(Source: Time; Autoblog)

With 690,000 vehicles sentenced to one final gargle of sodium silicate, thanks to the now-defunct Cash for Clunkers program, demolition-derby drivers seem to have been left holding the short end of the driveshaft. What the government seems to have forgotten is that many cars, hobbling and sputtering as they near death, prefer to make one final trip to the local county fair (assuming they escape a 24 Hours of LeMons team). There, stripped of glass and with fuel tanks moved safely inward, the clunkers die an honorable death smashed gloriously to pieces in front of large (and often well-hydrated), cheering crowds.

There’s at least one group of people who are happy Cash for Clunkers is over: demolition-derby drivers. Participants in these events, in which drivers smash into one another until there’s only one engine left running, don’t enjoy the sight of old cars going out of commission without making a pit stop at the county fairground. “Obama is an anti-demo-derby guy,” says Tory Schutte, head of the Demolition Derby Drivers Association. “He’s targeting the cars we’ve been using.”

There’s at least one group of people who are happy Cash for Clunkers is over: demolition-derby drivers. Participants in these events, in which drivers smash into one another until there’s only one engine left running, don’t enjoy the sight of old cars going out of commission without making a pit stop at the county fairground. “Obama is an anti-demo-derby guy,” says Tory Schutte, head of the Demolition Derby Drivers Association. “He’s targeting the cars we’ve been using.”

There are an estimated 3,500 derbies in the U.S. each year, and they tend to be the main attraction at county fairs, where attendance has hit record highs in many places this summer. “It’s been a stellar year for fairs across the country,” confirms Marla Calico, spokesperson for the International Association of Fairs & Expositions.

(Source: Autoblog;  Detroit Free Press; US Infrastructure;  Autoblog Green)

Cash for Clunkers over, dealer deadline for filing extended indefinitely

The website has been down since yesterday morning, and the Transportation Department has officially extended the deadline for dealers to file their reimbursement requests twice now – once yesterday to noon today and again late last night. The second extension is open ended until the site comes back online and is able to handle the influx of dealer submissions.

The government website went down at some point before noon on Monday morning, presumably when dealers nationwide began submitting their final reimbursement requests from last weekend’s bonanza sell-a-thon. All the government is saying right now is that dealers will have any time lost while the site was down to submit their final paperwork.

The U.S. Department of Transportation said as of this morning 665,000 deals had been entered, for claims totaling $2.77 billion. That would mean about $130 million remains of the $3 billion set aside for the program, after $100 million the government expects to spend overseeing the program.

After thousands of dealers complained of being unable to enter deals before Monday’s 8 p.m. deadline, federal officials said the system would not be fully functional until today, and that dealers would be given additional time to submit papers. Click here to read the entire article.

Most fuel efficient cars available in the ‘Cash for Clunkers’ scheme (Not sure how useful this is anymore for buyers since c4c expired)

However, if you’re more environmentally conscious, you may want to know which are the most fuel-efficient cars available under the program.  To qualify as ‘eco-friendly’, new vehicles must get at least a EPA rating of 22 MPG combined to be eligible. Now that’s pretty bad, but it’s not like there’s a ton of car choices that get great MPG (at least in America). Click here to read the entire article.

Image Courtesy: US Infrastructure (click to enlarge)

Dealer poll calls Cash for Clunkers a ‘Nightmare,’ four out of 10 didn’t want program extended

A recent (admittedly unscientific) survey conducted by Automotive News shows that 44% of the 800 dealers polled wouldn’t want C4C to be extended again, even if the program was modified. Only 3% felt that the program should have been extended without being modified. The biggest issue dealers have with C4C is, unsurprisingly, its lack of timely payment. Some multi-store dealers have millions invested in the program, while little or no money has come in yet. An alarming 23% of dealers say they have had to borrow money to cover the cash crunch left in the wake of the Clunkers program, while an additional 10% say the program has actually sucked enough cash from the coffers that it has put the dealership at risk.  Click here to read the entire article.

