John Mica's Plan to Kill Amtrak

[FayeforCure]

It's clear as daylight! By selling the profitable portion of Amtrak, the remainder of Amtrak will suffocate!!

Last week, House Transportation Committee Chairman John Mica (R-FL) announced that he will initiate legislation within the next two weeks that would put part of Amtrak on the auctioning block for private investors to claim. The motivation behind this proposal is to save taxpayers money by getting Amtrak’s red ink off of the government’s books. Mica’s idea is hardly new, and details about the effects of privatization can be found in a 1998 Federal Railroad Administration report (pdf) that was produced at the request of a previous Republican Congress. The report’s conclusions reveal something important that is rarely acknowledged about plans such as Mica’s: They do not so much call for Amtrak privatization as they do for Amtrak elimination.

Amtrak’s fundamental mission is to “operate a national rail passenger transportation system which ties together existing and emergent regional rail passenger service and other intermodal passenger service,” according to the 1971 Rail Passenger Service Act. The rationale behind this objective is that intercity rail transit offers profound social benefits to the American public. It reduces air pollution and carbon emissions; relieves highway congestion; and potentially cuts down on suburban dwellers’ work commutes, thus increasing the amount of time they can spend engaged in more worthwhile activities such as exercising or enjoying the company of their families.

Yet Mica’s plan effectively would eliminate the national system of rail transit that presently exists. His plan involves soliciting bids from private companies to purchase Amtrak’s infrastructure in the Northeast corridor and operate intercity passenger rail service within the region. As for the rest of the country, one of two things would happen:

If operations were put up to bid as in the Northeast, then the private companies who assumed control likely would cut back on schedule and destination choices in an attempt to turn a profit. In other areas, rail might cease entirely due to a lack of bidders. For travelers, particularly those moving across multiple regions, this would result in “inconsistent reservation services, uncoordinated service times, and unnecessary gaps in service,” according to the FRA report. Alternatively, the government could maintain control of passenger rail operations outside the Northeast corridor. That would require the continuation of federal rail subsidies, which is exactly what Republicans are trying to avoid.

Of course, Mica has not been bold enough to talk about what would happen to transit in the rest of the country, saying merely, “I believe that we have great potential in the Northeast corridor.” But if Mica wants to invest in improved service on the profitable Northeast Corridor by cutting subsidies to the rest of the system, there are simpler and more transparent ways to achieve that than selling it.

http://thinkprogress.org/yglesias/2011/05/31/232244/ne-corridor-privatization-neither-necessary-nor-sufficient-to-fix-amtraks-finances/

[thelakelander]

http://jacksonville.com/opinion/blog/403455/larry-hannan/2011-06-15/corrine-brown-and-john-mica-split-over-plan-privatize

[FayeforCure]

http://jacksonville.com/opinion/blog/403455/larry-hannan/2011-06-15/corrine-brown-and-john-mica-split-over-plan-privatize

“While Congressman Mica refuses to focus on critical infrastructure issues, he is bent on destroying Amtrak," Brown said. At the very time that we should be working together to solve the problems plaguing this nation's transportation infrastructure, Chairman Mica is introducing divisive legislation that is dead on arrival in the Senate.”

Mica has been a long-time critic of Amtrak, referring to is a a Soviet style train system that is funded by the government.

Brown said she opposes "cherry picking" the best Amtrak routes and privatizing them.

"We need the operators of public transportation to be worried about the passengers they serve," Brown said. "Not about wealthy company stockholders."

Sucking the profitable routes out of Amtrak and leaving the rest to die!

It's another government give-away to corporatism. Corporate welfare at its finest. Selling our best public assets.

[Ocklawaha]

Mica has been a long-time critic of Amtrak, referring to is a a Soviet style train system that is funded by the government.

Brown said she opposes "cherry picking" the best Amtrak routes and privatizing them.

"We need the operators of public transportation to be worried about the passengers they serve," Brown said. "Not about wealthy company stockholders."

Sucking the profitable routes out of Amtrak and leaving the rest to die!

It's another government give-away to corporatism. Corporate welfare at its finest. Selling our best public assets.

There is not an Amtrak route in the country that "makes money/"


"Myth: Long-distance trains are the problem.

