[Senate Hearing 114-384]
[From the U.S. Government Publishing Office]
S. Hrg. 114-384
PASSENGER RAIL: OPPORTUNITIES AND CHALLENGES FOR THE NATIONAL NETWORK
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON SURFACE TRANSPORTATION
AND MERCHANT MARINE INFRASTRUCTURE,
SAFETY AND SECURITY
OF THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
__________
FEBRUARY 23, 2016
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida, Ranking
ROY BLUNT, Missouri MARIA CANTWELL, Washington
MARCO RUBIO, Florida CLAIRE McCASKILL, Missouri
KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD MARKEY, Massachusetts
DAN SULLIVAN, Alaska CORY BOOKER, New Jersey
RON JOHNSON, Wisconsin TOM UDALL, New Mexico
DEAN HELLER, Nevada JOE MANCHIN III, West Virginia
CORY GARDNER, Colorado GARY PETERS, Michigan
STEVE DAINES, Montana
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Rebecca Seidel, General Counsel
Jason Van Beek, Deputy General Counsel
Kim Lipsky, Democratic Staff Director
Chris Day, Democratic Deputy Staff Director
Clint Odom, Democratic General Counsel and Policy Director
---------
SUBCOMMITTEE ON SURFACE TRANSPORTATION AND MERCHANT MARINE
INFRASTRUCTURE, SAFETY AND SECURITY
DEB FISCHER, Nebraska, Chairman CORY BOOKER, New Jersey, Ranking
ROGER F. WICKER, Mississippi MARIA CANTWELL, Washington
ROY BLUNT, Missouri CLAIRE McCASKILL, Missouri
KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota
JERRY MORAN, Kansas RICHARD BLUMENTHAL, Connecticut
DAN SULLIVAN, Alaska BRIAN SCHATZ, Hawaii
RON JOHNSON, Wisconsin EDWARD MARKEY, Massachusetts
DEAN HELLER, Nevada TOM UDALL, New Mexico
STEVE DAINES, Montana
C O N T E N T S
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Page
Hearing held on February 23, 2016................................ 1
Statement of Senator Fischer..................................... 1
Statement of Senator Booker...................................... 2
Statement of Senator Wicker...................................... 4
Statement of Senator Peters...................................... 4
Statement of Senator Gardner..................................... 4
Statement of Senator Nelson...................................... 6
Statement of Senator Ayotte...................................... 29
Statement of Senator Klobuchar................................... 31
Statement of Senator Moran....................................... 33
Statement of Senator Blumenthal.................................. 35
Statement of Senator Daines...................................... 36
Witnesses
Knox W. Ross, Secretary-Treasurer, Southern Rail Commission; and
Mayor of Pelahatchie, Mississippi.............................. 7
Prepared statement........................................... 9
Timothy H. Hoeffner, Chair, Midwest Interstate Passenger Rail
Commission; and Director, Office of Rail, Michigan Department
of Transportation.............................................. 11
Prepared statement........................................... 13
Rick Klein, City Manager, La Junta, Colorado..................... 19
Prepared statement........................................... 20
Joseph H. Boardman, President and Chief Executive Officer, Amtrak 22
Prepared statement........................................... 24
Appendix
Response to written questions submitted by Hon. Dean Heller to
Joseph H. Boardman............................................. 45
PASSENGER RAIL: OPPORTUNITIES AND CHALLENGES FOR THE NATIONAL NETWORK
----------
TUESDAY, FEBRUARY 23, 2016
U.S. Senate,
Subcommittee on Surface Transportation and
Merchant Marine Infrastructure, Safety and Security,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Subcommittee met, pursuant to notice, at 9:50 a.m. in
room SR-253, Russell Senate Office Building, Hon. Deb Fischer,
Chairwoman of the Subcommittee, presiding.
Present: Senators Fischer [presiding], Wicker, Ayotte,
Moran, Daines, Gardner, Booker, Klobuchar, Blumenthal, Nelson,
and Peters.
OPENING STATEMENT OF HON. DEB FISCHER,
U.S. SENATOR FROM NEBRASKA
Senator Fischer. Good morning. I am pleased to convene the
Senate Subcommittee on Surface Transportation and Merchant
Marine Infrastructure, Safety and Security for this hearing
entitled ``Passenger Rail: Opportunities and Challenges for the
National Network.''
During today's hearing, members of this subcommittee will
examine passenger rail systems in the United States,
particularly those outside the Northeast Corridor. I want to
thank Senator Wicker for requesting today's hearing on this
important matter.
I am pleased to see that we have a strong panel
representing local and national passenger rail experts from
across the country. In particular, I want to recognize Mr. Joe
Boardman, Amtrak's President and CEO, who will be retiring on
September 30 of this year. Mr. Boardman served as New York's
Commissioner of Transportation, as well as the Federal Railroad
Administrator before becoming the CEO of Amtrak. We appreciate
his service and commitment to advancing freight and passenger
rail policy in this country. Thank you, sir.
Last fall, I had the opportunity to join Mr. Boardman on
the Acela train from Washington to Baltimore. Sitting in the
front locomotive provided an in-depth look at the operations of
our Nation's passenger rail system. I enjoyed the experience,
and it was particularly informative to witness an engineer in
action at a time when Amtrak is seeking to implement Positive
Train Control in the Northeast Corridor.
Although passenger rail is important to the Northeast
Corridor, Amtrak's management of rail networks throughout the
Nation deserves our attention as well.
I appreciate that our freight railroads, such as Union
Pacific and Burlington Northern Santa Fe, generously work with
Amtrak to coordinate and ensure movement of passenger rail
service on their rail infrastructure networks throughout the
country.
My home state of Nebraska hosts the California Zephyr line,
with stops in Hastings, Holdrege, Lincoln, McCook, and Omaha.
This line provides service to Chicago, Denver, Salt Lake City,
and San Francisco. According to Amtrak, in Fiscal Year 2015,
total station usage in Nebraska amounted to over 53,000 people.
Although Amtrak has made progress over the last several
years, there are still some serious challenges facing the
operation of Amtrak's assets and resources. A January 2016
report from the Government Accountability Office found that
Amtrak does not consistently report financial data across its
business lines. This is hindering Amtrak's ability to
demonstrate performance accurately. For example, the report
found that Amtrak's Miami terminal was billed for snow-
shoveling costs incurred elsewhere on Amtrak's system. GAO
noted that this may lead to a misallocation of resources.
Additionally, Amtrak is looking at cutting its operating
costs by nearly 4 percent. Revenue has been lost due to
competition from other modes of transportation, lower gas
prices, and weather-related incidents. As many here know,
Amtrak faced a $307 million operating loss in Fiscal Year 2015.
Without the adequate data and asset management, it is going
to be difficult for Amtrak to address these challenges. I
continue to be a strong proponent of performance-based outcomes
in regulations and organizational management. I hope that
Amtrak will work to implement a performance-based framework,
informed by past data, to address financial and operational
challenges.
I look forward to hearing more from our witnesses as we
discuss how to strengthen our Nation's important passenger rail
network during today's hearing.
Senator Fischer. And now, I would now like to invite my
Ranking Member, Senator Booker, to offer his opening remarks.
STATEMENT OF HON. CORY BOOKER,
U.S. SENATOR FROM NEW JERSEY
Senator Booker. Thank you very much. I am really grateful
for Chairman Fischer for hosting this and for Roger Wicker for
working to make this possible.
This is an important hearing, and the need for a robust
nationwide passenger rail network is critical to our economy.
Like Chairwoman Fischer, I want to take the opportunity to
thank Mr. Joe Boardman for all he has done for Amtrak. Mr.
Boardman announced that he will retire from his position as CEO
in September after nearly 8 years of service. During his
tenure, he has worked tirelessly to improve passenger rail
service in the United States, and I am personally grateful for
his work and contributions.
We saw record-setting growth in Amtrak ridership, improved
relationships with Amtrak's workforce, and unmatched passion
and commitment to ensuring nationwide passenger rail service. I
applaud your commitment to serving in such an important and
demanding role and congratulate you on your retirement. I
imagine you may want to go back to New York, but I think that
New Jersey will have you if you want to go.
Amtrak connects hundreds of U.S. cities and towns and
carries more than 30 million passengers each year. Amtrak
provides a critical transportation option for underserved
populations at a time when other modes are leaving rural areas.
According to the Department of Transportation, an estimated 3.5
million rural residents lost intercity transportation access
between 2005 and 2010 due to the contraction of intercity bus
and air services in rural areas in recent years.
Amtrak is also an economic generator for many communities,
as I understand very intimately living in the Northeast
Corridor. Trains on this line carry 750,000 passengers each day
and move a workforce that contributes $50 billion annual to the
Nation's GDP.
Despite the importance of the corridor, the age and
deteriorating conditions of this infrastructure threatens the
sustainability of Amtrak's operating success and the future of
the Nation's passenger rail network. Nowhere is the crisis more
pressing than in the state of New Jersey where the 105-year-old
Hudson River tunnels, badly damaged by Hurricane Sandy, must
either be replaced or shut down sometime over the next two
decades, which would create an Armageddon of traffic,
congestion, and economic problems. In addition to this, we must
replace the Portal Bridge, a two-track, 100-plus-year-old
bridge that carries 450 trains each day between Newark and New
York Penn Station.
Shutting down the tunnels is a risk we just cannot afford.
That is why I have worked with Governor Christie, Governor
Cuomo, and Senators Schumer and Menendez to jumpstart this
project and establish a new development corporation to oversee
the Gateway Project.
Through this committee's hard work on the FAST Act last
year, we have begun to take on the challenge of bringing the
Northeast Corridor toward a state of good repair and make
important reforms and investments in that national network. And
I really want to thank Senator Wicker for his leadership in
this. He and I came together last year to introduce and pass a
comprehensive passenger rail reauthorization as part of the
FAST Act that balances these needs.
Despite being from very different parts of the country,
even though people look at Senator Wicker and me and think we
are the same person we look so much alike, we both recognize
the importance of rail service to our states and the benefits
of nationwide service. If he shaved his head, we would be
twins. We worked hard to ensure that both the Northeast
Corridor and the national network can prosper, but this
requires funding.
I look forward to hearing from our witnesses and these and
other issues that the Committee should consider as we work to
improve passenger rail service in the United States. Thank you.
STATEMENT OF HON. ROGER F. WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you, Senator Booker, and I appreciate
your remarks. And it was a pleasure and an honor to work with
you on the FAST Act.
Here is the agenda as I would propose it. Senator Peters
will introduce a guest. Senator Gardner will then introduce a
guest. And then Senator Nelson will be recognized for some
opening remarks, and then we will hear from the panel.
Senator Peters?
STATEMENT OF HON. GARY PETERS,
U.S. SENATOR FROM MICHIGAN
Senator Peters. Thank you, Senator Wicker.
I would like to thank Senator Fischer and Senator Booker
for inviting me here today to welcome Mr. Tim Hoeffner, the
Director of the Michigan Department of Transportation Office of
Rail and the Chairman of the Midwest Interstate Passenger Rail
Commission.
Mr. Hoeffner, I want to start, first off, by just thanking
you for more than 35 years of service to the State of Michigan.
I know the State and the Midwest region has benefited
significantly from your wealth of knowledge and experience. And
I am glad you could be here today to share your wisdom and
highlight the important complementary work of current State,
regional, and Federal efforts to advance intercity high-speed
rail.
I was pleased to read in your prepared testimony about the
work of the nine-State Midwest Regional Rail Initiative and
particularly the soon-to-be-completed Chicago-Detroit/Pontiac
Passenger Rail Corridor Program, which will provide FRA with
the information it needs to eventually support a future
decision to fund and implement a major investment of this
route.
Personally, I just cannot wait until the day comes when
Michiganders will be able to travel from Chicago at 110 miles
per hour, which will cut the current five hour andirty-eight
minute trip by nearly two hours and have about 10 daily trips
do that as well. That is going to be an exciting time and will
be transformative for our region when that occurs.
High-speed rail can do wonders, we know, for our local,
State, and regional economic competitiveness, and I for one am
committed to make sure that the Federal Government continues to
make sustained and reliable capital investments in passenger
rail.
Thank you again, Mr. Hoeffner, for your testimony today,
and more importantly, for your tireless and valuable work that
you do for us each and every day.
Senator Wicker. Thank you, Senator Peters.
Senator Gardner?
STATEMENT OF HON. CORY GARDNER,
U.S. SENATOR FROM COLORADO
Senator Gardner. Thank you, Mr. Chairman. And to Senator
Booker I would just point out the great book placement at DIA
in terms of the bookstore with United right there. The picture
of you is much better than Wicker would be on the cover of
that, so I mean, I am just going to say that.
I want to thank Rick Klein and all of the witnesses today
for joining us on this panel to discuss the importance of rail,
passenger rail, high-speed rail, and many other significant
issues before us.
To Rick Klein from Colorado, City Manager for the City of
La Junta, welcome to the Committee, welcome to the Senate, and
it is great to have you here, served as City Manager for more
than 16 years, La Junta City Manager. And of course the alma
mater you and I share together, Colorado State University, the
best school in the State of Colorado.
Rick's leadership in La Junta has shown great gains. If you
look at the job growth in La Junta, it is about 2.6 percent,
which surpasses the national average of job growth in La Junta
compared to the rest of the country. According to the La Junta
Economic Development Office, manufacturers in this small rural
southeastern Colorado town has added about 16 percent to the
workforce in the past 12 months. So we have seen a
manufacturing renaissance revitalization that we need to
continue to work on in La Junta.
But part of that, of course, is the instrumental role that
you have played in the Southwest Chief in southeastern
Colorado. And so we hope those passengers from Chicago will
find their way down from Michigan, Chicago, over to
southeastern Colorado through the southwestern part of the
United States and making sure that we keep the southwest rail
vibrant and vital through southeast Colorado.
Running from Chicago to Los Angeles with three Colorado
stops, the line is essential to keeping those rural communities
on the map. And when a proposal to reroute the line out of
Colorado was brought forward due to rising track repair costs,
small communities in Colorado, Kansas, and New Mexico began
diligently working together, thanks to Rick and his colleagues
from across all three States, to find a solution.
They faced the daunting prospect of $200 million for the
necessary repairs involved, and everyone knew it would be a
very difficult, uphill climb, but the efforts from Rick so far
in the city have been rewarded. Over the past 2 years, more
than $25 million has been awarded to the project by the
Department of Transportation, and I have been proud to work
along with my colleagues from Colorado in the Congressional
Delegation to support those grant efforts.
