First, read the proposal first before you comment.MQT3001 wrote:@CSX_CO, that 200,000 subsidy covers more than likely just improvements. Keep in mind most operational costs are covered by ticket revenue, so 141,000 might just be the required subsidy, not the entire operating budget. Not agreeing with or going against either side here, just pointing that out...
Secondly, "most" operating costs are NOT covered by ticket revenues, that's why AMTRAK is subsidized in the first place. So, hopefully, whatever ticket revenues + all the subsidies = operating costs. And, based upon how much each 'ticket' is subsidized by the tax payer, unless ticket price > than subsidy, then "most operating costs" are most certainly not being covered by ticket revenues. Last I checked, most routes don't have the ticket prices over and above how much that ticket is subsidized. Some routes are better, some worse. All receive some sort of 'subsidy' to keep the trains running. AMTRAK is one of the few 'railroads' out there that can continue to run a deficit and stay in business.
Third, $200,000 *might* cover the costs of the crews on ONE of the trains on AMTRAK (Engineer, Conductor, Assistant Conductor). That's only $68K a year each. There are what? 3 or 4 A DAY across Michigan? Doesn't begin to cover track, engines, cars, signals, etc. Railroading isn't cheap, and $200,000 goes fast. To put it in perspective: I saw the 'electric' bill for Avon back in 2008 or 2009. At THAT time, the electric bill was around $40,000 a MONTH. That doesn't factor in trash, sewer, communications, etc etc etc. Avon is a 'medium' sized terminal too. Now, I don't know if that $40,000 was for the entire facility, or if Mechanical had their own electric bills for the diesel shop and car shop. I would guess they do, since they are different departments, so the 'real' electric costs could have been higher.
Fourth, the HSR people are stating the projected numbers are in the MILLIONS. Not "141,000" as you quote. If you had bothered to read the proposal before you started typing, you would have seen that the $141 million WAS the entire operating budget of the trains. They say nothing about the trains being 'subsidized' that they will cover all their costs, AND turn a profit. Which, is hogwash.
Finally, in the case of Indiana HSR, they state that all revenues at the start will be $117 million, rising to $190 million. OPERATING COSTS for the trains (alone) is $121 million to $140 million in 2040. No mention of how they're going to keep the track up to 110 mph standards (I guess that just happens on its own). Somehow, they say that $117 million in 2020 revenues, results in a $5 million dollar profit. Must be that new math I don't understand.
I certainly hope the 'study' was commissioned from private funds. If it wasn't as a tax payer I'm outraged at how shoddy the work is. Still trying to figure out how $121 million in expenses, plus $117 million in revenues, equals a $5 million profit the first year...
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