* This is perhaps one of the biggest myths. If you eliminate every long-distance train, your avoidable costs would decrease about $70 million a year-after about a year and a half of making labor protection costs. On a fully allocated basis, after five years, you might save annually about $300 million. Focusing on this problem is not going to save Amtrak. This approach is a red herring.


Myth: The Northeast Corridor (NEC) is profitable.

* The NEC may cover most of its above-the-rail costs, but it is an extremely costly piece of railroad to maintain. The NEC is not profitable and never will be. Sure, private groups might be interested in having it, but they would take it only with the promise of massive capital infusions."


OCKLAWAHA

[jcjohnpaint]

When are these politicians going to learn that Socialism and responsible Capitalism is not the same thing. 

[FayeforCure]

When are these politicians going to learn that Socialism and responsible Capitalism is not the same thing. 

Exactly! In responsible capitalism there is room for Public Goods that get properly funded and not starved the way Amtrak has been for decades.

[Ocklawaha]

It has most definately been starved to the brink of extinction. If John thinks some private business will jump on taking over the long distance trains, he's in Fantasyland.

If only they would THINK and offer some tax incentives that would make the railroads crazy for not operating them themselves.  They did that a few years ago with boxcars and suddenly every shortline in the country was bought up with huge boxcar fleets operating. For example the Northwest Oklahoma Railroad is about 1.1 miles long today, but it owns 1,200 freight cars.  Remember the railroads are paying eachother rent for the use of another railroad's cars.

The railroads if given some gaurintees and dollars, would quickly move Amtrak to history's scrap heap.


OCKLAWAHA

[FayeforCure]

I take umbrage with your last sentence Ock. Instead of getting rid of Amtrak............why not work to make Amtrak more functional with a dedicated funding source and under the able leadership of current CEO Boardman ( a fellow Republican)?

Here is the hilarious breakdown of Mica's soooooo predictable verbage:

RAILWAY AGE COMMENTARY: Mica/Shuster bill: Reagan-Gingrich-Bush rehash?   
Thursday, June 16, 2011 


By William C. Vantuono, Editor

It seems as though every few years, somebody in the White House or Congress tries to kill or dismantle Amtrak. In the 1980s it was Ronald Reagan and White House Budget Director David Stockman. In the 1990s it was the Newt Gingrich-led Republican Revolution, which prompted Amtrak itself (under the leadership of the late, beleaguered George Warrington) to attempt a “Glide Path to Self Sufficiency.” In the past decade, it was George W. Bush and Transportation Secretary Norman Mineta pushing an ill-conceived privatization plan. In each case, the attempted destruct sequence fizzled out.
 
On June 15, we were introduced to the latest “Let’s Pull Amtrak Apart, Pulverize All the Pieces In a Blender, Dump It Out, and Get People Who Have No Idea What They’re Doing or Talking About Attempt to Mold Something Back Together” bill. This is the “Competition for Intercity Passenger Rail in America Act,” concocted by Rep. John L. Mica (R-Fla.), Chairman of the House Transportation and Infrastructure Committee, and Rep. Bill Shuster (R-Pa.), Chairman of the Railroads, Pipelines, and Hazardous Materials Subcommittee. This bill, according to the second-coming-of-Christ press release heralding its introduction, is “a dramatic new direction that focuses on bringing competition to high-speed and intercity passenger rail service across the country [that] incorporates competitive bidding and private sector involvement to bring high-speed rail to the Northeast Corridor and improve intercity passenger rail service nationwi
Wow. I’m impressed.

Not.

What’s the point of all this private-sector mumbo-jumbo? This complex, 44-page bill that Congressional staffers are being paid with your and my tax dollars to spend countless hours writing? This piece of proposed legislation that will most likely be tossed in the circular file and forgotten until, a few years from now, somebody resurrects, swallows, and regurgitates in another form? Well, there really isn’t any point.

Why dismantle Amtrak? Why create something extremely complex out of something that, though certainly not ideal, is straightforward and has worked pretty well for 40 years? Something that was created for basically one purposeâ€"to relieve our freight railroads from their obligation to operate important yet unprofitable passenger services? Why are some folks hell-bent on pushing this stuff?