Sen. Bill Frist uses Cash for Clunkers, junks Suburban for Prius

Apparently, it’s a common misconception that all Prius drivers are Democrats. Not true. In fact, recently retired Senator Bill Frist (R-Tenn.) just got himself a shiny new hybrid hatchback from Toyota. The former senator even got a few thousand dollars off the price of his new eco-friendly ride courtesy of the just-concluded Cash for Clunkers program here in the United States.  In an interview on Larry King Live, Frist responded to King’s quip that “You don’t see a lot of Republicans driving a Prius” with the response that the hybrid’s 50 miles per gallon along with the fact that “the taxpayer gave me $6,000 to do it” as reasons for the Prius purchase.  Click here to read the entire article.

(Source articles contributing to this hybrid report: Business Week, CNN, Star Tribune)

A Continental Express pilot tried fervently to get her passengers into the Rochester, Minn., airport on Aug. 8 after being diverted from Minneapolis-St. Paul because of bad weather, according to federal transportation officials. The request was denied by Mesaba Aviation, a unit of Delta Air Lines (DAL), the 47 passengers were stuck on the small regional jet for more than six hours.

Mesaba, based in Eagan, Minnesota and owned by Delta Air Lines, was the only carrier able to assist Continental Flight 2816, which was on its way from Houston, Texas, to Minneapolis, Minnesota, when it was diverted because of strong thunderstorms, LaHood said. The flight’s 47 passengers described crying babies, overflowing toilets and cramped conditions.

U.S. Transportation Secretary Ray LaHood said a representative of Mesaba Airlines improperly refused requests by the plane’s captain and crew to let passengers off the plane. They remained stuck on the tarmac in Rochester on August 8 from 12:38 a.m. to about 6 a.m. with nothing but pretzels to eat, LaHood said.

“We have determined that the Express Jet crew was not at fault. In fact, the flight crew repeatedly tried to get permission to deplane the passengers at the airport or obtain a bus for them,” U.S. Dept. of Transportation Secretary Ray LaHood said in an Aug. 21 statement. “The local representative of Mesaba Airlines improperly refused the requests of the captain to let her passengers off the plane. The representative incorrectly said that the airport was closed to passengers for security reasons, which led to this nightmare for those stuck on the plane.”

“There was a complete lack of common sense here,” LaHood said in a written statement. “It’s no wonder the flying public is so angry and frustrated.”

In audiotapes released by the Transportation Department, the unnamed captain of the aircraft can be heard pleading with an airline dispatcher to find a way to get the passengers off the plane. According to transcripts of transmissions from the cockpit released Friday, the pilot grew frustrated during the course of what she called a “ridiculous” ordeal, in which passengers on the nearly full plane had virtually nothing to eat, and the toilet and babies on board began to smell.

ExpressJet has posted audio files of conversations between the company and airport officials about how to resolve the problem. “There’s nobody willing to do anything,” an ExpressJet official tells the pilot in one phone call. “We have to do something… I just want to get people off the plane if we can’t fly,” the unidentified captain responds. In a later call, the pilot notes that “they’ve had lawsuits about this kind of stuff.”

“I just can’t sit here any longer,” she radioed to ExpressJet dispatchers in Houston. “… There’s no food, and [the passengers are] just getting really unhappy. … We’re stuck here with no lavs, no nothing. … There are lawsuits about this kind of stuff.”

According to a Department of Transportation preliminary report, Mesaba’s representative refused to help passengers off of the plane, incorrectly saying the airport was closed to passengers for security reasons.

The government is also soliciting public comment on whether it ought to mandate a limit on how long people may be left on planes during extended tarmac delays. A final rule from DOT is expected this fall, and the Continental Express-Mesaba imbroglio will figure into the decision, the agency says.

Mesaba is a wholly owned subsidiary of Northwest Airlines, which is a wholly owned subsidiary of Delta Air Lines.

“Mesaba respectfully disagrees with the DOT’s preliminary findings as they are incongruent with our initial internal review of the incident,” CEO John Spanjers said in a written statement. “Because Continental Express Flight 2816 diverted to an airport where they have no ground handling service, Mesaba offered assistance as a courtesy during this delay.

Delta CEO Richard Anderson said in a statement Friday that he has contacted Continental Chairman and CEO Larry Kellner to “ensure we fully understand the facts of this unfortunate incident. Delta is working with Mesaba to conduct an internal investigation, continue our full cooperation with the DOT and share all the facts with Continental.”

TransportGooru Musings: Amidst this rabid finger pointing exercise, the poor passengers are the ones who are left begging for justice at this juncture! Glad that USDOT is taking a serious look at this issue. MESABA AIRLINES = BIG FAIL!

