Reps. Mica and Shuster: Private rail is the way to go

By Keith Laing - 03/14/11 11:23 AM ET

Two key Republicans said Monday the federal government should not be in the business of building more railways — because that’s the private sector’s job.

“Amtrak’s plan doesn’t cut it," House Transportation and Infrastructure Chairman John Mica (R-Fla.) said in a statement. "Amtrak operates a Soviet-style passenger rail service, with a high rate of subsidization by the taxpayers. Last year, every single Amtrak ticket was underwritten by $54.48."

He and Rep. Bill Shuster (R-Pa.), chairman of the Railroads, Pipelines and Hazardous Materials supanel, say that new railways are needed but that private businesses are better suited to build and operate them.

“Chairman Shuster and I have proposed letting the private sector compete with Amtrak on its money-losing routes, but this has yet to happen," Mica said. "Internationally, the private sector successfully operates passenger rail and can turn a profit. There’s no reason we shouldn’t be attracting private sector capital and expertise to operate intercity passenger rail in the United States."

Shuster's committee held a hearing last week to find ways to increase private investment in rail, measures he and Mica touted Monday. Their stance comes as a transportation advocacy group, the American Public Transportation Association, called Monday for more public transit to be built to combat rising gas prices.

However, Mica and Shuster blamed President Obama for the fate of proposed high-speed rail projects in Wisconsin, Ohio and now Florida that have been canceled by conservative Republican governors who say the projects are too expensive, even with federal help. Conservative activists in Florida have begun referring to proposed railways as ObamaRail, much like some derisively refer to his healthcare reform law as ObamaCare.

“With Ohio, Wisconsin and Florida rejecting funds, and the California project also looking troubled, I don’t think the Administration’s so-called high-speed and expanded passenger rail program could have had a worse launch,” Mica said. “The only chance of success for high-speed rail is to rely on the private sector and focus on a project that makes sense, particularly the Northeast Corridor.

"The questions now are how do we regain our credibility after so much damage has been done, and how can we find a better opportunity to bring true high-speed rail to the congested Northeast Corridor with significant private sector involvement?” he concluded.