Looks like they want to replace the trains with buses and just sell off the equipment. It is sad if it is true but I kind of had a hunch when this service was announced it was well beyond the ability of New Mexico to afford long-term.
http://trn.trains.com/news/news-wire/2015/04/new-mexico-study-to-include-selling-rail-runner
It appears the referenced linked article was something exclusive to TRAINS Magazine subscribers, because it is not available to this forum contributor, nor does an Internet search produce any such material. But, the little I could read in the link gives the impression New Mexico has some political infighting about money. Whether it is trains or buses that provide a service, it is federally subsidized, so the political motives are probably very narrow-minded, and in my opinion, with some kind of ulterior motive. I think a study would show few would take buses, making the study a waste of taxpayer’s money. But, who knows. Maybe there are thousands of bus fans in Roadrunner territory …
----------------------------------------------------------------------------------------------------------------------------------- K.P.’s absolute “theorem” from early, early childhood that he has seen over and over and over again: Those that CAUSE a problem in the first place will act the most violently if questioned or exposed.
They might get some money from selling the passenger equipment, but most of the money was spent on building the new section of railroad near Santa Fe, rehabing existing track, and debt servicing. I doubt they will get 10 cents on the dollar, for the capital speding so far. It seems bazaar to scrap such a new service. Salt Lake City has half the population of Albuquerque, and yet SLC is still adding to their rail transit network.
Please double check the definition of bazaar.
Patrick Boylan
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Purely politics
What I read made it sound like it was just a study about their options going forward. Not a shock that one option is killing off the entire program.
That doesn't mean that's what's going to happen. It could even end up going the other way and forming the basis for an expansion, despite the current regime being against it.
gardendance Please double check the definition of bazaar.
I bought my spell checker at a bazaar.
K. P. HarrierBut, the little I could read in the link gives the impression New Mexico has some political infighting about money. Whether it is trains or buses that provide a service, it is federally subsidized, so the political motives are probably very narrow-minded, and in my opinion, with some kind of ulterior motive.
Actually, this is much, much more than a debate about the value of a public transportation project.
The financing behind Rail Runner elevate 'outrageous politician behavior' to a monstrous level. Do a search on 'Rail Runner balloon payments'; the former Gov. Richardson and legislature did more than spend Other Peoples Money badly - they saddled NM with two future payments totaling almost $500 million. Between that and the Spaceport fiasco I can't see how NM will avoid major hardships or even bankruptcy.
If these politicos were lynched, tortured, and/or burned at the stake, no NM jury would convict the perps.
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What is a "Ballon Payment"?
Roswell NM and Alians need I say more about who runs New Mexico?
Depending on how the payments are structured, balloon payments are payments at the end of the loan that are considerably higher than the earlier payments.
Back in the day, many home owners lost their homes when they could not afford their balloon payments on their mortgage which could be double or triple their original payments.
People took on mortgages with ball on payments with the attitude that they would be able to afford them they came due, rather than front loading the loan. Sadly this was often not the case.
The bank gets the railroad? One thing that gets me is it was a bit of a surprise when this line was built as as far as I know that Belen NM and NM has nowhere near the pop density of the East or Great Lakes Shores.
ROBERT WILLISON Depending on how the payments are structured, balloon payments are payments at the end of the loan that are considerably higher than the earlier payments. Back in the day, many home owners lost their homes when they could not afford their balloon payments on their mortgage which could be double or triple their original payments. People took on mortgages with ball on payments with the attitude that they would be able to afford them they came due, rather than front loading the loan. Sadly this was often not the case.
Johnny
I am pretty sure that unless one had some financial interest in the Rail Runner program, the details of the financing were probably not reported much outside of the State of New mexico(?) Is it not practical to expect that at some point the Federal Government had some effect on the project's finances (?)[ See below apparently the funding from the Federal Govt was set to expire in 2009 and leave the burden of finance on the State Government of New mexico.]
