Badger Rails

Wisconsin Association of Railroad Passengers (WisARP)

November-December, 2012

Volume 30, Issue 6

Talgo Sues Wisconsin in Contract Dispute

Talgo, Inc. has filed a lawsuit in Dane County Circuit Court against the state of Wisconsin, alleging the state violated the term of their purchase contract and has not paid for two high-speed trains that are sitting idle in the company's Century City Milwaukee plant. According to Talgo, the Nov. 2 filing was the culmination of several months of activities aimed at getting the State to honor the original intent of the contract. If Talgo prevails in the suit, it expects to be awarded the two trainsets plus the $42 million the State has already paid for construction. Another $10 million in expenses is also sought. On Jan. 13 of this year, Talgo formally notified the State that the equipment was ready for testing. The DOTs position at that time was that it was unable to procure a locomotive from Amtrak needed for the testing. In March, the State cancelled a long-term maintenance contract with Talgo after the State Legislature Joint Finance Committee killed funding for additional design work for a Talgo maintenance facility. On April 4, Talgo again notified the State of the need to test the equipment, and noted the contract states that testing is WisDOTs responsibility. At that time Talgo also issued final layoff notices for its Milwaukee plant workforce.
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On April 23, Talgo invoiced the State for $4,599,000 for work performed, with payment due in 30 days. On May 22, the State defaulted on that payment. Following Gov. Walkers survival of the June 5 recall election, the DOT on June 27 sent a letter to Talgo alleging that testing was Talgos responsibility and that the equipment did not meet federal safety and accessibility requirements. One week later, Talgo issued a formal notice of default to the State for the missed payment. In spite of Talgos ability under contract to file suit at that time, it instead invoked the mediation clause. On Oct. 30, the State and Talgo met with a mediator but were unable to resolve their differences. On Nov. 1, Talgo terminated its purchase contract with the State. The following day, it filed suit, naming Gov. Walker and DOT Secretary Mark Gottlieb as defendants. Talgo CEO Antonio Perez summarized the reasons the company was forced into filing suit: Talgo is not in the business of politics, Perez said Nov. 5. Talgo builds and maintains trains. It prefers to resolve disputes amicably. But the States behavior made any negotiated resolution impossible. Terminating a contract and filing a lawsuit like this is an extraordinary and unprecedented action for us, one which we have taken reluctantly but with resolve. Continued on Page 2

Talgo from page 1

We invested in the State of Wisconsin by building a manufacturing facility in Milwaukee and creating manufacturing jobs, Perez continued. We built the trains and otherwise performed our obligations under our agreements with the State of Wisconsin. In return, rather than being open for business the State used every conceivable excuse, whether fair or not and whether lawful or not, to ensure that Talgo did not receive what it bargained for, including by refusing to pay for the trains that Talgo completed. I dont see how any company would in the future choose to do business with the State of Wisconsin when the State has shown that it cannot be trusted to honor contracts that it signed. The suit was filed with Dane County Circuit Court Branch 10 Judge Juan B. Cols. Date for a hearing had not been set as of this writing. In other Talgo news, plans to run all four trainsets (two Oregon, two Wisconsin) to the Transportation Technology Center in Pueblo for testing have been changed. It is likely now that only one of the Oregon sets will run to Pueblo, possibly as early as the end of November. That set will undergo rigorous type testing, required as the Series 8 trainsets are a new design. The other Oregon set reportedly will run directly to Seattle for corridor testing. The Wisconsin sets will remain at Century City pending the results of the suit. If Talgo prevails and is awarded the equipment, it will seek a buyer for both sets.
Bob Kamrowski on his last day at La Crosse Bob Fisher photo

La Crosse Agent Retires after 39 Years

Friends of Amtrak Agent Bob Kamrowski celebrated his impending retirement at La Crosse on Oct. 30. His Nov. 27 retirement will bring to an end a career that almost spanned Amtraks entire history. Helping Bob celebrate were WisARP members, Bobs wife Rita, Rep. Ron Kind (DWis.), State Sen. Jennifer Shilling and State Rep. Jill Billings, and local La Crosse politicians. The assembled politicians commended Bob with letters or plaques from their respective bodies. Rep. Kind had planned to give Bob a flag that had flown over the nation's capitol, but Hurricane Sandy prevented it from being flown. John Medinger from Sen. Herb Kohls office said a letter of recognition was coming, but had also been delayed by the hurricane. La Crosse Mayor Mathias Harter sent a declaration identifying the day as Bob Kamrowski Day in the City of La Crosse. That proclamation was presented by WisARP Secretary Bob Fisher. Amtrak management was represented by Marty Soholt, acting supervisor of stations from Glenview to Minot, and a special guest was retired Amtrak public relations VP Cliff Black, who now lives in Winona, MN. Several retired and active Amtrak friends also were present. In all there were at least 150 people, as excellent La Crosse Tribune and WKBT TV stories preceded the event.
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NARP Councilors Tour Talgo Trains