You know, one of the most compelling parts of Mr. Klein's
testimony today will be the part where he talks about how there
are three stops in Colorado, the Southwest Chief, and yet
communities with no Amtrak stop provided grant-matching dollars
to make sure that this service was still provided. And I think
that is testament to the strength and the vitality of the
region and the need that they recognize a healthy Southwest
Chief.
So thanks, Rick. Welcome to the Committee. And to all of
you, thank you for being here.
Senator Wicker. Thank you very much, Senator Gardner.
Of course, it is my pleasure to introduce a fellow
Mississippian. Knox Ross is an experienced and knowledgeable
public servant who has worked on behalf of our state for a
number of years in a number of capacities. I had the chance to
spend some time with Mayor Ross last week during the inspection
trip evaluating the restoration of passenger rail along the
gulf coast. In a few moments, I am going to ask unanimous
consent to show a short video from this event.
As Secretary-Treasurer of the Southern Rail Commission,
Knox Ross understands the potential for rail to transform an
area. The Southern Rail Commission works to promote public
safety, economic growth, and emergency preparedness along our
rail corridors.
Knox is also the Mayor of Pelahatchie, Mississippi. For
those of you who have not heard of Pelahatchie or been there,
it is near our State capital of Mississippi in Rankin County.
It has a population of roughly 1,400. Pelahatchie is the
birthplace of blues performer Rubin Lacey and is part of the
famous Mississippi Blues Trail. The town also draws thousands
of people every year for its Muscadine Jubilee. During Knox
Ross's 15 years as Mayor, the town has undergone substantial
economic growth and been recognized with numerous State and
regional awards.
In addition to serving as mayor, Knox as more than two
decades of accounting experience. We are going to need that in
this capacity, Mayor Ross, and most of that time spent running
his own firm. He has received a Public Service Award from the
Mississippi Society of CPAs, served as president of the Central
Mississippi Planning and Development District, and served as
president of the Mississippi Municipal League. So we are
grateful to have Knox Ross sharing his expertise with us.
And then also it is a pleasure to introduce Joseph
Boardman, President and Chief Executive Officer of Amtrak. He
served with distinction and we are sorry to see him retire
early this fall. All panel members are familiar with his
credentials, and Senator Fischer has already pointed out a
great deal of them. So we are happy to have all four of these
witnesses.
I am going to now ask Senator Nelson to give us some
opening remarks, and then without objection, we will see the
short video.
STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA
Senator Nelson. I just wanted to point out that Joe
Boardman's public service started in 1966 in the Air Force in
Vietnam, and he has been a public servant ever since at all
levels of government. So we commend you for your service.
The passenger railroad service has obviously played a
critical role, and it should even play a more critical role in
moving people from point A to point B in the future. This
national network of routes, of which many have very low
ridership, has connected rural areas, as well as big cities,
and has been safe and has been efficient in 46 states. Today's
ridership is stronger than it has been with 19 million
passengers using the long-distance and state routes. As we
urbanize, that ought to increase all the more because it
becomes the preferable mode of transportation.
We see that in Florida. For example, one of your most
successful routes is the Auto Train. And some of the old names
that you remember, the Palmetto, the Silver Service, the Orange
Blossom Special, they are legendary.
So I am very happy that the full committee included
Amtrak's 5-year authorization in the broader transportation
surface bill that we passed last year. As part of that law, we
are also taking a close look at the options to restore and
expand service in other parts of the country, including the
gulf coast passenger rail service that was disrupted years ago
by Hurricane Katrina. That is the route that would connect New
Orleans to Tallahassee to Jacksonville and Orlando. Just last
week you had one of those trains travel that route for the
first time since 2005 to assess the rail line and gauge the
interest in restoring passenger traffic.
So thank you, Mr. Boardman. Thank you, Mr. Chairman.
Senator Wicker. Well, thank you, Senator Nelson.
I was on that train ride----
Senator Nelson. Oh, you were?
Senator Wicker.--along with--I went from New Orleans to
Pascagoula, and Corrine Brown began with us and I think she
went all the way to Jacksonville.
Senator Nelson. Well, I tried to get on it, but Amtrak is
so precise on the time. If I flew from Orlando to Pensacola, I
could get to the train station in downtown Pensacola at 9:31,
but the train departed at 9:30. And so that is commendations to
Amtrak.
Mr. Boardman. We would have waited for you, Senator.
Mr. Ross. Well, we left Congresswoman Brown in Pensacola.
[Laughter.]
Senator Wicker. OK. Well, without objection, let us see the
video about this famous train ride. So if our technicians could
do that, then we will hear testimony.
[Video presentation.]
Senator Wicker. Now, let us hear from our distinguished
panel. And we will begin with Mayor Ross.
STATEMENT OF KNOX W. ROSS, SECRETARY-TREASURER,
SOUTHERN RAIL COMMISSION; AND MAYOR
OF PELAHATCHIE, MISSISSIPPI
Mr. Ross. Thank you.
Senator Wicker. Thank you very much, sir.
Mr. Ross. Well, let us see here. Here we go. No, here we
go.
Thank you, Senator. Thank you, Senator Booker. I want to
thank Senator Booker for Wicker-Booker on behalf of the cities
of Mississippi. We appreciate you very much. You have a fine
reputation there because of that.
Senator Booker. Thank you very much.
Mr. Ross. Thank you.
Senator Wicker. Thank you.
Mr. Ross. Thank you for the opportunity to discuss the
state of passenger rail in the South and the work you did to
make this possible through the FAST Act. The provisions you put
in the FAST Act allowed us to do this, allowed us to do the
Gulf Coast Working Group, and we do appreciate that very much.
I represent the Southern Rail Commission. The commission
was formed by your colleagues in 1982 to be your eyes and ears
for passenger rail in Mississippi, Alabama, and Louisiana.
Myself and my fellow commissioners are appointed by our
Governors, and it is our duty to come back and report to you on
what we have found.
The success of our states is tied to a comprehensive
transportation system that serves all our citizens. The
opportunity for our local communities to succeed depends on our
ability as citizens to be able to move. As our commission has
visited communities across the gulf south, we have found that
the transportation options available to our citizens are
becoming more limited and costly, especially outside the
megacities such as Dallas and Atlanta. It is like they say, if
you are going to go to Heaven, you have got to go through
Atlanta.
And this is not limited to our part of the country. We have
it all over the country. You have all over small and medium-
sized cities are losing transportation options, losing flight
service, losing bus service. We talk to mayors in places such
as Tallahassee and Shreveport, and they told us their struggle
is to compete because of limited and expensive air travel and
no alternative options.
Out of this issue came the Gulf Coast Working Group that
you all put together. I want to thank you all for doing that.
We have been asked to determine the best way to reestablish the
passenger service on the coast, and we are working with local
leaders, the leadership of the FRA, and the host railroad CSX.
And we have begun our work and we are well on our way to giving
you a report within the 9-month timeframe.
As you saw, we recently completed the inspection train. I
now know what it feels like to be a rock star with Senator
Wicker. We went from New Orleans to Jacksonville, and I want to
thank Mr. Boardman, the CSX for all the work they did to get
that done.
We saw an amazing outpouring of support in every city, even
in Live Oak, Florida, where they want a stop. They do not have
a stop. They had more people there in that little town than
most of the larger cities. It was amazing. They just want an
opportunity. That is what this was all about. Every city turned
out. They want an opportunity, and that is what they are
looking for. They are looking for handout, they are looking for
a hand up, and they see Amtrak service as that opportunity.
We will continue our work on the gulf coast. We are also
looking at train service on the I-20 corridor from Meridian,
Mississippi, to Fort Worth, Texas, and we are also working on
multi-departure service between New Orleans and Baton Rouge in
Louisiana. And we are gearing toward connecting our small
cities to our larger ones, again, giving these cities the
opportunity to compete.
As we continue our work, the support of the national rail
passenger system is critical. You saw on our video the public
support that is there. And that is why Amtrak was formed, to
support the national rail system. And this support that you saw
along this rail line cannot only be leveraged for support of
the national system, but can be leveraged for support of the
issues you have, the Hudson tunnels, the things that have to be
done on the Northeast Corridor. Those people can encourage
their Senators like Senator Wicker to support you. And they can
be your party. You can use them to leverage issues of national
importance.
We also need you to support an Amtrak board that reflects
our country, that not just the Northeast Corridor but
everywhere, people that understand that all of our system is a
part of a national system that is willing to back your issues
in New Jersey and New York and also our issues in the gulf
south and in the west.
We also need a President of Amtrak that is willing to do
that. Mr. Boardman has stepped forward and has helped us, but
he is soon to leave, as you pointed out. We need your support
in making sure that the next President of Amtrak understands
that there is a national system.
We also appreciate the provisions you put in the FAST Act,
and we ask that you support the appropriation of money to CRISI
and to the restoration and enhancement grants and the other
provisions that can help us get these trains started.
I think all the cities along this route see the economic
development potential of the train. We invested in the national
interstate system years ago and saw tremendous economic
development from that. Now, we are having to put more money
than ever into it with a diminishing return as we add lanes. A
very modest investment in passenger trains across this country
can create large economic development opportunities to all
these cities on a scale of that. And it is very important to
these people. And they just want to compete. They just want to
prosper.
But one thing I hope you saw on that film, that film you
saw, black, white, young, old, Republican, Democratic, this is
a bipartisan issue that we can all back and we all can agree
on. And it is an issue that can bring our country together in a
time that we need to.
And I thank you all so much for your time and your
invitation, and I look forward to working with you to get these
things done.
[The prepared statement of Mr. Ross follows:]
Prepared statement of Hon. Knox W. Ross, Secretary-Treasurer, Southern
Rail Commission and Mayor, City of Pelahatchie, Mississippi
Chairman Fischer, Ranking Member Booker, Senator Wicker and members
of the Surface Transportation and Merchant Marine Infrastructure,
Safety and Security Subcommittee, thank you for the opportunity to
appear before you today to discuss issues important to the Nation's
passenger rail system.
The people of the South also owe this committee a huge thank you
for your efforts to include a great passenger rail title in the FAST
Act for the first time in our history!
I am Knox Ross, the Mayor of the City of Pelahatchie, MS. More
important, I'm here today as an appointed commissioner to the Southern
Rail Commission--a tri--state interstate rail compact established by
the U.S. Congress in 1982 for the states of Alabama, Mississippi and
Louisiana.
I didn't get appointed by the Mississippi Governor to the Southern
Rail Commission so I could get a station for my town; I don't have
service today and I'm not going to get a station. We are 20 miles to
the east of Jackson Union Station and I wholeheartedly support my
colleague Mayor Tony Yarber in his efforts to redevelop that station
and its surrounding area.
I am a commissioner because I understand that the success of our
town is directly tied to the prosperity of the region. And for my
region to prosper, we must have a transportation system that provides
options for residents to connect to opportunity in our region and
beyond. Sadly, because of the loss of essential air service for some
and the imminent threat of loss of service for others, our options are
getting increasingly limited. But that doesn't have to be. Passenger
rail service is an option that help us grow our economy by attracting
and retaining talent, bringing new tourists in to visit, and connecting
our residents to jobs and opportunity.
What I just highlighted is not all too different than the
conditions facing my colleagues in Colorado, Michigan, Missouri,
Wisconsin, Kansas, Montana, Nebraska, Minnesota, West Virginia, and
many other states.
When you created the Southern Rail Commission 30 years ago, you
charged us to be your eyes and ears for the needs of the South. Well,
I'm here to report back that the needs are real in the South and we are
ready for your help.
Last week, thanks to the leadership of Senators Wicker, Cochran,
Nelson, and Representative Corrine Brown, we kicked off the Gulf the
Coast Passenger Rail Working Group to develop the best, most efficient,
most fiscally responsible solution for restoring passenger rail service
to the Gulf Coast--service that was lost more than a decade ago because
of Hurricane Katrina. I want to let you know that, with the leadership
from FRA Administrator Feinberg and her team, and cooperation of
members from the states of Florida, Alabama, Mississippi and Louisiana,
and CSX, we are going to deliver a report in September that I am
confident you will be proud of.
Last week, with the support of our good friend President Boardman
and his amazing team at Amtrak and CSX, we hosted an inspection train
along the Gulf Coast from New Orleans to Jacksonville. I wish you all
could have been on the train with us to see the genuine, patriotic
excitement for passenger rail service on this route in communities all
along the coast--some of which were devastated by Hurricane Katrina and
still fighting hard to bounce back. Each stop had hundreds, if not
thousands of people cheering and asking when they will get to board the
train.
Unfortunately, we still have work to do to secure the funding
through appropriations, but the experience witnessed by our commission,
the mayors, and the governors of these states showed us that failure is
not an option.
The region is set to grow by 10 million people over the coming
years and we need options to connect our people to opportunity,
increase economic prosperity and support our thriving and culturally
rich communities. And we need ways to bring more tourists to our
beautiful coast and spend their money.
We also need to think bigger than just restoring service to the
Gulf.
We are also committed to starting service connecting Baton Rouge to
New Orleans, providing access to the New Orleans airport, and
connecting the two largest cities in the Pelican State with another
travel option to the congested I--10 corridor.
Another corridor that needs a similar option is Interstate 20. We
are also dedicated to connecting the mega regions of Atlanta and
Dallas-Ft Worth through Meridian, Jackson, and Vicksburg, Mississippi,
and Northern Louisiana. I would like to submit for the record a letter
of support sent by 20 mayors and civic leaders in that corridor to the
governors of Alabama, Mississippi, Louisiana, and Texas asking for
their commitment to this project as well.
The Southern Rail Commission is doing your bidding as asked. And
now I'm here to ask for your help so we can make this vision a reality.
First, and most important, we must never lose sight of the
importance of the national passenger railroad system. The passenger
rail title arbitrarily separates the Northeast Corridor's
appropriations from the rest of the country. The Northeast Corridor is
indeed incredibly important, and our commission will work with anyone
in the Northeast to improve this economic engine. However, prioritizing
the Northeast over the rest of the country is not fair to our states
that have subsidized the Northeast system, and sends the wrong signal
to the thousands of southern citizens--young and old--that came out
last week on a work day to support restoring passenger rail service in
the Gulf.
