(Source: Fastlane – Sec. Ray LaHood’s Blog)

U.S. Transportation Secretary Ray LaHood today announced $2 billion in high-speed rail awards providing an unprecedented investment to speed up trains in the Northeast Corridor, expand service in the Midwest and provide new, state-of-the-art locomotives and rail cars as part of the Administration’s plan to transform travel in America. Shortly after making this announcement, he spoke to the financial media house, CNBC, about how these investments in high-speed rail investments are distributed and how they will benefits the various states that received this huge bonanza.

Twenty-four states, the District of Columbia and Amtrak submitted nearly 100 applications, competing to be part of an historic investment that will create tens of thousands of jobs, improve mobility and stimulate American manufacturing.  Here is an excerpt from the USDOT presser outlining the details of this disbursement:

The Department’s Federal Railroad Administration selected 15 states and Amtrak to receive $2.02 billion for 22 high-speed intercity passenger rail projects as part of a nationwide network that will connect 80 percent of Americans to high-speed rail in 25 years. The dedicated rail dollars will:

• Make an unprecedented investment in the Northeast Corridor (NEC), with $795 million to upgrade some of the most heavily-used sections of the corridor. The investments will increase speeds from 135 to 160 miles per hour on critical segments, improve on-time performance and add more seats for passengers.
• Provide $404.1 million to expand high-speed rail service in the Midwest. Newly constructed segments of 110-mph track between Detroit and Chicago will save passengers 30 minutes in travel time and create nearly 1,000 new jobs in the construction phase. Upgrades to the Chicago to St. Louis corridor will shave time off the trip, enhance safety and improve ridership.
• Boost U.S. manufacturing through a $336.2 million investment in state-of-the-art locomotives and rail cars for California and the Midwest. “Next Generation” rail equipment will deliver safe, reliable and high-tech American-built vehicles for passenger travel.
• Continue laying the groundwork for the nation’s first 220-mph high-speed rail system in California through a $300 million investment, extending the current 110 mile segment an additional 20 miles to advance completion of the Central Valley project, the backbone of the Los Angeles to San Francisco corridor.

Nearly 100 percent of the $2.02 billion announced today will go directly to construction of rail projects, bringing expanded and improved high-speed intercity passenger rail service to cities in all parts of the country. Thirty-two states across the U.S. and the District of Columbia are currently laying the foundation for high-speed rail corridors to link Americans with faster and more energy-efficient travel options.

Click here to read more.

The Eno Transportation Foundation, a nonprofit transportation policy and leadership think-tank, is seeking a Finance Director/Chief Financial Officer. Ideal candidates should have a strong interest in both organizational financial management and transportation policy. Superior writing ability, interpersonal skills, and basic understanding of finances are all essential. Experience with accounting is a bonus but not required.

(Source: Fast Company)

A new report from the American Public Transportation Association counters the GOP strategy on high-speed rail and turns the anti-HSR rhetoric argument on its head by saying it is in fact good for the economy.   This report focuses on key issues critical to private investors as they consider investments or future expansion into businesses serving the growing passenger rail markets.

Here is  the crux of the report as explained by the Fast Company: High-speed rail can be a huge driver of jobs and economic growth, and the government has already committed to at least $10 billion worth of spending, with plans for tens of billions more in the coming years.

The report, “The Case for Business Investment in High-Speed and Intercity Passenger Rail” (PDF) by the American Public Transportation Association finds that in addition to the obvious, but temporary, construction jobs, the benefits ripple out throughout an economy. Most importantly, for each $1 billion spent on train construction, 24,000 permanent jobs are created. That’s a mere $41,667 per job, which looks downright cheap when you’re staring down 9% unemployment.

The California High-Speed Rail Authority estimates that building a high-speed rail link between L.A. and San Francisco would result in 600,000 construction jobs and 450,000 permanent new jobs. There are currently 2.2 million unemployed people in the state; high-speed rail would halve its unemployment rate.

Click here to read the Fast Co. analysis.

Shown below is the APTA presser accompanying this report.