Oh man, have the cowpiesâ€"excuse me, political rhetoricâ€"hit the fan! Some of the language is comical. Some of it is a confusing cacophony. Some of it is shrill. Most of it is useless, because if history is any indication, such legislative schemes are not going to do anything except misinform and confuse the public, needlessly worry Amtrak’s hard-working employees and distract them from doing their jobs, and force Amtrak’s management to spend countless hours defending the railroad, instead of running it. It’s  like swatting at mosquitoes. You know they’re there and you know they can’t kill you, but nevertheless you’ve got to keeping expending energy that could be used doing other, more useful things than swatting at them because a) they’re an annoyance and b) they’re never really going to go away.

You want rhetoric? Here it is, folks (with my observations, in parentheses, added):

From Mica: “After 40 years of costly and wasteful Soviet-style operations (he’s been using this description for years) under Amtrak, this proposal encourages private sector competition, investment, and operations in U.S. passenger rail service. Competition in high-speed and intercity passenger rail will cut taxpayer subsidies (no, it won’t), improve service (maybe), and bring our nation into the 21st century of passenger rail transportation. Our plan will create jobs (don’t they all?) by finally bringing real high-speed rail (define that, please) to the one region of the country where it makes the most senseâ€"the Northeast Corridor (you mean it won’t work anywhere elseâ€"even in your home state of Florida, where you were royally ticked off at your fellow Republican, Gov. Rick Scott, who deep-sixed a viable HSR project so the USDOT could give the money to the Soviets?)â€"and do so in a dramatically shorter time than Amtrak’s 30-year plan, at a fraction of their proposed $117 billion cost (I don’t think so). Amtrak has repeatedly bungled development and operations in the Northeast Corridor (excuse me, but isn’t Amtrak’s market share between New York and Washington close to 70%, and between New York and Boston close to 50%?), and their new long-term, expensive plan to try to improve the corridor is simply unacceptable (didn’t you ask them for a plan?). The nation cannot afford to continue throwing money away on this highly subsidized, ineffective disaster (see market-share observation).

“It is time for a new direction (which way? Sideways?). Around the world, other nations and the private sector have successfully competed to develop high-speed and passenger rail service (not without a steady, reliable stream of hundreds of billions in government funding). There is no reason we cannot do the same in our most densely populated and congested region (see previous observation). By giving the private sector the opportunity (not without huge government investment first) to bring its resources and expertise to the table, we can lower costs, increase efficiency, and improve high-speed and intercity passenger rail service across the country.”


“The Mica/Shuster proposal will also give states greater control and authority over their intercity passenger rail services (did you ask them if they want it?) currently operated by Amtrak. Ridership on state-supported routes has increased significantly over the last 15 years (didn’t you just say they’re “operated by Amtrak?”), and incentivizing private sector competition for rail services on these routes will ensure states and taxpayers get the best possible deal (guess they’ll have to pay more) and the best possible service (please elaborate on what and how). The initiative will also open up other Amtrak long-distance money-losing (this implies they should be profitableâ€"wrong!) routes to competition (did you ask the freight railroads if they want this? They really don’t), allowing the private sector the opportunity to bid on any intercity route and potentially improve service.

From Shuster: “It is time to deregulate America’s passenger rail system, and give intercity passenger rail the same opportunity for success that the freight rail and commercial truck industry have benefited from (there is little or no basis for comparison hereâ€"apples vs. oranges). We must look for more effective and innovative approaches to providing modern and efficient passenger rail service by focusing on projects that make sense, leveraging private sector investment, increasing competition, and opening the door to public-private partnerships (wouldn’t it be easier and simpler to provide Amtrak with a regular, stable source of capital, like an extra penny on the federal gas tax? Oh, I’m SO sorry I suggested the dreaded T Word!).

“Both around the world and right here in the United States we have seen that competition works. When Virgin Rail began operating the West Coast Line in Britain, the company doubled the corridor’s ridership in six years and turned a profit (after massive government investment in the right-of-way, but Richard Branson will love you anyway).  Success and cost savings like this can happen here if we end the Amtrak monopoly on intercity passenger rail and open it to competition (again, did you ask the freight railroads about this?). (Drumroll, maestro!) Done right, what in the past has been a liability can become an asset, generating jobs, economic development, and value for hardworking taxpayers (trumpet fanfare, please!).”