Second, we must ensure that this fact is well understood by the
Amtrak Board of Directors. Joe Boardman is set to retire this fall. Joe
has been a great friend for the national passenger rail system,
including in the South, and we're grateful to him for his dedication
and support. It's vitally important that the Amtrak Board of Directors
find a qualified successor able to continue Joe's efforts. A criterion
must include a deep understanding of and support for all three of
Amtrak's lines of service--state--supported, long--distance, and the
Northeast Corridor.
Third, Amtrak's Board of Directors should be diverse in geographic
representation. The current Board's makeup is heavily weighted to favor
the Northeast. I call upon you to provide the South due representation
on the Board of Directors with the additional position made available
by the FAST Act.
Fourth, our states, local governments, and businesses are ready to
do their part and invest in our passenger rail system. However, we need
your help to ensure the Federal government is a partner in this effort.
This means we need to support dedicated passenger rail funding for
Amtrak, and fund the two discretionary grant programs created by this
Committee in the FAST Act.
The Consolidated Rail Infrastructure and Safety Improvements
program is the most diverse and geographically accessible program we
can fund. This program funds everything from positive train control to
capital construction to planning and research, and it's available to
all states. Congress has not made dedicated passenger rail capital
funding available to our states since 2010. We are past due for
Congress to partner with us to implement the state rail plans that are
required by this legislative body.
The Restoration and Enhancement Grants program is a prudent
investment as well. This program provides operating assistance for up
to six new, reestablished or expanded passenger rail services.
No transportation system in America is self--sustaining. Let us
look no farther than the highway and transit programs to highlight this
fact. Prior to the FAST Act, the Highway Trust Fund needed nearly $75
billion from 2008 to 2015 to stave off insolvency. The FAST Act
transferred another $70 billion from 2016 to 2020.
In 2008, Congress required all services under 750 miles to pay 100
percent of its cost. We don't require this for highways or transit, and
I don't think we should require that for passenger rail either. The
Restoration and Enhancement Grants program provides fiscally
responsible operating assistance: up to 80 percent operating assistance
in year one, 60 percent in year two, and 40 percent in year three. The
service will have to pay 100 percent of its cost in year four, but this
program provides new and reestablished service training wheels per se
to help it build ridership and farebox receipts before its left to its
own devices.
Conclusion
Thank you for the opportunity to testify and answer your questions
today. I need to once again thank my Senator, Senator Wicker. He is a
true leader and partner for our commission, and we wouldn't be where we
are today in terms of serious progress for our rail vision without his
support. This thank you extends to his staff, and to the bipartisan
work of the Commerce Committee staff.
We look forward to working with this Subcommittee to achieve our
vision and support your efforts to provide a passenger rail system that
improves our economies and provides the necessary options for us to
compete for jobs and attract talent. I will be happy to respond to your
questions.
Senator Wicker. Thank you, Mayor Ross.
Mr. Hoeffner, are we pronouncing that correctly?
Mr. Hoeffner. Yes, you are.
Senator Wicker. You are welcome, and proceed in your own
fashion. Thank you, sir.
STATEMENT OF TIMOTHY H. HOEFFNER, CHAIR,
MIDWEST INTERSTATE PASSENGER RAIL COMMISSION;
AND DIRECTOR, OFFICE OF RAIL,
MICHIGAN DEPARTMENT OF TRANSPORTATION
Mr. Hoeffner. Thank you, Chairman and members of the
Committee. I really appreciate this opportunity. And I would
like to thank Senator Peters for his graceful words.
I am the Chair of the Midwest Interstate Passenger Rail
Commission. It is a compact. We have nine State members that
was created in 2000. We have Indiana, Illinois, Michigan,
Missouri, Minnesota, North Dakota, and Wisconsin. And
basically, what we do is we are appointed by the Governor or
the Governor's designee and legislators.
So our sister companion to that is the technical folks from
the DOT, the MWRRI, where we have worked on a 3,000 mile system
starting 1996.
I really want to thank the Subcommittee and the Committee
for all their work on the rail title in the FAST Act. I mean,
that is absolutely critical for the states working in these
passenger rail activities because for once we--you know, having
a title in the transportation authorization is in our minds a
game-changer.
I would like to talk a little bit about Michigan service
for a minute. We have three Amtrak services in Michigan: the
Pere Marquette between Grand Rapids and Chicago; the Blue Water
between Port Huron and Chicago; and the Wolverine, which is the
spine of our system, between Pontiac, Detroit, and Chicago. All
of these systems are sponsored by the State of Michigan. But
for the State of Michigan paying Amtrak for this service, the
State of Michigan would have no intercity passenger rail.
With the implementation of section 209 of PRIIA, we lost
our basic system service. The Wolverine was previously a basic
system service. Our operating payments to Amtrak were $8
million prior to that, and they went to $25 million after the
implementation of that.
What we have been doing is working with Amtrak and the
Federal Railroad Administration and local communities to take
and try and reduce the cost and increase the ridership and
revenue. We have the largest ownership of Amtrak outside the
Northeast Corridor in Michigan and northern Indiana. They own
97 miles between Kalamazoo, Michigan, and Porter, Indiana. The
State of Michigan, with a grant from the FRA, purchased 135
miles east of that, and we are in the process of upgrading it
similarly to what Amtrak and MDOT have done on Amtrak's
ownership where trains are currently operating at 110 miles an
hour since February 15, 2012.
Moving on now to more of the regional perspective, we have
a long history in the Midwest of working together not only
through MIPRC and the MWRRI but on projects, as Senator Peters
mentioned, the programmatic EIS service development for the
corridor. But that is not just to benefit Michigan. Indiana and
Illinois are our partners, and in fact, most of the major
construction will actually occur in Indiana and Illinois and
what we call the South of the Lake.
That is consistent with the CREATE project that has been
looking at improving congestion, eliminating congestion in
Chicago, and it is consistent with Mr. Boardman's Blue Ribbon
Panel recommendation. And the CREATE flyover, Englewood flyover
is a critical piece on that.
The states are working together in the Midwest on an
equipment procurement to replace the Amtrak fleet. And we are
also looking forward to kicking off the FRA-led Midwest
planning.
Now, I would like to step out a little bit more from a
larger State perspective. There is a synergy between the long-
distance trains and the regional trains that the states
sponsor. The intercity trains we see kind of interconnecting
the regions where we have the higher level of regional service,
but there are some things that need to be added to this. We
would love to have a direct connection, as an example, from
Michigan to the Northeast Corridor without having to go west
through Chicago. That could be done by rerouting a long-
distance train or making a connection.
Canada is our largest trading partner. One-third of all the
trade with Canada comes across a Michigan border. We cooperate
with the province of Ontario as closely if not closer than we
actually do Wisconsin, Indiana, and Illinois. So international
connections as well as the regional connections are important.
One key issue is, though, that since the introduction of
section 209 of the PRIIA Act, there are 30 State-sponsored
services of Amtrak today serving over 300 communities and
nearly 15 million riders. Roughly half of every rider on Amtrak
is on a State-sponsored train, a train which the state is
paying for. What does that really mean? That means about $500
million in ticket revenue and about another $250 million in
State payments to Amtrak to operate these. The states take and
provide Amtrak about $750 million.
And I would like to follow up on what the Honorable Mr.
Ross said earlier about the representation on the Board because
it really is important to have a broad makeup on that and one
that would represent everyone, including the states.
So again, I would like to thank you for your work on the
FAST Act and also furthering that and looking at the funding.
Thank you very much.
[The prepared statement of Mr. Hoeffner follows:]
Prepared Statement of Timothy H. Hoeffner, Chair, Midwest Interstate
Passenger Rail Commission; and Director, Office of Rail, Michigan
Department of Transportation
Mr. Chairman and members of the Committee, thank you for the
opportunity to testify at this hearing.
My name is Tim Hoeffner and I am the Director of the Office of Rail
for the Michigan Department of Transportation (MDOT). I have been at
MDOT for more than 35 years, with nearly 25 years of experience in
rail. For 22 of those years, I have been involved in MDOT's
relationship with Amtrak. In addition, I serve as Governor Snyder's
designee to the Midwest Interstate Passenger Rail Commission (MIPRC),
where I am in my third term as Chairman. MIPRC is comprised of state
legislators, governors or their designees, and private sector
representatives selected by governors. We represent nine Midwestern
states--Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, and Wisconsin--to promote, coordinate, and
support regional improvements to passenger rail service. I have also
served on the Midwest Regional Rail Initiative (MWRRI) since its
inception. The MWRRI is a technical effort led by the state DOTs to
develop and implement a nine-state, 3,000-mile intercity passenger rail
network with Chicago as its hub. I am also a member of the State for
Passenger Rail Committee (SPRC) and the Next Generation Equipment
Committee (NGEC).
First, I would like to thank the members of this subcommittee and
the Committee on Commerce, Science, and Transportation for including a
rail title for the first time in a transportation funding
authorization. The Fixing America's Surface Transportation (FAST) Act
programs that address safety, capital and operations are critical for
the states, as well as funding for the State-Supported Route Advisory
Committee. These all have laid the groundwork for the development of a
truly multi-modal transportation system in our Nation. We must now take
steps to ensure the programs outlined in the FAST Act are funded.
Since 1996, the Midwestern states have worked together to plan and
implement a 3,000-mile Chicago-hub system to connect the region with
fast, frequent passenger rail service through the MWRRI. When
completed, approximately 90 percent of the Midwest's population will be
within a one-hour car ride to a Midwest Regional Rail System station
and/or within 30 minutes of a feeder bus station. Please see Exhibit A
for a map of the Midwest Regional Rail System.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
Michigan's rail system is comprised of more than 3,600 miles of
track, of which 665 miles are state-owned rail lines. This includes 135
miles of the federally designated Chicago-Detroit/Pontiac high-speed
rail corridor. In addition, Amtrak owns approximately 97 miles of this
same corridor in Indiana and Michigan. This is largest area of Amtrak
ownership not associated with the Northeast Corridor. This combined 232
miles of public ownership represents nearly 80 percent of the entire
Chicago-Detroit/Pontiac corridor.
Please see Exhibit B for a map of the state-owned rail lines and
Exhibit C for a map of Michigan's intercity passenger rail system, as
operated by Amtrak.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
In partnership with MDOT, the Indiana Department of Transportation
(INDOT), the Illinois Department of Transportation (IDOT), and the
Federal Railroad Administration (FRA) have initiated a program to
evaluate passenger rail improvements for the Chicago-Detroit/Pontiac
passenger rail corridor. The program includes three components:
An evaluation of potential route and service alternatives
for the corridor.
A Tier 1 Environmental Impact Statement that reviews the
impacts and benefits of the rail service.
A Service Development Plan that will serve as a business
plan for future implementation decisions.
The program's purpose is to improve intercity mobility by providing
an improved passenger rail service that would be a competitive
transportation alternative to automobile, bus, and air service between
Chicago and Detroit/Pontiac. The vision for the corridor includes safe
and reliable passenger rail service that offers frequent, daily round
trips at speeds up to 110 miles per hour. The program will provide
sufficient information for FRA to potentially support future decisions
to fund and implement a major investment in the Chicago-Detroit/Pontiac
passenger rail corridor.
Being developed in concert with the Chicago Regional Environmental
and Transportation Efficiency (CREATE) program, the Englewood Flyover
and other proposed projects, this program will increase efficiency in
the region's rail network and reduce rail corridor congestion in and
around the Chicago area. Michigan has been working very closely with
Indiana and Illinois to develop plans in the south of the lake region
key to both CREATE and the Detroit/Pontiac Rail Corridor Program.
Preparation of the Final Environmental Impact Statement and Service
Development Plan are under way and expected to be complete in 2016.
Please see Exhibit D for a map of the study area.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
Exhibit E portrays the ownership of rail along the Chicago-Detroit/
Pontiac corridor. Since 1995, FRA, Amtrak and MDOT have tested,
developed and implemented Incremental Train Control System (ITCS),
which is a communications-based Positive Train Control (PTC) system to
allow trains to travel at speeds more than 90 mph, between Porter,
Indiana, and Kalamazoo, Michigan. Trains have been traveling at 110 mph
on this segment since February 2012. This was the first place not
connected to the Northeast Corridor to operate at 110 mph.
Track improvements are under way between Kalamazoo and Dearborn to
allow trains to travel at speeds of up to 110 mph, which will extend
higher speeds from Porter, Indiana, to Dearborn. This will allow travel
time by train to be competitive with travel on the highway in the
region.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
MDOT has contracted with Amtrak for intercity passenger rail
service since 1973. Michigan has continued (Chicago-Detroit/Pontiac)
this relationship over the years, even as the financial burden to the
state has greatly increased. There are three Amtrak-operated services
in Michigan: the Pere Marquette service (Grand Rapids--Chicago), the
Blue Water service (Port Huron--Chicago), and the Wolverine service
(Pontiac--Detroit--Chicago). These services are summarized below:
Pere Marquette service (Grand Rapids--Chicago)
176 Miles
One round trip daily
Serving 4 station communities in Michigan
Blue Water service (Port Huron--Chicago)
319 Miles
One round trip daily
Serving nine station communities in Michigan
Wolverine service (Pontiac--Detroit--Chicago)
304 miles
Three round trips daily
Serving 12 station communities in Michigan
The Pere Marquette and Blue Water have always been state-supported
services. The Wolverine was part of Amtrak's basic system of service,
but became state-supported with the implementation of Section 209 under
the Passenger Rail Investment and Improvement Act (PRIIA) of 2008.
Michigan is now one of only a few states that has no benefit from
Amtrak long distance service, or the basic system of service.
Without state support for Amtrak services, there would be no
intercity passenger rail service in Michigan. With the implementation
of PRIIA, Michigan's operating support went from $8 million in 2013 to
upwards of $25 million in 2014. In addition, the State of Michigan has
made more than $1.1 billion in capital investments in the Amtrak-
operated rail corridors over the last 40 years. More than $129 million
of these capital investments have come from state dollars, as well as
more than $18 million from local or private funds with the remaining
$956 million from Federal dollars.
The following are Exhibits F and G, which summarize the annual
ridership and revenue for the three Amtrak services in Michigan from
2008 to 2015. While Michigan's revenue numbers are maintaining steady
levels, fuel prices have impacted Michigan's ridership, which is
consistent with Amtrak services nationwide.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
In July 2015, the Midwest was chosen as one of two regions that FRA
will partner with to develop a long-term (20-40 years) vision for a
high-performance regional rail network. The Midwest's FRA-led planning
project will determine the priorities, studies and investment needs to
advance projects within the multi-state network context and also will
identify the potential institutional arrangements, financial
requirements, phasing, planning, and development activities needed to
achieve the vision.
