Twenty-five billion dollars. The New York region’s political heavyweights – Andrew Cuomo, Chris Christie, Chuck Schumer, Cory Booker, Bill de Blasio – all want new Hudson tunnels, without any state funding for them; Schumer is proposing federal funding and a new interstate agency, parallel to the existing Port Authority, and a total budget of $25 billion. This is the highest figure I have seen so far; Amtrak still says $16 billion and Cuomo says $14 billion, and it’s likely the Gateway tunnels are indeed about $16 billion, while the remainder is for associated projects, such as fully four-tracking the line from Newark to the tunnel portal, a distance of about 11 kilometers. It is not my intention to criticize the cost; I’ve done that before.
Instead, I would like to point out that each time Gateway is the news, there usually seems to be a fresh cost escalation. Is it a $10 billion project? A $14 billion project? A $16 billion project? Or a $25 billion project? And what is included exactly? Amtrak does not make it clear what the various items are and how much they cost; I have not seen a single cost estimate that attempts to establish a baseline for new Hudson tunnels without the Penn Station South component, which would provide a moderate short-term boost to capacity but is not necessary for the project. The articles I’ve seen do not explain the origin of the $25 billion figure, either; it may include the tunnel and full four-tracking of Newark-New York, or it may include additional scope, for example Amtrak’s planned vertical circulation for a future (unnecessary) deep cavern for high-speed rail (see picture here).
The main issue here, the way I see it, is the interaction between public trust and political self-aggrandizement. It is common in all aspects of Israeli governance for new ministers to announce sweeping changes and reorganizations, just to remind the country that they exist and are doing something; this generally makes it harder to implement gradual reforms, and makes it completely impossible to do anything by consensus. Implementing a plan that was developed by consensus over many years makes one a bureaucrat; leaders change everything. In the US, this is the case not everywhere in government, but at least within public transportation infrastructure.
As we see in the case of Schumer’s call for a new interstate authority, the changes a heavyweight politician makes in order to appear as a leader have nothing to do with real problems that the project may have. Solving those problems requires detailed knowledge of the project at hand, which is the domain of bureaucrats and technocrats, and not of heavyweight politicians. Even a heavyweight who understands that there is a problem may not know or care about how to fix it: for example, Christie used the expression “tunnel to Macy’s basement,” invoking the deep cavern, to explain why ARC was wasteful, but chose to cancel the project rather than to remove the cavern and restore a track connection from the tunnel to Penn Station, which was in the official ARC Alt P plan until it was cut to limit the cost overruns. Managing a project is hard, and is, again, the domain of technocrats. The heavyweight will grandstand instead, regardless of whether it means canceling the project, or proposing an entirely new layer of government to build it.
As for trust, let us look at the benefits of new Hudson tunnels. The traditional, and least objectionable, is added capacity: the existing tunnels are currently at capacity during rush hour, and there’s much more demand for rail travel from New Jersey to Manhattan than they can accommodate. We can measure this benefit in terms of the combination of increased ridership from more service from more suburban areas, reduced crowding, and possibly slightly higher speeds. As a crude estimate of this benefit, current New Jersey Transit ridership at Penn Station is 87,000 per weekday in each direction. Doubling capacity means roughly doubling ridership, which would come from a combination of induced demand and diversion of traffic from cars, Port Authority buses, and commuter rail-PATH connections. This means the new tunnel can expect about 175,000 new commuter rail trips per weekday. At $10,000 per weekday trip, which is about average for very large non-US cities’ subway extensions, this justifies $1.75 billion. At $20,000, about the same as the projection for Grand Paris Express, Crossrail, and Second Avenue Subway Phase 1, all of which are justified on grounds of ridership and capacity on parallel lines, this is $3.5 billion. At $40,000, about the same as old projections for Second Avenue Subway Phase 2, which I used to analyze de Blasio’s Utica subway proposal, this is $7 billion. A $25 billion budget corresponds to a cost per rider well into the range of airport connectors.
