Tag: Metro

A Poster Child for Government Waste

The Maryland Transit Administration suddenly shut down the Baltimore Metro last week, forcing commuters and other riders to find alternatives with less than 24 hours’ notice. The state said an inspection had found unexpectedly excessive wear on the rails that could have caused a derailment, and it plans to keep the line closed for a month while it fixes the problem – and then to close it again this summer for further work.

The coincidence that the shut-down took place the same day the White House announced its infrastructure plan led the Washington Post to call the metro the latest poster child for the need for more infrastructure spending. In fact, it is a poster child for less infrastructure spending, as it should never have been built in the first place.

 Productivity of United States Metro Systems

Thousands of Trips Per Year

  Trips/mile Trips/station Subsidy/Trip
New York Subway 3,211 5,699 $1.64
NY-NJ Path 2,049 6,794 1.60
Boston 1,615 3,231 2.66
Los Angeles 1,349 2,875 7.82
Philadelphia-SEPTA 1,020 1,358 16.05
Washington 852 2,738 1.96
Chicago 900 1,645 4.56
Atlanta 693 1,893 6.08
Oakland 510 3,105 3.48
Miami 368 933 5.18
Baltimore 359 872 6.92
San Juan 322 513 9.17
Staten Island 271 391 2.34
Philadelphia-PATCO 277 819 3.23
Cleveland 168 356 3.11

“Subsidies” equal operations & maintenance divided by fares. Source: 2016 National Transit Database.

As the above table shows, Baltimore’s metro is one of the least-productive and most subsidized heavy-rail lines in the country. It’s even worse when stacked up against metro’s worldwide. Of 158 metros for which data is available, Baltimore’s ranked 150th in trips per station and 152nd in trips per mile.

A 1990 US DOT report found that the first 7.6-mile segment was supposed to cost $800 million to build but actually cost $1.3 billion (about $1.5 and $2.4 billion in today’s dollars). It was supposed to carry 103,000 riders per weekday, but in its early years it only carried about 43,000. Maryland has since extended the line to 17 miles, yet weekday ridership in 2016 was less than 41,000, effectively meaning the extensions attracted no new riders.

To make matters worse, Baltimore bus ridership declined from 106.1 million trips the year the Metro opened to 75.6 million trips in 2016. Since Baltimore light-rail and Metro lines together carried less than 20 million trips in 2016, transit ridership would have done better if the state had put a much smaller amount of money into bus improvements.

Baltimore Metro cars have 76 seats yet carry an average of just 11.5 riders over the course of a day, which is fewer than the 13.5 passengers carried by Maryland Transit buses. Buses also cost less to operate: in 2016, MTA spent $15.73 per vehicle-revenue mile on operations and maintenance for its buses but $17.60 per mile for its Metro railcars.

In other words, buses could have performed the job of the metro for a lot less money. Now that the line is more than 30 years old and worn out, it should be replaced with buses. Instead, they are going to spend millions of dollars making token fixes and let passengers suffer increasing reliability problems.

Naturally, Maryland Governor Larry Hogan blames previous administrations for underfunding maintenance. Yet he has been in office now for more than three years, so he can’t really blame the problems on previous administrations. Why didn’t the transit authority detect the track wear sooner? Why weren’t they able to fix the problem when they were recently single-tracking the line for maintenance work?

One answer is that Hogan and his Department of Transportation have been focused on new projects rather than maintaining old ones. He was the one who decided to build the Purple Line, which will cost more than $2 billion and make congestion worse. He is also pushing for a ridiculously expensive mag-lev line from Baltimore to Washington.

This is what politicians, even supposedly fiscally conservative ones like Hogan, do: go for the glory rather than the mundane. That’s why Trump’s infrastructure plan should, but doesn’t, dedicate funds to maintenance rather than new construction. That’s why infrastructure should be funded out of user fees rather than taxes. Unfortunately, for too many the only lesson of the Baltimore Metro line is that someone else ought to pay more money to keep it running.

Privatize Washington’s Metro System

Some members of Congress are considering restructuring DC Metro’s management and oversight. Big reforms are needed given the disastrous service, safety, and financial performance of the system in recent years.

Why not privatize Metro? Countries around the world have been privatizing their transportation infrastructure in order to improve management and efficiency. Privatizing Metro buses would be straightforward, but even privatizing the subway system would not be an unheard of reform.