New report shows tangible economic benefits of investments in building a 21st century rail system

Washington, DC – April 6, 2011 –The American Public Transportation Association (APTA) released a report detailing the enormous impact high-speed and intercity passenger rail projects will have in driving  job development,  while also rebuilding America’s manufacturing sector and generating billions of dollars in business sales.  This report focuses on key issues critical to private investors as they consider investments or future expansion into businesses serving the growing passenger rail markets.

The report, “The Case for Business Investment in High-Speed and Intercity Passenger Rail” reinforces the point that investments in high-speed and intercity rail will have many direct and indirect benefits.  Nationally, due to proposed federal investment of high-speed rail over a six-year period, investment can result in supporting and creating more than 1.3 million jobs.  This federal investment will be the catalyst for attracting state, local and private capital which will result in the support and creation of even more jobs.

According to this new report, investments in building a 21st century rail system will not only lead to a large increase in construction jobs, but to the sustainable, long-term growth of new manufacturing and service jobs across the country.

“It is evident that investing in high-speed and intercity rail projects presents one of the clearest and fastest ways to create green, American jobs and spur long-term economic growth,” said APTA President William Millar. “Investing in high-speed rail is essential for America as we work to build a sustainable, modern transportation system that meets the environmental and energy challenges of the future.”

APTA noted for each $1 billion invested in high-speed rail projects, the analysis predicts the support and creation of 24,000 jobs.

In addition to the thousands of new construction jobs, investments in high-speed rail will jumpstart the U.S. economy. The Economic Development Research Group for the U.S. Conference of Mayors studied the business impact of high-speed rail investment in different urban regions.  For example, in Los Angeles, CA, high-speed rail investment generates $7.6 billion in business sales and $6.1 billion in Chicago, IL.

“Federal high-speed rail investment is a strong driver in getting private companies to invest,” said Kevin McFall, Senior Vice President at Stacy and Witbeck Inc., a leading public transit construction firm. “This program can be a shot in the arm for the manufacturing industry.  These high-speed rail projects will give us the opportunity to put people to work building the rail infrastructure this country desperately needs.”

“U.S. businesses have been known for their cutting edge technologies and innovations, said Jeffrey Wharton, President of IMPulse NC. “We need to put this expertise to work, providing business and employment opportunities while catching up with the rest of the world in high-speed rail and its associated benefits.”

“We are excited about the prospect of putting Americans to work building the rail tracks and equipment that will keep America’s economic recovery moving forward,” said Charles Wochele, Vice President for Industry and Government Relations at Alstom Transport. “We look forward to partnering with the federal and state governments to ensure these projects get off the ground.”

Here is a related article (and some interesting comments to go with it) I posted a couple of days ago.

(Source:  Raman’s Strategic Analysis & Wikipedia)

On April 11,2011, the Government-controlled Xinhua news agency of China has disseminated from Lhasa a report on the construction of a fast rail line to connect Lanzhou, the capital of the Gansu province, with Urumqi, the capital of the Xinjiang province. The construction of this line, capable of carrying trains moving at 300 KMs an hour, was started in 2009 and is due to be completed in 2015. The Xinhua despatch has quoted some Chinese analysts as viewing the line as significant more from the national security and political angle than from the economic perspective.Though the Xinhua has not spelt it out in such terms, it should be apparent that the railway line will help strengthen Beijing’s control over the Tibetan and Uighur-inhabited areas of the country (11-4-11).

Some of the key highlights of this rail line as reported in the Xinhua report:

• This rail line will connect Lanzhou, capital of Gansu Province, with Urumqi, capital of northwest China’s Xinjiang Uygur Autonomous Region.
• China Railway 20th Group Co., Ltd., is in charge of the construction, which began in 2009.
• Wages for construction workers is also double compared to the construction in the flatlands (due to tough  working conditions in high-altitudes)
• According to Wikipedia, the rail tracks in the section near Qilianshan Tunnel will be at 3,858 meters above sea level^[3], making it the highest high-speed rail track in the world.
• Trains will run at 350 kilometres per hour on the line.^[4][5]

Click here to read the full text of the Xinhua dispatch.