During Fiscal Year (FY) 2015, more than 2.8 million people traveled
on corridor services within the Midwest, capping off 10 years of
impressive growth on these regional, state-supported routes. During the
past 10 years, ridership on Midwestern corridor routes has increased 58
percent, while ridership on long-distance routes that serve the Midwest
has grown by 14 percent. Eight long-distances routes serve the Midwest,
all originating out of Chicago, which is the Nation's largest rail hub.
Altogether, these routes have 80 station stops across the Midwest, many
of them in rural communities not served by other forms of intercity
transportation.
Economic development nationwide will benefit if transportation is
developed as an integrated system of all modes. Passenger rail is
generally the best option for transporting people who are traveling
between 100 and 600 miles. It is also often the best transportation
mode in certain types of weather and under emergency situations. A weak
intercity passenger rail ``leg'' results in congestion, lost travel
time, and decreased fuel-efficiency.
Between FY 2009 and FY 2011, Congress appropriated more than $10
billion in Federal funding to states for passenger rail capital
improvements and planning. Under the High Speed Intercity Passenger
Rail (HSIPR) program, the Midwest was awarded $2.5 billion. The
majority of funding will help improve or develop four key interstate
passenger rail corridors:
Chicago-St. Louis-Kansas City
Chicago-Minneapolis/St. Paul
Chicago-Quad Cities
Chicago-Detroit/Pontiac
A group of Midwestern states also has received $268 million to buy
``next generation'' rail cars and locomotives that will modernize the
Midwest's fleet, help accommodate increased ridership, improve service
reliability, and reduce operating costs on eight interstate corridors.
While this funding is allowing our states to strengthen and expand
passenger rail service significantly in our region, Midwestern states
need continued assurance of adequate Federal capital assistance in
order to continue this valuable development.
Connectivity between the regional services and national network
also is important. Regional services offer more frequencies on shorter
corridors, while the national network of long distance services offers
less daily frequencies. Both regional and long distance services are
mutually beneficial, as they provide vital connectivity to many areas
of the country. This is similar to how regional airlines connect to
major airports, or local roads connect to the interstate freeways,
which then connect to the important national highway system. Not only
do long distance services provide end-to-end connections, but they also
provide connections to rural communities along the routes that may not
be served by other modes of intercity transportation.
It is important to Michigan to implement a direct connection to the
east coast and Northeast Corridor. This will eliminate the need for
Michigan travelers to go west to Chicago and then east. This could be
accomplished by rerouting one of the long distance trains through
Michigan, which may reduce the costs of these trains. Another option
would be to provide a direct connection from Michigan routes to the
long distance trains. Michigan has requested Amtrak to consider
rerouting one of the long distance trains to the east coast through
Michigan over their ownership and Michigan ownership.
It is also important to consider international connectivity, for
which Michigan and the Midwest are at the center of the Great Lakes
international economic mega-region. The United States and Canada are
one another's largest trading partners, with more than $575 billion in
annual trade last year, of which more than 35 percent passed through
Michigan's borders. Also in this region, more than one-third of the
populations of both the United States and Canada live within an
approximately 600-mile radius. This presents great opportunity for
success of an international passenger train service between Chicago and
Toronto/Montreal by connecting these major population centers.
Chicago urban area population: 9.5 million
Detroit urban area population: 3.75 million
Toronto urban area population: more than 6 million
Montreal urban area population: 3.8 million
Michigan is actively supporting and working toward restoring cross-
border passenger rail service on the Detroit-Windsor rail corridor.
Establishing this service is a priority for MDOT as part of an expanded
seamless rail corridor providing passenger service between Chicago and
Toronto or Montreal. Michigan has been working closely with the
government of Ontario to plan for and implement this corridor. The
Chicago-Toronto/Montreal corridor is the most obvious ``missing link''
in the North American rail passenger system.
Providing cross-border passenger rail service will increase the
attractiveness of passenger rail travel within the region, allowing us
to capture travelers who may be currently choosing other modes of
transportation. This improved and expanded service along the corridor
will also enhance our economic competitiveness--at the local, state,
and regional levels--through increased ridership and will promote
cross-border tourism and travel. It will promote energy and
environmental efficiency by reducing vehicle emissions, as well as
alleviate bridge, tunnel, and road congestion. Intercity mobility along
the Chicago-Toronto/Montreal corridor also will be enhanced and will
support interconnected communities by providing a more reliable
passenger rail service.
In FY 2015, the 30 state-supported services nationwide carried
approximately 15 million passengers, which represented nearly 50
percent of Amtrak's ridership, to nearly 300 communities throughout
America. These trains have generated more than $486 million in ticket
sales for Amtrak. The states have paid Amtrak another $223 million to
operate these services, all with no direct involvement in Amtrak's
oversight or governance.
In closing, I want to stress the importance of continued and
reliable capital investments, which are key to the success of all
transportation modes--including passenger rail. While funding received
in recent years is allowing the Midwest to strengthen and expand
passenger rail service significantly, we need to maintain our momentum
and continue strengthening the performance of our regional rail system.
Michigan and our partner Midwestern states need continued assurance of
adequate Federal capital assistance.
Thank you for your consideration and the opportunity to submit
testimony.
Senator Wicker. Thank you, Mr. Hoeffner.
Mr. Klein?
STATEMENT OF RICK KLEIN, CITY MANAGER,
CITY OF LA JUNTA, COLORADO
Mr. Klein. Thank you very much for your invitation to come
here. I feel very proud to represent our area.
Thank you for your great service to this great nation. The
old adage ``this nation was built by trains'' is as important
today as it was back when our Nation was being built.
Everybody knows that we will see a lot of changes over the
next few decades. America will need a better passenger rail
system. Everybody knows that times are not as good as they used
to. Money is hard to come by and we need to cut back on Federal
spending.
When this great nation was being built, we had fewer
resources and less technology than we enjoy today. And our
forefathers put together a rail system that served both freight
and passengers. Amtrak connects towns, employs residents,
serves as an engine for economic development in La Junta,
Colorado, and in the West.
Five years ago when Amtrak's contract with Burlington
Northern Santa Fe was due to expire in 2016, and we could lose
Amtrak's Southwest Chief from Newton, Kansas, west to
Albuquerque, New Mexico, if $100 million of rail infrastructure
was not brought back up to passenger rail standards and another
$100 million for continued maintenance. The train would be
relocated or discontinued.
The City of La Junta initiated a three-state coalition to
help save Amtrak through our region. We formed a Southwest
Chief Coalition along with communities and counties in Kansas,
Colorado, and New Mexico. Our first attempt was to secure funds
from Title 5, which we did not get, but we learned a lot of
lessons. You know, so we have been successful working along
with the Colorado delegation, along with the Kansas and New
Mexico delegation. Then, we have been successful with TIGERs VI
and VII, and they are currently ongoing right now.
With the TIGER grants and working with Burlington Northern
Santa Fe and Amtrak, we have reduced this amount to about $38
million left of rail to be replaced. After TIGER VII, we will
have completed 127 contiguous miles of new infrastructure
helping Amtrak achieve the speeds needed to stay on schedule in
Kansas, Colorado, and New Mexico, and in New Mexico a critical
section by Lamy where train speeds will increase from 30 miles
an hour to 79 miles per hour improving service.
We are working with the State of Colorado, Burlington
Northern Santa Fe, Amtrak, bus companies to develop a
multimodal facility. This is an effort to create tourism in our
area. There are similar efforts going on throughout our region.
Even in New Mexico, what I found is there is one called La
Castaneda that is being rebuilt and it is a historical Amtrak
station, and it is by the same people that have the La Posada
in Winslow, Arizona. And it is a beautiful train structure that
serves as the station.
So we have found, I have found that we have dedicated
people working hard across this Nation on partnership work. The
Federal Railroad Administration has been great to work with, as
so has been the three States' Departments of Transportation.
When asking for matches for TIGER VII, we have communities
that did not have an Amtrak stop in their communities but they
provided matches for the grant. The message was loud and clear.
We need to save this route so we could have access to this
great nation.
We see a movement where more people are using mass transit
and want to be connected to this network. They would rather be
on their cell phones, their iPads and stuff as they are
traveling versus driving.
Thank you for the FAST Act. The grant opportunities for the
25 percent set-aside in rural areas, for consolidated rail
infrastructure and safety improvements is deeply appreciated.
We feel that partnerships are the way to get these improvements
done.
Long-distance trains provide our intercity travel. Whether
I am going to Dodge City, Kansas, or down to Santa Fe, New
Mexico, that is our mode of travel. And I have run into just
everyday people just from your Amish to your working families
to travelers from all over the world, and they say this is the
way we travel. I feel like the Little Engine going up to big
mountain saying I think we can, I think we can. Then, I think
about how important it is to us as a community for our economic
development, tourism, and mobility. So I know that we can make
it up this mountain with you guys as our partners. As you know,
passenger rail is a very important part of our nation's future
and our region's future.
[The prepared statement of Mr. Klein follows:]
Prepared Statement of Rick Klein, City Manager,
City of La Junta, Colorado
Thank you for your service to our great nation.
The old adage ``This nation was built by trains'' is as important
today as it was back when our Nation was being built. The nation is
still being built and with the changes that we will see over the next
few decades, America will need a better passenger rail system. Everyone
knows that times are not as good as they use to be. Money is hard to
come by and we need to cut back on Federal spending. When this great
nation was built, we had fewer resources and less technology than we
enjoy today and our forefathers put together a system of rail that
served our communities for both freight and passengers.
Amtrak connects towns', employs residents, and serves as an engine
for economic development in La Junta and the West.
Five years ago, Amtrak's contract with the BNSF was due to expire
in 2016 and we could lose Amtrak's Southwest Chief from Newton, Kansas
west to Albuquerque, New Mexico, if $100 million of rail infrastructure
wasn't bought back up to passenger rail standards. The train would be
relocated along the Transcom line to the south.
The City of La Junta initiated a three State coalition to help save
Amtrak through our region. We formed the Southwest Chief coalition
along with communities and counties in Kansas, Colorado, and New
Mexico. Our first attempt was to secure funds form TIGER V, but failed.
We did learned how the process worked and with the help of the Colorado
delegation along with the Kansas and New Mexico's delegation, we have
been successful with our TIGER VI and VII applications.
With the TIGER Grants and working with BNSF and Amtrak we have
reduced this amount to about $38 million dollars left to be replaced.
After the TIGER VII is complete we will have 127 contiguous miles of
new infrastructure helping Amtrak achieve the speeds needed to stay on
their schedule in Kansas and Colorado. And in New Mexico a critical
section by Lamy, trains speeds will increase from 30 mph to 79mph
improving service.
We also are working with the State of Colorado, BNSF, Amtrak, and
bus companies to develop a multi-modal facility. This is an effort to
create tourism in our area. There are similar efforts going on
throughout the region.
The City of La Junta is currently working on TIGER VII with all
three states, communities and counties and the FRA to complete this
task. I have found that we have dedicated people working hard together
to complete this partnership work. The FRA has been great to work with
as has been the three States Departments of Transportation.
When asking for matches for TIGER VII, we have communities that
didn't have an Amtrak stop in their communities, but provided matches
for the grant. The message was consistent that we needed to save this
route in our area, so we can have access to this great nation. We see a
movement, where more people in the Cities are using Mass Transit and we
want to be connected to this network.
Thank you for the FAST Act. The grant opportunities for the 25
percent set aside for rural areas in the Consolidated Rail
Infrastructure and Safety Improvements is deeply appreciated. We feel
that partnerships are the way to get these improvements done. Long
distance trains provide our intercity travel. Whether I'm going to
Santa Fe, New Mexico or to Dodge City, Kansas, this is the way to
travel. When traveling, I meet tourist from all over the world. From
young working families to the Amish, they tell me how this is how they
travel.
I feel like the little engine going up the big mountain saying ``I
think we can, I think we can''. Then, I think about how important
passenger trains are to us as a community for Economic Development,
Tourism, and mobility. So, I know we have to make it up that mountain
with you as our partner. Passenger Rail is an important part of our
Nation's and region's future.
Mr. Klein. And to Mr. Boardman and to your retirement, well
earned.
Mr. Boardman. Thanks, Rick.
Senator Wicker. Thank you, Mr. Klein. You make an excellent
point. Of course, you have all made excellent points. But I
think when they are on their cell phones and smartphones and
iPads, we would like for them not to have their hands on the
steering wheel so----
Mr. Klein. Yes.
Senator Wicker. It appears to me that passenger rail is one
of the solutions to distracted driving.
Now, Mr. Boardman, you can wrap things up for our
testimony. We are delighted to have you back here before the
Subcommittee.
STATEMENT OF JOSEPH H. BOARDMAN, PRESIDENT AND CHIEF EXECUTIVE
OFFICER, AMTRAK
Mr. Boardman. Thank you, Chairman Wicker. And thank you for
your kind words, and yours, too, Mr. Booker, and also Mr.
Nelson and Ms. Fischer.
I am pleased to have the opportunity this morning to be
with you and with the rest of the panelists. I really regret
missing the trip that you took last week because initially I
intended to go, and I would have had a chance to see what you
saw. And I understood, as you went along, the energy for
everybody just kept growing and growing along the way.
Senator Wicker. Chairman Carper was with us and represented
Amtrak capably, so tell him thank you.
Mr. Boardman. Thank you. I will.
I saw the videos and I saw the articles and I heard what
our folks had to say about the trip and the tremendous
outpouring of support. The work you and your colleagues did in
creating a mechanism for service restoration under the FAST Act
will be a critical part of how the regions in this country like
the gulf coast go about restoring Amtrak service.
We are America's railroad because we were created by
Congress and serve over 500 communities in 46 of the 48 states.
We do not just leap from city to city. We connect smaller towns
like La Junta and communities with one another and with the
Nation's major urban centers. These communities pay taxes, too,
and we provide them a service they use and depend on. I think
the excitement you saw last week is the dramatic evidence of
just how much we can bring to those towns and how deeply they
appreciate it.
