happen if the commuter rail deal isn’t done, is complementary infrastructure upgrades along both lines, including overpasses at major roads on the old SAL line to help alleviate automobile and truck traffic congestion. The railroad will continue to have the right of way, and traffic will be stopping more often for more freight trains.

Also, the worried shopkeepers of downtown Lakeland, who fear the increased train traffic from the present 16 trains a day will damage their image and desirability as a shopping destination, will have no course of relief for any type of traffic congestion or other infrastructure improvements. While a study has begun on moving the rail line from outside of downtown, there will be no funding to do this if the commuter rail plan dies.

The reality is, CSX will continue to upgrade its rail network for the benefit of all Floridians to continue to bring goods into the state, and export other native goods such as through the Tropicana orange juice train, but the accompanying benefits of commuter rail may not be there to round out the package.

Republican State Senator Paula Dockery of Lakeland, who led the charge against Central Florida commuter rail (and, as pointed out in the last issue of TWA, is also the wife of the former creator of the thankfully-gone state constitutional amendment to high speed rail in Florida) gave a major interview to Florida media bragging she was able to kill the deal through the powerful trial lawyers lobby in Florida. It is often said in Florida there are three political parties operating in the state capitol building: the Republicans, the Democrats, and the Trial Lawyers.

Senator Dockery took great pride in convincing the trial lawyers to throw their considerable weight against commuter rail because the trial lawyers felt they had a better chance to win court cases against CSX in case of an accident than against the State of Florida. What everyone ignored is a federal law which allows for a total of $200 million in damages against any defendant in any passenger train accident, whether it’s CSX or the State of Florida, or however many plaintiffs there may be in a case.

2) Railway labor weighed in with TWA, too, on the issue. This letter was received via e-mail upon publication of the previous TWA.

[Begin quote]

Mr. J. Bruce Richardson
President
United Rail Passenger Alliance
1526 University Boulevard, West, PMB 203
Jacksonville, Florida 32217-2006

Dear Mr. Richardson:

We feel compounded to respond to your recent weekly digest "This Week at Amtrak" in regards to our position on Commuter Rail in Central Florida. The National Association of Retired & Veteran Railway Employees, Inc (NARVRE) was first organized on September 6, 1937 upon passage of the Railroad Retirement Act. It is our sole responsibility to protect all railroad workers and retirees across the country who are covered under the Act. Some 38,000 Floridians are either retired or are working on the states railroads. Your comments indicated our position was to benefit a few which is farthest from the truth. I won't get into the liability issue or the taxpayers picking up the tab for a private corporation although your organization should be supporting current employees who are professional railroaders and know how to run trains.

Many of our retirees are engineers, trainmen, machinists, clerks, signalmen, carmen and management as well. Our business is railroading and we support current employees on all the nation's railroads not just the CSX. Any organization wants to protect its members and they should. There are no guarantees that any newly minted commuter operator will want to be covered under the Railroad Retirement Act. That is our business and we will fight to maintain the status quo. Yes, Florida is an open-shop state as you mentioned or as one might call it "a right-to-work" for less state.

The supporters of Commuter Rail in Central Florida should take a book out of what we are doing here in Minnesota with the start up next year (2009) of the Northstar Commuter Rail from Big Lake, Minnesota to Minneapolis, Minnesota run by employees of Burlington Northern Santa Fe (BNSF) and run over BNSF tracks. You might pass this on to officials at CSX. Once again, railroaders doing what railroaders do – operate trains. This is the first of more projects to come down the road both in light rail and commuter rail.

Thank you for hearing another viewpoint.

Respectively,


Thomas J. Dwyer
National Legislative Director
National Association of Retired & Veteran Railway Employees, Inc. (NARVRE)
11304 Norway Street Northwest
Coon Rapids, Minnesota 55448-3269
(763) 757-1501 Fax: (763) 767-5794
Email: Tdwyertcu@aol.com

cc: A.W. Westphal, National President
G.A. Wisdom, National Vice President
M. David, National Secretary-Treasurer

[End quote]

For the record, CSX has 6,500 active employees in Florida (4,000 alone in Jacksonville, the CSX corporate headquarters and major dispatching center), operates 1,650 miles of track in the state, and in 2004, spent $22 million keeping track and infrastructure in good shape.

Here are comments from two URPA professional associates in Washington on Mr. Dwyer’s letter.