Here is a statment on the [Wikipedia site/ re: Financing of Rail Runner Project]
See[snipped] FTL:"...Funding: The capital costs of the Rail Runner project were covered by state and local funds. Phase I of the project was set to cost $135 million while Phase II was set to cost $250 million.[13]
Funding for operations of the system in its first few years was covered largely by federal Congestion Mitigation and Air Quality Improvement (CMAQ) Program funds, along with ticket revenues and some state and local funds. Operational costs were expected to rise from $10 million for the first phase to $20 million after completion of the second phase.[17]
Federal funding for the Rail Runner is expected to stop in 2009, and without sufficient funds from other sources would leave funding for the operational and maintenance costs for the system up in the air. To prevent a funding shortfall, local and state governments began looking into possible taxes in the counties the Rail Runner serves. Two separate gross receipts taxes for regional transit were approved by voters in central and north-central New Mexico in November 2008 and will cover a large portion of the operational funds of the Rail Runner. Additional funds will also come from bond revenue and money appropriated by the New Mexico State Legislature..."[snipped]
The Rail Runner will not bankrupt the state of New Mexico. The state actually did have to declare bankruptcy during the Depression but since then they have a rainy day fund in the billions. And quit lodging all the issues on the politicians. New Mexico has long depended upon federal largesse in a number of areas (think nuclear weapons, lots of military bases, and large native lands along with other federal lands). We all know what has happened to that piece of the pie. Budgets are tight for everything in New Mexico, not just commuter trains.
The financing probably did pay too much but the recession continues to hit New Mexico a lot harder than others and so an examination of alternatives and whether it makes sense or not is actually an appropriate function to be performed. And I am a proponent of commuter rail.
Not being familiar with the financial idiocyncracies of the State of New Mexico; is it possible' for the State to bring in a civilian contractor/operator?
Utilizing some type of 'sub- lease to a non-governmental operator. Let the State 'monitor', and share the proceeds of the Commuter rail service? At least they might 'salvage' some of the money already invested.
samfp1943 Not being familiar with the financial idiocyncracies of the State of New Mexico; is it possible' for the State to bring in a civilian contractor/operator? Utilizing some type of 'sub- lease to a non-governmental operator. Let the State 'monitor', and share the proceeds of the Commuter rail service? At least they might 'salvage' some of the money already invested.
CMStPnP Looks like they want to replace the trains with buses and just sell off the equipment. It is sad if it is true but I kind of had a hunch when this service was announced it was well beyond the ability of New Mexico to afford long-term. http://trn.trains.com/news/news-wire/2015/04/new-mexico-study-to-include-selling-rail-runner The NM Rail-Runner from the start was Bill's train set and could never be economically justified, there is just not enough people living in the coridor that it "serves." Best estimate is for every $1.00 it receives in passenger revenue, the net lost is+/- $18-19.00, the ROI is pretty bad.
The NM Rail-Runner from the start was Bill's train set and could never be economically justified, there is just not enough people living in the coridor that it "serves." Best estimate is for every $1.00 it receives in passenger revenue, the net lost is+/- $18-19.00, the ROI is pretty bad.
NM Rail Fan CMStPnP Looks like they want to replace the trains with buses and just sell off the equipment. It is sad if it is true but I kind of had a hunch when this service was announced it was well beyond the ability of New Mexico to afford long-term. http://trn.trains.com/news/news-wire/2015/04/new-mexico-study-to-include-selling-rail-runner The NM Rail-Runner from the start was Bill's train set and could never be economically justified, there is just not enough people living in the coridor that it "serves." Best estimate is for every $1.00 it receives in passenger revenue, the net lost is+/- $18-19.00, the ROI is pretty bad.
[quote user="NM Rail Fan"]
The dream of rail service between Santa Fe and Albuquerque predate Bill Richardson as governor by two decades. He was the one who stuck his neck out and actually implemented something, so don't blame it all on him. The idea had been around for a long time.
As far as ROI is concerned, none of the commuter agencies in this nation have an ROI substantially better than the Rail Runner. They are all money losers, but then transportation in all forms require high subsidy levels from all level of government be they highways, airplanes, whatever.
Why Alberquque? Other then little green men what the hech is out their? Granted I have only been in Belen on a layover but to me theres nothing out but Wile E Coyote and Road Runner Its a shame that Columbus OH with 1.9 Million Metro cant get Commuter Rail but this place does. Now if there were a Piggyback yard in Alberquque that would use the line to shuttle Containers back and forth and BTW aint the FBI witness protection program out there?
trackrat888 Why Alberquque? Other then little green men what the hech is out their? Granted I have only been in Belen on a layover but to me theres nothing out but Wile E Coyote and Road Runner Its a shame that Columbus OH with 1.9 Million Metro cant get Commuter Rail but this place does. Now if there were a Piggyback yard in Alberquque that would use the line to shuttle Containers back and forth and BTW aint the FBI witness protection program out there?
Whereas Columbus seems to spread out in all directions, Albequerque tends to follow the Rio Grande corridor, so a linear service seems to be a good fit.
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