We Need To Get Aboard

China, the second largest economy after ours, has invested $360 billion in high-speed trains which carry passengers between large cities at 200 mph.

Spain, despite its economic challenges, has invested $170 billion in high-speed rail systems. A similar rail expansion is taking place in Europe; this runs from the boot of Italy to the Baltic Sea.

Worldwide, however, most nations are not associated with such rail infrastructure, but India, Brazil, Argentina, Morocco and others are planning high-speed rail networks.

WMB believes these countries understand that modern rail systems are critical pieces in developing competitive 21st-century economies. They see the problems caused by dwindling oil supplies, congested highways and airports, and soaring carbon emissions.

Unfortunately, the United States has been sidetracked by controversy involving high-speed rail.

Deficit Versus Jobs

Officials in some states think a rail system will only add to the already high and unprecedented government budget deficits. But advocates argue it will make our infrastructure more efficient and create badly needed employment.


The Obama administration and various states will ensure the foundation of a national high-speed rail network will be laid in the next several years, according to the U.S. High Speed Rail Association.

This financial foundation includes $8 billion in federal stimulus funds slated to extend the network 17,000 miles by 2030, between all major cities in America, and at a cool 220 mph.

California will get $2.34 billion, the largest award,to help set up a high-speed line between San Diego and Sacramento by 2026.

States receiving more than $150 million in federal funds include Florida, North Carolina, Illinois, Washington, Oregon, Wisconsin, Ohio, Michigan, Virginia, and New York. But the governors of Florida, Wisconsin and Ohio, calling the rail project a boondoggle, have rejected funding.

Eventually, private funding would be included in the projected $600 billion project.

The Rail Alternative

The reasons so many interest groups support creation of a national high-speed rail system are straight-forward.


The United States has become far too dependent on foreign oil. Americans use six times more oil per capita than Europeans.

Currently, we spend up to $700 billion a year to import foreign oil, with 70 percent of this consumed by cars, trucks, and airplanes.

With oil prices hovering at $100 per barrel, the American economy is in jeopardy.

And most experts believe that we have hit the point of peak oil. This means that as demand soars and supplies decrease, the price per barrel could reach $300 within this decade.

Andy Kunz, president and CEO of the U.S. High Speed Rail Association, says enhancing America’s energy security is one of the best reasons we need a state-of-the-art high-speed rail system.

WMB agrees, and we think a national high-speed rail system will create millions of jobs, help revive the manufacturing sector by incorporating our steel and related components, and alleviate pressure on a crumbling infrastructure.

A side benefit would be removal of many vehicles daily from our clogged highways. Traffic delays cost the U.S. economy an estimated $156 billion annually.

Green And Viable

Then there’s the environment.

A national rail system also would dramatically reduce our collective carbon footprint. Advocates note the cost of building will decline each year and, eventually, exceed the estimated $600 billion budget.

Although much of the funding will be public, many believe the private sector can best run such an infrastructure.

WMB believes the United States must build a high-speed rail network to stay competitive in a world economy.

Why not put the money we spend on imported oil into a new rail infrastructure? The stakes are high, and we can’t afford to do otherwise.

America needs to embrace change, or we won’t control our destiny in the near-term.

Improvements on high-speed rail could one day reach over 300 mph and help maintain our global position and competitiveness.

We shouldn't be left behind at the station!

TechMan

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ChinaWatch: Striking A Balance?

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy and our chief rival to global dominance. Our aim is to keep you informed.


World’s Biggest Polluter

China wants local governments to be more responsible for environmental protection as the world’s fastest-growing major economy seeks to reduce pollution, says Zhang Lijun, vice minister for environmental protection.

The Ministry of Environmental Protection has issued carbon dioxide emissions quotas to provincial governments for the five years through 2015 and will focus on preventing pollution from heavy metals, non bio-degradable waste and hazardous chemicals, according to Zhang.

“Grasping the balance between economic growth and environmental protection is the responsibility of all levels of government, especially local governments,” Zhang says.

China, the world’s biggest polluter, set a lower growth target for the period from 2011 through 2015 as compared with the previous five-year period to help reduce pollution, with Premier Wen Jiabao saying last month that the nation could no longer sacrifice the environment in return for economic expansion.

The nation failed to meet its energy conservation goal for the five years through 2010.

China’s economy surpassed Japan’s to become the world’s second largest last year as the nation posted annual growth of 10.3 percent and expansion at a 9.8 percent pace in the fourth quarter.

The Chinese economy passed Germany’s in 2007 and those of the U.K. and France in 2005. It also surpassed the United States during that period to become the world’s biggest energy consumer and its biggest emitter of greenhouse gases.

The Chinese government has set a target for slashing energy use per unit of gross domestic product by as much as 17 percent in the five years ending 2015.

China missed a target to cut consumption by 20 percent between 2006 and 2010, even after shutting at least 7,000 factories and banning discounts on electricity to high-consumption businesses.

Going Nowhere Fast

By 2020, China will be blanketed by high-speed rail. The Asian giant is investing $1 trillion to create 16,000 miles of high-speed rail track – roughly a third of the total length of the U.S. interstate highway system.

Trains will zip along at 200+ mph, opening inter-city opportunities for businessmen and engineers. Such opportunities have been available only to the wealthy elite who own private jets.

Much of the United States, meanwhile, is stuck in the slow lane, something that may have a dire impact on the nation's competitiveness.

In response to a slow recovery and growing conservative movement, many states have abandoned plans to deploy high-speed rail, despite President Obama promising as much as $53 billion in matching federal grants for state rail projects over the next six years.

Some states, including recession-clobbered Michigan, have effectively rejected projects by simply falling silent. Michigan Gov. Rick Snyder has simply stopped talking about the state's former project and has refused calls or discussions on the topic.

Other states, including Florida, are taking a more active stance. Florida Gov. Rick Scott, also a Republican, killed the Sunshine State’s high-speed rail project. The proposed line would have connected Tampa to Orlando, two of Florida's top metropolitan areas.

Scott cites a 2009 study, claiming the line's first operation year in 2015 would see a deficit with just 2.4 million riders, as a factor in his decision. He also cites advice from the libertarian Reason Foundation and the Heritage Foundation, a conservative think tank.

ChinaWatch