So, what exactly are our good Congressmen proposing?

The Mica/Shuster initiative will end the Amtrak monopoly (actually, most NEC trains are commuter trains operated by transit agencies). It separates the NEC from Amtrak, spinning it off as a separate business unit (this has been tried before); transfers the title for the NEC to USDOT, including all assets, property, and trains; USDOT enters into 99-year lease with a Northeast Corridor Executive Committee; Executive Committee manages NEC infrastructure and operations (this all sounds way too complicated).

Next, we “bring private sector expertise and financing to the table.” The legislation “requires a competitive bidding process for development of high-speed rail on the NEC; allows private sector to recommend best PPP framework; and establishes performance standards for competitive bidding process.” The end result? “Real high-speed rail on NECâ€"less than 2 hours between WDC and NYC (nice objective); double total intercity rail traffic on NEC (you’ll need to double the amount of main line tracks to do that, and where are you going to put them?)’; highest level of private sector participation and financing (not without big government dollars); lowest level of federal funding (sorry fellas, but someone is smoking something); full implementation in 10 years or less (you want it when?).

Of course, the legislation does “protect the public interest. The five -member NEC Executive Committee represents federal and state interests, and all current commuter and freight operations on NEC are protected (how reassuring!).” But the really cool thing is we’ll have “NEC high-speed rail in one-third of the time as Amtrak’s proposal, with firm deadlines (care to wager on that claim?). Within 20 months of enactment (why 20?), the NEC will transition from Amtrak monopoly (enough already!) to a PPP.” Now, of course we’re going to “create and protect jobsâ€"new jobs for rail construction and operations, and new jobs associated with development around rail stations.” But let’s not forget all the experienced Amtrak workers who will get pink slips. Not to worry, folks, because there will be “a hiring preference to any displaced Amtrak employees (the unions will have a field day with that one!)”

Moving on to the state-supported intercity trains: “Most state-supported routes run on track owned by freight railroads. The Mica/Shuster proposal encourages private companies to compete on these state-supported intercity routes (again, did you check with the owners? They’re not obligated to do anything. It is their track, after all!). The Mica/Shuster initiative promotes competition by encouraging states to initiate a competitive procurement process for a menu of services (translation: indigestion for freight railroads); incentivizes (indeed it is a word. I looked it up!) competition by redirecting funds from Amtrak to state DOTs (don’t they pay for these trains to begin with?); establishes an expert panel for recommending competitive best practices (oh brother!); allows states to keep money saved through competitive bid process (what would they otherwise do? Give it to someone else?); saves federal taxpayer dollars by requiring a new allocation process in 2020 to reflect cost savings achieved through competition (don’t worry, someone will find another use for it); and protects freight railroad interests [because it] involves host freight railroads through market-driven access negotiations (please clarify, but in any case, you ain’t got a choice, because it ain’t your damn track!).”

Let’s not forget the long distance trains: “This initiative will finally allow for competition to Amtrak’s least successful lines (by whose measure? Yours?) in an effort to reduce federal subsidies (finally, a little honesty!) and improve service. Amtrak’s long-distance routes are subsidized at an incredible $117.84 per passenger on average (well, at least that’s less than what the Defense Department pays for a screwdriver. Isn’t that around $600?). Amtrak’s failing long-distance routes (failing? Try to book a sleeper a week in advance on some trains) need to be opened to competition (freight railroads, are you listening?) to reduce the burden on taxpayers (let’s see, $117.84 divided by 300 million Americans means I’m paying . . . well, my calculator can’t even display a number that small) and improve service for the traveling public (how?). The Mica/Shuster initiative promotes competition by allowing private sector operators to compete with Amtrak to operate long-distance routes (freight railroads, pay attention!); requires winning bids to be selected based upon the lowest possible level of federal support (translation: Uncle Sam doesn’t want to pay one penny); allows private sector operators to make a profit, incentivizing improved service and ridership growth (this won’t happen unless fares are raised to ridiculous levels, in which case the trains will become affordable only to wealthy railfans); mandates that operating subsidies for contracted long-distance services be lower than Amtrak subsidies (who’s gonna bid under those conditions? Not I!); and involves host freight railroads through market-driven access negotiations (see previous paragraph).”

