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	<title>Comments on: Is the U.S. Ready for a Sustained High-Speed Rail Funding Source?</title>
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	<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/</link>
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		<title>By: jim</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42207</link>
		<dc:creator>jim</dc:creator>
		<pubDate>Tue, 27 Apr 2010 00:46:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42207</guid>
		<description>Woody,

I want to say one more thing about

&quot;I’m always suspicious of Amtrak forecasts where the default position is, ‘No, it will cost too much, and we will have to special order the new cars at a custom-made price.’&quot;

But it&#039;s true.  The proposed change &lt;i&gt;will&lt;i&gt; cost more money and &lt;i&gt;will&lt;/i&gt; require rolling stock Amtrak doesn&#039;t have.  It doesn&#039;t matter what the change is.  But for definiteness, look at URPA v. Amtrak on the Palmetto.  Amtrak knows, if not to the penny, certainly to the nearest ten dollars, how much such an extension will cost.  They know what extra crew will need to be hired and how much they&#039;d have to pay them; they know how much the host railroad will charge for trackage; they know how much extra diesel fuel their locomotives will consume; they know how much more frequently their rolling stock will go into maintenance.  URPA makes a wild-assed guess.  On ridership, Amtrak has a ridership model.  We can criticize their model -- I have.  But URPA has a wild-assed guess.  Just as with global warming, if we have to choose between the guy with the model and the guy with some vain hope, we&#039;ll go with the guy with the model every time.

Alon,

Re:  &quot;Amtrak refuses to admit the LD routes are money sinks.&quot;

I also read Robert Cruikshank&#039;s CAHSR blog.  I&#039;ve seen Alon comment there, too.  There&#039;s a frequent commenter who works for Amtrak.  I think he&#039;s a customer service guy in San Francisco.  He remarked the other day that there wasn&#039;t a European rail system ran a 2,000 mile long train route.  My reaction, I suspect Alon&#039;s, too, was that no European system would be that dumb.  But I didn&#039;t say so.  All the management books tell you that you should get your workforce to internalize the goals of the organization.  Here&#039;s an Amtrak guy proud of the California Zephyr, proud of being a part of an organization which operates such a train.  His management has done something right.  But that mentality runs up the organization, too.  I suspect that Joe Boardman is, to some extent, proud of running an organization which operates the California Zephyr, even as, with some other part of his mind, he realizes it&#039;s a lead weight tied to his feet.</description>
		<content:encoded><![CDATA[<p>Woody,</p>
<p>I want to say one more thing about</p>
<p>&#8220;I’m always suspicious of Amtrak forecasts where the default position is, ‘No, it will cost too much, and we will have to special order the new cars at a custom-made price.’&#8221;</p>
<p>But it&#8217;s true.  The proposed change <i>will</i><i> cost more money and </i><i>will</i> require rolling stock Amtrak doesn&#8217;t have.  It doesn&#8217;t matter what the change is.  But for definiteness, look at URPA v. Amtrak on the Palmetto.  Amtrak knows, if not to the penny, certainly to the nearest ten dollars, how much such an extension will cost.  They know what extra crew will need to be hired and how much they&#8217;d have to pay them; they know how much the host railroad will charge for trackage; they know how much extra diesel fuel their locomotives will consume; they know how much more frequently their rolling stock will go into maintenance.  URPA makes a wild-assed guess.  On ridership, Amtrak has a ridership model.  We can criticize their model &#8212; I have.  But URPA has a wild-assed guess.  Just as with global warming, if we have to choose between the guy with the model and the guy with some vain hope, we&#8217;ll go with the guy with the model every time.</p>
<p>Alon,</p>
<p>Re:  &#8220;Amtrak refuses to admit the LD routes are money sinks.&#8221;</p>
<p>I also read Robert Cruikshank&#8217;s CAHSR blog.  I&#8217;ve seen Alon comment there, too.  There&#8217;s a frequent commenter who works for Amtrak.  I think he&#8217;s a customer service guy in San Francisco.  He remarked the other day that there wasn&#8217;t a European rail system ran a 2,000 mile long train route.  My reaction, I suspect Alon&#8217;s, too, was that no European system would be that dumb.  But I didn&#8217;t say so.  All the management books tell you that you should get your workforce to internalize the goals of the organization.  Here&#8217;s an Amtrak guy proud of the California Zephyr, proud of being a part of an organization which operates such a train.  His management has done something right.  But that mentality runs up the organization, too.  I suspect that Joe Boardman is, to some extent, proud of running an organization which operates the California Zephyr, even as, with some other part of his mind, he realizes it&#8217;s a lead weight tied to his feet.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42201</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Mon, 26 Apr 2010 23:40:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42201</guid>
		<description>Woody, there&#039;s a difference between LD and the corridors they overlap. You could make an argument for a 2-hour takt on Houston-New Orleans or even Minneapolis-Fargo; this would have nothing to do with adding more trains through the mountains.</description>
		<content:encoded><![CDATA[<p>Woody, there&#8217;s a difference between LD and the corridors they overlap. You could make an argument for a 2-hour takt on Houston-New Orleans or even Minneapolis-Fargo; this would have nothing to do with adding more trains through the mountains.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42198</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Mon, 26 Apr 2010 23:38:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42198</guid>
		<description>I know what it&#039;s like at rush hour. I do use the station sometimes. It&#039;s about as crowded as the Singapore MRT stations on the shoulders of peak hour, in the reverse-peak direction. Compared with &lt;a href=&quot;http://en.wikipedia.org/wiki/People%27s_Square_%28Shanghai_Metro%29&quot; rel=&quot;nofollow&quot;&gt;genuine cases of overcrowding&lt;/a&gt;, Penn Station is about as bad as the V at 9 in the evening.</description>
		<content:encoded><![CDATA[<p>I know what it&#8217;s like at rush hour. I do use the station sometimes. It&#8217;s about as crowded as the Singapore MRT stations on the shoulders of peak hour, in the reverse-peak direction. Compared with <a href="http://en.wikipedia.org/wiki/People%27s_Square_%28Shanghai_Metro%29" rel="nofollow">genuine cases of overcrowding</a>, Penn Station is about as bad as the V at 9 in the evening.</p>
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		<title>By: Ocean Railroader</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42177</link>
		<dc:creator>Ocean Railroader</dc:creator>
		<pubDate>Mon, 26 Apr 2010 21:50:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42177</guid>
		<description>I think as gas prices begin to go though the next stage of going up from $3.00 a gallon to $4.00 and $5.00 Amtrak&#039;s ridership will keep growing beyond what we have seen or known today such as with it&#039;s ridership growing by the millons in the last five years. So Amtrak&#039;s ridership on it&#039;s cash cow routes could keep growing and be used to counter flood the money lossing routes in the next few years. 