(Source: Washington Post, New York Times, Bloomberg, The Detroit News, Autoblog)

The federal government’s Cash for Clunkers program began with a bang on July 24th and, despite the original plan having it last until Labor Day, will officially end next Monday night (August 24th) at 8PM. The end date was announced today by U.S. Transportation Secretary Ray LaHood and takes into account what he calls conservative sales estimates that have the pot running dry sometime over the weekend.

“This program has been a lifeline to the automobile industry, jump-starting a major sector of the economy and putting people back to work,” LaHood said in the statement.

As of today, C4C has recorded 457,476 sales worth $1.91 billion in rebates. The feds estimate about $400 million worth of rebates have yet to be submitted and are reserving another $100 million for administrative costs. That leaves $600 million left for what should be a very busy weekend on dealer lots.

After just a week, the program, which began July 24 and was expected to last until Nov. 1, ran out of the $1 billion originally appropriated by Congress. An additional $2 billion was approved two weeks ago, and it was supposed to last until Labor Day. Now that’s almost gone, too.

With the end in sight, many dealers are preparing for a flurry of last-minute customers over the weekend, and some are calling and e-mailing customers who were on the fence, perhaps threatening a surfeit of business.

“It’s not clear at all if there’s enough of the $3 billion to last through the weekend,” said John McEleney, chairman of the National Automobile Dealers Association. “My concern is if we go past the $3 billion between now and Monday.” He said, however, that he had been assured that the government has done calculations to make sure there is enough money left to get through the weekend.

In the days leading up to Thursday’s announcement, dealers and dealer groups said that uncertainties about the program’s ultimate conclusion were creating financial hardships and confusion. Among the organizations pressing for a resolution to the program was the National Automobile Dealers Association (NADA), which warned its members that “dealers who accept additional ‘clunker’ deals face a growing risk that they may not be reimbursed.”

Senate Majority Leader Harry Reid, a Nevada Democrat, asked LaHood in a letter today to speed up payments, saying “dealers have been forced to effectively finance the CARS vouchers for buyers until the dealers are reimbursed by the federal government, placing a strain on dealers’ balance sheets that, if prolonged, could eventually offset some of the benefits of the program.”

More than 1,000 people are processing the applications, LaHood said yesterday. That compares with fewer than 200 when the program began. The agency is training more of its staff and is using Citigroup Inc. contractors to handle the paperwork.

Also late today, Chrysler Group LLC joined General Motors Co. in announcing they will advance funds to dealers who are awaiting payment from the government for clunkers deals. The administration disclosed that it has paid just $145 million of the $1.9 billion in vouchers submitted — or less than 10 percent of the funds requested.

LaHood has been holding two or three meetings daily on the progress of the program in an effort to ensure an orderly shutdown.

The Alliance of Automobile Manufacturers, the trade association that represents General Motors Co., Chrysler Group LLC, Ford Motor Co., Toyota Motor Corp. and seven other automakers, praised the government’s handling of the program.

Click here to read the entire article.

(Sources: WSJ, NPR, LA Times)

Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.  The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They’re also worried about getting repaid.

“(The government) needs to move the system forward and they need to start paying these dealers,” said Mark Schienberg, the group’s president. “This is a cash-dependent business.”

Many dealers have said they are worried they won’t get repaid at all, while others have waited so long to get reimbursed they don’t have the cash to fund any more rebates, Schienberg said.  Schienberg said the group’s dealers have been repaid for only about 2 percent of the clunkers deals they’ve made so far.

“The program is a great program in the sense that it’s creating a lot of floor traffic that a lot of dealers haven’t seen in a long time,” he said.  “But it’s in the hands of this enormous bureaucracy and regulatory agency,” he added. “If they don’t get out of their own way, this program is going to be a huge failure.”

In contrast, today’s LA Times article notes that in California, which tops the list of states in terms of clunker transactions, most dealerships appear to be sticking with the program. The frenzy of buyer interest that greeted the program when it kicked off July 24 has dropped considerably partly because of shortages of popular cars such as the Toyota Corolla, Honda Civic and Ford Focus.

“The gold rush is over,” said Eric Choi, fleet manager at Hollywood Ford. “We’re still getting some business from it, but like every other dealer, we’re pretty much out of cars.”

