NEWS AND INFORMATION ON PUBLIC POLICY AND RAIL SERVICE

for the NORTH CENTRAL TEXAS (DFW REGION) of TEXAS

Thursday, June 21, 2007

Where did they get authority to spend taxpayers money on private rail infrastructure?

We gave it to them!
By Faith Chatham - June 21, 2007

Todd Staples (the same guy who authored one of the most inclusive Trans Texas Corridor enabling bills, co-authored with McClendon HJR 54 which called for a Constitutional Amendment. It appeared as Proposiiton 1 on the November 8, 2005 ballot.
Ballot Language
"The constitutional amendment creating the Texas rail relocation and improvement fund and authorizing grants of money and issuance of obligations for financing the relocation, rehabilitation, and expansion of rail facilities."
"Enmienda constitucional que establece el fondo tejano para reubicación y mejoramiento de ferrocarriles y que autoriza subvenciones monetarias y la emisión de obligaciones para financiar la reubicación, saneamiento y expansión de instalaciones ferroviarias."

Brief Explanation
HJR 54 would create a Texas rail relocation and improvement fund in the state treasury and would authorize grants of state revenue and issuance of public debt to relocate, rehabilitate, and expand privately and publicly owned passenger and freight rail facilities and to construct railroad underpasses and overpasses.

State Wide election returns on Proposition 1 were:
RACE NAME PARTY CANVASS VOTES PERCENT
Prop. 1 Texas rail facilities funding created
IN FAVOR 1,112,718 53.77%
AGAINST 956,350 46.22%
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Race Total 2,069,068

I can't remember how I voted that year. I probably voted for it. That was before I understood that it was more than just getting freight trains with toxic chemical out of the center of densely urbanized areas. Now I know that it is more about getting the taxpayers to underwrite upgrading private rail infrastructure than it is about getting dangerous chemicals away from our homes. They are relocating them into suburban neighborhoods where they will be risks. It's about improving the bottom line of rail roads.

I wish I could take back my vote. I want a do-over!

Railroaded?

by Eileen Welsome - The Texas Observer - May 11th, 2007
With only a couple of weeks left in the session, lawmakers are rushing to put through legislation that eventually could cost taxpayers billions of dollars. One bill that passed the House and is pending in the Senate Transportation and Homeland Security committee is a very brief piece of legislation, HB 3747, that would allow TxDot to use money from the general fund for the Texas Rail Relocation and Improvement Fund.

The rail relocation effort is part of TxDot’s grand scheme to build the Trans-Texas Corridor, which is actually a network of super-highways that will have lanes for cars, trucks, trains, pipelines, and other infrastructure. The Legislature has not yet capitalized the rail relocation fund, which was approved by voters in 2005.

The current House appropriations bill contains a one-time payment of $150 million to TxDot, which will allow the agency to begin laying the groundwork for public-private partnerships with railroad companies and other corporations. But that’s just the beginning of what could be a flood of money from state coffers.

TxDot has identified $17.4 billion in needed rail projects across Texas. Even industry insiders have described some of these rail projects as “pure pork,” which will require huge amounts of debt and taxpayer-funded subsidies. In its analysis, the House Research Organization quoted opponents as saying,
”At a time when the Legislature has expressed concerns about TxDot’s decisions and funding priorities, especially those involving participation in partnerships with private enterprise, it would be unwise to allow TxDot to create its own rules for spending money and deeming eligibility of projects. The state should not spend public dollars on projects that benefit private companies, and this bill would provide no safeguard against that possibility.”

Read other articles on Rail Relocation in the Texas Observer

HNTB Crosses the Border with Rail Relocation Win

Firm to lead Union Pacific rail facilities project in Texas to Matamoros, Mexico
Release by HTNB
SAN ANTONIO - Cameron County, the southernmost tip of Texas, has selected HNTB Corporation to lead the fast-track design of Union Pacific rail facilities in Texas and Transportacion Ferroviarias Mexicana facilities across the border in Matamoros, Mexico.
The Cameron County West Railroad Relocation Project involves an estimated $22 million of construction, including approximately seven miles of relocation railway, final design of a new 2,300-foot rail bridge over the Rio Grande River, hydraulic river models and a 1.5-mile arterial roadway.

