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Passenger Rail Fact Check
IOWA CITY TO CHICAGO PASSENGER RAIL FACT CHECK
The Iowa City Area Chamber of Commerce is proud to have successfully lobbied for passenger rail from Chicago. It is very early in the session and this is among a long list of proposed cuts. We have every reason to believe that legislators will realize the economic benefits of rail when presented with all the facts. We appreciate hearing your comments and concerns. Contact Rebecca
Neades, vice president & director of public policy at
RNeades@iowacityarea.com or (319) 337-9637.
ECONOMIC DEVELOPMENT
Fact Check: Establishing passenger rail lines is bad for the Iowa economy.
The Facts: Passenger rail provides a significant return on investment for the state of Iowa. Rail service will provide new jobs and economic activity:
Construction phase: 860 jobs, $226 million return on investment
Operations: 31 permanent jobs, $11.8 million return on investment
In addition, rail will increases business activity estimated at $25 million per year following service initiation.
SUBSIDIES
Fact Check: Passenger rail will require subsidies.
The Facts: Passenger rail will be a net economic gain for the state. Our $3 million annual subsidy will translate into an $11.8 million per year economic gain.
Well over half the funds used to build and maintain roads come from sources other than user fees. Airlines are similarly subsidized, with general taxpayer support for air traffic control exceeding the sum of ALL domestic airline profits almost every year. Rail does not include such “external” costs as its contribution to global warming or air pollution.
By taking advantage of this timing, the majority of the operating subsidy will be contributed by Illinois. If the State of Iowa elected to proceed with rail at a later date, it would cost the state significantly more.
TAXPAYER’S MONEY
Fact Check: Establishing passenger rail lines is not the best use of tax dollars - state or federal. We have too many other priorities that have not been funded properly.
The Facts: The congressional decision has already been made to invest in a national rail system, and the Iowa City to Chicago route was deemed viable by the federal government. If our community is not the recipient of the funds, another community will use the opportunity to seize an advantage. Iowa is smart to take advantage of the 80/20 match, especially at a time when we’re feeling pressure from upward gasoline prices. This is the right time to invest in an alternative mode of transportation.
FUNDING USE
Fact Check: We should use the federal funds for road and other infrastructure projects.
The Facts: The federal government has regulated that the more than $80 million awarded to Iowa for Iowa City to Chicago passenger rail service cannot be repurposed for road and highway projects or anything other than rail.
RELIABILITY & RIDERSHIP
Fact Check: The Iowa City to Chicago passenger rail service will not have enough riders to sustain service. Many Amtrak trains have poor on-time performance.
The Facts: The key determiners of success for a rail route are frequency and on-time performance. Iowa and Illinois have proposed twice a day departures in each direction because railroad and consumer experience show that when you give consumers more travel options, you increase the number of passengers.
On time performance is a reflection of route characteristics, especially track capacity and train congestions. Amtrak’s cross-country routes leading into Chicago from the east (California Zephyr Chicago to San Francisco route servicing Mt. Pleasant) are very congested and this limits on time performance.
The proposed Iowa City service would enter Chicago from the west on the BNSF Railway, the same corridor that Chicago-Quincy trains use. Last year, Amtrak’s Illinois service corridor routes (e.g. Quincy-Chicago) trains arrived on time 95.5% of the time. Officials from Quincy, IL and Champaign, IL indicate that when delayed, trains still arrive within minutes of the scheduled time.
Passengers respond to total trip time comparable to driving (not top speed), frequency and reliability. (Amtrak ridership has grown 40% in the last decade with no appreciable increase in train speed). Consumers find train travel is productive time with the ability to make phone calls, work on laptops, read, conduct meetings, and nap. The main competition for rail is the private car where little work is possible.
In a letter to the editor published in the Press-Citizen on November 12, Burlington resident Marek Patejak says she has never missed a connection when flying out of Midway using Amtrak. “Taking a train into Chicago can be a lot more convenient than fighting traffic,” said Patejak.
Amtrak achieved its highest ridership to date, more than 28.7 million, in fiscal year 2010 (more than double the ridership since Amtrak started in 1971).
The Chicago-Quincy route has experienced a five-year increase in ridership of 77 percent with an average annual increase of 15 percent.
Two passenger trains serve Iowa each day. The California Zephyr between Chicago and the Bay Area grew 9.4% in ridership last year. The Chicago to Los Angeles Southwest Chief grew by 7.7%.
EVIRONMENTAL BENEFITS
Fact Check: With bus and air service available to Chicago, passenger rail service is unnecessary.