The past decade has seen some major increases in ridership
and revenue, and I am happy about that, but we have started to
encounter some headwinds. The pending Surface Transportation
Board on-time performance rulemaking is a major one. We need to
be on time. It could seriously impact both the long-distance
and the State-supported trains and raise cost to the states
because of that.
We are also facing some revenue challenges. As you may have
heard, I recently wrote to our employees and our stakeholders
in a letter--a couple letters now actually--about some of the
other challenges we face as ridership and revenues are affected
by a drop in oil prices, some recent bad weather, and even the
strong dollar for international sales. This will be a
challenging fiscal year for us and the rail industry in
general. I think these challenges will come and continue in the
coming year, and it is going to be important that all of us who
believe in intercity passenger rail work together to support
its development.
The recent FAST Act acknowledges this by including Amtrak
in the Nation's surface transportation policy for the first
time. It restates Congress's intention that Amtrak operate a
national system of service. The act further requires Amtrak and
the Department of Transportation to work together to create a
separate Northeast Corridor in the national network and those
accounts by December 2016.
The national network account will combine long-distance and
State-supported services just for accounting purposes, and
future Amtrak funding will be requested on that basis. The FRA
will play a significant role in organizing these financial
accounts and will, when it is over, be responsible for
overseeing how we allocate the funds.
The long-distance trains are the only Amtrak service on 70
percent of our route mileage at half of our stations and in
half of the states we serve. People often see these trains
through the prism of their own experience and imagine a point-
to-point operation that resembled an airline between major
endpoints. As has already been testified, that does not
necessarily exist. As a matter of fact, 90 percent of our
ridership on some of our longest routes is starting or ending
somewhere along the route rather than going end point to end
point.
Most people depend on these trains for short distance
trips, and you saw one of the senior citizens talk about senior
citizens depending on it for a safe vacation in the video film.
Getting from a rural community to a major city or traveling
between cities along the route when alternatives--it has
already been talked about--are shrinking like bus services,
airline services. The majority of annual funding needed for
long-distance trains is therefore for operating support to help
cover the cost of these trips for passengers who need to make
them.
And Gateway program, which preserves and expands rail
service between New York and New Jersey, took on an increased
urgency in 2012.
May I pass my time, Chairman?
Senator Wicker. Yes, proceed.
Mr. Boardman. When Super Storm Sandy sent the saltwater
into the tunnels connecting to Penn Station compromising
critical electrical and safety systems, that threatened the
reliability of operations day in and day out. Mr. Booker
already talked about that.
The important part here is to remember it is about the
people. It is about their real estate values. It is about their
ability to get the work. It is about their ability to get home
and take care of their kids. And once that was understood, we
had a political synergy that you talked about, Senator, to move
things forward. We need to build a new two-track Hudson River
tunnel that will allow Amtrak to rebuild the existing tunnel
without disruption for those 450-plus trains every day that
operate on those two tracks.
I came to Amtrak and I knew I was leading a very special
company, but my time has proven to me over and over again that
Amtrak is a national treasure, its network, its Northeast
Corridor, and it is staffed by some of the best and most
talented people in the rail business. And that is something
this Nation cannot afford to lose. During my tenure, I sought a
Federal commitment for all of Amtrak's needs. The FAST Act has
taken a critical first step, and I thank you for it in adding
Amtrak and the intercity passenger program to surface
reauthorization.
We must be careful--and this is a caution--not to lose the
economies of scale of a unified operation. One of the things I
have learned in my 8 years of service is that a unified system
brings not just economies of scale but a greater understanding
of the value that Amtrak delivers for the Nation, and the
people along the gulf coast now know the value that they lost
in 2005 when Hurricane Katrina came along. I was the FRA
Administrator at that time.
So the respective needs, wherever you are in this national
network, for State corridors, long-distance services and the
Northeast Corridor and unifying those interests here in
Congress and across the country is critically important. I know
you gentlemen understand that, and I thank you for it and this
committee for it.
[The prepared statement of Mr. Boardman follows:]
Prepared Statement of Joseph H. Boardman, President
and Chief Executive Officer, Amtrak
Madam Chairman, and members of the Committee, good morning.
I'm pleased to have the opportunity to be here with you this
morning. I regret that I missed the chance to accompany you, Senator
Wicker, on last week's inspection trip across the Gulf Coast states. I
saw the videos and the articles, and I heard what our folks had to say
about the trip, and the outpouring of support was simply tremendous.
The work you and your colleagues did in creating a mechanism for
service restoration in the FAST Act will be a critical part of how
regions of the country like the Gulf Coast go about restoring Amtrak
service.
We are ``America's Railroad'' because we were created by Congress,
and serve over 500 communities in 46 of the 48 contiguous states. We
don't just leap from city to city--we connect smaller towns and
communities with one another, and with the Nation's major urban
centers. These communities pay taxes too, and we provide them a service
they use and depend on. I think the excitement you saw last week is
dramatic evidence of just how much we can bring to those towns--and how
deeply they appreciate it.
The past decade has seen major increases in ridership and revenue.
But, we've started to encounter some headwinds. The pending Surface
Transportation Board on-time performance rulemaking is one major issue.
It could seriously impact both the long distance and state supported
trains, and raise costs to states. We are also facing some revenue
challenges. As you may have heard, I recently wrote our employees and
our stakeholders a letter about some other challenges we face, as
ridership and revenues are affected by the drop in oil prices, recent
bad weather--and even a strong dollar, which hurt international sales.
This will be a challenging Fiscal Year for us and the rail industry. I
think these challenges will continue in the years to come, and it's
going to be important that all of us who believe in intercity passenger
rail work together to support its development.
The recent FAST Act acknowledges this by including Amtrak in the
Nation's surface policy for the first time, and as with previous
reauthorizations, it restates Congress's intention that Amtrak operate
a national system of service. The Act further requires Amtrak and the
Department of Transportation to work together to create separate
``Northeast Corridor'' and ``National Network'' accounts by December,
2016. The National Network account will combine Long Distance and State
Supported networks for accounting purposes, and future Amtrak funding
will be requested on that basis. The FRA will play a significant role
in the organizing of these financial accounts and will, when it's over,
be responsible for overseeing how we allocate these funds.
The long distance trains are the only Amtrak service on 70 percent
of our route mileage, at half of our stations, and in half of the
states we serve. People often see these trains through the prism of
their own experience, and imagine a point-to-point operation that
resembles an airline between the major endpoints, such as Chicago and
Seattle. But while these trains operate between distant endpoints, that
is not how they're typically used by our riders. As much as 90 percent
of the ridership on some of our longest routes is starting or ending
somewhere along the route, rather than going endpoint to endpoint.
People mostly depend on these trains for short-distance trips--getting
from a rural community to a major city or traveling between cities
along the route, when alternatives like bus service, commercial flights
or private auto use aren't available or practical. The majority of the
annual funding need for the long distance trains is therefore for
operating support to help cover the costs of these trips for passengers
who need to make them.
On the other hand, the needs of the Northeast Corridor are
essentially all capital-related. This committee has heard testimony in
the past from numerous officials, including recently our Board
Chairman, Tony Coscia, and the NEC Commission, about the urgent need
for capital investment in the infrastructure. Our top priority among a
long list of major priorities is the Gateway Program.
The Gateway Program--which preserves and expands rail service
between New York and New Jersey--took on increased urgency in 2012,
when Super Storm Sandy sent salt water into the tunnels connecting to
Penn Station, compromising critical electrical and signal systems and
threatening the reliability of operations day-in and day-out. The first
element of the Gateway Program is to build a new, two-track Hudson
River rail tunnel that will allow Amtrak to rebuild the existing tunnel
without disruption to the 450 daily NJ TRANSIT and Amtrak trains that
operate over these two tracks.
In light of this imperative, steps have been taken in that last
year to move critical elements forward. The FAST Act makes key changes
to Federal loan and grant programs that will benefit both Gateway and
other programs. The announcement of a Federal/State 50-50 funding and
financing split and creation of the ``Gateway Development Corporation''
to deliver the program has been a significant step, as is the planned
launch in April of the environmental process for the crucial Hudson
Tunnel Project. Important those these steps are, major Federal funding
is needed to advance the program, particularly ready-to-go projects
such as the Portal Bridge replacement.
Let me say in closing that we want to continue the trend of recent
years, both by becoming more efficient and transparent, and continuing
to reduce debt levels and improve ridership and revenue, while
exploiting all opportunities to expand the reach of our service. As you
saw just last week, there's a pent-up demand for rail passenger
services. The inclusion of Amtrak in the surface transportation
reauthorization creates an opportunity to address the great outstanding
need for a dedicated and predictable source of funding.
I say this because we all have an interest in ensuring that Amtrak
continues to be as effective as possible, and that the American people
in all regions of the country receive the passenger service they
deserve. We are committed to embracing innovation that can help drive
greater value for the American public and have started considering ways
to respond to both the changing markets and needs of the nation, while
taking the Committee's expectations into account. In doing so, we must
make sure we don't compromise our ability to offer service efficiently.
When I came to Amtrak, I knew I was leading a very special company--but
my time there has proven to me, over and over again, that Amtrak is a
national treasure, staffed by some of the best and most talented people
in the rail business. That is something this Nation cannot afford to
lose.
During my tenure, I sought a Federal commitment for all of Amtrak's
needs. The FAST Act has taken the critical first step by adding Amtrak
and the intercity passenger rail program to surface reauthorization.
But the key will be whether appropriations levels can grow over time to
meet the major capital needs we have in the Northeast Corridor and
across the company. While the realignment of the company into specified
accounts has benefits, we also see risks, particularly in a constrained
funding environment. We must be careful not to lose the economies of
scale of a unified operation. One of the things I have learned in my
eight years of service is that a unified system brings not just
economies of scale, but a greater understanding of the value that
Amtrak delivers for the Nation. We hope the FAST Act can help to build
an even stronger network of support for intercity passenger rail
service around the respective needs of our national network of state
corridors and long distance services and the Northeast Corridor
infrastructure and unifying those interested here in the Congress and
across the country.
Senator Wicker. Well, thank you very much. And thank you to
all of our panelists.
We are very pleased to note that 10 Senators have attended
all or a portion of this subcommittee hearing. We are going to
take questions, and at this point the order--I will go last, so
at this point the order is going to be Senator Gardner, then
Senator Booker, then Senator Ayotte. And others may be coming
and going.
But, Senator Gardner, you are recognized.
Senator Gardner. Thank you, Mr. Chairman, and thank you for
that order as well. I appreciate it. A lot of hearings today,
so thank you.
Mr. Klein--thank you to all of you for your testimony
today--and you talked about the $25 million in grants-matching
dollars that have been in support of the track repairs
necessary to keep the Southwest Chief running. In order to
secure the necessary funding, which could amount to the $200
million that you talked about, more than just Federal funding
is going to be needed and has been put forward. So could you
talk a little bit more specifically about some of the
contributions made from states and local governments in support
of track repairs for the Southwest Chief?
Mr. Klein. Yes, sir. Thank you. The first time when we
started, you know, it was more of an effort between the State
of Kansas and the State of Colorado, and that was with TIGER
VI. And Garden City stepped up to the plate to be the applicant
for it. And during that time, you know, we were learning about,
you know, what were the needs and everything, but we were
working along with Amtrak and Burlington Northern Santa Fe on
how to reduce those dollar amounts.
And during that time, you know, between TIGER VI and TIGER
VII, Burlington Northern Santa Fe has come to the table
tremendously because, you know, some of the freight has come up
on their lines where they are going to cover a lot of those
costs. And also within the state of Colorado the same thing
except for a little short segment, you know, Raton Pass.
New Mexico, you know, they are a different situation
because they only have like one train that hits on a portion of
that track, but when I was going through--when I see that video
and I see what was going on there, that is train day every year
in our area. I mean, people show up and just because it is a
small town, you know, I am usually the guy that is up there
speaking in my town. But they all show up. They love that
train, you know. And it is for medical needs, it is for, you
know, to go see their parents, to take their parents places. It
is our lifeline.
And I see a true partnership that, you know, I was real
shocked. And I am a civil engineer. I was a highway guy. And
when I first started this I thought, you know, wow, this is--
but they have changed me over, you know. I see it and I see the
evolution. You know, like when my family and I went out to
Chicago and we were able to leave union station and go a block
over to hit the Brown line and get to our hotel. When I went to
Kansas City and was able to get off and then walk up to that
Power & Light or to get off at the train, you know, in Lamy and
just a short commute over to the Santa Fe, and--it connects us
all. And it has been a tremendous ride so far.
Senator Gardner. And Kansas put in $1 million and New
Mexico as well and Colorado from the states?
Mr. Klein. Yes, sir, great point. You know, when we first
started, you know, all three DOTs, you know, they came and
said, hey, you know, great idea, do not have any money. Now,
with TIGER VII, you know, TIGER VI, the State of Kansas did put
out $2 million, between TIGER VI, TIGER VII, the State of
Colorado. We started a Southwest Chief Tourism Infrastructure
Mobility Commission, State commission, and we did get $1
million out of them and also $1 million out of the State of New
Mexico Department of Transportation.
You know, as they get more educated in what the needs are,
everybody comes to the table. Mora, New Mexico, has like 2,500
people, and they put up $5,000, and they did not even have a
stop but it was that important to them. And when I was at a
meeting and I see how important that is to rural America, it
made me continue on. And once we get this rail infrastructure
done, it does not end. This is a lifelong journey now.
Senator Gardner. It is pretty incredible to see the list of
contributors, and like you said, there are three stops in
Colorado but a number of communities contributed to this
matching grant. I mean, when you see the city of Las Vegas
right next to the City of Lamar, Colorado, contributing to the
grant, that says something about the importance of this
funding. So thank you, Mr. Klein, for being here and the
passion which you have fought for the Southwest Chief and all
of southeastern Colorado.
Mr. Boardman, talk a little bit about some of the work we
have been doing in Denver as well. The Union Station, last year
we had a great sendoff of the Ski Train, kicked off again for
the restart of the Ski Train for a weekend, two days. During
that weekend it sold out almost immediately when they opened up
the Ski Train from Denver to Winter Park ski area. And we have
talked about trying to get it started for 2016, but there were
some safety concerns that all parties involved with needed to
be addressed before that were to be allowed again. Can you talk
a little bit about the update on infrastructure improvements
that will be needed to allow the Winter Park Ski Train to run
again?
Mr. Boardman. Sure. But can I stay on La Junta for just a
minute?
Senator Gardner. Yes.
