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| URUGUAY PROPOSING MAJOR RAIL REHAB/PRIVATE OPERATOR The U. S. Embassy in Uruguay has forwarded to McFarren & Associates the outline and criteria for participating in developing the specifications for a major rehabilitation and extension of rail service in Uruguay. My wife Joanna and I were in Uruguay three years ago and we were given a tour and lecture on Uruguay's governmental operations as well as a tour of the capitol in Montevideo. We were very impressed with the enthusiasm of the Uruguayan leaders and people. If any company is interested in pursuing this project please contact our office for the name of the person at the U. S. Embassy who is very interested in helping firms partner with Uruguay or Argentina companies on this project. HOUSE LEADERSHIP CHANGES VERY SIGNIFICANT Several ad hoc and organized citizen groups are hailing the reorganization of the Pennsylvania House and Senate as a clear signal that reform is alive and well in Pennsylvania. The subjects which may be introduced will impact almost every area of government and business in the Commonwealth including transportation. PennFuture - a relatively new citizens group - headed by John Hangar, a former member of the Pennsylvania Utility Commission, is racing to the forefront as an organization with the ability to create grassroots citizen action groups in practically any community in Pennsylvania. Their efforts may reform how every special interest group in Pennsylvania operates if they hope to compete in the legislative and regulatory process. Legislators are quickly reacting with major changes in legislative rules in both houses and the new House leadership is picking up the gauntlet laid out by Governor Ed Rendell to change the way government does business. In the midst of these proposed changes opportunities for controversy loom at almost every corner. As an example, the Senate Environmental Affairs Committee with Sen. Mary Jo White and Sen. Ray Musto as long time chairs will propose a series of changes governing the operational practices of the Environmental Hearing Board and its sister agency - the Department of Environmental Protection. We see this as only the beginning. TRANSPORTATION FUNDING AT CENTER STAGE Transportation funding changes are on everyone's radar screen. The ultimate changes are sure to be extensive, out of the box solutions with an attempt to avoid any hint of a tax increase - at least in the initial stages of the debate. Private/Public Partnership funding will get extensive hearings and may extend to all forms of transportation. Mass Transit has the most difficult financing problems to resolve. And, public leaders across the Commonwealth are getting the message - at least in western Pennsylvania. The Allegheny County Port Authority has announced massive changes and public hearings to consider a major consolidation of transit routes, elimination of some 400 jobs and a special one time request that they be allowed to divert some $20 million in capital funding to replace a projected deficit. In neighboring Westmoreland County, the local transit agency has dramatically increased daily bus service to downtown Pittsburgh with a reported huge increase in ridership. This appears to have been accomplished without any significant increase in public subsidy dollar requests. This event will probably be used by long time advocates to promote a rail passenger corridor, which would connect Westmoreland County with downtown Pittsburgh probably near 16th Street and the Convention Center. FRA LAUNCHES NEW SAFETY RELATED STUDIES - NEW REGS/FINES The Federal Railroad Administration is racing to address many safety issues prior to an expected debate in the U. S. Congress as a result of recent, unexpected rail accidents in metropolitan areas. Two rail freight trains partially derailed in southwestern New York State sending rail cars off overpasses onto highway corridors. In Pennsylvania a landslide derailed a train closing the heavily congested Schuylkill Expressway during rush hour in the past week. An earlier similar landslide near Pittsburgh closed a major highway and one of the rail corridors for several days. The cause of these accidents in many cases is not the fault of the railroad but they provide enough concern to prompt public officials to consider new inspection and safety requirements. This is the focus of the recent FRA announcement which suggests new inspection criteria and increased fines for railroads not complying. Security and safety will remain serious issues for the railroad industry in coming months if not years. FUNDING DEBATE COVERS ALL MODES Highways, bridges, airports, railroads and mass transit will all be impacted as officials broaden priorities to include both highway and railroad bridges and continue efforts to entice U. S. Airways to locate a new major segment of their operations to the Greater Pittsburgh Airport area. Proposals range from selling the operation rights of the Pennsylvania Turnpike to canceling the future construction of the Mon-Fayette Expressway which is now a major focus of the PennFuture citizens group. The latter opposes the proposed corridor thru Pittsburgh. Without the completion of this expressway, the future traffic congestion will be horrendous which will force public officials to take a new look at various rail corridors. None of these solutions will be cheap and taxpayers will be forced to look at several financing options. Change has rarely taken such an accelerated path as now when aging infrastructure is in bad need of repair and increases in traffic are equaling or surpassing prior estimates. DEMOCRATS WILL CONTROL ALL HOUSE COMMITTEES While most persons did not comprehend the likely impact of the changes in House leadership to the Democratic Party and the unusual selection of an independent legislator from the minority party to be House Speaker, the details are beginning to emerge. All Committee Chairs will be democrats with final selection of chairmen and members yet to be determined. In the case of the House Transportation Committee, Rep. Joe Markosek of Allegheny County appears to be the likely choice for chairman as he was earlier selected by Democratic leadership for the post. The former Democratic Transportation Chair, Keith McCall, has moved into leadership and will be the Democratic Whip which prevents him from being considered for a committee chairmanship under current rules. This allows the Democratic Party to control the flow of legislation and new House rules being considered will make it more difficult for the minority party to interject new proposals into the process unless they are considered in a House Committee.Governance will likely be more difficult unless the Governor and leadership can greatly enhance bipartisan consideration of many major issues. There are several more surprise
impacts which we will discuss in later newsletters. Transportation Clips Study gives thumbs up to restoring rail service FRA Boardman tours NS engine repair shop Rail Ton-Mileage Sets Ninth Consecutive Annual Record Transportation Tracking: RFID Gains Credibility Woman killed crossing tracks a block from her home Port Authority transit cutbacks are biggest in history Officials: Westmoreland County Transit Thriving Millions in transit, road work scheduled in Pittsburgh
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