[Begin quote]

No surprise. It's a rerun of the Tri-Rail (and a few other) fights when new entities are organized to avoid coverage by the Railway Labor Act and Railroad Retirement Act (as well as FELA and railroad unemployment insurance). When RLA, etc., coverage is achieved, one gets the LIRR/NJT/SEPTA strike experience as a bonus (although those state entities are covered because of their ancestral rail carriers). I guess the passengers and the taxpayers paying the bill are never "the few" (to be Churchillian) compared to rail employees, huh? Especially hypocritical, coming from retirees, many of whom worked for long-dead railroads, and who have kept their benefits due to the efforts and huge payroll payments of the survivors, whereas non-railroad retirees in the same pre-ERISA era would have been – and have been – left high and dry. The fact that some commuter operations are contracted to statutory rail carriers (e.g., Chicago) has no bearing on the
legal status (or structure) of start-ups.

Light rail, as part of transit systems, is never part of the RLA, etc., picture (e.g., the transit part of SEPTA). A statutory "rail carrier" has to use the interstate rail network – PATH being the exception, again, because of its ancestral rail carrier.

[End quote]

[Begin quote]

The retirees would have cause for complaint if the State of Florida were creating a full-service freight and passenger carrier out of whole cloth, but that's not what's happening here. If the State were proposing to string trolley wire on the former ACL and call it "light rail" we wouldn't even be having this discussion.

As for the indemnification provisions, it merely puts the commuter railroad and the highway on approximately the same footing. In the event of a crash, there would be no "deep pocket" private entity off in the wings as a target for litigation. In many cases – like the Minneapolis Interstate 35W bridge collapse – the state's sovereign immunity applies. Contrast that to the lengthy and costly litigation surrounding the Norfolk Southern Railroad freight train wreck at Graniteville, South Carolina. According to an article I pulled up, in the case of I 35W, the state's exposure was capped at $1 million. Why? Simply because it can, as a sovereign entity. If Minnesota can limit itself to $1 million, despite dozens of casualties, capping passenger rail at $200 million per incident is very generous.

As a practical matter, local freight service allowed under the contract does not let CSX "off the hook" all that much. There's just not really that much exposure. The indemnification hubbub appears to this writer to be a colossal red herring, to obfuscate other, less public-minded agendas being played out behind the scenes.

[End quote]

It should also be noted many people understand the need for unions in railroads; railroading is a dangerous business, and union work rules bring a semblance of continuity and order that often overrides hasty or unwise decisions by low level managers, among other things.

However, rational people also realize simple ownership of a union card and the payment of dues every paycheck to a central organization does not guarantee someone is either a superior employee or the best trained employee. It’s possible to be both of those things without having to pay dues to someone else.

3) Paul Weyrich, former Amtrak Board of Directors distinguished member and Chairman and CEO of Washington’s Free Congress Foundation had this to say recently in his daily commentary.

Free Congress Foundation Commentary

Exciting Times Ahead for Transportation

By Paul M. Weyrich

May 14, 2008

Last week I had the opportunity to participate in a conference on rebuilding America’s infrastructure. It was held at the Woodrow Wilson Center in the heart of the Nation’s Capital. It is the 200th anniversary of the Gallatin Plan, initiated by President Thomas Jefferson, which planned canals and post roads. And it is the 100th anniversary of President Theodore Roosevelt’s conference with all of the Nation’s Governors to discuss infrastructure. That began the National Governors Conference.

This conference was initiated by Congressman Earl Blumenauer (D-OR). He is known as the leading Congressional proponent of light rail and streetcars. In addition to Blumenauer, Congressmen Tom Petri (R-WI) and Chris Shays (R-CO) also spoke at the conference. Senator James Inhofe (R-OK), one of the most principled conservatives in the Congress, is fond of saying that the only two activities sanctioned by the Constitution are to provide for the common defense and to build infrastructure.

I served on the panel which dealt with transportation. All of the panelists agreed that we need a vision to explain to the American people what needs to be done. The major disagreement among the panelists occurred as to whether the existing mechanisms we have to fund transportation projects are adequate or do we need to start over. The Surface Transportation Policy and Revenue Study Commission, upon which I have served for the past two years, recommended that we do not merely re-authorize the highway and transit program which expires next year but rather that we have a fundamentally different way of authorizing projects. It is an utter disgrace that it takes more than a decade and a half between the time that a project is proposed and it is funded. Cost escalation alone eats up most if not all of the federal contribution.

