Monday, December 5, 2011

If You Let Them, PB Will Recommend the Right Solution...

... For both transportation and the local economy.

Quote from Washington Post article titled Busway — not light rail — would bring more jobs, money to upper Montgomery, analysis finds: A $772 million light-rail line would generate a total “economic impact” of $1.3 billion between 2014 and 2050, while a $491 million bus rapid transit line would spur $2.2 billion, according to the study by consultant Parsons Brinckerhoff.

Notice that PB is the current consultant for Honolulu. In 2005 Parsons Brinckerhoff were asked by Mayor Hannemann to prove rail is right. Six years earlier the same consultant under much less pressure from Mayor Harris had recommenced Bus Rapid Transit for Honolulu!

Recall that all along I have been saying that HOT Lanes for express buses would solve Honolulu's traffic congestion and construction jobs issues for 1/4 the cost of rail and less than 1/4 the permanent cost later on for operation and maintenance.

Saturday, December 3, 2011

Traffic Congestion, APEC, Hurricanes, Tourism, Energy. How Will Rail and HOT Lanes Do for Honolulu?

Here is the LINK to a 2-page handout to inform yourself and your friends about the relative advantages of Rail and HOT Lanes for Honolulu.

Friday, December 2, 2011

Uncertain Funding and Injuctions Are Guaranteed


Meanwhile Senator Inouye expressed doubts to Civil Beat.

At best by 2016 when the senator's term expires rail will be about a quarter done assuming that all efforts to stop it fail. He will be 92 years old.

I doubt that the good senator will be able to provide more than $100 Million per year between now and 2016. This would cover less than 10% of the project's cost. I am surprised that he is copying so much from President Obama who he did not support in 2008. Senator Inouye's audacity of expecting over $1,800 Million of federal support for Honolulu Rail and hope that he will be a senator past age 100 to see them through is quite surprising.

At $100 Million per year starting in 2012 it will take until 2030 for Honolulu to receive a total of $1,800 year-of-expenditure federal funds. At that time Senator Inouye will be 106.

Wednesday, November 30, 2011

What Would Rail Do for APEC?

The Asia-Pacific Economic Council or APEC 2011 was recently completed at various venues on Oahu. About 20 top leaders attended including the Presidents of US and China and the Prime Ministers of Japan and Australia. It was an important and crowded event. Oahu’s experienced hospitality industry proved that they can handle major visitation challenges.

Oahu’s transportation system was no problem for the “prime” visitors because security forces blocked it off for their exclusive usage. Oahu’s citizens and visitors were inconvenienced from mildly to tremendously because of the lack of redundant routes given that Honolulu is the most lane deficient metro area in the nation.

So a fair question is this: If rail was already present, what would have it done for APEC? What would rail do for future major conventions?

Nothing! Remember that the rail dead-ends at Ala Moana Center. (More on this later.)

Meanwhile, APEC dignitaries and visitors would be appalled by the ghastly superstructure that blighted the waterfront and Ala Moana. Those more akamai would ask: Why did you build something so big for your modest city? Why are your roads so congested and the trains are almost empty?

The answer is that rail was built big to create as many temporary jobs as possible. It’s not well used because the bulk of its ridership comes from deleted bus lines, along with a few thousand white collar workers who soon enough will ask the public to pay more money to put WiFi in the rail cars.

Rail dead ends at Ala Moana Center. Over one billion dollars will be needed to backtrack to Kapiolani Boulevard to get to Waikiki. Rail will permanently blight the Convention Center and the spine of Waikiki: With the elevated rail and stations, sun will barely reach Kuhio Avenue.

Recall that the federal judges signed a letter of objection to the city: They do not want rail to use Halekauwila Street because they consider it a security breech to the nearby federal building. How can rail go by the Convention Center? If it does, Hawaii won't be able to use it for any high-security event such as APEC, ADB, UN and other top level political and business meetings. Or it could, if we installed airport-style security at all 21 stations. Sounds ridiculous? Considering that the powers that be are pushing a $6 Billion rail system on a less than 600,000 population corridor, very little else can top this for ridiculous.

Obviously we need a different and better solution for transportation. What if we had HOT Lanes instead, that is, elevated HOT Lanes between the H1/H2 merge and Iwilei with exits at Aloha Stadium, airport, Kalihi and downtown?

With HOT Lanes, during APEC we would have problem-free travel between the H1/H2 merge and downtown regardless of freeway closures. There would be no visible blight because HOT Lanes run mostly next to H1 freeway and terminate one half mile before Honolulu’s prime waterfront.

As a bonus, HOT lanes have no part in the destruction of Aloun Farms and the prime agricultural land that is slated as a 12,000 - 15,000 residential unit Transit Oriented Development (TOD) in the Ewa plains.

Tuesday, November 29, 2011

Five Myths about US Gasoline Taxes

A good summary article by Shin-pei Tsay and Deborah Gordon. CNN, November 19, 2011.

There is no doubt that federal gasoline and diesel tax should go to 40 cents per gallon and none of it should be used to fund transit and rail projects.