The Pennsyvinia Railroad used to have a four track mainline from Philli to Pittsburg that was ripped down to two tracks so if we restored two sets of tracks we could have a set of passanger only tracks on it and chargo only tracks.</description>
		<content:encoded><![CDATA[<p>I think as gas prices begin to go though the next stage of going up from $3.00 a gallon to $4.00 and $5.00 Amtrak&#8217;s ridership will keep growing beyond what we have seen or known today such as with it&#8217;s ridership growing by the millons in the last five years. So Amtrak&#8217;s ridership on it&#8217;s cash cow routes could keep growing and be used to counter flood the money lossing routes in the next few years. </p>
<p>The Pennsyvinia Railroad used to have a four track mainline from Philli to Pittsburg that was ripped down to two tracks so if we restored two sets of tracks we could have a set of passanger only tracks on it and chargo only tracks.</p>
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		<title>By: jim</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42137</link>
		<dc:creator>jim</dc:creator>
		<pubDate>Mon, 26 Apr 2010 18:15:23 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42137</guid>
		<description>Amtrak defines various levels of costs:  there&#039;s what it calls FRA defined costs -- the cost of actually running a train; the money that you&#039;d save if you canceled just that route; crew salaries, trackage fees, power/diesel consumed, maintenance costs on the trainsets used on the route -- there&#039;s other direct costs, allocated across the route system -- expenses that would still be there if you canceled a route; the fixed costs of running a railroad; yard ops, station operation and maintenance, reservation system etc. -- and finally there&#039;s the management overhead allocated across routes -- managers, lawyers, offices etc..

