The Metropolitan Transportation Authority has just released its capital plan for 2020-4. The cost is very high and the benefits substantial but limited, and I urge people to look over criticism by Henry Grabar at Slate about elevators and Ben Kabak’s overview at Second Avenue Sagas. Here I am going to focus on one worrying element: the cost of the trains themselves, on both the subway and commuter rail.
I started comparing subway construction costs nearly ten years ago. Here’s an early post on Second Avenue Sagas, hoisting something I wrote in comments. Over here I started writing about this in 2011. Early on, I was asked about the costs of the trains themselves rather than the tunnels, and said that no, there’s no New York premium there. At the time the most recent rolling stock order for the subway was the R160, for which the base order cost was $1.25 billion for 620 cars (source, PDF-p. 34), or about $110,000 per meter of length. Commuter rail was similar, about $2 million per 25-meter-long M7 in the early 2000s and $760 million for 300 M8s of the same length in the mid-2000s. London’s then-current order, the S Stock, cost £1.5 billion for 191 trains and 1,395 cars, around $90,000 per meter of length for narrower trains; Paris’s MP 05, a driverless rubber-tired train, cost €474 million for 49 trainsets, around $140,000 per meter.
But since then, costs have rapidly risen. The gap is still far smaller than that for infrastructure, which New York builds for an order of magnitude higher cost than the rest-of-world median. But it’s no longer a rounding error. Subway rolling stock costs are rising, and commuter rail rolling stock are rising even faster. The latest subway order, the R211, costs $1.45 billion for 535 cars, or $150,000 per meter, for the base order, and $3.69 billion for 1,612 cars, or $130,000 per meter, including options. Commuter rail equipment costs, once about $100,000 per meter of train length, inched up to $2.7 million per car in 2013, or $110,000 per meter, and then rose to $150,000 per meter for the M9 order.
Construction costs: subway trains
The 2020-4 capital plan has showcased even further rolling stock cost escalation. Go to the link for the MTA capital plan again. On PDF-p. 23 there’s a breakdown of different items on the subway, and rolling stock is $6.057 billion for a total of 1,977 cars, of which 900 are 15 meters long and the rest (I believe) 18, for a total of $185,000 per linear meter.
I’ve blogged before about comparative costs of light rail and regional rail rolling stock. In Europe, both still cluster around $100,000 per linear meter for single-level, non-high-speed equipment. There is no apparent premium over early- and mid-2000s cost even without adjusting for inflation, which is not surprising, as the real prices of manufactured goods tend to fall over time. But what about metros? Here, too, we can look at first-world world comparisons.
In London, a recent Piccadilly line order is, in exchange rate terms, $190,000/meter (the trains are 103 m long) – but it includes 40 years of maintenance and spare parts. In Singapore, a recent order is S$2.1 million per car, which is about $70,000 per meter in exchange rate terms. Grand Paris Express’s first tranche of orders costs €1.3 billion for 183 trains totaling 948 cars, each (I believe) 15 meters long, around $120,000 per meter. Metro Report states Busan’s recent order as ₩55.6 billion for 48 trainsets (replacing 140-meter long trains), which is almost certainly an error; assuming the actual cost is ₩556 billion, this is $70,000/meter in exchange rate terms and $90,000/meter in PPP terms (PPP is relevant as this is an entirely domestic order).
In Berlin, the situation is the diciest, with the highest costs outside New York (not counting London’s maintenance-heavy contracts). An emergency order of 20 52-meter trains, tendered because cracks were discovered in the existing trains, cost €120 million, around $150,000 per linear meter. A longer-term contract to supply 1,500 cars (some 13 meters long, most 16.5 meters long) for €3 billion by 2035 is on hold due to litigation: Siemens had already sued over the emergency order of Stadler cars, but now Alstom made its own challenge. But even here, costs are well below the levels of New York, even before we adjust for inflation since Berlin’s future contract is in 2020-35 prices and New York’s is in in 2020-24 prices.
