Finding fresh sources of revenue for intercity passenger rail, leveraging right-of-way, and reforming federal programs that fund the development of railroad infrastructure were among the topics discussed at a July 9 hearing of the House Transportation and Infrastructure (T&I) Subcommittee on Railroads, Pipelines, and Hazardous Materials.

DOT Deputy Secretary John ­Porcari testified about the need for continued federal investment in rail. “Demand for passenger rail is surging across the United States. We must continue to invest federal resources and leverage those with other ­public sector and private partners to fully realize the potential of rail,” he said.

To that end, “Right-of-way offers a potential way to generate revenue for public-private partnerships looking to support intercity passenger rail,” according to a summary created by subcommittee staff distributed at the hearing. “Right-of-way can be used to place telecommunication and other non-transportation infrastructure. Under such an arrangement, the railroad would be compensated annually for the utilization of its right-of-way, which would provide an annual source of revenue that could be leveraged for loans or bonding.”

Rep. Bill Shuster (R-PA), chairman of the full T&I Committee, said, “I also strongly believe that the only way we will be able to tackle the large capital needs for passenger rail is to partner with the ­private sector. Programs like the Railroad Rehabilitation and Improvement Financing program and the Transportation Infrastructure Finance and Innovation Act program allow the federal government to leverage scarce resources and share risk with the private sector.”

Subcommittee Chairman Jeff Dunham (R-CA) also made the case for public-private partnerships during the hearing, saying: “Innovative finance has been increasingly used in the United States for highway and mass transit projects, and one of my goals for the upcoming reauthorization is extend that trend to passenger rail.”

Also testifying at the hearing were Beverley K. Swaim-Staley, president and chief executive officer, Union Station Redevelopment Corporation; Frank Chechile, chief executive officer, Parallel Infrastructure; and John Robert Smith, former mayor of Meridian, MS, and president and chief executive officer, Reconnecting America.

Share: