Guests wait in line to board a life-size model of Siemens' Velaro high-speed train at the Orange County Convention Center in Orlando on Nov. 8, 2010. (Joe Burbank/Orlando Sentinel / January 13, 2011) |
Supporters of the planned high-speed train between Orlando and Tampa are firing back at the authors of a study critical of the $2.7 billion project, saying the report contained "half-truths and outright falsities."
And, train backers say, Florida transit officials already have proposed and intend to enforce strong contract language that would protect taxpayers against cost overruns or spending money on operation and maintenance costs.
Robert Poole, a co-author of the report filed for the libertarian think tank Reason Foundation, warned last week that Florida taxpayers could lose billions of dollars on high-speed rail because many train projects have gone over budget and drawn fewer riders than projected.
He recommended the same safeguards that state officials say have been a part of the plan for the train for years.
But Poole said this week that he is "very skeptical" the state could be held harmless. If Florida can avoid such responsibilities, he said, "they have my blessing. Go ahead and do it."
Florida already has been awarded $2.4 billion in grants from the federal government that would pay for 90 percent of the projected construction costs. The state has promised to pitch in the rest, or $280 million. But Senate President Mike Haridopolos, who voted for that expenditure in 2009, now says Florida cannot afford to spend any tax dollars on high-speed rail.
The financial viability of the high-speed train linking Orlando International Airport with downtown Tampa is crucial because new Gov. Rick Scott has withheld his support, saying he is waiting for additional studies before deciding what to do. Calls to the Governor's Office were not returned.
Poole served on Scott's transition team looking at transportation issues but did not prepare the Reason report for the governor. Poole said he has not discussed the 24-page paper with Scott.
But his report cast doubt on the train, a key component of President Barack Obama's plan to build a national network of high-speed trains akin to the interstate system.
Supporters were upset by the study and maintain that Poole is little more than an agent of road builders and auto interests who can be counted on to present "ambiguously formulated fears" casting trains in the worst light possible.
Ross Capon, president of the pro-transit nonprofit National Association of Railroad Passengers, called Poole and his co-author Wendell Cox "hired guns."
"Unfortunately, the new governor's deliberations are being hindered by longtime rail opponents, spewing familiar half-truths and outright falsities in hopes of killing the project," Capon said.
C.C. "Doc" Dockery, the retired Lakeland insurance magnate who has championed high-speed rail for decades and is familiar with details of the current push, said the state will have no financial liability if the train is built. Concerns in the Reason report, he said, "are absolutely false."
Poole countered that the study was based on solid research and dismissed criticism of it.
Orlando attorney Pat Christiansen, who chairs a state panel reviewing high-speed rail, said bidders on the project could pick up the state's tab for the train, scheduled to start running in 2015.
The contract, he said, is designed to reward the teams assuming the most financial risk. Eight consortiums comprised of some of the largest transit and construction companies in the world have indicated they are interested.
"Who knows what these private companies will come in with?" Christiansen said. "That's part of your ranking."
Christiansen said he has met with some of the possible bidders and characterized them as enthusiastic and willing to put their own money into the deal.
Capon said if the train is built on budget, the operators would be able to generate enough income to cover daily expenses and maintenance costs because they would not have to make any debt payments. He estimated annual operating costs at about $50 million, with ticket revenue projected at $65 million to $70 million.
"These companies won't walk away from Florida even if those revenue projections are off by around 20 to 30 percent initially," he said. "They are looking at a 30-year timeline, and the potential rewards in the long term are enormous or they would not be contending for the project."
Christiansen said the winning bidder possibly could build the system for less because the cost of materials is low and construction companies are so desperate for work they could cut their charges dramatically.
Evidence of that hunger was underscored Wednesday when Associated Industries of Florida — a pro-business lobbying group based in Tallahassee — came out in favor of the train.
"The Orlando to Tampa project will not only bring 5,000 construction jobs to Florida at a time when we desperately need them," an AIF news release said, "but will also make an international impression as the home of the first high-speed rail of its kind in this country."
Dan Tracy can be reached at dtracy@orlandosentinel.com or 407-420-5444.
And, train backers say, Florida transit officials already have proposed and intend to enforce strong contract language that would protect taxpayers against cost overruns or spending money on operation and maintenance costs.
