Thursday, August 25, 2011

Why isn't an Amtrak ticket cheaper in the Northeast?

Why isn't an Amtrak ticket cheaper in the Northeast?:
by Malcolm Kenton

Many DC-area residents would prefer to travel by train rather than by bus to other Northeastern cities, but some often find tickets too expensive. There are several reasons for higher fares, and a primary reason is simple economics.


Photo by tracktwentynine on Flickr.

The train is faster, statistically safer, and more comfortable—additionally, trains have greater energy efficiency and smaller carbon footprint. But many opt for curbside carriers like Bolt Bus and Megabus because they charge, at most, half what Amtrak's lowest fare is for a round-trip from DC.

There are three main factors that cause Amtrak's fares to generally be at least twice the highest competing bus fare:

Supply and demand: Amtrak still manages to fill most of the seats it carries between Washington, New York, and Boston on both on Acela Express and Northeast Regional services. This despite charging fares many consider to be too high. As long as Amtrak is under pressure from Congress to reduce the amount of federal subsidy it requires by maximizing ticket revenue, the railroad has very little incentive for lowering fares, outside of the occasional special promotion.

Besides, if Amtrak is selling almost every seat at its current fare points, there's little economic incentive to lower the fare. Lowering the fare wouldn't sell any more seats since they're selling out already. And it would bring in less revenue.

Capacity: Amtrak simply does not have enough coaches in its fleet to handle the amount of passengers who would want to ride the train if Amtrak fares were comparable to those of curbside buses. Furthermore, there is very little room on the existing railroad to add new trains, particularly at peak hours when tracks leading into New York Penn Station (from New Jersey) are already at capacity with both Amtrak and commuter train traffic.

Giving Amtrak the ability to handle the passenger volume that it could if it were price-competitive with buses would require sustained higher levels of capital investment from the federal government, or from private sector partners, which are loathe to make such investments absent a strong federal commitment. Unlike highways and aviation, Amtrak lacks a dedicated source of reliable annual funding.


An Amtrak cafe car. Photo by MoDOT on Flickr.
Amenities: Aside from being generally faster (even Northeast Regionals hit top speeds of 125 mph between Washington and New York, while buses never top 80 mph), train travel is generally considered more pleasant than bus travel. Trains offer a smoother ride, more legroom, the ability to get up and walk around while in motion, and on-board food and beverage service. These amenities provide many passengers a justification for paying more than they would to take a bus.

Unlike buses, which operate over highways built and maintained by federal gas tax dollars (along with some general federal and state tax revenue), Amtrak owns its own tracks in the Northeast Corridor and has to bear the full cost of maintaining them, with limited federal assistance. If the bus companies had to pay their full share of highway maintenance, they could not get away with charging the fares they do.

Railroading, by nature, is characterized by high fixed costs. Fixed costs are those that do not vary based on how many people use a good or service (in this case, buy an Amtrak ticket). It will cost Amtrak roughly the same to maintain the tracks, signals and stations on the Northeast Corridor regardless of how many trains run and how many riders use them. Railroad labor costs are also largely fixed. Remarkably, Amtrak nevertheless covers over 80% of its total costs through revenue from passengers, whereas most of the world's passenger train operators fall in the 50% to 60% range.

Despite this, Amtrak trains in the Northeast Corridor actually make an "above-the-rail" profit. Fares bring in enough revenue to pay for operating costs on the Northeast Corridor, though not enough to pay for the maintenance backlog of the corridor.

The need to promote energy efficient travel, lessen highway congestion, and spur the development of walkable, livable communities around train stations are good reasons to encourage greater numbers to use the train instead of flying, driving or taking a bus. Increased federal investment in Amtrak infrastructure and equipment—in the Northeast Corridor and elsewhere—would allow the railroad to increase the frequency, speed and capacity of its trains. This would allow more riders to be carried over the line, thus spreading the fixed costs over more paying passengers, leading to lower fares.

Some form of ongoing public capital investment will be needed to keep the infrastructure and equipment in good shape. Federal funding should come from a dedicated "trust fund" with its own revenue source rather than from a Congressional appropriation, which would make the amount of funding reliable year after year.