As part of their Fall meeting held in Milwaukee in October, members of the National Association of Railroad Passengers (NARP) Council of Representatives toured the Century City Milwaukee Talgo plant Oct. 19, including both Oregon and Wisconsin trainsets. Shop Manager Gary Young and Talgo consultant Sachin Chheda welcomed the group and provided background on the manufacturing and political issues surrounding the equipment. The group also toured Kalmbach Publishings Waukesha headquarters, and the Milwaukee Intermodal Station.

Second Twin Cities Train Discussed at WisARP Membership Meeting

By Bob Fisher noted she met with Amtrak officials when they were in La Crosse a couple months ago, and added her support for the additional train. She closed by noting she has participated in every National Train Day in La Crosse since Amtrak originated the concept 5 years ago. She also said she will be attending Bob Kamrowskis retirement party and praised his service to the traveling public. John Parkyn remarked on the second train study currently underway. As a recently retired employee of an electric power generating utility, John is very attuned to the railroads role in coal transportation. He reasoned that the freight railroads goals at moving freight may not be in tune with the rail passenger supporters role in adding more passenger trains on a constrained track. He noted that with older coal fired generator plants being taken off line, the coal tonnage being moved by railroads is diminishing. Perhaps the railroads will be more interested in renting space to passenger trains as diminishing coal traffic frees up space. John introduced Dan Krom from the Minnesota DOT Passenger Rail Office. Dan noted he was with us two years ago, when the new office of Passenger Rail had just been established. There has been a successful effort at getting state bonding and local county rail authorities have taxing ability to supplement state funds. He explained there were six Tier One passenger rail projects in various stages of study. The ZIP Rail between Rochester and the Twin Cities is receiving preliminary study. This is marked as a First Tier Priority study. Although no rail right-of-way currently exists over much of the route, various options will be studied. There is strong interest from Rochester for this project, but lack of a defined right-of-way will mean it is many years from completion. There is currently no other green field study going on in the U.S. Parsons Brinkerhoff is the lead and the preliminary study is expected to be completed in 2013. The Rochester destination is also unknowndowntown?....airport? Continued on Page 4
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Approximately 70 WISARP members and guests attended the fall 2012 meeting of the Wisconsin Association of Railroad Passengers was held in La Crosse. The primary topic for discussion was the Second Train Study being conducted on the existing Chicago-Milwaukee-La Crosse-Twin Cities line used by the Empire Builder. La Crosse Mayor Mathias Harter welcomed the attendees to La Crosse. He noted the value of the daily Empire Builder. WISARP President John Parkyn also welcomed the attendees. He referred to the display in the meeting room lobby and reminded people of the retirement party on October 30 for La Crosse Amtrak agent Bob Kamrowski that will be held at the La Crosse Amtrak depot. John also spoke of the long term history of railroads. He noted that the last Gold Bond Coupon issued by the original Chicago, Rock Island and Pacific Railroad in 1902 was scheduled to be cashed in 2002. Had the railroad survived, that coupon would have been honored. He introduced the next speaker. Jennifer Shilling, State Senator 32nd District (including La Crosse and most of Vernon and Crawford, and some of Monroe, counties) spoke next. She is a member of the Joint Finance Committee and has been a strong and vocal supporter of rail passenger service both in the senate and her previous service in the assembly. She explained she supports balance in the states transportation system and sees rail passenger service as part of that balance, along with roads, airports, and barge and lake ports. In her personal experience she remembers fondly her first long train trip while in high school between Chicago and Seattle. She praised the trip as a good way for a teenager to see the vastness of our country. She also cherished memories of the trip as the way to meet fellow travelers. She assured the attendees she still uses the train, primarily to travel with her family between La Crosse and Chicago. She supports the addition of at least one additional train on the Chicago-La Crosse-Twin Cities route as it will good for both the student and business community. She

