(The following story by Chris Flores was published in the January 19 online issue of The (Lynchburg, Va.) News & Advance.)
LYNCHBURG, Va. — Although supporters of the proposed TransDominion Express passenger rail service aren’t asking for any money from the General Assembly in 2003, some legislators are proposing bills that could pave the way to fund the service in innovative ways.
The rail line hasn’t lost the $9.3 million it was appropriated in 2000, but it will cost the state about $120 million to upgrade tracks for the service plus annual operating costs.
The Committee to Advance the TransDominion Express took key Virginia legislators to the Northwest this spring to ride the Cascades rail line TransDominion is based on, hear how that project developed and see the role played by rail in the transportation system.
The committee recognized this isn’t a year to ask for money, said Rex Hammond, executive secretary of the committee and president of the Lynchburg Regional Chamber of Commerce. But three bills this session clearly could help the committee advance its goals.
“Those aren’t our bills, but we’re very interested in their development,” said Hammond. “We may benefit from any of those measures.”
Del. Robert Marshall, R-Manassas, offered a bill to create the possibility of public-private proposals on rail projects, and this financing method may be the TransDominion’s best hope.
The TransDominion would take travelers from Bristol through Roanoke to Lynchburg, where the line splits. The eastern route goes to Richmond and the other leg goes north through Charlottesville to Washington, D.C.
The line will need a subsidy of about $10.8 million the first year, with that number declining each year for 12 years before the service breaks even. Legislators have balked at the costs of the service, and some have suggested coming up with a Public Private Transportation Act of 1995 solution.
Hammond said the committee agrees.
“We genuinely think PPTA is the funding vehicle that will give us the best opportunity to begin service in the next five years,” said Hammond.
The act allows the state to contract with private entities to construct, maintain or operate transportation facilities. The Marshall bill, called the Virginia Multimodal Public-Private Partnership Act of 2003, is similar to the original act, but applies to rail.The act would allow the private sector to make bids to improve rail infrastructure. Virginia’s rail department would study how the improvements will benefit Virginians by taking trucks off the roads, improving safety, air quality and motorist mobility and reducing congestion.
The new act also says the owner of the rail would have to agree to what the rail department’s studies say and nothing could be done to the privately owned rail without their consent. For TransDominion, the rail owner is Norfolk Southern.
If there is a difference between the cost of the proposed project and the projected benefits to the state, the difference must be paid for by the private sector, which presumably is aiming to make a profit on this investment.
The act also spells out some of the ways the projects can be funded by the state and private investors. The private investment options include unique ways that could benefit Norfolk Southern if it will help with the cost of getting the service started.
Hammond said Norfolk Southern seems to have warmed up some to the TransDominion idea if a creative solution can be accomplished. The freighter’s observations and expectations have been quite reasonable, he said.
“Everything that I see from Norfolk Southern right now is constructive,” said Hammond.
Del. Preston Bryant, R-Lynchburg, said earlier this year that he would look at potential deals such as those outlined under this new act to pay for the TransDominion.
The TransDominion line would likely be run by Amtrak, but whomever does operate the service will be running on rail used by Norfolk Southern, which does not want its freight operations disrupted.
The other General Assembly actions that may affect TransDominion is a senate joint resolution and bill sponsored by Sen. John Edwards, D-Roanoke.
The resolution asks the rail department to study the feasibility of establishing a Virginia Freight Rail Authority. The authority could issue bonds to help pay for improvements to the freight railroad parallel to I-81 in Virginia to take truckers off I-81 by helping freighters carry more cargo.
The study could be broadened to include the TransDominion Express and other Virginia high-speed rail projects, said Edwards.
“There’s some highly placed people that believe rail needs to be part of any I-81 solution,” said Hammond.
The bill establishes a Rail Transportation Development Authority to help finance rail improvements along I-81 or elsewhere in Virginia. It would consist of five voting members appointed by the governor and have legal and financial authorities similar to local economic development authorities.
Norfolk Southern has argued that improving the 100-year-old rail along I-81 will save the state money by diverting truckers from I-81 if the improvements are done right. The railroad has also tried to link getting help with improving that line with acceptance of TransDominion.
Hammond said he’s heard that there was some interest in including the TransDominion Express as part of public-private proposals to solve the I-81 problem.
A past rail department study said 10 percent to 25 percent of trucks on I-81 could be diverted to rail if the right improvements were made, said Edwards. Trucks can unload and load along I-81 at Harrisburg, Pa., and Chattanooga, Tenn., completely avoiding Virginia.
But upgrading the line and diverting the traffic along I-81 will cost about $1.6 billion, which neither the state nor the rail company has. But the amount is still cheaper than widening I-81.
“That is not an alternative, but in addition to widening I-81,” said Edwards.
Edwards recently discovered that Norfolk Southern is open to charging a surcharge to its customers to help make the I-81 improvements. If an authority is created, it could offer bonds to make improvements and they could be paid off through Norfolk Southern’s surcharge.
The steering committee chose the Lynchburg Chamber’s lobbyist, Barbara Hartley, as the rail line’s new lobbyist this year.