HIgh Speed Rail for America Act Gains Traction

Trains For America, the blog focused on passenger rail across the United States, has posted a copy of a letter Senator John Kerry (Dem-Mass.) wrote to his Senate colleagues advocating support of the proposed High Speed Rail for America Act.  Senator Kerry is advocating that as one way to keep the United States competitive we need to develope a high speed rail system to address public transportation needs across the United States focusing on distances of 100-500 miles.  The proposal states that links between cities will encourage the development of light rail links within the cities served by the high speed rail lines.  It is really not that much of a stretch to imagine getting on the train in downtown Cincinnati and getting off 3.5 hours later in downtown Chicago; or traveling to Cleveland and Columbus for meetings and returning home in the same day, while staying connected and working via your laptop practically the entire time with very few compromises.

I just returned from a week of business meetings in central Europe.  I traveled between cities by rail.  I started in Brussels, then traveled to Munich, Zurich, Paris to make the connections to Nantes, France.  The experience was overall much more satisfying and restful than air travel.  The most comfortable and impressive rail service is the French TGV high speed rail service.  Throughout I was able to connect wirelessly to the internet and keep up with emails and telephone calls.  Also, the cabin noise was much lower than in a jet airplane and therefore less draining.  

As noted below in prior posts, developers, lenders and governments need to recognize the opportunities for economic development, job growth and increased tax revenue that building and maintaining new rail networks will provide.  Come on real estate industry GET ON BOARD NOW BEFORE THE TRAIN LEAVES THE STATION !!!

High Speed Rail for Ohio

In today's Cincinnati Enquirer the lead article discussed the allocation of anticipated state tax revenue generated by a proposed casino to be situated along I-71 around the Wilmington area. Just like the tobacco settlement funds, everyone is now going to spend the revenue even before the casino is approved and built. So, why not float another idea. One which will attract business investment into Ohio, make Ohio the center piece of a regional passenger rail network ??

This is the idea: Using the rights of way already in existence along Ohio's interstates and highways, build a high speed rail system linking Ohio's cities (see my earlier post). Of course a stop along the route would be the Casino. The first two legs of the system could be: (i) Cincinnati, Wilmington (Casino) Columbus, Akron, Cleveland; and (ii) Toledo, Dayton, Wilmington (Casino) where a transfer station would be constructed to link the two lines. Later Toledo-Cleveland and Dayton-Cincinnati could be built.

Federal transportation funds can not be counted on for financing rail transportation initiatives, so Ohio needs to be creative and think out of the box to take care of itself.

Now close your eyes and think about what this plan would mean for the real estate community. Rail stations, whether situated in downtown, suburban or rural areas would spur the need for commercial and residential development in and around the same. They would also serve as the local hubs for alternative transportation such as local light rail and bus transportation.

So, if you consider the other ideas presented earlier in this Blog (2% Solution) all of these efforts when taken together create a really powerful and solid base for economic development and growth.

Interstate Rail ?

Recently, I came across an article written in 2001 by J.H.Crawford entitled Interstate Rail: Adapting the Interstate Highway System to Rail Use. Mr. Crawford advocates that the Interstate highway system has the benefit of an already dedicated right of way which is engineered to a standard that would require little retrofitting for conversion to rail use. He envisions the use of the center strips and center most lanes being converted to rail use, or where necessary elevated rail track constructed. Given that the most significant cost of all transit and highway projects is the cost of the land acquisition by eminent domain, Mr. Crawford's idea is worth a second look by our leaders since the rights of way are in place. Sure, some engineering and land acquisition would be required for certain aspects of an Interstate Rail system, but the idea of it is intriguing. As real estate professionals the development and financing of stations, junctions and stops could make for some wonderful urban commercial and residential developments. Can you picture high speed passenger trains running along I-71 from Louisville to Cleveland; and along I-75 from Lexington to Detroit ?.

H.R. 6003 Passed by the House of Representatives

Also known as the “Passenger Rail Investment and Improvement Act of 2008” was passed to provide Amtrak with $14.4 billion for capital and operating grants, state intercity passenger grants, and high-speed rail over the next five years. This signals that our leaders have not given up entirely on rail transportation. Where and how these funds will be spent is still somewhat unknown, but we certainly hope to see improved Amtrak service between cities like Chicago and Cincinnati. All one needs to do is ride the Megabus to see the demand for clean, efficient mass transit.