WisARP Meeting from Page 3

The Northern Lights Express started as a locally funded study for high speed service between the Twin Cities and Duluth along the existing rights-ofway of I35 and Highway 65. The local government coalition has now turned the planning over to the state. The locals will continue to work on station development while the state studies the right-of-way and broader issues. Taxes collected on rail rights-ofway now go into the state general fund. MinnDOT is working with the legislature to see if such monies cant go into a state rail fund to pay for rail projects. The Northern Lights Express is farthest along in its feasibility study. The Twin Cities-Duluth route received stimulus dollars that were turned back by Florida. The Hinkley Casino loop study should be completed by 2015. Dan pointed out progress is being made on other state passenger rail projects. The High Speed Rail Study between Chicago and Twin Cities (HSR) has been narrowed down to one route selected for further study: the existing Empire Builder corridor between Chicago-Milwaukee-La Crosse-WinonaRed Wing and Twin Cities. Environmental impact studies are now underway to compare that route and service with a no build option. Dan recently rode a high-rail vehicle between Red Wing and La Crosse, both as part of the HSR study and the Second Twin Cities Train study. Minnesota needs a partner in Wisconsin. The change in leadership at Canadian Pacific Railroad is also challenging. All Tier One corridors have some sort of action occurring on them. The Twin Cities-Eau Claire Corridor is being studied as a commuter route, although most of the route lays in Wisconsin and the state has not picked up interest on that study. Review of this corridor is expected to begin in 2015-16. Dan explained there are several operating scenarios being explored as part of the Second Train Study. One is between Chicago and Twin Cities, and another scenario would extend the train to St. Cloud. The Empire Builder will begin using St. Paul Union Depot (SPUD) rather than the current
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Midway station in late 2013. The Second Train will also use that but then could continue to the Minneapolis Transfer Interchange Facility where the North Star Commuter line and the Hiawatha light rail currently end. If the Second Train doesnt go all the way to St. Cloud, North Star service is eventually slated to go there. Central Corridor Light Rail will serve SPUD. Restoring intercity passenger rail service between SPUD and the new Minneapolis facility near Target Field at north end of downtown Minneapolis will be a challenge. About five percent of the nations rail freight traffic moves through Hoffman Yard daily, and the BNSF and CP RRs have each presented MnDOT with a laundry list of track and interchange improvements that must be made before a regularly scheduled passenger train can move between the two down towns. With a second train terminating/originating in the Twin Cities a more elaborate maintenance facility will need to be developed beyond the running repairs that can be made now on the Builder. If Talgo equipment is somehow going to fit into the mix then a different type of maintenance facility would be needed than for conventional equipment. The SPUD and Minneapolis Rail Passenger Transfer Facility are both aimed at returning mainline rail passenger service to downtown of their respective city. This will mean abandonment of the Midway station. The phase 1 study of the MRTF will be completed by 2014. SPUD grand reopening is actually scheduled for Dec. 8, 2012. Questions that followed included discussion that Minnesotas ultimate goal for the second train would be to serve all current stops in the state all the way west to Morehead, but this has to be done gradually, with St. Cloud being included in the initial feasibility study. Set out locations for private cars or additional capacity Amtrak cars is Amtraks call and not included in the initial study. Amtrak is interested in providing service to suburban stations as well as downtown stations in large metro areas. This is not intended to compete with established Continued on Page 5

