Financing needed track improvements

I just returned from a round trip to DC on trains 80 and 79. The times that I've made this trip, I've usually been delayed due to traffic on the CSX "A" line.

This time, the trip up on number 80 was no exception---we were delayed three times due to traffic and one time due to a track work crew. These delays made the train an hour late arriving at WAS. However, the return trip on number 79 today was an exception---there were no delays this time. Consequently, the train arrived at GRO on time even though we were fourteen minutes late leaving WAS.

As most contributors on here know, in order to make corridor service faster and more convenient, we need to eliminate these delays caused by traffic. Moreover, as most of us also are aware, making the track improvements needed to increase capacity requires a large amount of capital that neither the freight railroads nor the government can afford. Therefore, I'm wondering if it'd be feasible to have a group of private investors buy the land and build extra track in high traffic areas. Would these investors be able to recoup their investment (with a reasonable return) and pay for ongoing maintenance by charging a user fee to Amtrak as well as to any freight railroad that utilizes the investors' track? Would this user fee require Amtrak to increase its fares to the point that they're no longer competitive with the airlines on corridor trips (i.e., trips of up to about 500 miles in length each way)?

If financing track improvements through the private sector is feasible, it'd be an expeditious way to get the needed capacity improvements in place.

Railroad ROW in my neck of the woods seem to be about 60 feet wide for single track, and 100 for double track. It seems to me you'd have to buy land adjacent to the existing ROW, perhaps on either side (in DT territory). The railroad will have to let you put in the turnout, and may well charge you a fee to dispatch it.

There's also the matter that you will have longer turnouts before you have tangent trackage.

Remember, finally, Amtrak to get well requires that annual infusion of operating cash from the US Government. I'm not sure they can make this kind of commitment.

Food for thought...

tarheelman wrote: making the track improvements needed to increase capacity requires a large amount of capital that neither the freight railroads nor the government can afford. Therefore, I'm wondering if it'd be feasible to have a group of private investors buy the land and build extra track in high traffic areas. Would these investors be able to recoup their investment (with a reasonable return) and pay for ongoing maintenance by charging a user fee

If it were feasible for a third party, it would be feasible for a freight railroad to form a special purpose coporation with the appropriate covenants and raise the capital. There is no need to have third party involvement.

I would note that in both England and here , attempts to place ownership and management of the right of way into private hands has failed miserably . even when given the assets for next to nothing .
Like highways , the most effective way is to be owned by the government , or a private compay given tax credits / subsides equilivalent to what a govt owned road / railroad would recieve .
If you're going to do that , the govt might as well own it .

This time, the trip up on number 80 was no exception---we were delayed three times due to traffic and one time due to a track work crew. These delays made the train an hour late arriving at WAS. However, the return trip on number 79 today was an exception---there were no delays this time. Consequently, the train arrived at GRO on time even though we were fourteen minutes late leaving WAS.

Track work will inevitably cause delays in the system. The track being repaired is OOS and the adjacent tracks are under slow orders, to protect the track workers. But once the project is finished, the entire system works better, as you witnessed. Many of the operational problems on CSX seem to be the lingering effects of a crippling "Snow-storm" from several years ago. Currently CSX seems to be having a problem with "Children" playing on the tracks, which may cause even more operational problems in the future. If private capital is interested in improving rail infrastructure they should invest in companies that are committed to maintaining and improving their exisiting infrastructure and providing good service to their customers. The economic benefits of freight and passenger rail evaporate when service is provided at 10 mph.

There are various logical ways to fund major track capacity enhancements, but at the end of the day all rely on public money being committed. These include -

- Payment out of general revenues or specific accounts (like a transit trust fund)

- Debt financing through a public bond issue. California has used this mechanism quite a bit over the past couple of decades.

- Private finance and lease back. I don't know of this being done with rail in the US, but the expansion of US Rte 3 in MA a few years back was funded by construction companies based on a thrity-year payback commitment from the state. The first TGV lines in France were also built with a substantial amount of private funding. The key is public commitment to repay the investor.

There seems to be some sentiment for public investment in capacity expansion in the territory served by train 79/80. Virginia is currently funding triple tracking of the RF&P, and the state of North Carolina owns the route from the CSX connection to Charlotte. In addition, both the Norfolk Southern and CSX have circulated proposals for public investment in their respective corridors as a means of mitigating the need for highway expansion. These latter proposals are interesting because they address to some extent the public value in dual use of rail corridors by passenger and freight operators.

Dave

Great replies, folks!

I think we all agree that improving the capacity of our country's rail infrastructure is necessary in order to realize the economic and the fuel efficiency benefits of rail transport. However, given the fact that many state governments are cash strapped right now, getting these capacity improvements in place might take some creative financing efforts.

If the freight railroads don't want to be involved in these endeavors, that's OK. The capacity improvement efforts can be directed exclusively at passenger rail. This will only work, though, if user fees and other means to repay private investors and fund ongoing maintenance don't drive up the cost of fares to the point that they aren't competitive with private motor vehicle travel (and, to a lesser extent, air travel). To use an old cliche, that's the $100,000 question.

MODERATOR'S NOTE:

Folks, we're way out of Amtrak here.

Moved to the General Discussion: Railroad Operations & Facilities forum.

the only way i think private investors would be interested in building track for passenger rail , would be if there were land development opportunities attached . Otherwise its too much capital tied up for too little return , and high risk if youre relying on the state or federal govt to fund the passenger service .

Many of the operational problems on CSX seem to be the lingering effects of a crippling "Snow-storm" from several years ago. Currently CSX seems to be having a problem with "Children" playing on the tracks, which may cause even more operational problems in the future. .

Most if not all these problums with CSX Trackage would not have happened if they had put money into the track maintaince on all of there aquired Conrail trackage insted of leaveing it to sit and rot for the first 7 years of operation. They pissed away money cutting down old telagragh poles one winter, painting ties white and or yellow the next, and layed off a large number of MOW guys.

Why did they paint the ties???

David Benton wrote:Why did they paint the ties???

white ties to mark where there were culverts. Yellow to mark points where they did want Locomotives to venture or something like that?? just one of many waste of money things that CSX is known for according to a friend of mine who works for was transfred over to CSX after the Conrail split.