Honolulu Rail is a Rube Goldberg

Now that the comedy of Honolulu Rail is in full swing I finally found a good metaphor for it. It's a Rube Goldberg. A Rube Goldberg is (by definition) a comically involved, complicated invention, laboriously contrived to perform a simple operation or minimal work!

I must apologize to Rube Godberg's memory because Honolulu Rail also involves copious amounts of sleaze, deceit, corruption and stupidity. Politicians and professionals continue to fail the island constituencies who they are supposed to serve, and they do so for their own enrichment.

Monday, November 28, 2011

Why Does Carlisle / Hamayasu / Horner Stick with Ansaldo while Under so Much Fire?

Edit: Mid. January 2012 u p d a t e.

Samples of recent "fire" from rail advocates:

Perhaps Carlisle / Hamayasu / Horner are stubborn (or worse...) but their vices alone are hard to justify their glaring lack of responsibility for a $1.4 Billion public contract that they officiate over. There must be something else and it probably has to do with money and corruption.

Another thing that should make us suspicious is that City, HART and Ansaldo plan to sign this contract between Thanksgiving and Christmas, that is, during the time period that the public pays little attention to the news and the media tends to cover "holiday spirit" stories. This is exactly when the Alternatives Analysis was approved in 2006 which cemented the City's choice of "elevated rail" as the Locally Preferred Alternative.

There is no reason for selecting an inferior rail manufacturer that belongs to a troubled company (that wants to sell off its rail business), located in Italy, a country with possibly insurmountable debt problems. With so many qualified and reliable rail manufacturers, why are Carlisle/Hamayasu/Horner sticking with Ansaldo, the most troubled one, and one one of the most complaint-prone? Why would Hawaii source a train in Italy instead of Japan, China or Korea?

Of course FTA's "Buy America" requirement is nothing short of a joke because there is no comparable US manufacturer for passenger trains and rail cars. All of them are wholly owned subsidiaries of foreign manufacturers.

Note that when I wrote the piece on Don Horner copied below, Finmeccanica's stock had crashed to $5. Yesterday it closed down to $3.




-------- Original Message --------
Subject: Is HART Chair Don Horner Shamelessly Dishonest?
Date: Fri, 16 Sep 2011 15:07:26 -1000
From: Panos D. Prevedouros




Why would he say this?

Pacific Business News reported:

Don Horner, chairman of HART’s finance committee and CEO of First Hawaiian Bank, said he was satisfied that Ansaldo’s finances are in order and the city can proceed with negotiating a contract with the firm. He said he it also gave him “strong comfort” to hear Finmeccanica’s commitment to the project.

“Overall, and I can speak as a banker, I was very impressed with the substantial amount of profitability, the liquidity, the history, and the commitment from the parent company,” Horner said. “I am very pleased with the progress that we made today.”


When the truth is this:
http://www.economist.com/node/21525409

WHEN Finmeccanica announced bad results on July 27th, investors strafed its share price, cutting it down by 28% in four days (see chart). In the first half of 2011, excluding a gain from the sale of one of its businesses, the firm made barely any profit: €13m ($18.2m) on revenues of €8.4 billion. Shareholders are spitting fire.

The Italian government holds a 32% stake. That prevents the company from sensibly quitting unprofitable businesses. Meshed together from a ragbag of defence and technology businesses formerly owned by the state’s IRI and EFIM holding companies, Finmeccanica has everything from helicopters to trains to gas turbines. Its former boss, Pier Francesco Guarguaglini, tried to simplify the group down to three areas: aeronautics, helicopters and defence. But the group still owns several businesses that do not fit.

Its biggest problem is AnsaldoBreda, a maker of trains and trams, which has lost more than €1 billion. The government’s unwillingness to allow job cuts makes a solution impossible. Politicians from AnsaldoBreda’s home region in Tuscany objected loudly this week after Finmeccanica’s new boss, Giuseppe Orsi, talked about selling the division. Some 60% of Finmeccanica’s employees are Italian, though the domestic market yields just a fifth of its revenues.

Finmeccanica is used as a dumping-ground for unwanted state assets. In 2008, when the government finally found a solution for Alitalia, the country’s loss-making airline, private investors gobbled up its profitable flight division but curled their lips at its maintenance business, so in 2009 it was sold to another group of Italian firms, with Finmeccanica taking 10%. Politicians have long pushed for a merger with Fincantieri, a troubled shipbuilder also under the government’s thumb. Last September Mr Guarguaglini was obliged to point out that Fincantieri’s activities have little to do with Finmeccanica’s.

....

  • Horner is Chair of HART
  • HART has an $1.1 Billion contract with Ansaldo
  • Ansaldo is owned by Finmeccanica
  • Finmeccanica has large debts to BNP Paribas (2nd largest French Bank)
  • BNP Paribas owns 1st Hawaiian Bank
  • Horner is CEO of 1st Hawaiian Bank

Thanks to Ian Lind for bringing this up: http://ilind.net/2011/09/15/potential-conflict-in-review-of-rail-contractor/