Every long distance route except the Auto Train brings in less money than its FRA defined costs.  FRA defined costs are what would double if Amtrak ran a second frequency.  FRA defined costs are what would increase if Amtrak extended a route.  There&#039;s no reason to believe that a second frequency would bring in more money than the first -- the law of diminishing returns would set in.  There&#039;s no reason to believe that the stretch that Amtrak isn&#039;t servicing today would bring in more money relative to the costs of servicing it than the stretch that Amtrak is servicing.  (And if I have to either believe Amtrak or URPA, I&#039;ll go with Amtrak every time.)

Yes.  Long distance trains are corridors set end to end or overlapping.  But they&#039;re lousy corridors.  They&#039;re corridors with few and small cities set too far apart.  Add to that that long distance trains are much more subject to delay than corridor trains, so are less likely to attract riders.  So they&#039;re the wrong modality running along the wrong corridors.

How much do they lose?  In FY2009, the 15 long distance trains lost $558.8M.  Amtrak had a total loss on running trains of $776.3M.  That is, they were responsible for 72% of Amtrak&#039;s operational losses.  By comparison Amtrak&#039;s debt service that FY was $108.8M.

By contrast to, say, the subsidies to &quot;essential air services,&quot; these losses are relatively small.  But they are very damaging both to Amtrak and to the notion of rail service in general.  They enable the attack line that Amtrak passengers are subsidized $50 per ticket.</description>
		<content:encoded><![CDATA[<p>Amtrak defines various levels of costs:  there&#8217;s what it calls FRA defined costs &#8212; the cost of actually running a train; the money that you&#8217;d save if you canceled just that route; crew salaries, trackage fees, power/diesel consumed, maintenance costs on the trainsets used on the route &#8212; there&#8217;s other direct costs, allocated across the route system &#8212; expenses that would still be there if you canceled a route; the fixed costs of running a railroad; yard ops, station operation and maintenance, reservation system etc. &#8212; and finally there&#8217;s the management overhead allocated across routes &#8212; managers, lawyers, offices etc..</p>
<p>Every long distance route except the Auto Train brings in less money than its FRA defined costs.  FRA defined costs are what would double if Amtrak ran a second frequency.  FRA defined costs are what would increase if Amtrak extended a route.  There&#8217;s no reason to believe that a second frequency would bring in more money than the first &#8212; the law of diminishing returns would set in.  There&#8217;s no reason to believe that the stretch that Amtrak isn&#8217;t servicing today would bring in more money relative to the costs of servicing it than the stretch that Amtrak is servicing.  (And if I have to either believe Amtrak or URPA, I&#8217;ll go with Amtrak every time.)</p>
<p>Yes.  Long distance trains are corridors set end to end or overlapping.  But they&#8217;re lousy corridors.  They&#8217;re corridors with few and small cities set too far apart.  Add to that that long distance trains are much more subject to delay than corridor trains, so are less likely to attract riders.  So they&#8217;re the wrong modality running along the wrong corridors.</p>
<p>How much do they lose?  In FY2009, the 15 long distance trains lost $558.8M.  Amtrak had a total loss on running trains of $776.3M.  That is, they were responsible for 72% of Amtrak&#8217;s operational losses.  By comparison Amtrak&#8217;s debt service that FY was $108.8M.</p>
<p>By contrast to, say, the subsidies to &#8220;essential air services,&#8221; these losses are relatively small.  But they are very damaging both to Amtrak and to the notion of rail service in general.  They enable the attack line that Amtrak passengers are subsidized $50 per ticket.</p>
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		<title>By: Woody</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42107</link>
		<dc:creator>Woody</dc:creator>
		<pubDate>Mon, 26 Apr 2010 14:51:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42107</guid>
		<description>Jim -- A dismaying set of assertions indeed: &quot;The problem with the long distance routes is their direct incremental costs are greater than their revenue. Adding frequencies loses more money. Adding routes loses more money. Extending routes loses more money. And the proposals involve using more rolling stock.&quot;

But I&#039;m surprised to think that we have many real world tests of Amtrak adding frequencies to LD trains or of extending routes. I can see that adding routes costs more money and require more rolling stock. But are there many examples in Amtrak&#039;s history of adding frequencies or routes?

btw Your friends at URPA raised a big stink over the Palmetto ending at Savannah, instead of extending to the much larger metro of Jacksonville, with a promised connection to the Sunset Limited or it successors. URPA claimed Amtrak&#039;s traffic forecasts for that extension estimated additional riders to/from Jacksonville and intermediate points to/from Savannah, but did not add any revenue for passengers coming from or going beyond points north of Savannah! Whether that is true or not, I&#039;m always suspicious of Amtrak forecasts where the default position is, &#039;No, it will cost too much, and we will have to special order the new cars at a custom-made price.&#039;

And how much do the LD routes lose anyway? I had a notion that the total was $300 or $400 million -- compared to debt service in the same range. Another comparable is the Highway Trust Fund, roughly 100 times as much each year, so I have a hunch that repaving alone costs much more than subsidizing the LD trains.

