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How Sandy Might Tweak Today's High-Speed Rail Privatization Hearing
Thursday, December 13, 2012 - 08:20 AM
On Capitol Hill today, high-speed rail in the Northeast will get dissected and debated. This time though, Amtrak head Joe Boardman will sit at the witness table with some support from record ridership numbers. And also Sandy.
The hearing continues a series of grillings GOP lawmakers have been giving to Amtrak in a push to reduce the subsidies the national rail network relies on each year. Other witnesses on the docket include a DOT rep, an American Enterprise Institute Scholar and a Morgan Stanley managing director.
The 15 word hearing title obscures the topic, so it's pasted way down below in this post, but rest assured the conversation will cover privatization of high-speed rail along the Northeast Corridor.
Outgoing House Transportation Committee Chair John Mica who will chair today's hearing has long supported the idea of building high-speed rail in the Northeast because that route is the only one profitable for Amtrak, but he has argued that funding, and even operations, could be provided by the private sector. Big spending on big projects need not come entirely from the government, Mica has argued.
Robert Puentes of the Brookings Institution says, "Superstorm Sandy did change the conversation around infrastructure, particularly in the Northeast."
The storm, which caused $60 million in losses to Amtrak and billions in damages to other transit agencies, showed the need for expensive upgrades, and a scale of risk involved that demands more active government investment. "The enormous bills we have from Sandy are not going to be born by the private sector. It's ridiculous to think so."
He says, "there is a role for the private sector to play" and he hopes the hearings hone in on it because finding the right role is crucial.
Puentes also says, states are likely to play an increasingly large role in Amtrak funding in the future. As the national government becomes more reticent to pay for unprofitable rail routes, states that want to keep their service will have to start chipping in.
One test case to watch for this model could be the Sunset Limited line along the Gulf Coast that was washed away in 2005 by Katrina. Local officials are lobbying to get it back. The cash-strapped states of Alabama and Mississippi would need to pony up though, and so far it's stalled.
Today's hearing though, is on the Northeast Corridor, where megaprojects are on the table and profits are a reasonable lure for business involvement. The "vision" for high-speed rail still carries a price tag of $151 billion and a minimum construction time of several decades. There is no plan for how to find that huge sum.
Amtrak is likely to try to draw the focus to a more immediate project that is incremental to the "vision," the Gateway program, which would add two new tunnels under the Hudson River into New York's Penn Station from New Jersey. There are two existing Hudson tunnels at capacity now. They both flooded during Sandy along with two of the four tunnels under the East River.
Petra Messick, a planner with Amtrak says the tunnels are needed for projected ridership growth but, Sandy also showed the value that new infrastructure could bring.
"When the Gateway Tunnels are built, they will be built in the 21st century and include a host of features that will make them more resilient ... like floodgates," Messick says.
The existing tunnels are more than a century old.
And in case you were still curious, that full 15 word title is: “Northeast Corridor Future: Options for High-Speed Rail Development and Opportunities for Private Sector Participation.”