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How a Metro can be run profitably?
Aug 07 2011 (10:32AM)
News Entry# 33089 How to Run a Profitable Metro System. Build It in Hong Kong.
Posted by: rdb*^ Added by: rdb*^ Aug 07 2011 (10:33AM)
I’ve been harping a long time on the idea that rail mass transit is hopelessly uneconomical as practiced in the United States. Projects are subject to massive capital cost overruns, and they exact a heavy toll from taxpayers to cover ongoing operating deficits. Some conclude from my withering criticism of the Rail-to-Dulles project that I am simply “anti-rail” or “anti-transit.” Nothing could be further from the truth. To the contrary, I believe that the only way to ignite a rail renaissance in this country is to find a business model that makes it profitable.Making mass transit the preserve of government is a sure-fire loser. Governments have so many stakeholders to satisfy, they don’t know how to run a profitable enterprise. Requiring mass transit to operate with a union workforce creates another drain on productivity and profitability. So does accepting money from the federal government, which imposes all manner of burdensome...