Mr. Boardman. So one of the things that also happened in La
Junta--and now we are here for passenger rail--but it really
preserved a freight route through Colorado, and that was good
for the economy as well. So it was something that was
important. And that is the partnership we do have with the
freight railroads as we do have a symbiotic relationship.
We want to get started again on the Ski Train, no question
about it. Union Pacific--and I have talked to them directly
myself--want that stop rebuilt, and I think that next month or
May, April or May, I think DOT is going to make a decision on
funding to get that built. And once we get that done, we are
going to have a much better service going into Winter Park and
we are committed to it.
Senator Gardner. Thank you.
Senator Wicker. Thank you, Senator Gardner.
The other Cory, Senator Booker?
Senator Booker. Member of the Cory Caucus, proud to be a
member of the Cory Caucus in the Senate.
Mr. Boardman, again, you and I have discussed the Gateway
Project. I appreciate you mentioning it in your remarks. The
project starts with replacement of the 206-year-old tunnels
under the Hudson River, as well as the repair and replacement
of the portal bridge over the Hackensack River. So I just want
to sort of get you to comment for the record on the impact of
this infrastructure in the New Jersey/New York economy. But
that is actually the real heart of it. I would like to know
what you think the impact is beyond New York and New Jersey.
Why is this project important to the United States of America
as a whole in terms of our overall economy?
Mr. Boardman. Well, I think one of the things--thank you,
Senator. One of the things that needs to be understood right
away is what we really have in the Metropolitan area of New
York City. It is the financial capital of the world. It does
not have to stay as the financial capital of the world. There
are others that would like that in London or Tokyo or some of
the other places across the world. And the support and
necessity to support that really comes from the ability to move
people in and out in an efficient, effective manner. We are
talking about 350,000 people or more that we need to move back
and forth across the Hudson River every day.
The Northeast Corridor, we handle over 750,000 people a day
because it is not just Amtrak service. This is all the commuter
railroads up and down the corridor. That corridor was 2 percent
of the land in this country and is nearly 20 or 25 percent of
the GDP in this Nation.
The problem that occurred in July--and July was a turning
point for me and for others--we could not operate the service
because of power failures. And those power failures came from
two cables, one in the south tube, one in the north tube, that
provided the power necessary to operate the trains in and out
of New York City. So people could not get to their jobs.
And those jobs, whether they be in the financial services
industry or insurance or just the need to operate a community
like New York City are critical for this country and New York
and New Jersey to maintain their tax base, to maintain their
services, and to make sure that this country is globally
competitive in the world.
Senator Booker. And so the FAST Act, again, the partnership
that I had with the esteemed Roger Wicker, can you describe how
that is going to benefit the Northeast Corridor just for a
moment?
Mr. Boardman. Yes. Well, we hope it does. What we are
really looking for here is a funding mechanism to get started
on the improvements that are substantial cost: two new tunnels,
two new tracks in addition to the station. We are looking at
the private sector; we are looking at the Federal public sector
in both states. And all have committed to that at this point in
time.
The FAST Act brings that all together in a way that we
believe will allow us to create a pathway to financing it and
at the same time that FAST Act recognizes across the country--
and these folks have been talking about it--the necessity in
other places as well so that we can provide the--we as a nation
can provide those investments, those capital investments and
those operating investments necessary to maintain service
across the country. The FAST Act does that.
Senator Booker. In the little bit of time I have left let
us shift real quickly to safety issues. How is the experience
with Positive Train Control on the Northeast Corridor been
going now that it is operational? And also, what progress have
you made on the rest of the system? And what will it take to
finish the job?
Mr. Boardman. It is going very well. I think we have all
sections on the main spine of the Northeast Corridor operating
at this time with the exception of that which was commuter
railroads we are responsible for, Long Island Railroad and
Metro North. I believe we will complete the Keystone, which is
the corridor from Philadelphia to Harrisburg, by the end of
March where all the testing will be done. Everything is
installed but the testing has to be finished.
We need a schedule yet for the New Haven to Springfield
line because we are reconstructing that into a double track
with the State of Connecticut. We need a schedule with the
State of New York where we are rebuilding the line between New
York City and Albany, and both will be scheduled, I think, to
be done in 2017. I just was talking a little bit to Tim early
on. We are working with them to rebuild their 127 miles of
track up in Michigan. That will be a little bit different,
Positive Train Control, ITCS, which is not the same as we
operate in the Northeast Corridor, but we are making very good
progress.
Senator Booker. I appreciate it. Thank you, Chairman.
Senator Wicker. Thank you very much.
Senator Ayotte?
STATEMENT OF HON. KELLY AYOTTE,
U.S. SENATOR FROM NEW HAMPSHIRE
Senator Ayotte. I want to thank the Chairman and the
Ranking Member.
I wanted to, Mayor Ross, ask you about essentially in New
Hampshire we have a project that is under consideration right
now, and perhaps Mr. Klein could give us some advice as well on
this. This is to extend commuter rail line from Lowell,
Massachusetts, up to Nashua where I live and then on to
Manchester. And so this is something that has been discussed in
our state for a number of years by various leaders in the
state.
And I understand your role on the gulf coast rail service
working group that you have been working with Federal partners
to initiate a route for state-supported service from New
Orleans, Louisiana, to Mobile, Alabama, and then as well as a
route for long-distance service between New Orleans and
Orlando, Florida.
And so also when I heard Mr. Klein talking about the
experience of getting the communities to support what you have
done in La Junta along the way, if I could have you speak to
what are the challenges and opportunities as you are expanding
passenger rail service? What are some lessons that you learned?
And what are the key factors that communities exploring these
options should learn from the experience? Because you have got
more than one state involved, you have got localities, you have
got hopefully some Federal dollars that you can leverage, but
then also there are State dollars that are needed and local
dollars. So I wanted to get your thoughts on some lessons
learned as our state looks at this kind of issue.
Mr. Ross. I think the initial thing is having a group like
our Southern Rail Commission--that is a three-state compact--
that we have people who represent each State's interests----
Senator Ayotte. Yes.
Mr. Ross.--because the three states that we work with have
varying levels of support for what we do, and you run into that
in each group of States. Louisiana has had very little support
until their new Governor was elected, and now they are very
supportive of what we do. Mississippi with Senator Wicker and
Governor Bryant have been extremely supportive of us of late.
And Alabama has been a challenge.
And so we begin to work each one of those, and we use our
commissioners to figure out who the partners are. And those
partners can be the mayors, as Mr. Klein talked about. As you
find those mayors, then they can easily call you and they can
bring the parties to the table.
We have also reached out to business leaders, and along
that route in Mississippi, Alabama, and soon to be in Florida
there is a lot of casino gaming that need to move their
customers back and forth, and they are a very big partner and
going to be a very big financial partner in what we do.
So we begin to try to find the different sources of funding
to be able to do that. So you put together a plan and you start
to present it. So what we did is we had a feasibility study
that we paid Amtrak to do, and so we found that the service was
feasible. It is possible. And then we began to work with
Senator Wicker and the others to put together the Gulf Coast
Working Group or you put together----
Senator Ayotte. When you say the services feasible----
Mr. Ross. Yes.
Senator Ayotte.--how much do you think you will have to
subsidize?
Mr. Ross. Well, the long-distance train came up with an
initial subsidy of about $5 million. We could run both the
long-distance train into Mobile and New Orleans for about $9.5
million according to the--and those numbers were very
conservative. I mean, they spent a lot of time trying to come
up with and make sure that they were not really undershooting
what they thought it would be.
And so when we put those out there, people said, OK, we can
work with that. We can work with our partners. They can begin
to try to help make up the subsidy. And we educated our leaders
on the benefits of it. And we really used the mayors because
they see--they want opportunity. And it is just like what you
are talking about. They want the connection.
I was able to ride the Downeaster. I have ridden the
Vermonter. I have seen the connection that your state has to
have with Boston and New York. It just has to have it to bring
the people out there and to bring the people back and for you
to prosper and grow, for those people to have that opportunity.
Not everybody is going to drive, not everybody in Boston has a
car, and so they are going to get on at North Station and come
to you.
Senator Ayotte. Not everyone wants to sit in the traffic
either.
Mr. Ross. Absolutely correct. Absolutely correct. But it is
starting with a large picture with like a Commission and then
moving it down to the mayors and finding advocates. You find
individual advocates like in Bay St. Louis you saw on the--you
did not get a chance to see the film, but the first stop is a
little town called Bay St. Louis.
I called a lady named Nikki Moon there who owns a bed-and-
breakfast, and I said we need to have a party for this train
for people to know that people support it. She said I am on it.
She said why I am on this is I have a bed-and-breakfast that
people from New Orleans will get on the train and they will
come to my bed-and-breakfast and stay here. And she understood
economics. You find those people and they work for you.
Mr. Klein. And out in the West what I have found out
everything is grassroots, right? And so I turned to Colorado
rail to kind of see, OK, you know, what is out there and
educated myself on it. And then we just took a map and we
invited everybody in. That first meeting, everybody showed, all
three states, county commissioners, mayors, city people. I was
really pleased. By the end of the meeting we had chairmen
within each of the three states, and then we started working as
far as within each state to build out, you know, who are the
users, you know, what groups need this train, why do they need
this train. And what we found out was there was just a core
group of people out there that was really concerned about the
train leaving and what it meant to their qualities of life, you
know, whether medical or whatever or just travel.
Then you look for your champions. You know, in the State of
Colorado there was a County Commissioner out of Pueblo County,
Sal Pace. He was an ex-legislator and he opened up some doors
and helped us create the State Commission. And same thing down
in New Mexico, Bill Sabo from Colfax County, and a gentleman
that passed on, Ford Robbins out of Santa Fe. And even as Ford
was dying of cancer and he was waiting for the TIGER VII
application to be accepted and approved, you know, and he did
not see that, but you know, I know that up to his end that is
what he was fighting for. And it is those type people that will
make a difference, you know, in your efforts.
Senator Ayotte. Thank you.
Mr. Klein. And a guy named David Tenent from Seneca, I got
to tell you, because he has educated me a lot as far as on the
way rails and stuff has worked----
Senator Ayotte. So like a lot of things, leadership really
matters.
Mr. Ross. Yes. Yes, absolutely. Absolutely.
Senator Ayotte. Yes.
Mr. Ross. You will see our Commission over the years I have
been on it, depending on the leadership, depending on the
state, it has everything to do with its effectiveness.
Senator Ayotte. OK. Thank you.
Mr. Ross. Absolutely.
Senator Ayotte. I appreciate it.
Senator Wicker. Thank you, Senator Ayotte.
Senator Klobuchar?
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you very much, Mr. Chairman.
Thanks for holding this important hearing.
So I thought I would start with a few questions here for
you, Mr. Boardman. We have had some huge issues in the past, as
you know, with on-time service of the Empire Builder, which is
the big train that goes across the empire of Minnesota into
some other places as well. And I remember in 2014 you said that
the Empire Builder or Amtrak at least said was arriving on time
under 20 percent of the time, which was really unfortunate for
ridership. I know it has improved. And do you know what the
current on-time performance of----
Mr. Boardman. I think--excuse me--but the last time I
looked it was 55 to 60 percent. Is it better than that now, do
you know?
Unidentified Speaker. For the first quarter, yes.
Mr. Boardman. OK.
Senator Klobuchar. OK. And how did it improve?
Mr. Boardman. Well, because we are not hauling as much oil
up there----
Senator Klobuchar. Right.
Mr. Boardman.--or the NSF is not hauling as much oil, it
was really running into a real capacity problem----
Senator Klobuchar. Right.
Mr. Boardman.--for the NSF.
Senator Klobuchar. Do you think there is a way, if they
start hauling oil more, which would be great for them and----
Mr. Boardman. Well, they have----
Senator Klobuchar.--but if they start doing that, do we
have a better plan? Now, I know they built some more tracks and
things.
Mr. Boardman. Yes, they made a lot of investments up there,
and we believe we will not have that kind of a problem----
Senator Klobuchar. OK.
Mr. Boardman.--existing again.
Senator Klobuchar. OK. Well, that is great to hear.
I wrote to you last fall about some concerns about the
decision to eliminate the full-time station agent position in
Winona, Minnesota, and it is the second busiest in our state
only behind the St. Paul-Minneapolis station. And it serves as
a critical access point to the Mayo Clinic. And I know you
moved forward with the decision to staff the station with a
part-time employee, which we really appreciate. Can you assure
me that the staffing change will not negatively impact services
at the station? And are we going to continue with this at least
partial staffing?
Mr. Boardman. So we have really run into some headwinds at
Amtrak. We are down from revenue now over $120 million that we
expect this year, maybe as much as $130 million. So we are
looking everywhere we can----
Senator Wicker. Why is that? Why is that?
Mr. Boardman. Well, I think there are several reasons,
Chairman. I think part of it is a real drop in oil price and
people have moved back to their cars. I think that there is a
general slowdown in every mode. I see it in the bus systems at
this point in time. A recent article came out saying mega buses
actually hit the top of where they really were and they started
down. We are even wondering on aviation, and aviation right now
within the big airlines that you have today are globally
spread.
So I have been looking at what are the costs on the
Northeast Corridor and what is--we are seeing a drop in
ridership and revenue, and we are trying to compare that
because we compare very favorably to competing with the
airlines. We have about 77 percent of the service between New
York and Washington.
And what I found was something interesting with airlines,
what they can do. And I do not know if it is happening yet, but
since they have their commercial accounts with business, they
can provide a discount globally across the sea for the business
and yet tell the business that they need to continue to provide
a certain number of seats that they buy in a different market,
which might be the Northeast Corridor. So I am trying to see
whether that is affecting us as well. But those are basically
the things that are happening to us in terms of revenue.
Senator Wicker. OK. Well, thank you, Senator Klobuchar, for
letting me interject there. And that certainly will not be
taken from your time.
Senator Klobuchar. Oh, no, that is OK. I just had one more
question, Mr. Chairman.
Mr. Hoeffner, speaking of funding that we were just talking
about with Mr. Boardman, the FAST Act authorized $997 million
from Fiscal Year 2016 through 2024 Federal-State partnership
for what we call the State of Good Repair Grant Program
designed to improve critical rail assets with a backlog of
maintenance. This is not quite the issue Mr. Boardman was
getting into about use but this is about maintenance. Can you
talk about the importance of this funding?