[FayeforCure]

A not so cheerful response from Amtrak and others:

Of course, Amtrak now has to go into pest-control mode. President and CEO Joe Boardman issued the following statement:

“Any plan for transforming the NEC must make transportation the centerpiece of the effort. The NEC is not just a piece of real estateâ€"it is a major transportation artery and a vital component of the regional economy carrying more than 250,000 intercity and commuter passengers every day. The Mica/Shuster proposal takes Amtrak apart only to put something in its place that looks quite similar. I hope to have a serious and constructive discussion about how rail operations in the Northeast should be managed (don’t get your hopes up, Joe. We’re not dealing with railroaders), but it appears this bill will be rushed through committee next week.

“We should have our eyes open to the possibility of innovations that can improve the NEC and Amtrak provides the region the best opportunity to achieve the needed improvements. The NEC is a success under Amtrak stewardship (I agree) and many components of our next-generation high-speed rail vision plan are already moving forward. We’re going to have to take a careful look at the proposal because we don’t want to run the risk of adopting something that won’t work (it won’t, take my word for it), that compromises safety (that’s exactly what happened in Britain), or that simply costs more than we can afford (you mean, ‘{what the federal government feels like paying for,” right?). We have a basic duty to the public to ensure that we’re looking after its interests, and the last thing the Northeast needs is a plan that’s poorly thought through (like this one) and that doesn’t take key issues (please expand on this) into account.”

Well put, Joe Boardman.

So now, let the games begin! The rhetoric from the other side of the aisle is pretty lively, like this fiery comeback from Rep. Nick Rahall (D-W.Va.), Ranking Member on Mica’s T&I Committee:

“Republicans on the T&I Committee unveiled a controversial partisan proposal to privatize Amtrak that will destroy American jobs, imperil passenger rail service nationwide, and increase costs for the federal government, states, commuter rail agencies, freight railroads, small businesses, and American taxpayers. Taking a play out of President Bush’s book, Republicans are dusting off a chronically unpopular proposal that will cripple Main Street by auctioning off Amtrak’s assets to Wall Street (yes, those evil people that sent the American economy into the toilet!). Instead of abolishing Amtrak, Republicans should abandon this ill-conceived ideological assault on passenger rail serviceâ€"just as we did when President Bush first proposed itâ€"and work with Democrats to build true high-speed and intercity passenger rail in America.”

Now them’s fightin’ words!

But wait, even some of Amtrak’s friends have their facts scrambled. Rahall went on to say, “With record ridership today, Amtrak currently turns a profit in the Northeast Corridor (that’s only taking “above the rail” costs into account. Factor in fully allocated costs and every train loses money, not that it really matters). Because of its national scope, Amtrak is able to invest this profit (profit?) to offset less profitable long distance lines (less profitable? Am I missing something here?).

““This plan is a death knell for passenger rail service from coast to coast. Privatizing this profitable (there’s the P Word again) corridor will not merely affect train service in that region; it will have a devastating domino effect from coast to coast, leaving trains stuck at the station across the nation (nice rhyme!). The Auto Train, Capitol Limited, California Zephyr, Cardinal, Coast Starlight, Empire Builder, Palmetto and Silver Service, Texas Eagle, and so many other vital lifelines will no longer serve as engines of economic growth but will be mere relics of a bygone era (nice juxtaposition of two overused clichés).”

Two years ago, the USDOT invited proposals from private companies to develop high-speed rail service in America. Despite not one single proposal being submitted by the private sector for developing high-speed rail in the Northeast Corridor, Republicans are plowing full steam ahead to abolish Amtrak, hand over the conductor’s cap to the USDOT, and auction off Amtrak’s assets to the highest bidder on Wall Street (and we all know Wall Street is just so evil!).

“At a time when Washington should be reining in spending, Republicans are peddling a partisan plan (nice alliteration, Noble Nick!) that puts the American taxpayer on the hook while they desperately seek fantasy funding from an invisible investor (more alliteration. He’s on a roll now! My hat’s off to whoever wrote this). In order to create jobs and remain competitive in the global economy, we ought to be looking at ways to help Amtrak achieve the goal of high-speed rail; not looking at ways to dismantle it. We should be united in cheering on its success; not trying to kick it in the caboose (sorry, cabooses went away many years ago) by selling off its assets to private companies.”