Transportation Secretary Ray LaHood sought to reassure auto dealers Wednesday that they would be reimbursed for discounts given to customers under the program. With weeks-long delays in processing reimbursements, many dealers have feared the program’s $3 billion funding would run out before they received the money owed them.

An administration official said on Monday that the Transportation Department hoped to have 1,100 public and private sector workers processing the vouchers by the end of the week, up from a work force of about 350 through the end of last week.

Employees at a department service center in Oklahoma City have taken the lead in processing the vouchers, the official said, and workers have responded to calls for voluntary overtime to process the forms.

Meanwhile, Wall Street Journal reports that Obama administration will wind down its popular “cash for clunkers” incentive program on auto sales — and may do so as soon as early September, according to one person familiar with the matter.

When to end the program is a tricky question. The administration is closely watching the money remaining in the program, and expects there to be a surge in last-minute clunker deals once an end date is announced, said the person familiar with the matter. The administration wants to avoid having dealers agree to sales after all the funds have been used up, this person said.

Through Wednesday morning, dealers had submitted requests to be reimbursed for roughly 435,000 vouchers totaling more than $1.81 billion, though many of those hadn’t yet been approved.

The backlog at the National Highway Traffic Safety Administration also has dealers worried that authorities won’t know when the funding is gone, he said. “That has clearly been something that the industry has been constantly asking: When is it at $3 billion and one and there’s no money left? You need to have a soft landing kind of approach.”

Click here to read the entire article.

(Source: The Guardian, UK)

Ana Portet has had an unusual commute to work. At 7.30am she popped down to Sants railway station in Barcelona. Three hours later she was in a meeting with colleagues from her brewery firm, 315 miles away in Madrid.

“I’ll be back in Barcelona by half past five,” she said as her early afternoon bullet train flew back along the new high-speed tracks at up to 210mph. “It’s so quick, sometimes you are there before you have even noticed.”

Portet is one of hundreds of thousands of travellers who have migrated from the world’s busiest air shuttle, linking Madrid and Barcelona, to what is now Spain’s most popular train, the high-speed AVE.

The AVE, an intercom announcement has just told us, will leave us in the centre of Barcelona in two hours and 32 minutes. With Madrid’s AVE station a short walk from the Prado museum, the journey is from one city centre to another. What is more, the high-speed train does this in punctual, hassle-free and elegant style.

High-speed trains pulled by aerodynamic engines with noses shaped like a duck-billed platypus are grounding aircraft across Spain. The year-old Barcelona-Madrid line has already taken 46% of the traffic – stealing most of it from fuel-guzzling, carbon-emitting aircraft. As the high-speed rail network spreads a web of tracks across Spain over the next decade, it threatens to relegate domestic air travel to a distant second place.

A high-speed network is not designed overnight. Spain’s AVE story started in the 1980s, when the socialist prime minister Felipe González commissioned a line between Madrid and his home city of Seville. The project was overshadowed by corruption scandals and greeted with a certain amount of scorn. Why was sleepy Seville getting the line and not busy Barcelona? Some saw it as an expensive white elephant and a monument to González’s ego.

The line, however, was a spectacular success. Remote Seville was suddenly two and a half hours from Madrid. Spaniards, used to shabby, lumbering trains that crawled across the countryside following unpredictable timetables, discovered their trains could be stylish and run on time.

Previously the choice on the Madrid-Seville run was between a hot, tiring six-hour coach journey or an aircraft. Seventeen years later, only one traveller out of 10 takes the plane to Seville. The rest go by a train that is 99% punctual. The Seville line proved that high-speed trains could be part of the answer, albeit an expensive part, to some of Spain’s most enduring problems.

By 2020 Spain will have Europe’s largest high-speed network, its 6,000 miles of track outgunning even France’s TGV system. By then 90% of the population will be within 30 miles of a station. New lines have already been opened to Segovia, Valladolid and Malaga in the last 18 months. New links will eventually connect France and Portugal.

The high-speed train network also helps Spain control carbon emissions, with passengers on the Madrid-Barcelona line cutting their own emissions by 83% on the trip.

Click here to read the entire article.

