A recent study released by the Reason Foundation was critical of the projected economic impact of the proposed Kenosha-Racine-Milwaukee (KRM) commuter rail project would have on southeastern Wisconsin. A quick examination, however, demonstrates that the report's Los Angeles-based author didn't do sufficient research and has little understanding of our region or its needs.
Among other things, the foundation's report cast doubt upon the local capacity to produce rail cars for the proposed KRM project, suggesting little local positive economic impact. It went so far as to presume that "it would be fair to say that these vehicles will be manufactured by an established supplier that does not operate a major facility in the southeastern Wisconsin area."
While there are any number of inflated numbers and exaggerations that can be found in the report, I am most qualified to provide a response to this particular misrepresentation. As chairman of Super Steel Corp. in Milwaukee, I can tell you that my company has the capabilities to perform the work and produce the rail cars right here in southeastern Wisconsin and have been engaged in discussions with transportation planners about our desire to do so for years.
Headquartered in Milwaukee for over 80 years, our company builds and refurbishes passenger rail cars with just one of our Milwaukee facilities employing about 450 workers and the capacity to hold 25 complete passenger railroad cars.
We have completed over 400 cars for Metra and we are presently finishing new cars for the South Shore Rail Line that runs between South Bend and Chicago and our work on the proposed KRM project would undoubtedly stimulate the local economy and provide jobs here in southeastern Wisconsin.
In December, the City of Milwaukee's Community & Economic Development Committee approved a resolution to authorize a $200,000 forgivable loan from the 2008 Development Fund to support expanded production capacity for two Super Steel locations in Milwaukee. Our company continues to experience growth as regions throughout the country realize the benefits of rail transportation.
While our capabilities were left out of the findings of the Reason Foundation's report, Super Steel is well-positioned to benefit by expanded rail service in southeastern Wisconsin if projects such as the KRM move forward. Keep this significant oversight in mind when considering the credibility of the Reason Foundation report, and assume there other local suppliers, who could also contribute to increased local area economic activity, that were “overlooked.”
Fred Luber is chairman of Super Steel Corp. in Milwaukee.
13 Comments
Thank you Frank for seeing and pushing the vision of mass transit in the southeastern WI. As I continue to see disarray at the state and local levels regarding mass transit and only see ROAD projects in the future, I see Wisconsin going backwards. We talk about going GREEN yet we need to do something about it. We have the need and as you mentioned the resources. What does it take to make something happen in Wisconsin?
"As chairman of Super Steel Corp. in Milwaukee, I can tell you that my company has the capabilities to perform the work and produce the rail cars right here in southeastern Wisconsin and have been engaged in discussions with transportation planners about our desire to do so for years."
Is this about supporting mass transit and having an intelligent discussion on the region's needs and its ability to support KRM, or is it about Fred Luber's bottom line?
P. Ublius, I don't understand why it has to be one or the other. The whole purpose of expanded public transit is to create economic growth. That expansion won't happen if those that benefit economically from transit can't come together with those who seem to see transit as an end and not a means.
What no one seems to be discussing, certainly not advocates of KRM, is the time consumption of using the rail line for commuters that live and/or work further than one mile from said rail line.
How is this going to be resolved. When was the last time Linda Nikcevich or Nathaniel Holton walked a mile of more just to get to work or their respective homes? Take a look outside - who's going to schlep that distance in the dead of Wisconsin winter? Fred Luber? Fisk Johnson?
I agree with P. Ublius that Mr. Luber has a great argument on how to make money for Super Steel. That would be great if it wasn't coming as a result of what will become the largest public boondoggle in SE Wisconsin since the deep tunnel.
Show me anywhere that light rail is a self sufficient operation or where it has provided any kind of economic growth.
Fred, does Super Steel have the capability to produce premium busses? The idea of KRM can not come to fruition. The numbers, logistics and usability doom the KRM from the git go. However, Rapid Bus is viable, reasonable, flexible and above all doable very quickly. If you are positioned to construct premium busses, our communities should band together to start Rapid Bus asap.
"When was the last time Linda Nikcevich or Nathaniel Holton walked a mile of more just to get to work or their respective homes? Take a look outside - who's going to schlep that distance in the dead of Wisconsin winter? Fred Luber? Fisk Johnson?"
P. Ublius - I can't answer for them, but I can answer for myself. The last time I walked more than a mile to work was 8:10 am this morning. I can drive, or bus, or bike (in the summer), but I choose to walk, and have done so, rain or shine, 90 or -10 degrees, for the last 4 years. No, I'm not a college student, or a low-income household, but a professional, just like you.
Intelligent people think about transportation modes when they choose where to live. I chose a location that worked for me and my wife. I didn't want to have to drive all the time, wanted to be close to stores, restaurants, etc and wanted transit options. I am very effectively served by mass transit because I chose to be. In contrast, many are not served at all, (or only so marginally that it is not a viable means of transit) because they made that choice. You probably know what your transit option when you buy your house or rent your appt, even if you plan on driving most of the time. If you live in a subdivision, or own a lot larger than a ¼ acre, you probably will never be served effectively by transit.
Rail provides a permanent transportation infrastructure that will significantly impact future land use and real estate investment at its stops. It will increase density and value at those locations, increasing tax base and lowering local property taxes.