Mr. Hoeffner. Yes, this is actually very critical to the
operation of the system because what it does is, you know,
getting to a state of good repair, getting to a state where the
equipment and the infrastructure has the capacity, has the
ability, that you are not on the track structure side
constantly battling slow orders because of tie conditions on
the train control system, like Joe mentioned earlier, on the
power into the tunnels for the Northeast Corridor, you are not
dealing with power outages. Therefore, the operation of the
trains, but for the train control system, you are not dealing
with pipes freezing on the coaches in the winter, you are not
dealing with traction motors blowing because of the ingestion
of snow in northern climates.
So, you know, there is a whole factor. When you talk about
on-time performance, most of the time we talk about it relevant
to the freight rails and the dispatching and everything of the
train, but there is a huge component of that goes along with
the infrastructure and the equipment. So we see this as
critically important at being able to improve the reliability.
You know, it is deplorable when we talk about on-time
performance of 20 percent, 50 percent, you know, so these are
all things that help move that bar up in addition to the
capacity issues.
Senator Klobuchar. OK. Thank you very much.
Senator Wicker. Thank you, Senator Klobuchar.
Senator Moran?
STATEMENT OF HON. JERRY MORAN,
U.S. SENATOR FROM KANSAS
Senator Moran. Mr. Chairman, thank you very much.
Gentlemen, thank you for being here.
I want to visit just briefly with Mr. Klein and Mr.
Boardman about the Southwest Chief. Let me first of all thank
you for your efforts in support of what I consider a useful,
valuable route to Kansans and folks in Colorado and New Mexico.
Mr. Klein, you indicated in your testimony a few years ago
that the future of the Southwest Chief was in doubt.
Mr. Klein. Yes, sir.
Senator Moran. And I hoped that you would soon tell me that
something is more optimistic than what you thought a couple
years ago. Part of that, I would assume, is that we have been
successful in two rounds of TIGER grants in support of the
Southwest Chief. My understanding its efficiency is beginning
to improve, safety concerns are being reduced, and presumably
good things are happening. And so I just would like you to give
me an update on your thoughts, and maybe you did this in some
of your testimony.
And then, Mr. Boardman, my only question for you is what is
the plan for implementing PTC, Positive Train Control, in
regard to the Southwest Chief in that line?
Mr. Klein, Mr. Boardman?
Mr. Boardman. Go ahead, Rick.
Mr. Klein. Yes, Senator Moran, we could not have done it
without your support. And thank you because, you know, it takes
that type of leadership to get everybody on board. And dealing
with Matt Allen out of Garden City--and he respects you very
much.
Senator Moran. Mr. Klein, I do not know you, but thank you
very much. I was not expecting the complement.
Mr. Klein. Yes. You know, I was hoping to meet you.
And, you know, with the TIGER VI and TIGER VII and, you
know, we have reduced $100 million needed of rail improvements
down to $38 million, but that is also working with Burlington
Northern Santa Fe to increase that.
Now, the other $100 million, that was needed for the
continuing maintenance, Burlington Northern Santa Fe has
stepped up, you know, the State of Kansas. They do not want any
money from them because of the freight that pays for the
maintenance of it. And a lot of that in Colorado, too, except
for a real small sector.
And as we move forward, you know, we will need a TIGER
VIII, you know, and then just a little bit of a TIGER VII, you
know, but it depends on, you know, what happens with the gas
prices and everything, you know, because, you know, one of the
things that I will start next week is going down into New
Mexico and starting to get an applicant for TIGER VIII and to
finish off this endeavor. And, yes, sir, I----
Senator Moran. Do you expect it to be a problem?
Mr. Klein. No, sir.
Senator Moran. OK.
Mr. Klein. Because, you know, what I have found is
dedicated people in all three states, and they want to get this
job done. And they have given me the hope that it will be done,
and I feel real confident now. And just like when we are
talking with the Federal Railroad Administration or any of
Amtrak, Burlington Northern, or any of the communities, failure
is not an option. We will get this done. And that way we are
part of this great nation and connected to this national
network not only long-distance trains but also the subways and
the bus systems within the cities across this Nation.
Senator Moran. Thank you for your leadership, sir.
Mr. Klein. Thank you.
Senator Moran. Thank you, Mr. Chairman.
Mr. Boardman. Senator?
Senator Moran. Sir, Mr. Boardman?
Mr. Boardman. Senator, I was just checking myself here, but
the host railroads are responsible for Positive Train Control
on track that we do not either own or control, and that is one
of them. As a matter fact, I am not sure that particular
section requires it under the regulations right this minute. We
will get you a written answer back on that.
Senator Moran. And we will raise that question then with
the NSF as well. Thank you, sir.
Mr. Chairman, thank you.
Senator Wicker. Mr. Klein, Senator Moran will be available
afterwards for autographs and pictures.
Mr. Klein. Thank you very much.
Senator Wicker. Without objection. Senator Blumenthal
followed by Senator Daines.
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thank you, Mr. Chairman. And thank you
to all of the witnesses here today for your work on this
supremely important issue. Thanks to Mr. Boardman for your
service to Amtrak over many years and your service to the cause
of transportation.
I agree with you completely about fixing the Hudson, making
sure that tunnel is workable, important not only to New York
and its financial district but really to the whole Northeast
Corridor. And so I agree completely that it is an urgent
project.
The State of Connecticut, as you know, is working closely
with Amtrak to complete the Hartford line, which is an expanded
and dramatically rebuilt railroad facility between New Haven,
Springfield, and other parts. This line will create a huge
number of jobs and make it easier for commuters to get across
Connecticut and travel through New England. It will nearly
triple the rail traffic and reduce trip times. It is a project
that needs to be completed. It needs to be completed as soon as
possible. There is simply no question about it.
Amtrak has a unique and outsized role in this project, and
you own the rail line and exercise enormous control in
construction management. So Connecticut, with very limited
control, is depending on Amtrak to do its job here. Connecticut
taxpayers will largely pay for the line and will use it.
So what we have is a massive undertaking with a budget of
nearly $574 million, and of course that number reflects some
cost overruns, as you are well aware. Many will be borne by
Connecticut residents well beyond the initial cost of $365
million. And the deadline for completion has slipped from 2016
to 2018.
I know that we have engaged in many discussions. They have
been productive and important, and your team is certainly
receptive to suggestions made by our delegation and our
Governor. I want to thank you and Secretary Foxx for meeting
with us earlier this year and your continuing dialogue with us.
It seems like such a simple, basic solution to complete a
project like this on budget by a certain date, which Amtrak has
now agreed to do. Should this not be standard practice for all
Amtrak projects in all states, and can you assure us that this
budget and this timetable in Connecticut will be met?
Mr. Boardman. Yes, it should be standard practice, Senator.
It has not always been standard practice, and do not ask Tim
any of that right now either with Michigan. So we have had our
challenges there as well. We have improved the way that we are
handling that. I believe our new chief engineer is very
different in his focus and his effort to get this delivered, so
I am confident that we will get it delivered.
And actually, I am confident that things are going pretty
well because I was at a speaking engagement last week with Jim
Redeker and he was cordial, so I think we are OK right this
minute.
Senator Blumenthal. We will know it is really working when
he is more than just cordial, when he actually gives you a slap
on the back and----
Mr. Boardman. Well, he was smiling, yes. Yes, sir.
Senator Blumenthal. Well, but very seriously, I hope we can
have your continuing oversight here----
Mr. Boardman. Yes, sir.
Senator Blumenthal.--in the time that you have remaining
because it is so critical that this project remain on track,
and I assume that you believe that there is every indication
that it will be moving forward on the timetable and budget that
has been set?
Mr. Boardman. Yes.
Senator Blumenthal. And that you will continue to make your
voice heard in this project?
Mr. Boardman. Yes.
Senator Blumenthal. Thank you very much.
Thank you, Mr. Chairman.
Senator Wicker. Thank you, Senator Blumenthal.
Senator Daines?
STATEMENT OF HON. STEVE DAINES,
U.S. SENATOR FROM MONTANA
Senator Daines. Thank you, Mr. Chairman. And thank you all
for testifying today. I am truly grateful, as a guy from
Montana, to hear your rural perspectives.
And as mentioned in the testimonies, Amtrak does not just
leap from one urban area to the next. Rather, it connects
communities in between urban centers. Connecting Chicago to
Seattle and Portland, the Empire Builder runs approximately 660
miles across Montana. In fact, that was the stop in Shelby,
Montana, that my ancestors went back and forth when they came
out to Montana from Minnesota, on the Empire Builder. And they
connect to 12 rural Montana communities. In fact, last year,
the equivalency of 1 in 10 Montanans boarded and alighted the
Empire Builder. So I think it is imperative that we continue to
move these passengers in a safe and efficient manner.
Mr. Boardman, the recent FAST Act is the longest surface
transportation bill that Congress has produced in 17 years, and
it finally provided some certainty to the people of Montana. It
required Amtrak to report on station development, and Amtrak
has previously completed a feasibility study that indicated
reinstating the Empire Builder stop in Culbertson, Montana, and
that would have a net positive financial impact overall on the
financials. And in light of that rural state set-aside, what
efforts has Amtrak made to work with the Culbertson
stakeholders?
Mr. Boardman. Specific efforts I cannot testify to right
now, Mr. Daines. However, I understand your interest, and we
will work with you and with them to make sure this gets done.
And maybe the Chairman can even tell you that we worked with
him on a stop as well on his route. It is just going to take a
little longer to connect all the dots.
Senator Daines. Yes, well, thank you. And I know somebody
who takes the responsibility very seriously to manage the
taxpayer dollars and be a steward of such. We have looked at
the numbers as actually financially attractive to consider
that. It is a net positive. They already have the
infrastructure, and the train passes through it already at
ideal times. And so my request would be if we could get the
Amtrak staff to visit local leaders so they could really hear
directly from the leaders there to modernize the existing
station or perhaps a new building as you complete the study. So
at least we can have that commitment to have a face-to-face
meeting. That would be, I think, a positive step forward.
Mr. Boardman. May I ask a question back?
Senator Daines. Yes.
Mr. Boardman. Have you been told that my folks have not met
face-to-face with them?
Senator Daines. We know they are working on it. We would
just like to get an update and get that face-to-face meeting
there in Culbertson.
Mr. Boardman. Well, if they have not, they will.
Senator Daines. That would be helpful. Again, the nature of
rural communities, sometimes we are a long way away from
airports. That is why the rail is so important to us.
Mr. Boardman. Yes, sir.
Senator Daines. And we would just like to have that face-
to-face with you if we could. So thanks for that commitment to
that. I really appreciate it.
One more question, Mr. Boardman. The recent FAST Act also
established a 25 percent rural set-aside for rural
infrastructure and safety improvements, and many communities
already have these shovel-ready projects. Can you give me some
thoughts around how Amtrak is working as a facilitator between
these rural communities, rural Montana communities, and the FRA
to ensure successful grant application, as well as project
execution?
Mr. Boardman. I am not aware of them, but we will check
into it and I will give you a written response.
Senator Daines. OK. That would be appreciated as a follow
up on that. Thank you.
For Mr. Hoeffner, the Midwest Interstate Passenger Rail
Commission, which you chair, includes half the states the
Empire Builder passes through. We all benefit when the Empire
Builder runs efficiently. How has the commission engaged the
other states?
Mr. Hoeffner. We have not directly engaged all the states
that are involved in the Empire Builder. We have been focusing
on the states that are a part of the Commission. We would be
more than happy to reach out and talk with the additional
states. One of the things we have right now going on is the FRA
has a regionally led planning study that they have selected the
Midwest as one. It is meant to be kind of a test case on how to
put together, how to develop and implement things. So we would
be more than happy to talk with additional states on how they
can support. And, you know, we are focused on the Midwest----
Senator Daines. Right.
Mr. Hoeffner.--but we would be more than happy--we have,
you know, involvement from other states on an ad hoc basis so--
--
Senator Daines. Well, that would be great. We would
appreciate, you know, a Northwest kind of discussion, too,
given that it is a bit Midwest-centric, and we welcome that
kind of dialogue as well.
So for the whole panel, you have all had successful
experiences with interstate working groups. What advice might
you have for other states who want to see similar developments?
I am about out of time here, maybe get a comment from somebody
on the panel.
Mr. Ross. Ours has worked very well because it comes from
the Governors of each state, and they appoint them. And we have
some congressionally led power. We are an animal of the
Congress, and we were established by Congress. It gives us some
additional standing. And I think that is very important, and so
it pushes us to work within all of our states to make sure that
everybody is represented and everybody does, and also gives us
additional leverage when we talk to our Senators and
Representatives in Congress because we can take TIGER grants,
we can do things ourselves. We can go above the individual
State Departments of Transportation and those sorts of things,
and it makes it much easier for us to work and to do things and
to work directly with Amtrak, work directly with different
people because we are not an animal of our individual states.
And that makes it a lot easier for us to work.
Mr. Hoeffner. MIPRC is also the same. We are a nine-state
compact. But it is also important, as we are hearing here
today, that we not only have the state-level government but we
also have that local commitment. The stations are the gateways
to these communities, to and from these communities, and it is
important for the community to have ownership in that so----
Senator Daines. Yes.
Mr. Hoeffner.--it has to work at all levels.
Senator Daines. Well, I appreciate it. And just for
perspective, Montana is a state, and we are not as big as Texas
and Alaska, but you can put Chicago in one corner of our state
and Washington, D.C., in the other. So that is when I think
about the coverage and what I appreciate about Amtrak is that
we have a lot of Montanans, first, who live a long way away
from an airport but live close to a rail station. Second, they
can afford a rail ticket and cannot afford a plane ticket. And
so thank you for bringing that connectivity for rural America.
Yes?
Mr. Klein. Senator Daines, you are exactly right. You know,
same thing in our area. You know, we have to travel a long
distance to get to an airport, and a lot of them do not have
the ability to get out of the region to do that.
Senator Daines. Right.
Mr. Klein. Get your champions, you know, make sure you have
everybody, educate yourself, and once you get, you know,
everybody and respect where they are coming from, you know,
whether that is at Federal, State, local levels, but educate
them and talk with them and be open and honest.
You know, I thanked Mr. Boardman for one of the first
times--well, the first time I met him and his honest dialogue
about the endeavor that the City of La Junta was about ready to
embark on, and he gave me the confidence to move forward.
But I have run into great champions in all three states,
and, boy, I wish I could list them all because they are just
great people, and they are rural people, and they are the heart
of this Nation and they deserve to be a part of it.