The Facts: With rising gasoline prices, providing an alternative option for consumer travelers makes good business sense. Rail-served communities will continue to enjoy a competitive advantage. Gas price pressures will fuel business and consumer location decisions toward those communities with transport alternatives.
The Iowa City to Chicago route will save more than 10 million gallons of fuel during first 30 years, reduce vehicle miles of travel by more than 25 million in the corridor annually, reduce congestion saving $16.3 million in highway user costs, and reduce greenhouse gas emissions by nearly 90,000 tons in the first 30 years of operation.
RETAIL LEAKAGE TO CHICAGO / TOURISM
Fact Check: Iowa City residents will spend their money in Chicago.
The Facts: Downtown retailers are enthusiastic about rail. Joni Schrup of Discerning Eye, an optical boutique in downtown Iowa City depends on patronage from Chicago residents. Joni says Chicago residents enjoy the ease and convenience of shopping in downtown Iowa City and the uniqueness of our local products. Other downtown retailers agree.
According to the Iowa Travel Federation, tourism is a $5.4 billion business for the state. Passenger rail will bring tourists and other recreational travelers to the Iowa City area, such as fans of Big 10 Athletics and friends/family of the 6,000 University of Iowa students from Illinois.
COST
Fact Check: Passenger rail is too expensive. You can purchase a Megabus ticket to Chicago for $1.
The Facts: Travelers on passenger rail can be comfortable and move about while in transit, enjoying a more pleasant experience without fighting congestion during their commute. Traveling by rail saves the hefty expense and inconvenience of parking in downtown Chicago.
Megabus provides a very different experience than passenger rail. A passenger cannot move about, spread out their work, or allow ample space for young children on the bus. Although there are a few low-fare tickets, the Megabus supply/demand model means other passengers pay more than the advertised low fares.
CONVENIENCE
Fact Check: High-speed rail is slower than flying and less convenient than driving.
The Facts: Rail travelers can be productive while in transit and enjoy a safer, more pleasant experience than fighting congestion on the roadways.
Travel time for rail is competitive to flying when considering the time it takes from home to downtown Chicago. Additionally, air travel requires early arrival at the airport, time spent in security, luggage retrieval, and taking the L (rapid transit system) or a cab from the airport to downtown Chicago. Rental car users experience difficulty finding parking in downtown Chicago. Passenger rail arrives in the heart of downtown Chicago.
Passenger rail provides a travel option during inclement winter weather. During the second weekend in December, 1700 flights per day were cancelled at Chicago airports because of winter storms. Amtrak cancelled no trains in the Midwest that weekend. All of them operated.
DEVELOPMENT AROUND DEPOT
Fact Check: Passenger rail won’t facilitate economic development in the immediate area around the depot.
The Facts: Significant plans to expand the area around the historic Iowa City depot are already underway by the University of Iowa and City of Iowa City. These projects in conjunction with the revitalization of passenger rail could create a new gateway into Iowa City.
FINANICAL SOLVENCY
Fact Check: Cost and travel time make it unlikely that students from Illinois will use the rail line and make it financially solvent.
The Facts: We have a strong connection with Chicago, with 60,365 University of Iowa alumni & friends. The state of Illinois has 31,575 alumni from UI. In a letter to the editor published in the Daily Iowan on January 18, UI Student Government President John Rigby said passenger rail is attractive to students for a variety of reasons. “It will provide another mode of transportation for University of Iowa students who are not natives of Iowa City, such as the large undergraduate population from Illinois. By reducing the number of students on the road traveling to and from their hometowns, passenger rail provides them with an extremely safe and energy-efficient travel option,” said Rigby.
In addition, passenger rail is extremely popular with students from Western Illinois University in Macomb. Penny Lawyer, president of the Macomb Area Chamber of Commerce, says “As home to WIU and Spoon River College it is imperative that our students have passenger rail service from their hometowns to Macomb. Through the efforts of our Transportation Committee, we now have two trains running from Quincy to Chicago. This has served as an economic driver giving business travelers the opportunity to travel to Chicago on the A.M. train and return that evening. Our ridership continues to grow and we continue to promote Macomb as an Amtrak Community.”
According to Laura Weis, president & CEO of the Champaign County Chamber of Commerce, “Having Amtrak present in our community provides the University and the business community with one extra ‘recruiting’ benefit. People who have business in Chicago can use their time more efficiently and work while traveling. They can go to Chicago and back without having lost hours of productivity while driving. It is an affordable means of transportation that if we lost, would negatively impact our community.
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