Rail Costs Disputed

I must respond to some of the incorrect points made in the Jan. 12 Tampa Tribune story entitled "Commuter Rail Falters Again as Supplier Fails."

First, the Tribune continues to incorrectly cite the cost of the 61-mile Central Florida Commuter Rail project as being $1.2 billion. The total cost to plan, design, and construct this project, including the cost to purchase the right-of-way for rail stations, is $615 million. This total includes $285 million for track and systems improvements such as double-tracking, signalization and communications systems installation; $130 million for land purchase and construction of the 17 stations; $110 million for rail cars and equipment; and $90 million to cover other costs such as legal fees, financing, and contingency. It appears that the figure you have been using includes more than a quarter of a billion in costs that are not associated with the commuter rail project.

Under the agreement between the state of Florida and CSX, the railroad will receive $432 million in total compensation for the commuter rail right-of-way and other safety and capacity improvements that will benefit the economy of the state. This purchase price is based on the certified appraised value of the corridor, which was determined to be $432 million or more, according to two independent state-certified appraisers.

Second, the Tribune story states that the Florida Department of Transportation "moved forward with a $45 million contract" with Colorado Railcar to purchase cars for the commuter rail system. The Department of Transportation never entered into a contract with Colorado Railcar or any other vehicle manufacturer. A solicitation for a new vehicle manufacturer has been issued by Florida DOT in accordance with the project schedule - there is no "scrambling" going on.

Finally, the story incorrectly states that federal grant funds were secured "to buy six Colorado Railcar vehicles". In fact, the language specified the acquisition of Diesel Multiple Unit (DMU) commuter rail technology, and any qualified vendor could have chosen to compete. The fiscal year 2004 appropriations language in law provided funds "for the purpose of initiating a demonstration in daily revenue service of a compliant DMU ....through a conventional competitive procurement process."

The facts in this letter have been confirmed with the state of Florida. It is important that accurate information relating to the project be relayed to the public.

REP. JOHN L. MICA

Washington

Editors Note: Rep. Mica's calculation that the Central Florida Commuter Rail project costs only $615 million excludes the cost of obtaining the railroad right of way. Without railroad tracks, the commuter rail project would not be possible. When that expense is factored in, the cost of the commuter project rises to about $1.2 billion. Also, while any vendor could have competed for the federal railcar purchase grants, the way the grant was written, only Colorado Railcar qualified.