Tag: railway

Billions for Better Rail Service

  • High speed trains may be sprouting up across the country in light of the recent initiative. (Photo courtesy of Black Leon)

The U.S. government is spending billions of dollars to improve the nation’s railroads and passenger train service. But those billions will be just the beginning of the cost of updating rail service. Lester Graham reports:

Transcript

The U.S. government is spending billions of dollars to improve the nation’s railroads and passenger train service. But those billions will be just the beginning of the cost of updating rail service. Lester Graham reports:

New investments in higher-speed rail are making passenger rail supporters almost giddy. Eight billion dollars from the Recovery Act is seed money for new high-speed routes in California and Florida and improvements for existing routes in other regions.

At a recent National Press Club panel discussion, Amtrak’s Joseph McHugh said Amtrak is not getting any of that money… but it’ll improve the freight railroads on which Amtrak operates its trains.

McHugh: And that means higher speeds, reduced trip time, additional frequencies, improved facilities, and a higher level of reliability for our services all around the country.

Beyond that first eight-billion dollars, the Department of Transportation’s so-called TIGER grants mean a few billion dollars more for further upgrades railroads and depots that tie into commuter rail, light rail and other mass transit.

Supporters of rail are expecting big things from the investments.

But others see spending billions upon billions of dollars on passenger rail as wasted money. They don’t see the utopia of transportation in better, faster trains. Many online comments from readers of stories on higher-speed rail indicate they don’t want the government to subsidize rail projects. They see it as stealing from necessary highway and bridge improvements. Others are more political, saying the government is trying to imitate the high-speed rail of Europe when –they feel– Americans are more independent and prefer cars.

So the debate sometimes devolves into — car versus train. Or individuality versus socialism.

Susan Zielinksi heads up the Universtiy of Michigan’s SMART transit project. She says that’s the wrong way to view it.

Zielinski:I think we get ourselves stuck in the polarization and this isn’t about getting rid of cars.

She says better passenger rail and tying it in to better mass transit gives more people more choices. She notes not everyone has access to a reliable car.

Environmentalists add… the train is just more environmentally friendly. Howard Lerner is with the Environmental Law and Policy Center.

Lerner: On a per-passenger-mile basis, rail is about three times as efficient as travel by car in terms of fuel efficiency, six times as efficient as travel by air. So, there are pretty substantial pollution reduction benefits, both in terms of greenhouse gasses and other pollutants when it comes to traveling by rail.

But the investment of billions of dollars during the Obama administration is generally considered just the down payment on the cost of bringing U.S. passenger rail service into the 21st century. Just a couple of years ago the Bush administration tried to zero-out the Amtrak budget. A future president might do the same.

Susan Zielinksi at the University of Michigan believes the improvements in rail service we’ll see in just the next several years will prove this investment is worth it.

Zielinski: Congress is not going to be able to go backwards on this. This is going to usher in a whole new set of industry opportunities, of economic development in communities, of new opportunities for jobs.

But even people who like the idea of improved passenger rail service say if this doesn’t result in the trains arriving on time… doesn’t fix the problem of having no transportation once they arrive at the depot… doesn’t spiff up the drab Amtrak train cars… and keep train ticket prices reasonable… it’ll be hard not to keep piling into the car or cramming themselves into an airline seat.

For The Environment Report, I’m Lester Graham.

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Money for Railway Upgrades

  • 8 billion dollars was announced for rail projects. (Photo courtesy of the Library of Congress)

The Obama Administration’s
release of money for higher
speed rail ended up being less
than most states wanted. Lester
Graham reports on what this
will mean for passenger train
service:

Transcript

The Obama Administration’s
release of money for higher
speed rail ended up being less
than most states wanted. Lester
Graham reports on what this
will mean for passenger train
service:

Eight billion dollars apparently doesn’t go that far in rail projects. The pundits have noted California’s Sacramento to San Diego corridor got 2.3 billion and Florida’s Tampa to Orlando route got 1.25 billion, making those states the big winners.

But if you forget state boundaries and look at rail networks, the Midwest’s Chicago Hub network pulled in a whopping 2.6 billion to improve the rails.

Amtrak doesn’t get any of this money. It just runs the trains. It doesn’t own many of the tracks. But spokesman Steve Kulm says better tracks mean Amtrak trains can go faster.

“Train speeds are going to increase from say 79 to 90 or from 90 to 110. But wit this funding that was announced, there was the Florida project and the California project. If those projects do happen and get moving, those projects will be at the 150 or higher levels.”

That’s how fast the train from Washington to New York goes and it’s getting more passengers than the airlines.