HNTB's offices in San Antonio and Houston expect to complete design by early 2005 and then provide construction administration services for the project through its completion in late 2005.

"Rail traffic passes through the core of both communities and endangers residents with more than 175 at-grade crossings and the transport of hazardous and industrial cargo through residential areas," said HNTB project director Lamberto "Bobby" Ballí. "The county and city commission feel this is the largest and most important project the area has ever undertaken."

Governor signs lopsided agreement with BSNF

By Faith Chatham - June 21, 2007
The Perry administration is intent on spending taxpayers money on the railroads upgrading their privately owned and controlled infrastructure at taxpayer's expense. There are some private public partnerships with rail which make sense, especially commuter rail. However, read to the end of this memorandum and you'll see exactly how little committment BSNF is making to the citizens of Texas. They are here holding their hands out for our bucks but unwilling to invest financially in this state.

From Governor Perry's Website
BNSF Memorandum of Understanding
MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE OF TEXAS ACTING THROUGH THE TEXAS DEPARTMENT OF TRANSPORTATION AND THE BNSF RAILWAY COMPANY FOR A COOPERATIVE PARTNERSHIP TO ADDRESS FREIGHT RAILROAD TRANSPORTATION ISSUES IN THE STATE OF TEXAS


WHEREAS, the Governor of Texas has proposed the development of a multimodal

WHEREAS, in accordance with House Bill Number 3588, 78th Texas Legislature, the Texas Department of Transportation (TxDOT) was authorized to proceed with the development of the Trans-Texas Corridor facilities; and

WHEREAS, in accordance with House Bill Number 3588, 78th Texas Legislature, TxDOT has been authorized to acquire, finance, construct, maintain, and lease operations on state owned rail facilities in order to improve the safety and efficiency of Texas transportation systems; and

WHEREAS, in certain areas of the state, the growth of freight movements in and through the state of Texas is projected to increase in volumes that will eventually exceed the capacity of existing transportation systems in the state; and

WHEREAS, the state recognizes the essential need to promote and improve the efficiency of the multiple modes of transportation within the state, in order to facilitate the efficient movement of freight goods in and through the state of Texas; and

WHEREAS, the BNSF Railway Company (BNSF) operates and performs freight rail transportation services within the state of Texas, and recognizes the important role played by TxDOT in rail transportation planning and will participate in studies to advance statewide transportation interests; and

WHEREAS, the BNSF in its cooperation with the state herein will be guided by its own internal principles as outlined in the policy document entitled "Public Private Partnerships," (Exhibit A, attached), which contains an overview as to how BNSF will consider and participate in projects such as the Trans-Texas Corridor, beneficial freight rail relocations or other rail infrastructure projects and the state of Texas is willing to work with BNSF under the guidelines in Exhibit A for projects of this nature; and

WHEREAS, the state of Texas has seen a need to improve the Texas transportation system, and the potential to include the possibility of relocating some portions of freight rail services to alternative alignments that would benefit multiple modes of transportation; and

WHEREAS, improvements in the statewide freight rail system will offer opportunities to maximize the safety of all Texans while providing increased capacity for freight; and

WHEREAS, the BNSF and the state of Texas have agreed that improvements to the Texas freight rail system will benefit the state by enabling increased freight rail efficiencies and improving services to freight customers, and encouraging additional economic development within the state;

WHEREAS, the State of Texas understands and appreciates that BNSF operates in a competitive business environment and BNSF understands and appreciates that the State of Texas intends to enter into similar Memorandums of Understanding with other transportation providers, including BNSF's competitors; and

WHEREAS, the State of Texas and BNSF agree that to the extent that any other Memoranda are executed by the State of Texas with any of BNSF's competitors, and to the extent that such Memoranda contain substantive terms that effect the competitive environment BNSF operates in, that the same or functionally similar terms will also be offered to BNSF.