Construction costs: New York-area commuter rail
Commuter rail is faring even worse. On PDF-p. 27 the LIRR is listed as spending $242 million on 17 coaches and 12 locomotives, and on PDF-p. 29 Metro-North is listed as spending $853 million on 80 EMU cars and 30 locomotives.
Figuring out exact comparisons is not easy, because locomotives do cost more than multiple-units and unpowered coaches, and there is a range of locomotive costs, with uncertainty due to currency conversions, as most information I can find about European locomotives is in Eastern Europe with its weak currencies, since Western Europe mostly uses multiple-units. Railway Gazette’s pages on the world rolling stock market suggest that a European locomotive is around €5 million (e.g. the PKP Vectron order), or $6.5 million; PKP’s domestic order (including some dual-modes) is around $4.2 million per unit measured in exchange rate terms, but twice as much in PPP terms; Bombardier has a sale to an undisclosed customer for about $4.8 million. Siemens claims the Vectron costs €2.5 million per unit, although all the contracts for which I can find prices are substantially more expensive.
For what it’s worth, in the US dual-mode locomotives for New Jersey Transit cost around $9.5 million apiece, which is still evidently lower than what the LIRR and Metro-North plan on spending. 242 – 9.5*12 = 128, and 128/17 = 7.5, or $300,000 per linear meter of unpowered coach; similarly, 853 – 9.5*30 = 568, and 568/80 = 7.1, or $280,000 per linear meter of new Metro-North EMU. If we take the normal-world cost of a locomotive at $6 million and that of an EMU or coach at $2.5 million per US-length car, then the LIRR has a factor-of-2.1 cost premium and Metro-North a factor-of-2.2 premium.
The equipment is conservative
The FRA recently realigned its regulations to permit lightly-modified European mainline trains to run on American tracks. Nonetheless, no American commuter rail operator has taken advantage of the new rules – the only ones buying European equipment had plans to do so even before the revision, going through costly waiver process that increased costs. At a public meeting last month, Metro-North’s vice president of engineering did not even know FRA rules had changed. The LIRR and Metro-North are buying the same equipment, to the same standards, as they have for decades.
The subway, likewise, is conservative. It is a laggard in adopting open gangways: the R211 order is the first one to include any, but that is just two test trainsets, the rest having doors between cars like all other older New York trainsets. It is not buying any of the modular products of the global vendors, like Bombardier’s Movia platform or the Alstom Metropolis. It is buying largely the same kind of equipment it has bought since the 1990s.
Despite this conservatism, costs are very high, consistent with a factor somewhat higher than 2 on commuter rail and somewhat lower than 2 on the subway.
But perhaps the conservatism is what increases costs in the first place? Perhaps the reason costs are high is that the world market has moved on and the MTA and some other American operators have not noticed. In Chicago, Metra found itself trying to order a type of gallery car that nobody makes any longer, using parts that are no longer available. Perhaps the same kind of outmoded thinking is present at the MTA, and this is why costs have exploded in the last 10 years.
A secular increase in costs of infrastructure construction is nearly universal. No such trend can be seen in rolling stock: nominal costs in Paris are 15% lower than they were 15 years ago, and real costs are about 30% lower, whereas in New York nominal costs are 70% higher than 10 years ago and real costs about 40% higher. Paris keeps innovating – M1 and M14 have the highest frequency of any metro system in the world, a train every 85 seconds at the peak, and M1 is the first driverless line converted from earlier manual operations rather than built from scratch. In contrast, New York is stuck in the 1990s, but far from keeping a lid on costs, it has seen rolling stock cost explosion.
Update 9/24: I just saw a new commuter rail coach order in Boston. These are bilevels so some cost premium is to be expected, but $345 million for 80 unpowered coaches, or $170,000 per meter, is excessive, and TransitMatters tried hard to fight against this order, arguing in favor of EMUs on the already-electrified Providence Line.