Hong Kong privatized its subway system in 2000. In a recent study on infrastructure, McKinsey reported:

Hong Kong’s MTR Corporation has defied the odds and delivered significant financial and social benefits: excellent transit, new and vibrant neighborhoods, opportunities for real-estate developers and small businesses, and the conservation of open space. The whole system operates on a self-sustaining basis, without the need for direct taxpayer subsidies.

MTR’s railway system covers 221 kilometers and is used by more than five million people each weekday. It not only performs well—trains run on schedule 99.9 percent of the time—but actually makes a profit: $1.5 billion in 2014. MTR fares are also relatively low compared with those of metro systems in other developed cities. The average fare for an MTR trip in 2014 was less than $1.00, well under base fares in Tokyo (about $1.50), New York ($2.75), and Stockholm (about $4.00).

That sounds pretty darn good. The average fare on the DC Metro is about $3. The on-time record of Metro is unclear, but in technical terms I think “crappy” best describes it. Note that Hong Kong’s 99.9 percent on-time record means that “of the average 5.2 million passenger trips made on the MTR heavy rail and light rail networks on each normal weekday, 5.195 million passengers safely reach their destinations within 5 minutes of their scheduled arrival times.” In 2014, “the system ran for 120 consecutive days without a single delay over eight minutes.” Wow.

That stellar performance induces strong demand for the Hong Kong system, which in turn generates high fare revenues. The ratio of passenger fares to operating costs is a high 185 percent, which means that fares fully cover operating costs and part of capital costs. MTR raises other funds for capital from real estate deals under which it gains from land value increases near stations. The Hong Kong system is profitable and unsubsidized. By contrast, the average ratio of fares to operating costs for U.S. subway systems is just 46 percent, and the systems are heavily subsidized.

The MTR is probably the best-run subway system in the world. The system is an “immaculately clean, well-signposted, cheap, regular, convenient system.” And there’s free Wi-Fi in most stations.

The system is so admired that MTR has been contracted to run systems in other cities. CNN says: “MTR Corporation now operates the London Overground, and two lines of the Beijing Metro, as well as parts of the Shenzhen and Hangzhou Metro systems in China, the Melbourne Metro in Australia and the Stockholm Metro in Sweden … London Overground enhanced its punctuality from 88.4% in 2007 to 96.7% in 2013 after MTR took over its operation for a year.”

Can we get MTR Corporation to expand into Washington? Metro Board Chairman Jack Evans wants a federal takeover of Metro, but how about a private takeover?

Government Unions and Dysfunctional Government

Why is government so often dysfunctional? Why is it, in contrast to the voluntary sector of society, so often slow, inefficient, wasteful, and counterproductive? Peter Schuck explored the question at length recently in his book Why Government Fails So Often. Chris Edwards offers a shorter and more libertarian analysis in a recent Cato policy study. But maybe these two new stories from the past few days shed some light on the question, first from Washington, D.C.:

Metro officials fired a senior mechanic just weeks after the L’Enfant Plaza smoke incident last year, alleging that he failed to properly inspect a tunnel fan, falsified an inspection report, and later lied about it to investigators.

But now, the largest union representing Metro workers is fighting the transit agency to have the mechanic reinstated.

Seyoum Haile, a 13-year Metro veteran, was terminated one month after the January 2015 incident that resulted in the death of a passenger — but arbitrators said he should be suspended instead, and now the Amalgamated Transit Union Local 689 is suing to get him back on the job.

Meanwhile, in Miami:

National condemnation has been swift today after video showed Charles Kinsey, an unarmed black behavioral tech trying to help an autistic patient, holding his arms in the air before a North Miami Police officer shoots him. But Miami’s two most prominent police union chiefs have now leaped to the officer’s defense. 

John Rivera, who leads the Dade County Police Benevolent Association, says the officer was actually trying to protect Kinsey because he believed the autistic man, who was holding a toy truck, had a gun — but then he accidentally shot Kinsey instead. 

For more on the consequences of government employee unions, see here and here.

America’s Socialized Transit

On the heels of a National Transportation Safety Board (NTSB) report that found that Washington Metro “has failed to learn safety lessons” from previous accidents, Metro general manager Paul Wiedefeld will announce a plan today that promises to disrupt service for months in an effort to get the lines safely running again. While ordinary maintenance can take place during the few hours the system isn’t running every night, Wiedefeld says past officials have let the system decline so much that individual rail lines will have to be taken off line for days or weeks at a time to get them back into shape.