Transportgooru Musings:

Something unusual is happening with the mainstream media these days.  There seems to be a renewed interest in pushing the idea of having a high-speed rail network in to the minds of the American public .  We have seen two articles on CNN/Fortune have brought too fore how China is pushing ahead with its investment in building a sophisticated, world class HSR network.  This spurred a good bit of debate on many popular infrastructure & transportation forums such as the Infrastrucrist.  Another one appeared in LA Times, by business writer David Lazarus whose sentiments about the American transportation system was summarized as follows after experiencing the highly systematic & super-sleek Japanese network: “It’s hard to appreciate how truly pitiful our public transportation system is until you spend some time with a system that works.” Many of us know that feeling.  Then he gushes about the consistently reliable, affordable and convenient transit systems in Japan. “I rode just about every form of public transit imaginable — bullet trains, express trains, commuter trains, subways, street cars, monorails and buses.”  Again, our good friends at Infrastructurist followed-up with a nice debate.

Now we have this Guardian article, that gushes about the glorious Spanish high-speed rail network.  I am sure this would stir another round of renewed interest in the minds of us transportation nerds, especially among those who keenly the TransportGooru and Infrastructurist columns on this topic. But do these discussions go beyond the comments section of these portals.  I wonder if the Government is even taking note of these anxiety-laden cries that advocate the need for a comparable HSR.  As the President and his administration staff reiterate his commitment to keep American workforce competitive in every field, pushing huge loads of money for all sorts of industries (Automobile manufacturing, battery research etc.) , everyone in the Government seems to forget that competitiveness should also extend beyond roads and vehicles.  The vast American bureaucracy is slowly pushing ahead with limited funding ($8Billion) and a massive goal (a HSR-network in pockets of nation with targeted connectivity), while other nations like China and Spain are blazing ahead with massive investments in a rail network.  Unless we as a nation get serious about investing in alternative transportation options such as rail, we will continue to remain dependent on our expensive oil addiction.

With the Government pushing new thinking such as transit-oriented development, it is probably not too far in the future before urban living becomes “cool” again and the minor discomforts of not having the plush sub-urban life with white picket fences and acre-wide manicured lawns might fade away.   The Government facilitated the emergence of the sprawl and the suburban lifestyle with its policy and funding push for interstates.  Back in the past were days when railroading was the best alternative for longer distances.  Ford and other American automakers created a new way of life with the commercialization of automobile technology, which has now blossomed into a thriving industry.  Can the Government enable a similar push for building high speed rail networks around the country?

Before we even get there, let’s first ask: Is there a need for it?   Yes, clearly there is a need for it, at least for distances shorter than 400 miles and there is also a desire for it among folks.  But the only thing that is lack is the Governmental backing. The paltry $8B will not be enough but it is definitely a good start.  It is not always a bad thing to emulate successful strategies, irrespective of where it emulates from.  American ingenuity stems from this ability to take ideas irrespective of their origin and tweak to make them suitable for the American landscape.  We did this for years by simply importing foreign talent (from nuclear scientists to PhD students) propelled new ideas and thinking to create a huge economy that was atop the world for decades. Why not do the same for building a rail network?

We have the need, we have the people who can get it done. All we need is the willingness to invest and the determination to get it done. As demonstrated in the past, Americans can accomplish great things (from building the interstate system to the invention of the atomic bomb), when the Government stood firm and pushed ahead to finish these mega-projects.  Some of these projects not only became a rallying point for nation building (during and after WWII) but they also spawned new economies and industries, spurring job growth and economic development in communities.

For argument sakes, for the time being we can remain content that our nation has a sophisticated air transportation network, with even the tiniest of the towns boasting an airport.  In reality, many of our airports are overwhelmed and strained by heavy operational delays and operate with sub-par efficiency, at times also posing a risk to passenger safety.  But at the end of the day, we are still going to be an oil-dependent economy, ply our cars and planes with imported for the near future.  Of course, there is a lot more to it than just saying and writing it on these websites and newspapers.  But that’s where the Government comes in to figure it all out and to make it happen.  That’s what the American tax-payers pay for every year before April 15th – to fund and keep a massive bureaucracy working for the to safeguard the interests of its citizens and not budge for the disgruntled political masses.

