Tuesday, February 21, 2012
Corman Is Still At It
Saturday, April 23, 2011
What Do You See In Your Wallet?
The American economy is coming back. At least according to most of the news reports that you hear. Wall Street is again climbing to within a thousand or two of its peak in October of 2007 and the corporate bigwigs are getting their outrageous bonuses, despite the so-called limitations that were enacted. It seems like these guys are winning the lottery every year. But I have not seen this recovery in my wallet.
In this recently completed first fiscal quarter, many of the railroad companies that I follow are now reporting that they have done very well. Over at CSX, the reported revenue climbed 13% to a record $2.8 billion, operating income at an all-time high of $773 million(up 22%) and an operating ratio at 72.5 compared with last year and also a record. Not bad for having many severe winter storms to deal with and a steep rise in diesel fuel prices.
Union Pacific also had problems with the weather and fuel prices but that didn't prevent them from chalking up some equally impressive record gains in revenue, operating income and ratio. Overall U.S. Rail volumes have remained above the typical carload growth rates for the first quarter. Shipments are up, revenues are up and profits are up, but I have not seen it in my wallet.
The workforce headcount for all 7 of the Class I railroads increased by 4.4% over last March's count and the majority of that came in the maintenance of way and structures group. Our railroads are beginning to upgrade and expand their infrastructure for the anticipated uptick in demand for freight. Remember that these guys are not interested in passenger rail, high speed or not. Rail travel of every kind is growing all across the U.S. But I don't see the benefits of that growth showing up in my wallet.
I read someplace the other day that the large multi-national corporations based in America have roughly $1.3 trillion in liquid assets which they are holding on to. That is trillion with a T, and yet they are not actively working on creating jobs or investing in America's growth. They are just sitting on it.
Are they waiting on the government to create to jobs? I don't think so. If the government began creating service jobs then the TEA Party would claim that they are expanding government. If the government began creating construction jobs then the taxes would have to help fund the building projects. Private industry will not create these service or construction jobs because the general public is unwilling to pay the full and unsubsidized cost of such a venture nor can the return on investment be fully realized in the now standard depreciation timetable. We have let the Wall St economy call the shots for so long that they can no longer help the little people while failing to maintain a reasonable, or sustainable growth rate. They have taken us to the brink in the past and we seem willing to let them continue an their merry way again.
Wall St has led an effort to subtly bring about a stealth redistribution of wealth and we have willingly bought into the apple. Mass production and automation have consistently brought lower production costs and cheaper prices but have also resulted in fewer jobs and social benefits are the first to be affected. We want the former and complain about the latter. And we go along with it. The Wall St CEOs eat from the big table and we wait for the trickle-down to reach us. I haven't seen it in my wallet.
I saw on the news this morning that John McCain, the former Republican presidential candidate, was in Libya to meet with the rebel coalition and discuss some sort of aid. There was also some comment about using the frozen assets of Gadhafi and supplying weapons and medical aid. Is this not a redistribution of wealth in the country of Libya? From the rich and powerful to the working masses? I guess it is good enough for them but not for America. And what about the comments from The Donald the other day? That the Libyans PAY us for the moral support(and a few specially aimed Cruise missiles) so that when we win the war for them, we would take( not pay for) all the oil that we need. Don't you just love where Trump's heart is at? I'll bet that I never see that show up in my wallet either.
What I DO see in my wallet is a pending 10% (Mrs Sweeper says probable) pay cut in an effort to balance the budget.
Tuesday, March 9, 2010
Lets Walk Before We Run
America began dismantling their urban rail (streetcars and interurban/regional rail) facilities right at the beginnings of a time when we needed them most, the middle of the Great Depression. Then, right after the Second World War, while Europe was rebuilding their rail infrastructure with a lot of Allied help, we started to remove our intercity passenger rail. The concept of the Interstate Highway System would soon allow interstate trucking to grow while the railroad unions, in an effort to preserve jobs, did a number on the freight rail service. Our eggs were just about all in one basket.
Europe on the other hand, took our assistance and rebuilt their streetcars, their intercity rail and by the "60s began to think of a higher speed rail system. Japan made similar decisions with similar results. In other words, they took the simple steps of fixing a broken body, learned to walk again, then running and then took off racing. A story not too different from that of Red Pollard and Seabiscuit.
The simple fact is that both Europe and Japan (and now China and others) have discovered that the answer of mass transit is in a balanced approach of all modes interconnecting to become one system. Only a handful of East Coast American cities have tried to follow this approach and most of them are facing rising fares due to failing to complete all possible connections. The Federal agency charged with assisting this complete approach has, for the past 50 years, done a poor job.