If you support higher and more reliable funding for passenger trains as a viable leading choice for intercity travel, join us in the National Association of Railroad Passengers in calling on Congress to fully fund Amtrak and the High-Speed and Intercity Passenger Rail grant program.

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Hurricane Irene: America's east coast hunkers down

Hurricane Irene: America's east coast hunkers down:

North Carolina expected to bear brunt of Irene, which is heading towards wide swathe of eastern seaboard

Officials are considering whether to evacuate low-lying areas of Manhattan after hurricane Irene barrelled out of the Bahamas towards a wide swath of the eastern US.

Irene, which achieved gusts of up to 128mph on Thursday, is forecast to maintain or even increase its intensity as it progresses. The storm could hit North Carolina's Outer Banks on Saturday morning with winds of around 115mph. It is predicted to travel up the east coast, spewing rain over parts of Virginia and Washington DC, New Jersey and New York City before reaching Maine on Monday afternoon.

North Carolina is expected to bear the brunt of Irene, and most of the coast was on hurricane watch with the National Hurricane Centre warning to expect dangerous storm surges where the storm makes landfall. But a much greater area of the eastern US, from the Carolinas up to Maine, could also feel the effects, federal officials warned.

"North Carolina looks like the greatest threat right now," Craig Fugate, the director of the Federal Emergency Management Agency, said. "But the rest of the eastern seaboard is well within the path of the storm. It is going to bring in all of the north-east corridor for heavy rains, high winds and potential flooding."

Residents were warned to expect power cuts due to fallen trees as well as flooding. "You can expect at a minimum 5 to 10 inches of rain, and with hurricane force winds inland you are going to get a lot of treefall and a lot of flooding," said Bill Read, of the National Hurricane Centre.

As of Thursday, Irene was the strongest storm to threaten the Atlantic coast since 2005. It is also cutting a course that could take it much farther inland than any other storm since 1985.As it travels north, federal officials from North Carolina to Maine began warning residents in low-lying and coastal areas to prepare to evacuate.

Washington DC Mayor Vincent Gray used Twitter to urge residents to study emergency evacuation routes and tell them the mostly low-lying city would make sandbags available on Friday and Saturday.

In New York City, mayor Michael Bloomberg said that residents living in low-lying areas in downtown Manhattan, Brooklyn, Queens and Staten Island should start moving out on Friday, before Irene is expected to hit. He earlier advised residents to begin packing small bags with food and water, medicines, important documents and other essentials in case they are ordered to evacuate.

Hospitals began running checks on emergency generators, medicines and other supplies. City police mobilised 50 small boats to use in the event of floods.

Fugate warned that even if Irene decreases in intensity it could still cause significant disruption and damage to property. "You don't really need hurricane-force winds. Even winds blowing 40mph, or 50 and 60mph, if they are blowing for hours, can cause trees to come down and widespread power outages," he said.

Hurricane Irene has already caused considerable damage in the southern Bahamas as it made its way to the US. Officials reported that at least 40 homes were badly damaged on the island of Mayaguana.


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Wednesday, August 24, 2011

Steve Jobs Resigns as CEO of Apple

Steve Jobs Resigns as CEO of Apple: CUPERTINO, California—August 24, 2011—Apple’s Board of Directors today announced that Steve Jobs has resigned as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board and Cook will join the Board, effective immediately.



“Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” said Art Levinson, Chairman of Genentech, on behalf of Apple's Board. “Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”



“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”



Jobs submitted his resignation to the Board today and strongly recommended that the Board implement its succession plan and name Tim Cook as CEO.



As COO, Cook was previously responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also headed Apple’s Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace.



Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.



Press Contacts:



Katie Cotton

Apple

katiec@apple.com

(408) 974-7269



Steve Dowling

Apple

dowling@apple.com

(408) 974-1896


Tuesday, August 23, 2011

DC - Midatlantic Earthquake

as recorded on BigJon06's live blogTV show

Also: I was at work and the lockers were moving back and forth.

Saturday, August 13, 2011