For what it matters, we are blessed with a dedicated team of professionals who are a part of this massive bureacracy and the USDOT employs thousands of people under its railroad-ing arm, the Federal Railroad Administration (FRA).  The agency should be given special powers (agreed that we are not Communist China and it may all have to be worked out within a Democratic framework) to expedite the approval process for the pending HSR proposals.  It should also be taken into account that allied industres such as steel manufacturing be reviatlized with incentives for making steel locally.  This would be a really good way to resuscitate the long-shuttered steel mills of our nation.  Hire a new workforce to build these raillines (as a data nugget, consider what China had been able to do in keeping its workforce busy.  The CRCC now employ 110,000 workers on a single line connecting Beijing and Shanghai.  If you are running short of professional capacity to build and manage all this new work, employ the new grads coming out of our universities (FYI,  the CNN article on Chinese HSR plans offer this data:  Last year China Railway Construction Co., the nation’s largest railroad builder, hired 14,000 new university graduates — civil and electrical engineers mostly — from the class of 2008. This year, says Liang Yi, the vice CEO of the CRCC subsidiary working on the Beijing-to-Shanghai high-speed line, the company may hire up to 20,000 new university grads to cope with the company’s intensifying workload. But with the private sector cutting way back on hiring — and university students desperate for work — taking on that many new engineers and managers hasn’t been too difficult) and put them to work on this project of national importance.   If we managed to somehow put aside all our  political in-fighting and come together to accomplish this in the next 20 years, our future generations may have a better shot at being competitive.  We may even see a renewed interest in our nations private-sector players to invest and operate these new railroads (many foreign and local infrastructure firms are now buying rights to build and operate our nation’s ports and toll-roads).  Who knows! Someday in the future we may have a sophisticated system if we “get it right”).

It takes a special leader , who can stand tall amidst all the challenges and marshall his troops to get the mission accomplished and our President sure has shown glimpses of such qualities.  But as we all know, mere glimpses are not enough.  Unless our leadership shows some serious commitment and interest, the possibilities of an average American riding an Ave-like or Shinkansen-like or a TGV-like system will remain elusive.  Will the real leader stand up and deliver?

(Source: Fortune Magazine via CNN Money)

Images via Apture

When lunch break comes at the construction site between Shanghai and Suzhou in eastern China, Xi Tong-li and his fellow laborers bolt for some nearby trees and the merciful slivers of shade they provide.

Image Courtesy:Fortune

It’s 95 degrees and humid — a typically oppressive summer day in southeastern China — but it’s not just mad dogs and Englishmen who go out in the midday sun.

Xi is among a vast army of workers in China — according to Beijing’s Railroad Ministry, 110,000 were laboring on a single line, the Beijing-Shanghai route, at the beginning of 2009 — who are building one of the largest infrastructure projects in history: a nationwide high-speed passenger rail network that, once completed, will be the largest, fastest, and most technologically sophisticated in the world.

Creating a rail system in a country of 1.3 billion people guarantees that the scale will be gargantuan. Almost 16,000 miles of new track will have been laid when the build-out is done in 2020. China will consume about 117 million tons of concrete just to construct the buttresses on which the tracks will be carried. The total amount of rolled steel on the Beijing-to-Shanghai line alone would be enough to construct 120 copies of the “Bird’s Nest” — the iconic Olympic stadium in Beijing.

The top speed on trains that will run from Beijing to Shanghai will approach 220 miles an hour. Last year passengers in China made 1.4 billion rail journeys, and Chinese railroad officials expect that in a nation whose major cities are already choked with traffic, the figure could easily double over the next decade.

Construction on the vast multibillion-dollar project commenced in 2005 and will run through 2020. This year China will invest $50 billion in its new high-speed passenger rail system, more than double the amount spent in 2008. By the time the project is completed, Beijing will have pumped $300 billion into it.

This effort is of more than passing historical interest. It can be seen properly as part and parcel of China’s economic rise as a developing nation modernizing at warp speed, catching up with the rich world and in some instances — like high-speed rail — leapfrogging it entirely.

Last November, as the developed world imploded — taking China’s massive export growth and the jobs it had created with it — Beijing announced a two-year, $585 billion stimulus package — about 13% of 2008 GDP.

Infrastructure spending was at its core. Beijing would pour even more money into bridges, ports, and railways in the hope that it could stimulate growth and — critically — absorb the excess labor that exporters, particularly in the Pearl River Delta, were shedding as their foreign sales shrank more than 20%.