Driving works for you, walking works for me. People chose the mode that works best for them. You shouldn't discount rail just because you don't think it will serve you.
Oh and Dave Holzem, please show me an interstate that is self sufficient? None are, not even toll roads. I can show you several instances of light rail lines that were self sufficient, and even profitable. The only problem is the American auto industry, which is now failing, bought up and closed scores of profitable, private, light rail systems only to close them and monopolized the transportation market.
I once viewed public transit as a monetary sink-hole, but the self-sufficiency argument alone has changed my viewpoint. Roads and freeways are nearly 100% subsidized by the Federal government as a transportation option for citizens... unfortunately it still requires a $5,000+ buy-in to utilize it! Considering the wear-and-tear on our County roads (and the costs associated with their repair) rapid buses are not nearly as economical or environmentally friendly as one would believe.
To agree with Don Town, rail is an economic investment, not simply a solution to current traffic congestion. Instead of arguing that it doesn't fit the current situation, we should acknowledge that its presence changes the entire landscape of the community. Denver, New York City, Chicago, Portland, even St. Louis; all of these communities evolved (or are evolving) as a result of rail transit within them, with high-density (self-sustaining) housing developments near stations, more jobs migrating to their core downtown areas, and positive community change. Now, one could not remove these systems without their downtowns grinding to a halt.
Will it be profitable? Probably never. Will it prove to become essential? Certainly.
I walk much more than I drive, but that's beside the point. With the sorry state of the county bus system, too many people would have to walk too far to get to a rail line instead of being able to take a feeder bus. However, I have a feeling that that won't stop those who need public transit to get to work because they can't afford a car or don't have a driver's license. That's about half of the Milwaukee county bus ridership.
Jason- roads and freeways are paid for with gasoline taxes. These gas taxes are also used to subsidize mass transit. In Wisconsin, Jim Doyle raided supposed excess money in the gas tax/transportation fund to spend money on his master -the teacher's union. Also, when 99.9% of the population uses highways and freeways how is spending on them considered a subsidy even if the gas taxes would not cover their cost? Compare that to mass transit which is used by a very small slice of the population and subsidized to the hilt. As to traffic congestion- the Milwaukee metro area consistently has one of the lowest commute times in the country.
As to slow-coming train disaster known as KRM- I believe the subsidy for KRM will be approximately $20 per ride based on the proponents best estimates (anyone smell pork?). Have you seen where the train station is in Racine? It is approximately one mile away from downtown Racine and is in a rough neighborhood. The Milwaukee bus/train station is a good walk to most offices in downtown Milwaukee. It is fine to walk in the summer, but most people have a life and don't want to make their two-way work commute take two hours every day. As to Don Town- walk around downtown on these blustery, cold, global warming, winter days. The people outside are scurrying to the warmth of their building or car- you may need a law requiring them to be as enlightened as you.
Finally, comparing the Milwaukee metro area to Denver or Portland (why even comment about NYC or Chicago?) is not correct. Both have dynamic economies and have population growth well exceeding the near stagnant Milwaukee metro area. They also have not already cooked their taxpayers with obnoxiously high taxes. As to St. Louis- Go to St. Louis- the train isn't turning around St. Louis.
Bill, your comments seem to illustrate a very close-minded opinion on transportation, among other things. So if people use something its not a subsidy, but if you don't it is. Or did I miss something.
Also, get your facts right. About 25% of commuters in areas well served by transit use it. That's according to 2000 decennial census. Have you ever seen the 15 bus in Milwaukee? Nothing but suits in the morning going to work from Shorewood and Bayview. My guess is you chose to live were transit will never serve you.
Also, Milwaukee's population is growing. Downtown's pop has gone up 25% in the past 6 years. But I bet you knew that, having a life and all.
Don Town- you mean I'm close-minded if I don't want to throw hard-earned tax money down the drain? If that's the case, yeah I'm close-minded. Sorry Don Town that you can't understand that when a tax fully pays for the service, the service is not subsidized. Let me put it more simply, the riders of mass transit do not pay the full cost for mass transit (they are subsidized by the gas tax), whereas the users of our highways pay for the full cost of our highways via gasoline taxes, got it?
As to using general census data to support a single train line- that makes sense for someone as enlightened as you. I'm starting to understand your logic, if the 15 bus route gets heavy ridership, the KRM line must have heavy ridership. How did you do on your SAT test?
The City of Milwaukee's population is estimated by the State of Wisconsin Dept. of Administration to have declined by approx. 6,100 persons between 2000 and 2008. Milwaukee County population also declined.
http://www.doa.state.wi.us/subcategory.asp?linksubcatid=96&locid=9
Here's a question- how many people living in downtown Milwaukee commute to downtown Racine or Kenosha?
You guess wrong on where I live, but you are right on one thing- I have a life.
Anyone who wonders why transit has not moved in the Milwaukee area can read the discussion here and see why. We are all talking at each other and not with each other. Transit is not a magic potion, but it's certainly not an automatic waste of tax dollars either. If designed correctly, it can create economic growth and it can get people to jobs, which creates more economic growth as well as socioeconomic benefits. If rushed into without being thought out and justified, it can be a waste of money.
Milwaukee has problems that a transit system seen in the best light would have the potential to alleviate to a degree, doesn't it make sense to give it a very thorough look to get an informed view of what it would or would not do for our region?