Robert Poole, a co-author of the report filed for the libertarian think tank Reason Foundation, warned last week that Florida taxpayers could lose billions of dollars on high-speed rail because many train projects have gone over budget and drawn fewer riders than projected.
He recommended the same safeguards that state officials say have been a part of the plan for the train for years.
But Poole said this week that he is "very skeptical" the state could be held harmless. If Florida can avoid such responsibilities, he said, "they have my blessing. Go ahead and do it."
Florida already has been awarded $2.4 billion in grants from the federal government that would pay for 90 percent of the projected construction costs. The state has promised to pitch in the rest, or $280 million. But Senate President Mike Haridopolos, who voted for that expenditure in 2009, now says Florida cannot afford to spend any tax dollars on high-speed rail.
The financial viability of the high-speed train linking Orlando International Airport with downtown Tampa is crucial because new Gov. Rick Scott has withheld his support, saying he is waiting for additional studies before deciding what to do. Calls to the Governor's Office were not returned.
Poole served on Scott's transition team looking at transportation issues but did not prepare the Reason report for the governor. Poole said he has not discussed the 24-page paper with Scott.
But his report cast doubt on the train, a key component of President Barack Obama's plan to build a national network of high-speed trains akin to the interstate system.
Supporters were upset by the study and maintain that Poole is little more than an agent of road builders and auto interests who can be counted on to present "ambiguously formulated fears" casting trains in the worst light possible.
Ross Capon, president of the pro-transit nonprofit National Association of Railroad Passengers, called Poole and his co-author Wendell Cox "hired guns."
"Unfortunately, the new governor's deliberations are being hindered by longtime rail opponents, spewing familiar half-truths and outright falsities in hopes of killing the project," Capon said.
C.C. "Doc" Dockery, the retired Lakeland insurance magnate who has championed high-speed rail for decades and is familiar with details of the current push, said the state will have no financial liability if the train is built. Concerns in the Reason report, he said, "are absolutely false."
Poole countered that the study was based on solid research and dismissed criticism of it.
Orlando attorney Pat Christiansen, who chairs a state panel reviewing high-speed rail, said bidders on the project could pick up the state's tab for the train, scheduled to start running in 2015.
The contract, he said, is designed to reward the teams assuming the most financial risk. Eight consortiums comprised of some of the largest transit and construction companies in the world have indicated they are interested.
"Who knows what these private companies will come in with?" Christiansen said. "That's part of your ranking."
Christiansen said he has met with some of the possible bidders and characterized them as enthusiastic and willing to put their own money into the deal.
Capon said if the train is built on budget, the operators would be able to generate enough income to cover daily expenses and maintenance costs because they would not have to make any debt payments. He estimated annual operating costs at about $50 million, with ticket revenue projected at $65 million to $70 million.
"These companies won't walk away from Florida even if those revenue projections are off by around 20 to 30 percent initially," he said. "They are looking at a 30-year timeline, and the potential rewards in the long term are enormous or they would not be contending for the project."
Christiansen said the winning bidder possibly could build the system for less because the cost of materials is low and construction companies are so desperate for work they could cut their charges dramatically.
Evidence of that hunger was underscored Wednesday when Associated Industries of Florida — a pro-business lobbying group based in Tallahassee — came out in favor of the train.
"The Orlando to Tampa project will not only bring 5,000 construction jobs to Florida at a time when we desperately need them," an AIF news release said, "but will also make an international impression as the home of the first high-speed rail of its kind in this country."
Dan Tracy can be reached at dtracy@orlandosentinel.com or 407-420-5444.
High speed mass transit is crucial for ANY urban area to work. You either build it now, or you build it later when it will be FAR more expensive. The population of Earth will continue to rise. We either adapt to the reality of this, or we become a squalid ghetto of smoking traffic jams.
Think how much cheaper (and less trouble) it would've been for Boston to renovate their transportation corridor 50-100 years ago rather than doing the Big Dig too late the way they did. Imagine how expensive it would be to build the NYC subway system now, if it didn't already exist.
Progress and change now is the only way we avoid more expensive disasters in the future. I miss the time when America was the leader in these sorts of things. Back when we worked to build the country, rather than just the financial fortunes of the wealthy few.