Editor’s note:  Though the pursuit of China’s high-speed in this northwestern region is discussed from the militaristic and national security-oriented perspective, it offers a glimpse of the national leadership’s desire to connect the vast outlying remote areas of rural China.  This offers an swift and safe access route for people and goods to flow between these regions and the big centers of trade/commerce and manufacturing situated along the coast line in the Eastern part of the country.  It is amazing to see how steadfast is the Communist leadership in its commitment to build this national strategic infrastructure asset.

(Source: Tree Hugger)

I saw this article below on Tree Hugger and felt compelled to share with you all.  See my commentary in the Editor’s Notes section below.

Growing Amtrak Ridership On A Collision Course With Political Surrealism

The Hill reports that “Amtrak had more riders in March than it has had in any March in its 40 years of existence, the company said Thursday. There were 137,000 more Amtrak riders this past month, the company said, which was the 17th straight month of increased ridership. That puts the company on track to break its annual ridership record, which was 28.7 million last year, Amtrak said.”

Note: By the term “political surrealism” I mean that the railroads which once united America are being used as a “wedge issue” to divide the US politically. Don’t tell me ideological opposition to Amtrak and high speed trains is justified because ‘we’re broke’ and passenger rail should be privately owned, exclusively.

Click here to read the full article.

Editor’s Notes: As a nation, especially in the post-World War II era, the United States has identified itself as a world leader in innovation and as a business-savvy nation.  Even during the toughest of times, a class of creative entrepreneurs and  political leaders somehow managed to find ways to help innovate and keep the economy rolling, eventually leading the country to gain the top spot among world’s economies.  This American entrepreneurship always was rooted in one thing – a keen understanding of the market demands for a product or service and effectively finding a steady supply to meet that demand.  Time and again this demand vs supply model was successfully applied in the market by many savvy innovators and managers, leading to the creation of many successful business houses and millionaires/billionaires across the country.

All of a sudden now things are looking different.  The America at the start of the 21st Century America looks much different than the one in the decades before.  Now the business community seems totally out of touch with the market demand and the political class is not far behind, blindly groping around without any clue of what the people really want.  With a country of 300+ million that is growing every day and the price of gasoline shooting through http://www.huffingtonpost.com/2011/04/08/government-shutdown-2011_n_846525.htmlthe roof with every war (overt and covert) launched in a different part of the globe under the guise of spreading democracy, the country and the economic engines are grinding themselves to a halt.  The driver of this economic engine has always been the transportation industry and this industry seems to be on a shakier footing than ever.  The rail industry that once dominated the country is now virtually shut out in favor of the motorcars and the highways lobby.  Aviation industry is doing a much better job getting people around faster but the airports and the sector’s infrastructure are starting to show signs of fatigue. 

And along comes this great opportunity, in form of investment in high speed rail, and our political leaders are completely blowing off a golden chance to resurrect the American dominance by completely caving to party-line politics.   There have been way too many arguments made for and against building a high-speed passenger rail network so I’m not even going to attempt bringing them here. All I want to add here is that we have a golden opportunity to encourage the business community to come forward and invest in meeting this demand from consumers.  These ridership numbers from Amtrak are no less of an indicator for a growing demand for a service; unfortunately the government does not have the money to pay for building a rail service that can cater to this demand.  So why not encourage the private sector to get involved in providing that service.  If it takes a little bit of hand holding/encouragement (read as subsidies and tax reliefs), why not do that?  Let the likes of Virgin, JR East, etc come in and set up shop.. Let them build the high speed rail network.. Give them the contracts to develop the lines, as well as the track /train sets.. Let them figure out the economics..  All the political leadership, esp. the conservatives, needs to do is to work with the U.S.DOT and the White House and make it easy for the players to come in and play the field.  A lot of other nations have successfully done this and why are we not trying something that we have taught everyone in the world?  For a nation full of smart people I am not sure why it is taking us so long to understand the strategic benefits of investing in this form of transportation.