Finally, the Federal Transit Administration (FTA) is permitting Salt Lake City to build two different light-rail branches simultaneously rather than fully completing one project before the next line is built. Now Houston would like the same consideration for several light-rail lines which have been approved by the voters.

Some of the panelists thought that the existing system only needed to be perfected whereas some of us contend that we just need to start over. One question arose – to wit, do we need another commission to deal with infrastructure matters beyond transportation? I have no objection to that idea but what I really would like to see is a transportation czar who could implement our recommendations.

I am grateful to Blumenauer for taking this initiative. We had an excellent audience which asked extraordinarily good questions. One of the participants was John Norquist, President of the Congress for the New Urbanism. He likes to tell people that his organization and the Free Congress Foundation (both of which have Congress in the title) are the only two organizations which favor both mass transit and school choice. He and Blumenauer were guests on the Right Hour, my radio show on the Right Talk Radio Network, Both were optimistic that Congress would face up to the need to deal with infrastructure. One issue which has proved very controversial is the sale or lease of highways and bridges to private investors. Our Commission came out four-squarely against the sale or lease of our infrastructure to foreign governments and foreign investors. Some politicians who have supported these public private partnerships are now in trouble. Americans simply do not want to see private interests, especially foreign interests, controlling our infrastructure. Granted money is tight and it is tempting to raise easy money that way but people who have paid for these roads with tax dollars do not like the idea of leasing or selling them.

Next year is going to be a critical year for roads and rails. This conference offers a preview. Exciting times are ahead of us.

[End quote]

4) Other doings in Washington include the introduction of two bills in the House of Representative for the reauthorization of Amtrak and the creation of high speed rail.

Billions of dollars are proposed to be spent. We will have more on that in the next issue of TWA.

In the meantime, Norfolk Southern and Pan Am Railways have issued this press release.

[Begin quote]

May 15, 2008

Pan Am Railways and Norfolk Southern Create the Patriot Corridor to Improve Rail Service and Expand Capacity in New York and New England

NORTH BILLERICA, MASS., NORFOLK, VA. – Pan Am Railways (PAR) and Norfolk Southern Railway Company (NS) have agreed to create an improved rail route between Albany, N.Y., and the greater Boston, Mass., area called the “Patriot Corridor.” Investments in the Patriot Corridor are expected to improve track quality and customer service, boost train speed and reliability, and increase capacity on the route. PAR and NS each will have a 50 percent interest in the newly formed railroad company, called “Pan Am Southern.”

PAR has agreed to transfer to the joint venture its 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass., along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS has agreed to transfer cash and other property valued at $140 million to the joint venture, $87.5 million of which is expected to be invested within a three-year period in capital improvements on the Patriot Corridor, such as terminal expansions, track and signal upgrades. The companies also anticipate the construction of new intermodal and automotive terminals in the Albany area. PAR’s Springfield Terminal Railway subsidiary has agreed to provide all railroad services for the joint venture.

“We are excited to partner with Norfolk Southern on the Patriot Corridor. Since the Conrail transaction was implemented in 1999, both Pan Am Railways and Norfolk Southern have been working to bring additional high quality rail transportation options to our New England customer base. This joint venture is the culmination of those efforts,” said David Fink, Pan Am Railways’ president. “With energy prices continuing to rise, the Patriot Corridor will give our customers additional capacity and speed to get their products to market.”

“Norfolk Southern has been working with Pan Am Railways to improve rail service and increase transportation options between the Norfolk Southern system and the Boston area,” said Wick Moorman, Norfolk Southern’s chief executive officer. “The Patriot Corridor creates a new level of rail competition in upstate New York and New England by improving train speed, reliability, and capacity, as well as strengthening connections between the region’s short line and regional railroads and Norfolk Southern’s 22-state network.”

The parties will seek approval for the transaction with the U.S. Surface Transportation Board. Additional materials describing the transaction will be posted on Norfolk Southern’s Web site, www.nscorp.com, and will be furnished to the SEC as part of a Current Report on Form 8-K.

Norfolk Southern is currently improving the Heartland Corridor, a high-capacity rail route linking the Port of Virginia (Norfolk), Columbus, Ohio, and Chicago, and has announced the Crescent Corridor, an initiative to divert freight traffic from highways to rail between New Orleans, Memphis, and the Northeast.

