Tuesday, September 4, 2012

Honolulu Rail Forecast 2 to 4 Times Higher than Actual Systems

The City estimates that TheRail will have a ridership of 116,000 (boardings) in 2030, about 10 years after the system is supposedly completed.

While TheRail is actually a fully elevated, steel-wheel-on-steel-rail heavy rail system, it is designed to fail by combining two poor choices:
(1) It is fully elevated which means it costs well over 5 times the typical light rail system.
(2) It does not use large, heavy rail style, high capacity trains, but smallish light rail trains.
These two choices make it a high cost and low capacity system.

Because of its low capacity, it is comparable to existing light rail systems. The table below includes all US light rail systems that (a) may be characterized as "modern" by having been developed after 1980, and (b) are over 8 miles of length. This comes to 11 comparable systems with route miles ranging from approximately 10 to 42 miles.

The average daily boardings of these 11 existing systems is 38,852 and the average route miles is 28. This yields 1,536 daily boardings per mile or 1,500 boardings per mile for a round number. (Remember we are talking about year 2030 and roughly 20% of TheRail’s users have not been borne yet.)

When one looks at statistics, it is advisable to remove the highest and lowest values and re-check the averages. By doing so for daily boardings and route miles, systems 3, 6 and 9 drop out. The resulting average daily boardings of the eight systems is 37,822 and the average route miles is 27. This yields 1,528 daily boardings per mile. This again rounds to 1,500 so this estimate is quite robust.

Using this estimate of 1,500 times the 20 miles of TheRail yields 30,000 daily boardings. Now let's give a huge break to Honolulu because of the H-1/H-2 congestion, the high cost of living and the higher average density (although high density does not apply west of Middle Street): Let's double this estimate to 60,000 boardings. This will be the likely maximum boardings of TheRail.

What's the City's estimate that FTA approved? 116,000 daily boardings, which is laughable.

Both Parsons Brinkerhoff and FTA received dozens of eggs on their face for the island heavy rail Tren Urbano in San Juan, Puerto Rico where they estimated 80,000 boardings on the opening year and they got 25,000 in 2006.

There is no lesson for PB, FTA and HART to learn. There is no accountability or penalties. They are all dedicated promoters of TheRail. Honolulu's ridership estimates simply prove that history (and unabashed deception) simply repeats itself.

Wednesday, August 29, 2012

Honolulu Rail Cost Escalation

It is important to understand how much costs escalate in megaprojects. All these costs in bond-financed public projects are to be borne by the taxpayer. Oahu has fewer than 400,000 taxpayers so the possibility of a twelve billion dollar bill for a long rail line presents a staggering liability. Over $30,000 per taxpayer.

In 2005 Mayor Mufi Hanneman and his supporters went to the Legislature and asked for a temporary (20 year) 1% tack on to Hawaii's 4% general excise tax in order to develop a large rail system for an approximate cost of $2.7 Billion. The Legislature approved a 0.5% tack on to the GET in hopes that Federal Transit Administration and other taxes will cover the total. Here is the letter to The Honolulu Advertiser by Mayor Mufi Hannemann promising that the 20 mile system will cost $3 Billion.

In 2008 General Elections there was a City Charter Amendment asking the city to install a steel on steel fixed guideway system. The cost of the 20 mile system had grown to $4.6 billion and almost $1 Billion was the contingency funds. TheBus funds were not touched in 2008.

In 2010 outgoing governor Lingle procured a financial analysis report for the rail that she had supported, in light of the escalating costs of rail and the 2008-2009 fiscal crisis. IDG, a reputable financial and risk analysis consultant based in Washington, D.C., estimated that the 20 mile cost will be more likely $7.2 Billion.

Despite these facts, Governor Abercrombie signed off on the State EIS and Mayor Carlisle dismissed the financial report as "an anti-rail tirade."

In summer 2012 the City submitted its final application to the FTA for a Full Funding Agreement. In it, the cost of the 20 mile line has grown further to $5.17 Billion but contingencies have been reduced to about $600 Million and another $150 Million is "borrowed" from TheBus fleet funds. In other words, the 2012 cost estimate would be $5.7 Billion if they did not fudge the amounts and kept them at the 2008 level.

In May 2012 Councilmember Kobayashi asked HART to estimate the cost of the full 34 mile system from West Kapolei to the UH and Waikiki. HART's response was $9.03 Billion.

If we apply IDG's cost escalation of the 20 mile system to the 34 mile system we get $12.6 Billion. Hanneman's rail has ballooned from $3.6 Billion to $12.6 Billion!


Rail was a bad idea at a cost of $3 Billion. Now that the likely cost is three times higher, the choice is clear. People have made their choice quite clear by handing both mayors Hannemann and Carlisle their walking papers.