The Washington Post blames the problems on “generations of executives and government-appointed Metro board members, along with Washington-area politicians who ultimately dictated Metro’s spending.” That’s partially true, but there are really two problems with Metro, and different parties are to blame for each.

First is the problem with deferred maintenance. The Metro board recognized that maintenance costs would have to increase as long ago as 2002, when they developed a plan to spend $10 billion to $12 billion rehabilitating the system. This plan was ignored by the “Washington-area politicians who ultimately dictated Metro’s spending” and who decided to fund the Silver and Purple lines instead of repairing what they already had.

Second is the problem with the agency’s safety culture, or lack of one. According to the NTSB report, in violation of its own procedures, Metro used loaded passenger trains to search for the sources of smoke in the tunnels. Metro at first denied doing so, then said it wouldn’t do it any more. But Metro’s past actions sent a signal to employees that passenger safety isn’t important.

Does DC Need Metro Rail?

Yesterday’s shutdown of the Washington Metro rail system was supposed to result in horrible congestion. In fact, as reported in the Washington Post, congestion was “normal,” with a little heavier traffic than usual in some places and lighter in others.

A few people hadn’t gotten the word, but most made other plans. Some people took the bus, but many buses had empty seats. Some people took taxis, but some taxi drivers reported no more business than usual. Pedestrian and bike traffic across the Key Bridge doubled, but that just meant 1,150 more than usual. Capital Bikeshare parking slots downtown were full, indicating more people used them to commute to work than usual. 

Uber, Lyft, and ZipCar all had good days, showing that private enterprise is alive and well. Some commuters vowed to buy a car and stop taking the Metro, more because it was generally unreliable than this particular shutdown. 

The Washington Post’s architecture critic claims that the shutdown happened because “we decided to let our cities decay.” In fact, it’s because politicians decided that spending money on new construction projects, such as the Silver and Purple lines, would benefit their political careers more than spending it maintaining the existing system.

Before that, it’s because politicians decided to saddle Washington with an expensive, obsolete technology that the region can’t afford to maintain. Metro needs to spend $1.1 billion a year on maintenance to keep the system from deteriorating; it spent about a third of that in 2014, so it’s getting worse every year.

Yesterday’s lack of chaos suggests that Washington can get along without the rail system. It certainly can’t afford to keep it. It’s time to think about alternatives.

Washington Metro Getting Ready for Bankruptcy?

As I noted last week, Los Angeles is not the only region experiencing declining transit ridership. Another is Washington, DC, where a recent report from the Washington Metropolitan Area Transit Authority (WMATA aka Metro) revealed that ridership has fallen to the lowest level since 2004. Ominously, the agency’s financial situation is so bad that it has hired a bankruptcy attorney to help it deal with its problems and is reshuffling its top management, forcing at least one executive to retire.

As detailed in the actual report to the agency’s board, rail revenues and ridership in the first half of F.Y. 2016 are both down by 7 percent from the same period in F.Y. 2015. Metrorail ridership peaked in 2009, and if the second half of F.Y. 2016 is as bad as the first, annual ridership will be down as much as 30 percent from that peak despite a 15 percent increase in the region’s population. Bus ridership and revenue in 2016 is also down but by only about 3 percent below 2015.

Jeff McKay: Cavalier About Violating Metro Riders’ Liberties, Spending Taxpayer Dollars

In a blog post of righteousness last week, I assailed Fairfax County (Virginia) Supervisor Jeff McKay for his failure to comprehend basic security principles as they pertain to the Metro system.

A Washington Examiner reporter retrieved McKay’s response:

[H]e laughed. But he quickly defended his stance, saying that random searches were recommended by the U.S. Transportation Security Association, the D.C. Police, and WMATA management.

“I trust the intelligence agencies when they tell me there’s a reason to do this,” he said.

McKay admitted that bag searches likely wouldn’t stop someone intent on causing mass destruction to the Metrorail, but that they will make passengers much more aware of security concerns.

Supervisor McKay was not flip about these issues at the meeting of the Metro board. He spoke about the bag search policy in terms of his moral duty to make the Metro system safe.

But it turns out he can’t defend the validity of bag searches as a security measure. He admits he’s just doing what he’s told, and he sees it as a way to keep Metro riders on edge. The taxpayer money spent on bag searches is pure waste. Interesting moral universe.