Re: (erielack) was [NYC-Railroad] New Passenger Routes --- What is the answer?

["James R. Guthrie" <"jguthrie_@_pipeline.com">]

Jack asked:


> I don't claim to be an expert on passenger train economics, but I
ask
> one simple question. Why have many foreign countries, including
China,
> entertained privatization plans while the United States and Canada
just
> stick with a (non business) government operation.
>
Because the "Privatization" comes with foreign investment and provides
other benefits for the host country. For a U.S. example, one need only
look at the Canadian Governm,ent's financing of Acela to provide
business for Bombardier.

> While NJTransit maybe one of your better agencies, others fall far
short
> of their goals.
>
> We have an opportunity to test the waters with three potential
routes
> --- New York-Poconos, Utica-Lake Placid, and Pittsburgh-Cleveland.
The
> progressive management of the New York Central System advocated
> passenger operation on short routes to play with the airlines at
their
> own game. The Northeast Corridor proves this point.
>
The NYC strategy was to have as many trains become intrastate as
possible, so as to get pliant regulatory agencies to allow
discontinuance. The only place it actually got into the "short trip"
bit was with Empire Service in NY -- which was actually a compromise
that allowed the discontinuance of quite a bit of service and allowed
the scrapping of a large number of passenger cars.

> On the proposed New York-Pocono route a test case for privatization
may
> just be in order. A fair tax situation, modern work rules, and
business
> marketing might prove successful. If you say it can't work, find out
how
> Europe and Japan do it.
>
They have gasoline prices 3-5 times higher than the U.S., and do not
send troops out to war to preserve "low" prices.

> what foreign countries are doing right.

They do not subsidize private automobiles to the huge extent that the
U.S. does. Thjat leaves a somewhat more competitive situation.

Let us take this into
> consideration in the plans for a New York-Pocono route. Let us
monitor
> the operations of the Utica-Lake Placid route. For those who say
that
> the state is participating in the rebuilding of the right of way ---
> fine. Let us study this aspect too. The government maintains
interstates
> and airports, but it doesn't operate Trailways, Consolidated
> Freightways, or Continental.
>
Amtrak runs in the black if the routes it uses/owns are exempted from
local taxation, just like the highways and airports.  It is the most
economically efficient of all the intercity rail operations in the
world in terms of farebox recovery. The "profitable" passenger
carriers elsewhere count that "profit" after their government
subsidies (including for the privateers) gets counted. In the sense
that Amtrak has spent less than the total of farebox plus subsidy in
some of the past 30 years, one could say Amtrak in "profitable" too.
But it would be misleading and mendacious.

> It may be noted that private offers have been made for Amtrak, but
the
> politicians have just ignored them. It is another example of how
> politicians want to control all aspects of our lives and create jobs
for
> their friends.
>
It must also be noted that Amtrak plans to use or lease the extensive
ex-PRR power transmission system  was prohibited by the Republicans in
Congress, to protect their cronies in the power industry.  There's
obviously no interest in **that** quarter in a fair system.

> The transportation socialists looked oversees in the 50's and 60's
to
> promote nationalized railroads. Let us now look oversees to see if
> passenger trains can be run as a progressive business.
>

The private auto epitomizes the triumph of big government.  Motorists
receive huge tax subsidies -- and people like being on the dole -- and
they vote against private enterprise and free markets with their
feet -- every time a foot hits the gas pedal to pull out of their
driveway. People **love** socialist schemes in the U.S., provided
they're the direct beneficiaries. And they care not one whit about
cost.

When government treats all modes equally, then it's time to look at
privatization. Until then, it's hopeless.

Cheers,
Jim

PS Didn't the Erie or EL even have a property tax assessment added to
pay for airport improvements for Mohawk or Allegheny Airlines?





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