Nathanael makes the point that LD trains NYC-Chi are really attractive corridors set end to end. But actually, ALL the LD trains are corridors set end to end, some not strong corridors, and many served only in the dark. Amtrak&#039;s ridership figures for the LD lines shows that usually only 10 or 15% of the passengers ride end to end, e.g. New Orleans to L.A. But even that route has corridors, N&#039;awlins to Lafayette overlapped by N&#039;awlins-Houston, Houston-San Antonio, Tucson-Phoenix (potentially), Palm Springs-L.A. Sure, San Antonio-El Paso takes a full day to pass through rugged West Texas scenery and then El Paso-Tucson is desert emptiness again. But with 3 trains a week, and stops in the gloom of night, not even Houston-San Antonio can generate corridor traffic.</description>
		<content:encoded><![CDATA[<p>Jim &#8212; A dismaying set of assertions indeed: &#8220;The problem with the long distance routes is their direct incremental costs are greater than their revenue. Adding frequencies loses more money. Adding routes loses more money. Extending routes loses more money. And the proposals involve using more rolling stock.&#8221;</p>
<p>But I&#8217;m surprised to think that we have many real world tests of Amtrak adding frequencies to LD trains or of extending routes. I can see that adding routes costs more money and require more rolling stock. But are there many examples in Amtrak&#8217;s history of adding frequencies or routes?</p>
<p>btw Your friends at URPA raised a big stink over the Palmetto ending at Savannah, instead of extending to the much larger metro of Jacksonville, with a promised connection to the Sunset Limited or it successors. URPA claimed Amtrak&#8217;s traffic forecasts for that extension estimated additional riders to/from Jacksonville and intermediate points to/from Savannah, but did not add any revenue for passengers coming from or going beyond points north of Savannah! Whether that is true or not, I&#8217;m always suspicious of Amtrak forecasts where the default position is, &#8216;No, it will cost too much, and we will have to special order the new cars at a custom-made price.&#8217;</p>
<p>And how much do the LD routes lose anyway? I had a notion that the total was $300 or $400 million &#8212; compared to debt service in the same range. Another comparable is the Highway Trust Fund, roughly 100 times as much each year, so I have a hunch that repaving alone costs much more than subsidizing the LD trains.</p>
<p>Nathanael makes the point that LD trains NYC-Chi are really attractive corridors set end to end. But actually, ALL the LD trains are corridors set end to end, some not strong corridors, and many served only in the dark. Amtrak&#8217;s ridership figures for the LD lines shows that usually only 10 or 15% of the passengers ride end to end, e.g. New Orleans to L.A. But even that route has corridors, N&#8217;awlins to Lafayette overlapped by N&#8217;awlins-Houston, Houston-San Antonio, Tucson-Phoenix (potentially), Palm Springs-L.A. Sure, San Antonio-El Paso takes a full day to pass through rugged West Texas scenery and then El Paso-Tucson is desert emptiness again. But with 3 trains a week, and stops in the gloom of night, not even Houston-San Antonio can generate corridor traffic.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42068</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Mon, 26 Apr 2010 10:09:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42068</guid>
		<description>First, nobody builds four-track high-speed lines. And second, the investment in an NY-Chicago high-speed line would be about $30 billion, on the low side (only in countries with very competent contractors, like Norway). On the high side (more likely in the US), make it $60 billion. No private consortium has this amount of money.