WisARP Meeting from Page 4

commuter service, but to provide better service to riders who dont want to make a trip into downtown when Amtrak runs right through their community. Dan noted that the change in CP RR leadership has complicated the study as they are asking for $657 million to accommodate a second train. Some track capacity improvements may be needed on the BNSF as the North Star commuter will also be operating between Minneapolis and St. Cloud. Possibly double track, or even triple track will need to be restored on some segments of the line east of the Twin Cities. John Parkyn made some observations on Dans remarks. He noted that two Talgo trains are now sitting idle and the Federal Rail Administration has required the Midwest rail system to buy bi-level California cars, even though the original Midwest Regional Rail Initiative (MWRRI) plan called for single level tilt technology cars. John noted that Minnesota treats the various modes as complimentary, all working together, whereas past Wisconsin efforts seemed to place the various modes in competition. John noted that a recent piece on the Internet highlighted a 1958 Fortune magazine article that was critical of the new Interstate Highway building program. In spite of these challenges the system we know today was eventually built. John pointed out we must have faith an adequate rail passenger system will eventually be built. Discussion continued among the attendees about increased freight loads also being carried by railroads on a national system whose physical capacity in terms of track space and rail yards is considerably reduced from the 1960s. Issues about the decline in loose car railroading and more scheduled unit trains such as containers or coal or other dedicated cargo have produced a different traffic pattern. Loss of coal traffic may make more track capacity available, but this is being taken up by frac sand, natural gas, and ethanol unit trains, as well as increased loose car loads of pipe and machinery moving to newly opened oil/gas fields
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and wind generator sites. In any case, freight produces more revenue per track mile than does passenger traffic. John reminded the attendees of the WISARP goals: - Second train Chicago to Minneapolis. This is being studied as we have heard from Dan Krom - Implement the Midwest Regional Rail Initiative. Multiple trains on several corridor routes are already operating or being studied on corridors in Wisconsin, Illinois, Michigan, and Missouri. - Educate elected officials at all levels of government on the importance of passenger rail and gain their support on issues ranging from individual station improvements to route selection and rolling stock acquisition. (This was stated before the Nov 6 election) John pointed out this is a never ending task, regardless of any election turnover. - Protect Amtrak financial support from federal and state budget reductions Continued on Page 6
Badger Rails is published 6 times per year by the Wisconsin Association of Railroad Passengers, a notfor-profit Wisconsin membership association. WisARP President is John Parkyn, Stoddard, WI, (608)7887004, email: cen10297@centurytel.net Badger Rails Editor is Jim Sponholz. Please send comments or news items to: badgerrails@gmail.com Send membership questions/address changes to: Mark Weitenbeck, 3385 S. 119th St., West Allis, WI 53227 email: weitenbeck@sbcglobal.net Important Links: WisARP on the Web: www.wisarp.org National Association of Railroad Passengers: www.narprail.org Midwest High Speed Rail Association: http://www.midwesthsr.org/ AllAboardWisconsin Twitter Site: https://twitter.com/allaboardwis

WisARP Meeting from Page 5

John stressed the need to keep in touch with elected officials, regardless of the result of the upcoming elections. Dont assume your friends will always remain your friends without gentle reminders that rail passenger advocates are still around. John suggested there should be a serious professional study done of railroad capacity to match traffic usage under all the new scenarios with actual physical track capacity, and the report should be published. He noted the Highway Trust Fund has gone bankrupt in the 21st century. We must try to neutralize that at least. Highways are not the free market outcome. They are subsidized from taxes beyond use fees. For the Wisconsin perspective, John Parkyn introduced Ron Adams of the WisDOT Bureau of Transit, Local Roads, Rails and Harbors John noted that under Rons leadership Wisconsin used to be a leader in rail passenger transportation planning and implementation, but due to political circumstances we now have to catch up with the rest of the Midwest states. Ron Adams stated a week before a passenger train in Illinois ran at 111 mph, and Michigan has run trains at 110 mph, and now regularly runs at 90 mph on a portion of the Chicago-Detroit service. By Thanksgiving the Chicago-St. Louis corridor in Illinois will see 110 mph in regular service on part of the corridor. In Maine, the Northeaster service will be extended along the coast from Portland to Brunswick at a conventional 79 mph starting on Nov. 1. He also noted that Wisconsin DOT has published a new map showing Midwest rail integrated bus service. Chicago-Milwaukee rail service continues to set ridership records, and Madison does indeed have a train service by way of the Amtrak bus to Union Station. At this point Wisconsin is focusing on existing services. As Section 209 of the Passenger Rail
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Investment and Improvement Act (PRIIA) begins to phase in, the states will have to pick up the full cost of corridor services in their state. By October 2013 California and Washington states are expected to fully fund their corridor trains. The northeastern states are under Sec 213 of the Act, which has a different accounting method. Illinois and Wisconsin currently fund the ChicagoMilwaukee Hiawatha Service at 25% IL, 75% WI split agreed to on a handshake basis, based on current home state declaration of the ridership. There has been a 42.7% increase in ridership since 2007. A typical train consist has 420 seats, and sometimes there are over 500 people on the train. Milwaukee is the 18th busiest station in the Amtrak system. A recent study by the Texas Transportation Institute shows that 23% of the riders are first time riders, some of them never having been on a train before. Ten percent of the riders ride 20 or more days a month, and 70% would have made the trip by auto if they had not used the train. An often forgotten segment of people in transportation planning is the 14% of Hiawatha riders who would not have made the trip at all if the train was not available. This Texas Institute study also found the top four ways to increase ridership on the corridor: WiFi Lower fares More departures Faster Travel times

