Rail Lessons from Greece

• Losses at Hellenic Railways continue to mount — at the rate of $3.8 million, a day. Its total debt has increased to $13 billion, or about 5% of Greece’s gross domestic product.

In comparison, the proposed rail for Oahu is 400% the annual amount of Oahu's CIP budget.

• Some have argued that Hellenic Railways should shut down the majority of its routes; trains manned by drivers being paid as much as $130,000 a year frequently run empty.

Outside multimillion population cities in the U.S., metro rail systems run basically empty except for a couple of hours around the AM and PM commute times. Typical U.S. Transit Authority managers are paid $250,000 to $400,000 annual salaries.

• The general secretary for the Greek Transport Ministry, contends that the government’s plan to close at least 35 loss-making routes and cut 2,500 jobs will make Hellenic Railways attractive to foreign investors.

But the former transportation minister responded: "I said I was not going to privatize Hellenic Railways because I knew I couldn’t find an investor silly enough to invest in a company with so much debt.”

How many investors have "Mufi Hannemann and the Pro-Railers" found?

Zero investors but thousands of payers! The 400,000 Oahu taxpayers!

Source: All bullets excerpted from New York Times' Greek Rail System’s Debt Adds to Economic Woes.

The Desperate Statements for a Failed Rail Project

Honolulu's sewers ate Mayor Hannemann's rail. See

Sewer settlement will cost Honolulu $4.7 billion over 25 years

Recall that in 2008 when we voted for rail and 50.6% said yes, the cost of the rail was $4.6 Billion. Now sewers alone are costing us $4.5 Billion.

Now compare items (1) and (2) below to get a sense of the mayor's desperation.

(1) MUFI HANNEMANN

(Wed., July 14, 2010)—Mayor Mufi Hannemann today said he is very pleased that Congressman Jim Oberstar, chairman of the U.S. House Committee on Transportation and Infrastructure, yesterday publicly referred to Honolulu’s rail project “the premier transit project in the entire country.”

(2) ACTUAL FEDERAL TRANSIT ADMINISTRATION ASSESSMENT

We are listed in Preliminary Engineering for 2011

No money for Honolulu this year

Read Page 139 BARELY passable overall MEDIUM rating.

Capital Costs gets a Low rating

Operating Costs etc. gets a Medium-Low rating

Capital Cost Estimates, Planning Assumptions, and Financial Capacity: Low

· Assumptions regarding growth in GET revenues and Section 5309 bus discretionary funds are

optimistic compared to historical experience. Financing costs appear to be understated.

· The capital cost estimate is considered reasonable.

· The financial plan show the City has little ability to address funding shortfalls or cost increases.

The GET surcharge revenues that will be applied to project-related debt service provide very slim Operating Cost Estimates, Planning Assumptions, and Financial Capacity: Medium-Low

· Assumptions regarding state operating subsidies and growth in rail unit operating costs and bus and paratransit operating costs are optimistic compared to historical experience.

· The operating cash flow assumes a balanced budget, with no accrual of an operating surplus or reserve.

Abandoned, Unfinished, Elevated Rail ... For the Children

When all arguments in favor of a six billion dollar elevated rail boondoggle on Oahu prove to be myths, then proponents say, "we need rail for the sake of our children."

Unfortunately, they fail to realize that the six billion rail is heavily mortgaged and payments will be heavy and permanent "for the children."

Here is how an abandoned, unfinished, elevated rail can be turned into an asset for the children.



This story has two lessons:
(1) Elevated rail can be stopped and abandoned long after construction has started.
(2) A playground is a far better and far more affordable quality-of-life addition than ugly elevated rail.

America's Energy Policy...

... managed by politicians.

A brilliant 7-minute summary by Jon Stewart.

http://www.thedailyshow.com/watch/wed-june-16-2010/an-energy-independent-future

Politicians anyone?

Why Cities Are Broke or, There is Something Tragic About a Train...

Nick Gillespie is editor in chief of Reason.tv and Reason.com. He asks... "Why cities are broke or, there is something tragic about a train or a light rail system or a streetcar boondoggle that just makes people (well, pols and their civilian enablers) wet their pants over the prospect of tossing 19th-century technology and 21st century debt obligations at cities and states and countries that are already dead broke." It's a great brief that you can read HERE.

New Rail Systems – Obama Administration Position is Loud and Clear, but Hawaii Politicians Too ______ to Hear

Published in Hawaii Reporter: New Rail Systems – Obama Administration Position is Loud and Clear, but Hawaii Politicians Too ______ to Hear

Honolulu needs rail transit to “reduce our carbon footprint, save energy and get us off the maddening addiction to cars” NOT!

Railigious Argument: Honolulu needs rail transit to “reduce our carbon footprint, save energy and get us off the maddening addiction to cars.” And, “the environmental community in Honolulu is strongly behind rail.”

AntiPlanner 1: My former colleagues in the environmental movement have become so innumerate that they would support a turkey like the Honolulu elevated rail plan. The final environmental impact statement for that project is now available. Let’s see what it says about saving energy, carbon, and driving.

... Table 4-21 of the FEIS says the project will save 144,540 million BTUs per year. Page 4-206 says project construction will produce 7.48 trillion BTUs. That means it will take 52 years of savings to pay back the energy cost. Long before 52 years are up, huge energy investments will be needed to replace rail cars, worn out track, and other infrastructure.

AntiPlanner 2: The [rail] bootleggers, of course, are the crony capitalists who will make tens or hundreds of millions in profits building this unsightly monstrosity. I hope in the future more environmentalists will open their eyes and support things that are truly good for the environment, not just feel-good projects that cost a lot of money.

Read it all here: http://ti.org/antiplanner/?p=3350