By the Rio Grande Foundation
ALBUQUERQUE — Politicians north and south in New Mexico have hopped on the Rail Runner bandwagon. They are hoping that the so-called “commuter train” will soon run from New Mexico’s northern border with Colorado to its southern border with Texas.
In calling for federally funded high-speed rail from Albuquerque to Denver, Gov. Bill Richardson recently called the Rail Runner “an overwhelming success.”
But is it true? Jim Scarantino, in a new investigative report for the Rio Grande Foundation, used data from the Rail Runner’s management to show that by most objective standards, the Rail Runner is under-performing both in terms of ridership and financial measures. Scarantino’s report, “The Red Ink Express” is available at www.riograndefoundation.org.
As Scarantino writes:
• According to information obtained from the managers of the Rail Runner, from the first date of service in July 2006 through May 31, 2009, the average daily “ridership” on the train was a mere 2,539. Since the average commuter gets on the train coming and going, the actual average number of daily commuters using the Rail Runner for its three years of operations is just under 1,270.
• The Rail Runner cost $400 million to get rolling. That start-up investment will never be recovered through the fares charged passengers. In addition, its annual operating and maintenance deficit is exploding. The data received from the Rail Runner’s management show that in 2006, the train’s first year of operation the operating deficit was $7.8 million. Its operating deficit last year was $10.8 million. Its operating losses for its third year of operation to May 31, 2009, already exceeded $13.4 million. That is a total of $32 million in operating losses so far.
• The taxpayer subsidy per commuter has also been increasing as the Rail Runner produces ever higher operating and maintenance costs far in excess of the fares it charges. The subsidy has grown from $6,128 per commuter in its first year to over $10,500 this past year.
• Taxpayers are effectively paying a select few to ride the rails instead of a taking a bus or driving. At the average daily ridership of 2,539, taxpayers were kicking in $16.89 per ride during the past year.
Far from being a success as Richardson asserts, it seems that the system has proven to be a costly waste with ever-rising costs and relatively small numbers who benefit from the service.