I’ll conclude this piece with a lively statement from Rep. Corrine Brown (D-Fla.), Democratic Ranking Member of the Subcommittee on Railroads: “While (my fellow Floridian) Congressman Mica refuses to focus on critical infrastructure issues, he is bent on destroying Amtrak. We have no surface reauthorization bill and next week will be forced to delay the Federal Aviation Administration bill for the 20th time At the very time that we should be working together to solve the problems plaguing this nation's transportation infrastructure, Chairman Mica is introducing divisive legislation that is dead on arrival in the Senate.”

She’s probably spot-on with the DOA.



   

http://www.railwayage.com/breaking-news/mica-shuster-eye-passenger-rail-competition-3234.html

[Ocklawaha]

Fellow Republican? Hell Faye, I didn't know you were a Republican.

As for Amtrak, I'm all about getting the trains back into railroad hands, and if that means contract operations, fine with me. Try and understand I'm not arguing with you on this point, merely stating that railroads do a much better job of running a railroad then pseudo-political Post office like agencies.

I'm also a realist, and unless some major incentives were cooked into Mica's bill, it's DOA, and frankly it should be. Mica has been around long enough to know that polishing off some dusty old David Stockman proposal is about as useful as tits on a boar. Even if he could get it through the House, he'll NEVER get it through the Senate. If by some miracle he did get it enacted, it would be a complete and total disaster for intercity passenger rail service. Makes you wonder if any of these guys have ever been stuck on Roosevelt in total gridlock, while an Amtrak train sails past at 79 mph? Don't they see that is simply a steel freeway, and better yet, one we don't have to build or maintain? If it doesn't go where we want - when we want, is a funny way to see things if we've never funded more than the 15 lousy national intercity routes beyond a single train daily.

Nope, John completely fumbled the ball on this one and as you and I both predicted, same old shit, different day.

Finally, in my perfect world, we'd offer the railroads some amazing tax or capacity expansion package in return for taking over the Amtrak trains that currently operate over their tracks. There would be an escalating scale of benefits for railroads that ran excellent trains, on time, advertised, and expanded their services. Such a plan would be easy to execute, but these folks all go brain dead with anyone tries to get past the "taking over Amtrak..." part of my statement.

Take all the umbrage you want at my low opinion of Amtrak in general, I don't currently see a better solution to our  rail travel needs, but if they'd only crack that door so railroaders could go to work there would be no contest.
Ever ride in an Amtrak vista-dome car? How about a tavern-lounge-observation car? Maybe an Amtrak sun-lounge?
Skytop parlor car? You haven't because Amtrak has never had the will or the ability to get these specialized car onto the routes where they became famous. Imagine the Abo Canyon of New Mexico without the vista-dome? The Appalachians in a freaking day-coach? really? How about Florida without the benefit of that Tavern-Lounge? Remember Faye, my great uncle actually invented those upper and lower berths, drawing rooms, and bed rooms, so my feelings are pretty deep.

Bottom line, even in the final days of private operation, the railroads operated 2/3Rds more trains on more routes, and the trains themselves were (with a few deliberate exceptions) superb.  The Southern Railway held Amtrak in such contempt that they refused to join until 1979 (8 years after the rest of the industry caved). The Southern continued to operate a spit-shined, stainless steel beauty called the Crescent Limited, between Washington and New Orleans. The only reason they joined Amtrak is that the equipment needed major rebuilding, and all cars had to be converted from steam powered utilities (no kids, they ran off a steam generator on a diesel locomotive) to all electric. With the losses they were absorbing already, and a complete lack of perks to do the job, the only choice was join the lemmings.

Today you can ride the 'Amtrak Crescent' between the same city pairs, but it's not the same, not even close to the same...  Nothing but coaches-diners-sleepers, coaches-diners-sleepers, coaches-diners-sleepers... NADA! The era of the great trains in America might be over, but it's only because not a politician in Washington has an ounce of creative thought on the subject. How I'd love to see them come back, but today streaking through the South Florida llanos on Amtrak I keep reminding myself, "a piece of something is worth more than nothing at all." Amtrak is simply a piece of what was once the grand conveyance.



OCKLAWAHA