At a moment when the developed world — the U.S., Europe, and Japan — is still stuck in the deepest recession since the early 1980s, China’s rebound is startling. And the news comes just as Washington is embroiled in its own debate about whether the U.S. requires — and can afford — another round of stimulus, since the first one, earlier this year, has thus far done little to halt the downturn. Tax cuts made up about one-third of the $787 billion package, and only $60 billion of the remaining $500 billion has been spent so far.

Proponents of more stimulus are likely to cite China’s example of what a properly designed stimulus program can accomplish. Maybe so. But a closer look at China’s high-speed rail program also reveals some risks that should factor into the “Why can’t we do that?” debate that’s surely coming in Washington.

Last year China Railway Construction Co., the nation’s largest railroad builder, hired 14,000 new university graduates — civil and electrical engineers mostly — from the class of 2008. This year, says Liang Yi, the vice CEO of the CRCC subsidiary working on the Beijing-to-Shanghai high-speed line, the company may hire up to 20,000 new university grads to cope with the company’s intensifying workload. But with the private sector cutting way back on hiring — and university students desperate for work — taking on that many new engineers and managers hasn’t been too difficult.

Consider that the Northeast Corridor, between Boston and Washington, D.C., is served by Amtrak’s Acela train, which clips along at a stately average speed of 79 miles an hour. There’s a lot of talk now, as part of President Obama’s stimulus plan, about upgrading the system and building new, faster lines all across the nation. In his stimulus bill Obama has allocated $8 billion over three years for high-speed rail, and 40 states are now bidding for the funds, with results to be released in September. Among the possibilities, California wants to link San Francisco with L.A. via a high-speed link. Senate Majority Leader Harry Reid (D-Nev.) wants the private sector to get into the act, proposing a high-speed spur to connect Las Vegas with L.A.

Click here to read the entire article.

(Source: Fortune)

President Obama may call a nationwide high-speed passenger rail network a priority, but it’s going to take a lot more than $8 billion to make it happen.

Though Thomas the Tank Engine earned a loyal following of American children in the 1980s and 1990s through his popular PBS television show, real trains have long been out of favor with the American public. Even Thomas was a British import.

Indeed, the fact that an early 20th-century steam locomotive — and not a sleek, high-speed model — so captured the modern young American imagination is an apt commentary on the state of train travel in the United States: The country lags years behind some of its peers.

America has 457 miles of high-speed track from Boston to Washington, D.C. In Japan, by comparison, trains netting speeds up to 188 miles-per-hour cross 1,360 miles of track; France features 1,180 miles of rail to support trains that can travel up to 199 miles-per-hour; and, as Bill Powell’s article, “China’s Amazing New Bullet Train,” shows in the latest issue of Fortune, China aspires to dart even farther ahead with its $300 billion high-speed rail project.

But President Barack Obama hopes to bridge this gap, emphasizing the importance of developing a nationwide high-speed rail network in several of his speeches. Just a month into his tenure, the President successfully urged Congress to dedicate $8 billion of February’s stimulus funds towards the system’s development.

“What we need … is a smart transportation system equal to the needs of the 21st century,” Obama said in a speech in April, the same month the Federal Railroad Administration released its prospectus for the high-speed program, “Vision for High-Speed Rail in America.” “[We need] a system that reduces travel times and increases mobility, a system that reduces congestion and boosts productivity, a system that reduces destructive emissions and creates jobs,” Obama continued in phraseology typical of his rhetoric. But it remains to be seen whether the U.S. government can translate “talk” into “walk” when it comes to high-speed rail.

Last month, 40 states — both individually and in groups — submitted 278 pre-applications for various stimulus-funded high-speed passenger rail projects, amounting to $102.5 billion in requests. Final applications are due August 24, and the FRA will begin distributing funds in September.

Click here to read the entire article. (Hat tip: WTSLosangeles@Twitter)

(Source: Streetsblog)

The federal DOT has just released its guidance for states seeking a share of its $8 billion in high-speed rail funding — and tucked in the rules are standards that could prove crucial to the project’s success.

The definition of high-speed rail can vary depending on the source. The original White House outline cited a top speed of 150 mph, while European and Asian networks can go as high as 200 mph.  Today’s DOT guidance uses the same standard that was outlined in last year’s Amtrak reauthorization bill: high-speed trains are those “reasonably expected to reach speeds of at least 110 mph.”