Senator Daines. You said it well. Thank you.
Mr. Ross. May I make one additional comment that I think is
very important?
We also make sure that our policy advisers are
transportation for America, and once we hired them to help us
craft our message and figure out where things are and to work
with individual Members of Congress has made a huge difference
for us is having someone who is knowledgeable.
Senator Daines. Thank you.
Senator Wicker. Thank you, Senator Daines.
I think it is remarkable that we have had 10 Senators
participate in this subcommittee hearing. And I have waited
until last to say my piece.
I think we should probably note the presence of Mayor John
Robert Smith in the hearing today. Mayor Smith served as mayor
of Meridian for a number of years before retiring. He has been
a tremendous advocate for passenger rail over time and is
president of transportation for America. So, John Robert, nice
to have you here.
And then I would not want this hearing to pass without
acknowledging the great contribution over time of Gil
Carmichael to the issue of passenger rail. Gil is a longtime
friend of mine also from Meridian, Mississippi, and served as
Federal Rail Administrator, among many other capacities. He
passed away in just the last few weeks, and we miss him in the
passenger rail advocacy community and we miss him in
Mississippi.
He was a Coast Guard hero back as a youth. They made a
movie about a rescue that he was part of called The Finest
Hours, and he was supposed to join me and others at the
premiere of this movie but was too ill to come, so we want to
acknowledge Gil Carmichael also.
Briefly, Mayor Ross, what is the relationship between the
Southern Rail Commission and the Gulf Coast Working Group?
Mr. Ross. We are a member of the Gulf Coast Working Group.
We are----
Senator Wicker. How many members are there in the working
group?
Mr. Ross. There is probably about 20. I do not remember the
exact number because there was not any limit set. We have
members from all the states from Florida to Louisiana.
Senator Wicker. OK. And what is your charge and when are
you supposed to get back to us?
Mr. Ross. Our charge is to bring back to you a plan to
restart service on the gulf coast, and we are supposed to do
that within 9 months. And I think that ends up being in
September.
Senator Wicker. And I think you told me the other day that
you feel you are off to a good start?
Mr. Ross. Yes, very good. We have----
Senator Wicker. You had one meeting----
Mr. Ross. We had our opening meeting----
Senator Wicker.--and that was in New Orleans?
Mr. Ross. Yes.
Senator Wicker. How did that go?
Mr. Ross. It went very well. CSX was in attendance. Most of
our members were able to come either in person or by phone. We
selected the routes that we wanted to study, which was a long-
distance train, extending the City of New Orleans from New
Orleans to Orlando and then also looking at what the additional
capital costs would be to be able to run a second train between
New Orleans and Mobile.
Senator Wicker. And so the figures that you were giving in
testimony earlier----
Mr. Ross. Right.
Senator Wicker.--are the capital costs?
Mr. Ross. No, those are the operating costs.
Senator Wicker. Those are the annual?
Mr. Ross. Right.
Senator Wicker. So remind us again of that.
Mr. Ross. The estimate for the extension of long-distance
train would be $5.5 million, and then to add the additional
State-supported train between Mobile and New Orleans would be
an additional about $3.5 million.
Senator Wicker. And, Mr. Boardman, what do you think about
those numbers? Have you had a chance to look at those?
Mr. Boardman. I have not. I have not, but they sound
reasonable at this point in time.
Senator Wicker. OK. Mr. Boardman, would you agree that our
previous experiment with Amtrak across the gulf coast, though
desirable, was not an overwhelming success? Would you
acknowledge that?
Mr. Boardman. Well, because of the time that it took in
comparison to the automobiles, I think that had something to do
with it, but yes.
Senator Wicker. OK. Well, so what should make us optimistic
about our endeavor now?
Mr. Boardman. Well, one thing, the outpouring of interest,
but I have to tell you that the demographics of our country is
changing and for a lot of reasons. Some of it came up today
that people are willing to be on trains today and have Wi-Fi
and be entertained differently than they did in the past. We
have a lot more folks that are getting to be my age and older
that look at this as a way that they do want to travel for the
future. I think there are people now today that begin to
understand the necessity to maintain the connection, the
mobility necessary for us to have that mobility for the future.
And once it is gone, it is gone.
So I do not think until you came along, Senator, and the
Southern Rail Commission and Governor Brandt, I do not think
anybody had hoped that this would ever return. And it is
returning. It is something that is going to happen, I believe.
And people will be positive about that.
We will need to be on time of what we say we are going to
do. If we cannot be on time--and a large part of that is with
the relationship we have with CSX. If we cannot be on time, it
probably will not work. We have to keep it on time.
And we today have a couple of things in front of the STB to
ensure that we continue to have preference as a passenger
service as opposed to freight. That has always been the case.
We have not liked the definition that the STB came up with, a
new definition that really needs to be going back to the
definition that has always existed, and that is passenger
railroad has preference. And so we are looking for that
decision from the STB.
Senator Wicker. And when might you get that decision?
Mr. Boardman. I do not have a date in front of me, but also
I do not have a date that they will actually decide it. We just
put in our last submission the 22nd, I think, Monday.
Senator Wicker. But the question is currently pending?
Mr. Boardman. It is pending.
Senator Wicker. Well, what advice do you give Federal
leaders and State leaders in determining, based on the
information we are going to get from this working group and the
Commission, determining whether this is going to work or not?
Mr. Boardman. Well, my advice has been for a considerable
period of time is something you have already done, which is put
this in the Surface Transportation Bill. So we talk about the
needs for whether it is highways or whether it is buses or
whether it is transit systems or whether it is intercity rail
all in the same bill for the future. And while we would like to
see higher levels of authorization--and one of the things I
failed to do and would like to put into the record if I can is
a thank you to Senator Booker for the work he did just on the
RRIF loans where he really hung out there to make some changes
on that, and that is going to make a difference to everybody in
this passenger world and in freight railroads to make
improvements in the infrastructure.
So my advice to the Federal level is to continue to have
authorizations as a transportation trust fund if we could get
there so that local communities like those that have really
stepped out here can really have an impact on making sure that
that mobility and that service continues for the future.
Senator Wicker. Well, when you look at the current
population of the gulf coast areas from New Orleans over
through the four stops we would have in Mississippi and then
Alabama and Florida, have areas with similar density of
population been able to make a success of this?
Mr. Boardman. It depends on, Senator, very straight to you
what do you define success? And I remember the first time I met
you, you were not sure I was going to carry out what you want
me to get done, and I committed to you that I would do that as
a commitment----
Senator Wicker. Thank you.
Mr. Boardman.--because it was important that our nation
said that we should do that. That was a law. Our nation said we
should run a national rail system. The people on the gulf coast
are just as important as the people that were being talked
about here in Montana, and there are more of them down there.
Running through Montana is a success. We provide that service.
It is mission-oriented as opposed to efficiency-oriented.
It does not mean it should not be efficient, but today, in
the world that we live in, when you run something like a
business--and I made that statement a while ago--a business has
a responsibility to turn a profit, yes, but if a business is
also charged with helping the communities that it operates in,
then it is successful if it does that. And part of the business
of Amtrak is that it needs to be partly funded by the United
States, not just by three states, six states, four states, one
state or by the Northeast Corridor.
But the United States of America said in 1971 that they
were going to relieve the railroad industry from their money-
losing passenger service, but they have continually said that
we as a nation want you, Amtrak, to run a national service.
That is part of a national service, and it should be connected.
It has to be supported. And the people there are going to be
supported and are going to have that mobility.
Senator Wicker. You know, Mr. Boardman, I have been looking
at transportation issues for a long time. I was a very lowly
staffer on Trent Lott's House staff back in the 1980s when the
House and Senate were wrestling with the issue of the
Tennessee-Tombigbee Waterway. And we insisted as a country that
a cost-benefit analysis be done. And I will have to say, as a
longtime supporter of the Tenn-Tom, I think the numbers were
favorable then and they have turned out to be much better than
that.
When we do cost-benefit analyses of passenger rail as
opposed to cost-benefit of highways or ports or airports, are
we always comparing apples to apples or is there some help you
can give us--pardon me--in figuring out whether the cost of
what we are thinking about doing on the gulf coast or
elsewhere, whether it is a good investment for the taxpayers?
Because that is a question we have to ask in these tough times.
Mr. Boardman. I am not the economist or the thinker. I will
tell you, if you take your left hand and turn around and look
at the kid named Matt behind you, he is somebody who does think
about a lot of those things. He worked over at Amtrak. And we
do have people that----
Senator Wicker. We are glad to have smart folks behind us,
I will tell you.
Mr. Boardman. Yes. And we had smart--and I am glad he is
over here, but I was sorry to lose him and still sorry we lost
him. Those are the folks that can help answer some of those
questions. And yes, we can help you. It might not be me that
does that.
Senator Wicker. Mayor Ross, you have the last word.
Mr. Ross. Well, there are two things. Number one, when you
talk about a cost-benefit analysis, you really have to bring
in--a lot of times you just look at what happens around the
station, for example. I know Mayor Smith makes a great talk
that he has given a hundred times about the spinoff investment
from the station he built in Meridian. I am sure you have heard
it. But you have to look at more than that. And I think I go
back to the example I was giving of Bay St. Louis, and I talk
about Nikki Moon who has owned her own business and she sees
that she can bring additional people to her town. And those are
a little bit harder to quantify, but they make a huge
difference to these smaller cities, that people can get there.
And when we went through Live Oak, Florida, we met the
government of Live Oak, Florida, in New Orleans. I happened to
run into them at breakfast and said who are you people? And
they said, well, we are here to ride the train. I said really?
Where are you from? Live Oak, Florida. They said we want to
stop on this thing. And so we talked to them as they go along,
and we go through this very small town that had hundreds and
hundreds of people lining the tracks saying we want this train.
We want to be a part of the Nation. We want to be a part of
things. Those things are little bit harder to quantify, but you
can. You can go to those individual places and you can see what
the business and the business that that train brings to that
town.
It is much like, on another example, you guys put together
a package for Katrina, CDBG. I got a good bit of that money
outside the coast. And your expectation of me is that I invest
that money in my town so that there is a business spinoff
effect so there is return for the Federal taxpayer. And we have
tried to do that. We invested our money in places where it
invested in spinoff private investment. It is going to generate
tax dollars that will come back to the State, local, Federal.
I do not think it is any different, any different from
passenger rail. If you are investing in a passenger train --let
us just take the coast train, for example--your expectation
should be that there is a spinoff, private spinoff effect. That
is what your expectation should be in Bay St. Louis, in
Gulfport, in Biloxi, in Lake City, Florida, in Chipley,
Florida. And I think that is the same expectation that these
people have.
Senator Wicker. And Pascagoula.
Mr. Ross. Pascagoula, Biloxi, let me hit them all, you
know, Pagosa Springs. And that is the expectation. And I
thought that was what was so interesting about every place we
went through is that it was not just the business leaders, it
was not just the government guys. It was your everyday people
that came out there.
And you cannot pay them. I joked with the president of
Hancock Bank. I said, what did you do, get all the people that
were 60 days overdue and tell them you would give them an extra
30 if they would come out to the train? He said, no, I do not
have that many people that are behind. And these people
understand the benefit that it brings them.
And some of it is not quantifiable. Some of it is just that
my grandmother can get on the train--an example. I rode the
City of New Orleans from Jackson to New Orleans for a meeting.
Well, when we started our trek across north Florida to meet
with all these mayors, I got off the train with this
grandmother from Fulton, Kentucky, who was meeting her
granddaughter in New Orleans. That is the only way she could
get there. I mean, she cannot ride a bus. She can ride a train.
Senator Wicker. And that happens all over the system.
Mr. Ross. Yes. Right. And I think, yes, we can quantify
some of this. I mean, I can do that. I mean, people can do it.
But then you have the other unquantifiable part is that you
have people that this is the only way they can get there. It is
the only way.
Senator Wicker. Well----
Mr. Ross. And they deserve a way to do that.
Mr. Klein. Senator Wicker?
Senator Wicker. They are going to get the hook out in a
minute----
Mr. Klein. OK.
Senator Wicker.--and jerk me out of here.
Mr. Klein. The first hard structure in our community when
it was built was the railroad station, and it fueled the
economic development of the City of La Junta and the
communities in the West, as it does today, and that is what you
would find in your communities is the history and that
dedication, you know, because the railroads followed the Santa
Fe Trail and they are just as important today as it was when
the City of La Junta was first started. And I bet you all the
other towns will say the same thing.
Senator Wicker. Well, look, thank you all for your
testimony. We will allow members of our panel to supplement
their testimony and you will be given that opportunity. There
are certainly intangibles that you mentioned, but let me just
say to you, we need to make the numbers work to give our
colleagues and give the taxpayers and voters of this Nation a
comfort level that our money is being spent and that the cost
does bring a valuable benefit.
So thank you very much, a remarkable hearing and good
participation, a wonderful panel. Thank you all.
[Whereupon, at 11:37 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Dean Heller to
Joseph H. Boardman
Question 1. It is my understanding that the Las Vegas Railway
Express Inc. submitted a proposal in January of 2015 which would
authorize charter type passenger service from Los Angeles Union
Station, California to Las Vegas, NV. This proposed service, called ``X
Train'' would run roughly eight specialty charter runs per year
scheduled around special events in Las Vegas such as the major sporting
events, holidays, and trade shows.
What is the status of that application?
Answer. This application was originally submitted in January of
2015, was modified in August 2015, and resubmitted again in January of
2016. It is my understanding that that Las Vegas Railway Express has
not received any written response from Amtrak regarding when the review
process would commence.
Question 2. What has prohibited Amtrak from beginning the review
process?
Answer. Amtrak has been reviewing the various proposals from Las
Vegas Railway Express (LVRE) and currently is working with LVRE on the
latest application for a round-trip pilot train. The process was
delayed by incomplete and changing information on the original and
subsequent movement requests. As of March 2016, we have sufficient
information to process the LVRE request for the pilot train. Since
then, in addition to working with LVRE, we have been working with the
host railroads (Union Pacific and BNSF) involved to develop an
operating plan. Pending the approvals from Union Pacific and BNSF
railroads and the completion and execution of a contract with LVRE,
Amtrak anticipates operating the pilot train by late July. The pilot
train will enable both Amtrak and LVRE to evaluate the operational
issues which will be useful for any discussions about future trips.
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