Now, I’d like to think that informed citizens can look at these costs and benefits. At least, the fact that public transit projects only cost as much per rider as Gateway if they’re airport connectors (thus, of especial interest to the elites) or if something very wrong happened with the ridership projections, suggests that there is, normally, a ceiling to what the political system will fund. Even at $14-16 billion, the two states involved and the federal government groaned at funding Gateway, speaking to the fact that it’s not, in fact, worth this much money. In contrast, a bigger project, with bigger benefits, would be funded enthusiastically if it cost this much – for example, California already has almost this much money for high-speed rail, counting Prop 1A funds that are yet inaccessible due to the requirement of a 50/50 match from other sources.
Against this background, we see scare stories that Gateway must be built for reasons other than capacity and ridership. The old tunnels are falling apart, and Amtrak would like to shut them down one track at the time for long-term repairs. The more mundane reality is that the tunnels have higher maintenance costs than Amtrak would like since each track can only be shut down for short periods, on weekends and at night. This is buried in technical documents that don’t give the full picture, and don’t give differential costs for continuing the present regime of weekend single-tracking versus the recommended long-term closures. The given cost for Sandy-related North River Tunnel repairs is $350 million, assuming long-term closures, and it’s unlikely the present regime is billions of dollars more expensive.
I am reminded of the Tappan Zee Bridge replacement: the existing bridge has high maintenance costs due to its age and poor state, but the net present value of the maintenance cost is $2.5 billion and that of the excess maintenance cost is less, both figures well below the replacement cost. The bridge itself is structurally sound, but in popular media it is portrayed as structurally deficient. This relates to the problem of heavyweight politicians, for the Tappan Zee Bridge replacement is Cuomo’s pet project.
More fundamentally, who can trust any claim Amtrak makes about the structural soundness of tunnels? It says a lot that, when I asked on Twitter why transportation authorities do not immediately shut down unsafe pieces of infrastructure, various commenters answered “politics,” and on one (I believe James Sinclair) suggested that Amtrak order an emergency closure of one of the Hudson tunnel tracks just to drive home the point that new tunnels are necessary. I would like to stress that this is not Amtrak or a heavyweight proposing that, but the mere fact that commenters can seriously talk about it is telling. Most of the writers and commenters on the US transit blogosphere are very progressive and hate the Republicans; I have not seen a single comment recommending that the Democrats steal elections, fudge official statistics to make the party look more successful, or arrest Republican politicians on trumped-up charges, because in the US (and other first-world democracies), this is simply not done, and everyone except conspiracy theorists recognizes it. But politicizing the process of deciding which infrastructure projects are necessary for safety purposes and which are simply service expansions is normal enough that people can propose it half-seriously.
This brings me back to the issue of what I want the politicians to do, and what I expect them to do. What I want them to do is to be honest about costs and benefits, mediate between opposing interests (including different agencies that fight turf battles), and make decisions based on the best available information. This would necessarily limit costs, since, from the point of view of a member of Congress, if they get $25 billion for a piece of infrastructure then they cannot get $25 billion for another priority of theirs. They don’t do that, not in the US, and I’ve learned not to expect any better, as have the voters. Instead of working to make $25 billion go a longer way (to put things in perspective, I expect my regional rail tunnel proposal to cost $15-20 billion, at Crossrail 2 costs), Schumer is working to make $25 billion to sound like it’s going to a bigger deal than the new Hudson tunnels actually are.
None of this is a secret. American voters have learned to expect some kind of machine-greasing and politicking, to the point of losing the ability to trust either the politicians or the agencies, even in those cases when they are right. The result is that it’s possible to stretch the truth about how necessary a piece of infrastructure is, since people would believe or disbelieve it based on prior political beliefs anyway, and there is no expectation that the politicians or public authorities making those claims will have to justify them to the public in any detail. Lying to the public becomes trivially easy in this circumstance, and thus, costs can rise indefinitely, since everyone involved can pretend the benefits will rise to match them.