For The Environment Report, I’m Lester Graham.

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Traffic Jam on the Tracks

  • This Canadian National train waits for a signal in South Holland, Illinois. South Holland, like Chicago itself, is criss-crossed with rail lines. South Holland would likely see fewer CN trains move through its town, should CN’s buyout of the EJ & E Railway get federal approval. (Photo by Shawn Allee)

American drivers hate getting stuck
in traffic jams. Well, they don’t get much
sympathy from railroads – they’ve got traffic
jams of their own. There’s one place in
particular where the train’s run so slow it
can take a day to move a train of chemicals,
furniture, and cars just a few miles. One
company tried to buy its way out of the problem.
Reporter Shawn Allee explains how that blew up
into a fight all of us might pay for:

Transcript

American drivers hate getting stuck
in traffic jams. Well, they don’t get much
sympathy from railroads – they’ve got traffic
jams of their own. There’s one place in
particular where the train’s run so slow it
can take a day to move a train of chemicals,
furniture, and cars just a few miles. One
company tried to buy its way out of the problem.
Reporter Shawn Allee explains how that blew up
into a fight all of us might pay for:

If you buy a new car or build a new house, there’s a good chance the stuff to build it
sat in a Chicago-area rail yard for a while. Railroads from the East Coast, the West
Coast, the South, and Canada all converge there. Trains in Chicago compete for
track, so they practically crawl.

Canadian National Railway doesn’t like it, and PR guy Jim Kvedaras, says no one in
America should like it either.

“Everything anybody eats, drinks, wears, lives in, moves by rail somewhere in its
production chain. If we, as the transportation provider, can offer a better service for
customers, the ultimate that contains their cost structure with the ultimate beneficiary
being the consumer.”

Kvedaras says Canadian National has a fix. It would buy a competing rail line that
runs a loop around Chicago. The company would shift trains to that less-congested
track.

The deal needs federal approval, but before that happens, Chicago-area towns are
fighting over it.

Those along the current route tell horror stories of living with too many
trains. Suburbs along the proposed by-pass route don’t want those hassles in their towns.

One place that would benefit by train traffic moving away is South Holland.

Mayor Don DeGraf says a quick car ride shows why he supports the deal.

“We’re approaching the intersection where it’s not at all unusual where we have a
train blockage.”
Shawn Allee: “Speaking of the devil, look right ahead.”

Mayor DeGraf: “It’s right up in front of us. It’s a daily occurrence.”

Allee: “I mean it’s not moving.”

Mayor DeGraf: “No, it’s just standing there. And the reason is very simple: there’s just no place for
these trains to go.”

DeGraf says inconvenience is the least of his worries.

“It becomes almost like the Bermuda Triangle, where you can’t go from one side of
town to the other side of town. So we rely on a neighboring community to give us
additional fire protection for situations like we’re experiencing right now, where a
train’s blocking the crossing.

South Holland is just one of sixty-six towns that could benefit from Canadian National’s buyout of
the by-pass route.

But dozens of towns are fighting the deal. One is Frankfort.

Frankfort gets just a trickle of rail traffic, but it might get four times as many trains
going through town.

Resident Ken Gillette’s backyard is right next to the by-pass route.

“Here I buy a house out here and ten months later, this is gonna go through. I
actually had told me wife, she wanted the house and I says, one day, those tracks
could be sold and there’d be hundreds of trains going by there every week and sure
enough that’s what happened.”

Allee: “Did you guys have some serious discussions after that?”

Gillette: “Oh yeah, not good ones, you know.”

Other Frankfort residents have similar stories. It’s little wonder the town wants the
government to stop Canadian National’s buyout deal.

Mayor Jim Holland says Frankfort’s not just being selfish. He says suburbs will want
protection from traffic hazards, and Canadian National’s offering to pay a fraction of
the cost.

“It’s assumed that the American taxpayer will eventually have to pay for the
overpasses, the extra gates and such that will be put on the railroad. And that’s
mostly United States tax dollars that pay for those.”

There’s no perfect ending to Chicago’s rail traffic mess. Even when companies like
Canadian National want to fix the problem themselves, everyone pays.

We’ll likely pay to soften the blow to towns that will see more trains passing through.
But we also pay higher transportation costs if too many trains sit idle.

For The Environment Report, I’m Shawn Allee.