In simple terms, we have a lot riding on the rails and we cannot afford to squander this opportunity to build a new industry, especially when there is a growing demand.  Looking  back at the end of the last century, the US government did its best to encourage private sector participation in the creation and development of a brand new industry in the Silicon Valley – Software/IT Industry, which helped establish the country as the market leader in the technology sector and has since spawned many products and services.  It is not a stretch to say many of the advances we have made in the field of computing and technology would not have been possible without this joint private/public sector participation. So, why not replicate the same in the transportation field and encourage the private sector to come in and create a robust industry.  It is not impossible and it is not going to be easy either! But hey, it is any day better than squabbling to score political points and fighting wars in foreign countries.

So, let me conclude by saying this – we don’t just need a new form of transportation but some new, fresh, outside the box thinking and political will to go with it.

(Source: NY Times)

U.S. Doctors Say Biofuels Could Kill Over 192,000 Per Year in Developing Countries

Image courtesy: via NYTimes.com

The food vs. fuel debate has intensified a little more with the ever growing demand for bio-fuels.  Many of the world’s hungriest people are going to bed without a morsel to eat, as more of the conventional food crops such as corn are diverted towards making biofuels that power the vehicle fleets. This above graphic from the NY Times article shows an alarming increase in the way we have change the consumption from food to fuel starting at the dawn of this 21st century.

Each year, an ever larger portion of the world’s crops — cassava and corn, sugar and palm oil — is being diverted for biofuels as developed countries pass laws mandating greater use of nonfossil fuels and as emerging powerhouses like China seek new sources of energy to keep their cars and industries running. Cassava is a relatively new entrant in the biofuel stream.

But with food prices rising sharply in recent months, many experts are calling on countries to scale back their headlong rush into green fuel development, arguing that the combination of ambitious biofuel targets and mediocre harvests of some crucial crops is contributing to high prices, hunger and political instability.

This year, the United Nations Food and Agriculture Organization reported that its index of food prices was the highest in its more than 20 years of existence. Prices rose 15 percent from October to January alone, potentially “throwing an additional 44 million people in low- and middle-income countries into poverty,” the World Bank said.

On a related note, the following was published on TreeHugger.com:

The Association of American Physicians and Surgeons (AAPS) has released a warning that U.S. and European policy to increase the production of biofuels could lead to almost 200,000 deaths in poorer countries. How? Mostly through higher food prices. Most biofuels are made using food crops like corn at this time, and diverting corn to ethanol refineries not only increases the price of corn, but it also encourage farmers to plant more of it, leaving less space for other types of crops, driving up their price too. This is a big deal if you live on $1-2 a day…

Click here to read the entire article.

(Source: car-insurance.com via Autoblog)

Click Image to Enlarge

(Sources: Washington Post, FAA, & WSJ)

The Federal Aviation Administration plans to order immediate inspections of older-model Boeing 737 jetliners that are the workhorse of domestic air travel, a precaution after a hole opened in the hull of a Southwest Airlines plane flying at 34,400.

The FAA on Monday announced (See FAA press release below) a speedy, but limited, response: It said it intends to issue an emergency safety directive calling for stepped-up structural inspections affecting about 170 of aircraft giantBoeing Co.’s workhorse 737s world-wide.

Image Courtesy: WSJ.com

FAA Presser

WASHINGTON, D.C. – The FAA will issue an emergency directive tomorrow that will require operators of specific early Boeing 737 models to conduct initial and repetitive electromagnetic inspections for fatigue damage. This action will initially apply to a total of approximately 175 aircraft worldwide, 80 of which are U.S.-registered aircraft. Most of the aircraft in the U.S. are operated by Southwest Airlines.

“Safety is our number one priority,” said Transportation Secretary Ray LaHood. “Last Friday’s incident was very serious and could result in additional action depending on the outcome of the investigation.”