Government can be remarkably competent, in countries that don&#039;t let private consultants run everything.</description>
		<content:encoded><![CDATA[<p>First, nobody builds four-track high-speed lines. And second, the investment in an NY-Chicago high-speed line would be about $30 billion, on the low side (only in countries with very competent contractors, like Norway). On the high side (more likely in the US), make it $60 billion. No private consortium has this amount of money.</p>
<p>Government can be remarkably competent, in countries that don&#8217;t let private consultants run everything.</p>
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		<title>By: Privatize It</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-42042</link>
		<dc:creator>Privatize It</dc:creator>
		<pubDate>Mon, 26 Apr 2010 07:54:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-42042</guid>
		<description>Why not allow for private development of a NY-Chicago HSR line? 4-track, multi-modal, 200 mph, for passenger and freight.  Stop only at MAJOR cities (NYC, Philly, Pittsburg, Chicago).  Make it a prize! Set up proving routes (say, intercity 200 mile segments), use off-the-shelf trainsets (from Europe or Japan), and let the winner (fastest build time, fastest travel time, lowest cost) have rights to the whole route.  Federal government is broke/slow/incompetent.  Private enterprise can make money off freight/passengers/rail sidings/real estate, and will do so if encouraged. Oh, and stop subsidizing auto transport...that should help level the playing field.</description>
		<content:encoded><![CDATA[<p>Why not allow for private development of a NY-Chicago HSR line? 4-track, multi-modal, 200 mph, for passenger and freight.  Stop only at MAJOR cities (NYC, Philly, Pittsburg, Chicago).  Make it a prize! Set up proving routes (say, intercity 200 mile segments), use off-the-shelf trainsets (from Europe or Japan), and let the winner (fastest build time, fastest travel time, lowest cost) have rights to the whole route.  Federal government is broke/slow/incompetent.  Private enterprise can make money off freight/passengers/rail sidings/real estate, and will do so if encouraged. Oh, and stop subsidizing auto transport&#8230;that should help level the playing field.</p>
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		<title>By: Adirondacker12800</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-41702</link>
		<dc:creator>Adirondacker12800</dc:creator>
		<pubDate>Sat, 24 Apr 2010 05:03:30 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-41702</guid>
		<description>&lt;em&gt;It’s not overrun with pedestrians.&lt;/em&gt;

You really have to climb down out of your ivory tower some time, get on the subway at 4:30 in the afternoon and see what it&#039;s like at rush hour. Get off at Times Square and walk down. Observe the pedestrians walking in the automobile lanes on 7th Ave because there&#039;s no room for them on the sidewalk. Experience the pure joy of using one of the entrances. Or even better, try to get of the station at 5:15. Get on an express to Ronkonkama or Dover and stand until you are almost there. 

...concessions.. those pesky passengers again, eating, drinking, buying newspapers, magazines etc. Impertinent to unreasonably expect that they might be able to do that while, I know this might seem outrageous, in the station.</description>
		<content:encoded><![CDATA[<p><em>It’s not overrun with pedestrians.</em></p>
<p>You really have to climb down out of your ivory tower some time, get on the subway at 4:30 in the afternoon and see what it&#8217;s like at rush hour. Get off at Times Square and walk down. Observe the pedestrians walking in the automobile lanes on 7th Ave because there&#8217;s no room for them on the sidewalk. Experience the pure joy of using one of the entrances. Or even better, try to get of the station at 5:15. Get on an express to Ronkonkama or Dover and stand until you are almost there. </p>
<p>&#8230;concessions.. those pesky passengers again, eating, drinking, buying newspapers, magazines etc. Impertinent to unreasonably expect that they might be able to do that while, I know this might seem outrageous, in the station.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.thetransportpolitic.com/2010/04/19/is-the-u-s-ready-for-a-sustained-high-speed-rail-funding-source/#comment-41699</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Sat, 24 Apr 2010 04:39:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetransportpolitic.com/?p=6647#comment-41699</guid>
		<description>It&#039;s not overrun with pedestrians. By the standards of Gare du Nord or Tokyo Station, it&#039;s not that crowded. Remember how half of the lower concourse is used for back offices and concessions? There&#039;s your problem. (But... but... Amtrak must place back offices right where all the passengers are! It can&#039;t possibly move the back offices without moving the entire station! And let&#039;s name something after Moynihan!)</description>
		<content:encoded><![CDATA[<p>It&#8217;s not overrun with pedestrians. By the standards of Gare du Nord or Tokyo Station, it&#8217;s not that crowded. Remember how half of the lower concourse is used for back offices and concessions? There&#8217;s your problem. (But&#8230; but&#8230; Amtrak must place back offices right where all the passengers are! It can&#8217;t possibly move the back offices without moving the entire station! And let&#8217;s name something after Moynihan!)</p>
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