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Marketing a By-Product of Ethanol

  • Ethanol plants are being built all over the corn belt. 97 plants are operating and another 34 new plants or expansions are underway, according to the Renewable Fuels Association. A by-product of the process is corn mash, or distillers grain. The distillers are hoping to sell it all to nearby livestock farms. (Photo by Lester Graham)

The federal government has called for more renewable fuels for cars and trucks over the next few years. Ethanol from corn is expected to meet much of that demand. As ethanol production increases, the distillers are looking for ways to make money on some of the by-products of the process. The GLRC’s Lester Graham reports on how the ethanol distillers might market what’s left over after turning corn into ethanol:

Transcript

The federal government has called for more renewable fuels for cars
and trucks over the next few years. Ethanol from corn is expected
to meet much of that demand. As ethanol production increases, the
distillers are looking for ways to make money on some of the by-
products of the process. The GLRC’s Lester Graham reports on
how the ethanol distillers might market what’s left over after
turning corn into ethanol:


(Sound of construction)


New ethanol plants are being built every year. 97 plants are in
operation today and the Renewable Fuels Association indicates 34 new or
expanded plants are under construction. The ethanol refinery
industry is gearing up for the expansion that the government wants.


Ethanol plants are basically giant corn alcohol stills. They produce
huge batches of – well – moonshine, but like moonshiner stills,
there’s a corn mash left over. It’s called distillers grain, and with
all the new plants coming online, there’s going to be a lot more of the
by-product in the future. Distillers grain can be used as livestock feed.
So, the agricultural industry is trying to get more cattle farmers and
others to buy it.


Tracy Jones is a farmer in northern Illinois. He says the agriculture
industry and the ethanol plants that want to get rid of the distillers
grain cheaply, have been encouraging farmers to expand their
livestock operations.


“And I know some producers that are maybe expanding. It’s a
good deal, but it’s not that good of a deal, and there’s a lot of other
issues that go into the cattle feeding business besides just getting
cheap feed.”


Jones has been feeding wet distillers grain from Wisconsin to his
cattle for about a year. Jones says the distillers grain makes sense
as long as the price doesn’t get too high.


“We need to buy it cheaply. We’re basically using it as a corn
replacer. So, when we have cheap corn, you still need to buy the
by-products cheaply also.”


Jones says his cattle are gaining weight at about five-cents a pound
cheaper using distillers grain as part of the mix of feed. Part of the
reason is the price is lower, but distillers grain has another
advantage… it’s higher in protein than plain corn. It’s got about the
same protein content as soybean meal.


That makes Jason Anderson think this stuff might be good to
export overseas as a food for people. Anderson is the Economic
Development Director for the city of Rochelle, Illinois. An ethanol
plant is being built in his city. With a couple of major railways and
a cargo container transfer station in his town, exporting dried distillers
grain would be easy. Because of the nation’s trade deficit, about
half the cargo containers go back to their original country empty.
Anderson says the by-product could be dried to a sort of high-
protein corn meal and shipped.


“Dried distillers grain could be put into intermodal containers,
which are sealed containers, put on a train and sent to the west
coast. They could also be shipped over the Pacific Ocean to starving
countries on the other side of the world.”


Corn tofu, anyone?


Exporting dried distillers grain as human food overseas hasn’t been
discussed much, but shipping it to cattle feedlots in Texas and
other cattle country has been discussed. Agriculture experts think
the ethanol plants located in the corn-belt won’t find enough
livestock in the immediate area to buy the product.


“At this point, where the livestock are and where the plants are
there’ll be a lot of them that has to be shipped.”


Jim Hilker is an agriculture marketing expert at Michigan State
University. He says he’s not sure the ethanol plants will make
much money on distillers grain, especially if they have to ship it to
cattle feedlots out west. That’s because they’ll have to dry the
product… and that adds to the cost.


“The first ones, I think, are making some money before we get
saturated on this, and I think if we put a system for handling it and
stuff in place, they’ll probably. But, if they can more than cover
the cost – remember, otherwise there’s disposal fees too. So, a
break-even here is a pretty good deal.”


So if the distillers just recover the drying and shipping costs, it
would be better than paying to dump the distillers grain in a
landfill.


But farmer Tracy Jones says he thinks the ethanol manufacturers
have already figured out the by-product will be abundant… and
they’re still counting on making some money on it.


“When they do their financials for their ethanol plant, they don’t
plan on giving this product away. So, they need to get something
for it.”


Jones says he’s noticed the ethanol producers don’t call distillers
grain a by-product of the process. They call it a co-product. He
thinks that’s a little marketing ploy that indicates the ethanol
plants definitely plan to demand a good price for the livestock feed,
regardless of the glut on the market.


For the GLRC, this is Lester Graham.

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