When is a freebie not free?
May 20th 2007 02:31 pm
Answer: When the taxpayers and rail riders have to pay $5.16 million for it.
You may recall that NJ Transit announced they would be providing express train service to Atlantic City for rich New York City high-rollers. The service was supposed to be funded by the casinos. In fact, an NJ Transit press release stated, “The terms also include full reimbursement for all capital equipment and operating costs by ACES and CRDA.”
Well, it didn’t exactly turn out that way. As part of the project to provide better service to NYC residents than is provided to NJ residents, NJT needs to purchase four locomotives from Amtrak for $9.66 million. The following gem appeared buried at the end of an Asbury Park Press article:
The three casinos also are funding $4.5 million of the $9.66 million total cost. NJ Transit will pay the remaining $5.16 million and will use the locomotives for regular service during the week when the casino train isn’t running.
So cash-starved NJT is using $5.16 million of New Jersyans’ taxes to provide express service for rich NYC residents. Yes, NJT will have general use of the locomotives four days of the week, but my understanding is that NJT does not currently have any of this locomotive model, so it will be another type of equipment that needs to be maintained. Perhaps there would have been a better way to spend $5.16 million.
And I wonder how much more this freebie express service is going to cost us.
Joe Versaggi responded on 20 May 2007 at 7:05 pm #
While NJT boasts it no longer “steals” from capital to fund operations, evidently donating capital to casinos is fine.
Their claim that these GE P40 locomotives being for regular service during the week when the casino trains are not running is utter nonsense. The statement was made to throw off critics. That would only be for Monday through Thursday while revenue equipment needs are identical on Fridays. These locomotives, unlike anything else NJT operates, would perform poorly in frequent-stop commuter service since they are slow accelerators. NJT also recently bought 30 new engines for Alstom for Hoboken division service, so had this casino deal not happened, this Amtrak locomotive purchase would not have happened.
On June 1, NJT is ramming a 9.6% fare increase down our throats giving us the highest monthly commutation fares in the country, yet has money to burn for sweetheart deals for New York high rollers heading to casinos. That money should have been spent for regular service only. I think a full-scale investigation into NJT’s financial practices and business ethics are in order. This further shows NJT is an arrogant, fat, sloppy business model in need of intense oversight, micro-management, and reform. At the very least, I expect this year’s management bonuses to be charged back in full for this “donation”.
Bob Scheurle responded on 21 May 2007 at 2:48 pm #
But, Joe, what do you really think?
Another interesting item is that the locomotives were originally to be leased from Amtrak, with the casinos paying for the lease. Now NJT has purchased the locomotives, so they’re stuck with them.
Regarding their poor acceleration, I imagine they’ll be used mainly on the Atlantic City Line, where the stations are far apart.
Joe Versaggi responded on 21 May 2007 at 5:39 pm #
If NJT were interested in getting BMW-types off the GSP, they could run the NJCL as the LIRR runs the summer weekend Montauk Service: run more expresses, gut a couple of old Comet-I cars for conversion to Parlor cars, or assign one to the ACRL.
Metro North has Genesis P32 DM’s, but they are used for outer-zone expresses or branch shuttles.
We also have four ALP-44’s tied up in this service when they could have been better used double-heading more heavy, clunky bi-level trains when they arrive.
The only thing good about it is that Amtrak needs the $9.66 million. Yet to be seen are the financial impacts if/when the service flops, and who gets to buy the ACES bi-levels.
Bob Scheurle responded on 21 May 2007 at 8:24 pm #
Run more express trains? Are you kidding? NJT can’t even be bothered to run the Somerset Hills Express. The result is that the trip was faster in 1901 with steam trains!
And not to mention that NJT lied about their intentions to bring back the Somerset Hills Express:
Joe Versaggi responded on 22 May 2007 at 12:51 pm #
http://www.state.nj.us/oig/
They will be be getting a written complaint from me shortly.