NOW THEREFORE, we declare to direct our respective planning and development personnel to work in a cooperative manner to identify potential rail projects which will facilitate the safe and reliable movement of goods and people within the state of Texas, and which will benefit the transportation system of Texas and the people of the state.

By: ________________________
RICK PERRY
Governor of Texas

Date: _________________________

By: ________________________
Matthew Rose
Chairman, President and CEO
BNSF Railway Company

Date: _________________________


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Exhibit A
Public Private Partnerships Brochure

BNSF Railway Company (BNSF) will consider public-private partnerships in cases that benefit the public and ensure the interests of BNSF customers, investors and employees are protected. BNSF has successfully accomplished a number of public-private partnerships, including a partnership with several California state entities resulting in the Alameda Corridor and a partnership with various entities in Missouri and Kansas resulting in fly-over projects in Kansas City.

What are public-private partnerships?
Public-private partnerships combine the business interests of companies with the diverse goals of the local, state and federal entities who are working in the interest of the public. Cooperation between the private and public sectors may, in many cases, allow both sides to achieve their respective goals better, faster, and at lower costs.

How does BNSF approach public-private partnerships?
Public-private partnerships must be voluntary on both sides. Decisions on behalf of the public must protect the public interest and investment. BNSF's decision on whether to participate must protect our assets and the interests of our customers, shareholders and employees.

Coordinated state and federal transportation planning is necessary to ensure prudent public investments are made in the national rail network. BNSF works with local, state, federal agencies and public officials to provide whatever relevant information is needed to achieve public goals.

What factors does BNSF consider when evaluating a potential public-private partnership?
Public-private partnerships require a fact-based planning approach that:

Describes project scope;
Assesses impact on current freight traffic levels and future traffic growth;
Provides a cost-benefit analyses on an after-tax risk-adjusted basis; and
Identifies public funding sources, timing, processes and probability of obtaining funding to meet the public's timeliness objectives and achieve the public's goals.
BNSF's preliminary interest in exploring the possibilities of a public-private partnership should not be construed as a real or implied commitment by BNSF to support a project or participate either operationally or financially. BNSF's official support or concurrence of a project's benefit will follow the fact-based planning process outlined above, completion of a Memorandum of Understanding (MOU) between the parties, and BNSF's issuance of a formal statement of benefit and support.

What factors may lead BNSF to reject a potential public-private partnership?
Any public project cannot negatively affect BNSF's freight customers or BNSF's ability to provide them with consistent service, now or in the future.

Will BNSF consider participating financially in a potential public-private partnership?
BNSF recognizes public funding for rail projects should be commensurate with public benefits. BNSF's contributions to public-private partnerships will be commensurate with benefits derived by BNSF in comparison with other freight transportation projects competing for BNSF capital dollars.

Even though a project may produce some benefits for BNSF, it may not rank sufficiently high enough compared to other capital projects, or meet BNSF's internal capital investment or timeframe thresholds. When this occurs, BNSF would still support a project but would not provide financial participation.


READ GOVERNOR PERRY'S MEMORANDUM OF UNDERSTANDING WITH UNION PACIFIC RAIL ROAD.

UTA shuttle to TRE stopped

Officials say few used the bus service to the CentrePort/DFW Airport train station.
By Barbara Gelinas - Contributor to The Shorthorn - May 31, 2007
The university will no longer run a shuttle bus that took students and faculty to the Trinity Railway Express CentrePort/DFW Airport Station because of low ridership.Lack of ridership led officials to cancel the Mav Mover Shuttle Service to the Trinity Railway Express CentrePort/DFW Airport stop May 10, said transportation supervisor Debra C. Klingler.

Although a head count was kept each day, Klingler said she did not have exact figures prepared. The route, which ran from 7 a.m. to 5:30 p.m., carried about seven or eight riders a day, she said.

Megan Topham, UTA/Fort Worth Center assistant director for operations, didn’t think any of their students used the service.

“We have all graduate programs,” she said. “Our students don’t take any classes on the UTA campus.”

Klingler didn’t think any faculty or staff used the route regularly, and Topham said she could only recall faculty using the route once, during its opening event.

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