That standard appears flexible enough to include most regional rail plans. California’s high-speed authority believes the state’s service can reach a top speed of 220pm. The states working on a midwestern rail network with Chicago at the center, however, envision their trains achieving an average of 67 mph for local service and 78 mph for express rides.

Secretary LaHood observed the following on his blog:

“And now, the time has finally come for the United States to get serious about building a national network of high-speed rail corridors we can all be proud of.  A robust 21st Century economy requires efficient transportation of people from urban center to urban center. And, the guidance we publish today will evaluate proposals for their ability to:

• Make trips quicker and more convenient;
• Reduce congestion on highways and at airports; and
• Meet other environmental, energy and safety goals.

So, today the guidance; in mid-September we’ll be back with the first round of grant awards. I am proud to say the DOT is meeting its ARRA commitments and meeting them responsibly.

High-speed rail can reduce traffic congestion on the roads and in the skies, and it links conveniently with light rail, subways and buses for competitive door-to-door travel times. It will encourage economic growth and create new domestic jobs even as it makes our communities more livable.

The guidelines require rigorous financial and environmental planning to make sure projects are worthy of investment and likely to be successful. Both planning and construction are eligible, so states can apply for funds no matter what stage of development their project is in. ”

Click here to read the entire Streetsblog post.

(Source: ABC News, FastLane Blog & YouTube)

The U.S. Secretary of Transportation, Ray LaHood made a post this morning on his FastLane blog that had a time stamp of 5:53AM.  Feels good to know that someone at the Secretary’s-level cares to let the citizens know about what he is doing through such blog posts, even if can squeeze a minute or two to press a blog at that ungodly hour of the day.   Thank you, Hon. Secretary LaHood for keeping us informed. 

 In his post he noted that later in the day, he will convene a summit with representatives from the major air carriers, their regional partners, aviation industry groups and labor on the topic: improving airline safety. “Every one of us who gathers here today has a responsibility to take the necessary steps to make flying safer. And, we will make sure that carriers and their regional partners are working together on all aspects of safety. Our goal is simple: We must inspire confidence in every traveler, every time he or she steps onto a commercial aircraft of any size, at any airport in the country. It’s an enormous responsibility; it’s our highest duty” ,observed the Secretary.

Along with the FAA Administrator Randy Babbitt, he pulled together the FAA and industry leaders to produce an immediate “to do” list to assure the flying public that all our country’s carriers–including our regional carriers–are operating as safely as possible.  He stated the highest priority is protecting lives and to that end, the USDOT will act quickly to set effective industry standards on crew education, training and performance, professionalism, and flight discipline.

ABC News report from the Summit had the following: FAA administrator Randy Babbitt told airline companies today he expects them to do complete background checks on pilots before hiring them to fly passengers — including getting permission from pilots to access all of their training records. Airlines are allowed to do that today but it became clear in wake of the February plane crash in Buffalo, N.Y., that not all of them do.

“There’s a public perception out there, unfortunately, right now that pilots can repeatedly fail check rides and still keep their jobs,” Babbitt said. “We want the passengers in this country to have absolutely no doubt about the qualifications of the person or crew flying their airplane.”

“I want a recommendation today about asking Congress to expand the scope of the Pilot Records Improvement Act to give employers access to all of the records available in a pilot’s file,” Babbitt also said.

Though current law dictates that pilots must sign a release allowing potential employers access to their training records, the Federal Aviation Administration on Monday set new expectations and strongly recommended the airlines ask for access. Finding ways for airlines to voluntarily make flying safer was the focus of conversation as representatives from all corners of the airline business gathered at the FAA in Washington, D.C., with Babbitt and Transportation Secretary Ray LaHood.

“We want to be innovative,” Dan Morgan, vice president of Colgan Air’s safety and regulatory compliance, said last week. “We’re part of an industry that’s highly regulated, but there’s nothing that says that we can’t try to do a few things that haven’t been done before.”

High on the agenda was crafting a manifesto by day’s end to reassure travelers that airlines are doing all they can to ensure pilots are beyond prepared to fly passengers to their destinations, and to help more senior pilots mentor those with less experience.

Click  here to read the entire summit report.