The U.S. Department of Transportation, which one would assume, should coordinate all the transportation facilities across the nation(pedestrian, bicycle, auto, trucking, rail and aviation) into one system, funded at the State and local level and by private industry, instead has become the primary provider of funding amid massive political wrangling. It used to be, in the days of the "rugged individualist", that roads and railroads were built by the people who wanted to get somewhere. Now these "creative class" folks are waiting for someone else to build their roads for them. The idea of going the route of private toll roads (a free market system) is abhorrent to most people now that freeways and the lure of the open road has been let out of the bag.
Most people in America, outside of the larger east coast cities, can not remember the days of regularly scheduled passenger train traffic of more than twice a day. I can recall the two daily trips of the George Washington, C&O's remaining service to Lexington, from about 1963 until the creation of Amtrak. One in the morning and one in the evening, with never more than 3 cars and barely any one boarding here in town. There used to be much more traffic than that and there can be again.
I am not here to downplay the need for High Speed Rail but I do want to emphasize that HSR alone is not the cure-all of our transit woes. Let us take the baby steps of local transit and regional service before we cry about not getting a HSR connection
Wednesday, February 3, 2010
Can We Get Started Sometime Soon?
Lexington and Kentucky have not been in the forefront of innovation or execution of transportation by any stretch of the imagination. We have had to wait our turn for the latest thing to come down the pike.
Lexington was not the first city in Kentucky to have rail travel. This is probably due to the lack of population that would require such transportation and the lack of funds necessary to maintain a railroad. Many other cities were connected by rail before Lexington finally got in on the act. We are in similar shape today in relation to high speed rail and, by most accounts, even any type of regional rail. Mass transit is beneath most of the supposed well to do in Lexington, whether it be bus or rail.
The local proponents of mass transit, currently ours is a less than stellar bus system, can only dream of light rail and/or a regional commuter system. There are just not enough riders interested in such a scheme. Those of us who would propose such an idea are considered a radical fringe by some and crazy by others. Yet there are a growing number of us, right here in Lexington.
Like I said, we now have an administration unlike any that we have seen in the past 20 years. A Transportation Secretary who is trying to expand Amtrak and not kill it. A President who is not nominating board members that wish to shut down the only passenger rail left in America. A Vice President who actually regularly rides mass transit, when possible(and not to a photo op). We have a Senatorial Candidate with a regional rail plan. We even have a Federal commitment of funding for more transit projects over the next several years.
So why is all the national focus on High Speed Rail? Why are there calls for stylish terminal facilities to enhance the riders experience. Shouldn't America get to a brisk walk before we learn to run. We are starting to act like the socialite who dresses in the fanciest warm-up gear, just so that they can be seen being chauffeured to and from the gym without actually working out. Kentucky just needs to get going on pushing some sort of passenger rail.
I have touted Dr. Mongiardo's rail plan here before and I had hoped that he would come and explain it further. I now am told that he did come to Lexington, to a conference of Transportation professionals, back in January. I wish that he had made his presentation to a general audience rather than to an assembly which appears to most of us as being drug toward the future instead of leading the charge. I think that he would have found a much more receptive crowd to his plan, from people who want to use it instead of make a career off of it, from people who want to get somewhere on it instead of get rich off of it.
I don't want to sound impatient, but I do want to get started. Just some sort of a start.
Tuesday, December 8, 2009
Mongiardo's 21st Century Public Transit Plan for KY
...we have read your post regarding Lt. Governor Mongiardo's 21st Century Public Transit Plan for KY.
Daniel is interested in presenting his proposal to you and anyone else in Lex who are interested in public transportation and answering any questions you may have. ...
We may have to wait until after the Holidays due to fact his schedule is already pretty much set for the next 2 weeks - but he is definately interested in listening to your ideas and those of other folks interested in the issue.
Regards,
Kim Geveden
Mongiardo U.S. Senate Campaign
Monday, December 7, 2009
What Does Mongiardio Think Of Lexington Transit
That is not its purpose, but I do bring some of their speaking points to the fore and would hope that they will pick up on some of the points that I bring up.
Last Thursday US Senate candidate Dr. Dan Mongiardo addressed a group of public transportation advocates at Louisville's Union Station. There he unveiled a plan for Louisville's multi-modal public transit system that his web site calls "very detailed". As a candidate running for state wide office, I hope that this is not his only public transit plan, or that this just his endorsement of someone's plan that he can really get behind. And particularly, can this plan be adapted for Lexington?
What really got my attention was the plan for a renewal of state-wide PASSENGER rail travel, see here. This plan does not seem as detailed, but this is more of what I think that a US Senator should doing for his state. Our two current Senators have done more than enough to try and kill what little rail travel( freight or passenger) remains in this state.
I am bringing this to your attention so that, if you are interested in public transportation as I am, we can find a way to get more details in the form of a presentation to some of our folks. So Dr. Dan, if you are reading this, will you give us a chance to get behind your passenger rail plan? Will you give us in Lexington a little help with our transit planning and keep some our tax dollars here in the state?
Is there someone else out there who has any better ideas? Let me know.