Pan Am Railways is the Northeast’s largest regional railroad. It operates over 2,000 route miles in Maine, New Hampshire, Massachusetts, Vermont, Connecticut, New York and Atlantic Canada. Pan Am Railways interchanges traffic with fifteen railroads throughout its network.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serving every major container port in the eastern United States and providing superior connections to western rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is North America’s largest rail carrier of metals and automotive products.

Any statements contained in this news release which are not related to historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (noted in Norfolk Southern’s filings with the SEC) which could cause actual results to differ.

[End quote]

Gosh, while politicians in Washington are trying to figure out how to spend billions of dollars on Amtrak – which constantly refuses to help itself by developing a realistic business plan or working to internally improve its business – the big boys in the private world are moving ahead and finding ways to work together and improve their businesses and make more money.

It really isn’t too amazing what can be accomplished in the private sector when adequate stimulus is available, and executives and managers aren’t hampered by the knowledge someone with the key to the federal treasury will come along shortly to bail them out as a result of their bad decisions.

5) Finally, it’s that time of year again for Amtrak’s annual photo contest. Here is a commentary from the Empire Commuter Group, which consists of daily riders between New York City and the Hudson River far suburban towns.

[Begin quote]

All Empire Commuters should participate in this one! Just remember to avoid "tracks, moving trains, yards, railroad structures (such as bridges, trestles, towers and wires) and the railroad right-of-way." Not to mention cars with leaking plumbing in the restrooms, loose sharp-edged metal fixtures, exposed wiring, leaking air conditioner condensers or mold in the walls.

WEBWIRE – Wednesday, May 14, 2008"Picture Our Train" Calendar Contest Begins

WASHINGTON - Calling all shutterbugs! Amtrak’s fifth annual "Picture Our Train" photo contest is underway. Amtrak employees and rail fans are invited to submit their best photograph of an Amtrak train, with the winning image to be featured on Amtrak’s 2009 wall calendar.

Amtrak encourages passengers and train enthusiasts to enter their best shot of Amtrak equipment for the chance to receive a $1,000 travel voucher and a photo credit on the calendar. The four runners-up will receive travel vouchers ranging from $100 to $500.

The calendar contest runs now through July 11. A panel of judges will review each entry and select the best original color photograph featuring a train with the current Amtrak logo and livery visible, or trains displaying Amtrak Acela, Amtrak Cascades, Amtrak California and Amtrak Pacific Surfliner paint scheme. Contestants must submit an 8x10 original photo suitable for enlargement up to 25 inches.

To enter, please mail photograph to: Amtrak Wall Calendar Contest, 60 Massachusetts Ave. NE, Suite 4E-315, Washington, DC, 20002. Digital photos will be considered, provided the resolution permits enlargement to poster size. All entries must be postmarked no later than July 11. For complete contest rules, visit www.amtrak.com/photocontest.

Safety First

Contestants are reminded to stay away from tracks, moving trains, yards, railroad structures (such as bridges, trestles, towers and wires) and the railroad right-of-way. Photographers must not trespass on railroad property or on private property adjacent to the railroad. Stay in public access areas such as stations, sidewalks or parking lots. All participants agree to assume the risk of harm and release Amtrak from all liability for personal injury and loss of property. Photographers are reminded that railroad tracks, trestles, yards and equipment are private property and that trespassers are subject to arrest and fines. Some stations served by Amtrak trains require advance permission for photography. Always obey all local rules and laws.

#end

David Solomonoff

[End quote]


If you are reading someone else’s copy of This Week at Amtrak, you can receive your own free copy each week by sending your e-mail address to


freetwa@unitedrail.org


You MUST include your name, preferred e-mail address, and city and state where you live. If you have filters or firewalls placed on your Internet connection, set your e-mail to receive incoming mail from twa@unitedrail.org; we are unable to go through any individual approvals processes for individuals. This mailing list is kept strictly confidential and is not shared or used for any purposes other than the distribution of This Week at Amtrak or related URPA materials.


All other correspondence, including requests to unsubscribe, should be addressed to


brucerichardson@unitedrail.org


URPA leadership members are available for speaking engagements.


J. Bruce Richardson
President
United Rail Passenger Alliance, Inc.
1526 University Boulevard, West, PMB 203
Jacksonville, Florida 32217-2006 USA
Telephone 904-636-7739
brucerichardson@unitedrail.org
http://www.unitedrail.org