“The FAA has comprehensive programs in place to protect commercial aircraft from structural damage as they age,” said FAA Administrator Randy Babbitt. “This action is designed to detect cracking in a specific part of the aircraft that cannot be spotted with visual inspection.”

The FAA airworthiness directive will require initial inspections using electromagnetic, or eddy-current, technology in specific areas of the aircraft fuselage on certain Boeing 737 aircraft in the -300, -400 and -500 series that have accumulated more than 30,000 flight cycles. It will then require repetitive inspections at regular intervals.

Last November, the FAA published a rule designed specifically to address widespread fatigue damage in aging aircraft. The rule requires aircraft manufacturers to establish a number of flight cycles or hours a plane can operate and be free from fatigue damage. The rule requires aircraft manufacturers to incorporate the limits into their maintenance programs.

Click here to read more.

(Source: Gas 2.0)

One of the biggest hurdles for market penetration for the Electric Vehicles (EV) is the charging times associated with the batteries in the vehicles. Some of these batteries take up to several hours (4hrs to 8hrs) for a full charge , a.k.a Top off, and continues to remain a big challenge for the manufacturers to convince their buyers. Looking at the existing fleet of vehicles in the market, some question the wisdom behind the EV charging investments. If you pulled up at a gas station along the way it takes roughly 5 minutes to “top off” or fill up your gas tak and get back on the road quickly. With the existing EVs in the market placethis is not possible, at least at this moment. That’s where Shai Agassi’s Better Place excelled with a marvellous idea. Why not just swap the batteries like you would do in a household device. And do it as quickly as you buy a burger at a drive through. Combining the two ideas results in what you can call the Battery Swap Station. For those who wondered aloud about the viability of a business model proposed by Project Better Place, the recent deployment of its Battery-Swap station in Israel should be worth taking note.

Image Courtesy: Better Place on Flickr

Batter Swap Infrastructure - Image Courtesy: Better Place on Flickr

Gas 2.0 notes the following:

Project Better Place’s Israeli facility released this video of the battery swapper in action, effectively “topping off” the electric car with a simple swipe of a card in about the same time it would take to top-off a conventional ICE car.  The stations themselves are designed to be modular in construction, and compatible with several different EVs – although they are presumably leaning heavily towards batteries powering Renault/Nissan’s EVs.

The Truth About Cars blog reports that 8 more Better Place battery-swap stations are currently in construction, and the company hopes to eventually have 40 similar stations operational throughout Israel.

Click here to learn more about the project.

Editor’s note: Until the battery technology is refined to the point where charging times are on par with the time it takes for filling up a gas tank in the conventional car, this approach seems prudent and better suited for rapid deployment.  Oh, on a related note – if this model were to be deployed in the US, I presume it would have a slight twist.  The stations will be designed to sell you a burger while you swap the batteries, which means you can see an integrated refueling station for the vehicle and the driver, just like how we have it now in the Gas Stations with convenience store options. Wouldn’t that be ironic to have a Better Place  Charging Station co-located with a burger joint like Burger King or McDonalds? Haha!  Oh,  come on.  I know you not heard many people say that: McDonalds is not a Better Place.

(Source: Jalopnik)

The story goes like thiss:  Back in the 70s Libya’s new-embattled ruler – Gaddafi – pays millions of dollars for some 8 US built planes. He never got full possession of the machines due to various geo-political games that got played over the decades, leading up to the machines rotting away in an airfield in Georgia. Now the dictator wants his money back and the US is saying a big, Thanks but No Thanks. Read up the full story here.

Eight U.S.-built C-130 Hercules military transports bought by Libya are sitting in a field on the grounds of Dobbins Air Reserve Base in Georgia. Moammar Gaddafi bought the planes but, when politics shifted, the U.S. military grounded them. Now the crazy dictator wants a $70 million refund.

The planes are the ultimate ran-when-parked proposition, appearing to have not been used in the last 30+ years. Though they technically belong to the Libyan government, who purchased them in the early 1970s, the current military action in the country and the “no fly zone” make it unlikely they’ll be leaving any time soon.