Passenger Rail under an Oldsmoboi administration

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Oldsmoboi

OBS Chief
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Jan 3, 2011
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This is something that I posted in the Politics section of my own website, a limited access part of the forums that only select members can see. I have one person there who is fiercely opposed to all things rail (I don't know if a Lionel ran over his pet hamster or just what). This was my proposal for rail reform in the U.S. Since I'm settling in here as a regular member of this forum as well, I thought I'd cross post here to get your reaction to my idea.

Passenger Rail Requirements:

1. Ability to maintain speeds above 100mph on trips over 30 miles.

2. Ability to maintain speeds above 130mph on trips over 60 miles.

3. Ability to maintain speeds above 160mph on trips over 120 miles terrain permitting.

4. All electric motive power.

5. Utilize a hub and spoke system.

6. Speed limits set at a federal level rather than local (this addresses a problem demonstrated with the Acela were local townships set absurdly low rail speed limits)

Since I am frequently misunderstood about my feelings on passenger rail, I thought I would lay out what I feel is an ideal plan. The basic structure would be that the railroad is operated privately, but the rail infrastructure for passenger service is federalized. New lines would be built for the Federal government by the existing rail operators. All passenger lines would be electrified.

Since the federal government would own and maintain the rails, a rail fuel tax would be levied to cover maintenance and expansion costs. The tax would be indexed to inflation and be structured in such a way that the tax cost per mile would be lower for electric locomotives. The exception to this would be the freight yards which would continue under existing ownership/operation/maintenance structure. Passenger stations would be owned and operated by state, county, or local governments and funded by a fee-per-use system similar to the gates at airports. Conrail would be re-introduced as the entity that owns, maintains, and runs traffic control on the lines.

Passenger trains would be owned and operated by the existing freight lines. In order to spur passenger train offerings, all passenger trains would be fuel tax exempt. As an incentive to offer the most reliable, fastest, and safest service possible, a gradually increasing standard of service would be established. Passenger trains that met that standard of service would qualify the freight operator for a fuel tax reduction on their freight operations. However, at no point can the tax reduction exceed 60% of the fuel tax paid. The credit would be structured in such a way that the most effective way for the operator to get the largest rebate would be to operate frequent trips to minimize the impact of a single late arrival.

Since there is a need for more than just intercity travel, the tax rebate would be broken into 3 segments, each worth 20% of total fuel tax paid. The trip lengths specified in the requirements section would be the basis for each rebate bracket and could be earned independently of each other. Therefore, if a freight operator decides it is not in it's best financial interest to offer the highest speed intercity travel (which might be the case the a company like the Union Pacific which operates in a lot of mountainous terrain) they could still qualify for the full rebate from each of the other two segments.

Amtrak would continue to operate during the transition phase, but would eventually be privatized completely or broken up and sold off to the freight railroads.

The net result would be five new multi-billion dollar companies competing for your traveling needs with little to no subsidy from the government.

One of the big "features" of my plan is that Norfolk Southern trains can operate anywhere in the country, without having to negotiate with the host company for access to the rails. It becomes a "Rail Traffic Control" request for route similar to the way airlines have to ask air traffic control for routing.

So now instead of having to pass through 4 rail companies to get from LA to NYC, the Norfolk Southern could offer "door to door" service for freight... and so could CSX... and so could BNSF.. and so could the UP. The market for freight opens up tremendously and new competition is introduced nationwide.

This also opens up possibilities for entirely new operators. One of the biggest single utilizers of freight railroads is UPS. Under this plan, suddenly becoming their own rail operator (as they do with air shipping) becomes a viable option.
 
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Great idea, as long as you are willing to pay 100% of it, out of your own pocket.

As to U.S., the U.S. has run completely out of money years ago. Our "credit card" balance has hit our credit limit several times, and sooner or later, we will not be able to get any more limit increases.

The U.S. hasn't pay a penny toward the principle, and we even need to borrow money to pay just the interest.

If you or I did were in that financial situation, we would certainly be in bankruptcy court by now. And the unfortunate truth is that the U.S. isn't all that far away from bankruptcy court itself.

Sorry, the U.S. has to stop spending money it doesn't have. And if that means we all have to forfeit our favorite "projects", well, we have to grow-up accept it.
 
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I'm willing to pay for it out of the pockets of the top 5% income earners who just got another $750b tax cut.

Want to talk cuts? Talk about that one.
 
6. Speed limits set at a federal level rather than local (this addresses a problem demonstrated with the Acela were local townships set absurdly low rail speed limits).
What local speed limits are you referring to? I was under the impression that local speed limits for rail lines were, in fact, not permitted and that railroads have, at times, gone to court to have them removed.
 
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