Passenger Rail Spurs Economic Development

"We're in the community development business," Amtrak President Alex Kummant told the Surface Transportation Board yesterday. He cited $80-100 million of investment in communities served by the Downeaster, Amtrak's Portland, Me. - Boston train service. "Kummant said expanded rail service can promote economic development, and Amtrak is prepared to work with local governments to help encourage commercial or residential projects that are centered on train service," reported the Associated Press via the Boston Herald.

When Alexander Kummant was named president of Amtrak last August, I and many other observers viewed the appointment of the former Union Pacific vice president with skepticism. UP is among the host railroads most hostile to passenger service and our concern was that he would become the fox in the hen house. However, I quieted my criticism for a time in order to see Mr. Kummant in action.

He's proved himself to be his own man. He's toned down the bitter dialog between the freight railroads and Amtrak while working to encourage increased infrastructure investment that will benefit both parties. And, as ticket revenues jumped almost 11 percent last year, he's avoided drastic consist reductions that would have further diminished passenger service.

He is also benefiting from the 2006 election and a change of attitude in Washington toward Amtrak. The public wants more train service as well, and is voting with their pocketbook: year-to-date, fiscal 2007 ridership is up systemwide by 4.1 percent. Some trains are doing even better: Cascades ridership is up five percent; Capitol Corridor service is up 11 percent; and Acela Express trains have seen passenger volume jump 20 percent.

Ridership could grow even further with additional investment in rolling stock and greater capacity on the part of the host railroads. Mr. Kummant's comment signals a shift in the conversation. It's no longer about "subsidies" for passenger trains; it's about spurring economic development by answering demands for better transportation, revitalized downtowns and more livable cities. Investment in passenger rail is no different than building a sports stadium, hosting an Olympics or opening an airport. Government investment becomes the economic engine that drives private investment.

I've seen it right here in Southern California, where high-end live/work lofts are going up across from the Santa Ana station. In Anaheim, a new mixed-use residential community offers free shuttle service to the Amtrak station. And in downtown Los Angeles, $18 billion of investment is revitalizing this once-moribund area, spurred in part by increased transit options.

Mr. Kummant needs to take this approach one step further. Amtrak should be talking to real estate developers and city planners across the country. There's a profit motive here, one that Congress and even a conservative White House can understand.

Comments

[Keith Schneider]

I wanted to commend you on this post and let you know I posted a piece on high speed rail in the Midwest that you may want to check out at www.modeshift.org. I also put your blog on my blogroll. Would love to see modeshift on your blogroll. Best, Keith Schneider