Ron noted Amtrak and WisDOT are studying ways to add WiFi, possibly by putting the receiving equipment in the cabbage car (the de-engined locomotive car on the south end of the train that carries checked baggage). There is a study for adding up to 3 more round trip frequencies on the corridor, and an Environmental Impact Statement (EIS) is being prepared for the corridor between Milwaukee and Rondout, IL. If a second train is added on the longer Empire Builder route this could factor in as an additional Hiawatha train as well. Continued on Page 7

WisARP Meeting from Page 6

The Second Train study has revealed that 70 percent of the passengers getting on or off the train in Wisconsin are riding the local CHI-MSP corridor. Relieving this load on the Builder could help reduce station dwell times on that train as well as offer Wisconsin passengers increased frequency and ridership opportunities. CP RR says it wants $640 million to improve the corridor, but he said this is subject to discussion: there are, after all, a number of studies out there suggesting between one and 17 daily trains, and uncertainty on CPs part as to what to expect. When Amtrak studied restoring the North Coast Hiawatha in 2009, the entire capital estimate for Chicago to the Twin Cities was just $44 million. Ron explained that PRIIA went into effect in 2009, but Section 209 was put on hold in 2010 until October, 2013. The formal methodology showing what Wisconsin will have to pay for Hiawatha going forward are being reviewed by State officials now. On adding trains, he said that Amtrak has the right of access to freight railroads, but it cant interfere with railroad operations, and that is subject to interpretation by the host freight railroad. Also, WisDOTs rail plan, on hold for two years, will be completed incorporating the comments received to date on the existing draft. Commenting on the possibility of a proposed new Hiawatha stop in Lake Forest, IL, Ron noted that Illinois is removing a grade crossing in Lake Forest which could allow a stop at the existing Metra station without blocking road traffic, but WisDOT does not want degradation in overall travel time and CP is opposed to an additional stop. In response to other questions, Ron explained that Talgo cars cannot be run without a maintenance base. WisDOT asked for $5 million for a final design and location study, or $2.5 million just to study sites. CP RR wants $40 million for track improvements between the Milwaukee Amtrak station and the proposed maintenance base site at Century City. Ron noted that as new bilevel cars come into service elsewhere in the Midwest, the old Horizon cars will be available for other service.
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All Aboard Wisconsin Meets in Eau Claire

All Aboard Wisconsin, a new consortium of transportation-focused groups, held a public meeting in Eau Claire October 23 centered around the question: Where do you want to go by train? About 40 people attended the meeting and there was good TV and newspaper coverage. The group had previously run a similar meeting in Oshkosh. The idea for these meetings came out of a passenger rail summit held in July, 2011 in Wisconsin Dells, where the attendees heard about an effort by the Michigan Association of Railroad Passengers of holding citizen forums around the state of Michigan. In all 16 forums were held, and attendees were asked to identify places they would like to travel by rail. Prior knowledge of Michigans relatively extensive Amtrak corridor system was not a prerequisite nor a restriction to answering free form questions on where they would like to travel by rail. Eventually the Michigan DOT used some of the ideas in developing the state rail plan. All Aboard Wisconsin grew from this summit. WISARP is an organizational member and several WISARP board members are also on the board of All Aboard Wisconsin. Official incorporation began in January 2012 and 501c3 and 501c4 status is being sought so the group can legally be both an educational and a direct lobbying organization. A grant of $12,500 has been received from a nonprofit citizen public interest organization toward organization expenses.

Hiawatha Schedule Delays through January

Amtrak has issued a service advisory saying that some Hiawatha trains may be delayed through Jan., 2013 due to replacement of two bridges near Wadsworth, IL. With the exception of train 342, all trains will arrive in their endpoint cities between 10 and 15 minutes later than the scheduled times. For more information and updates, make sure to check with Amtrak before traveling.

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November-December, 2012