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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
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
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
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
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
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November-December, 2012