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> South Shore spur costs jump
Southsider2k12
post Jul 30 2009, 09:27 AM
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http://www.post-trib.com/news/1689607,nictd0729.article

QUOTE
South Shore to Lowell extension costs jump
* Population increase projections, CN purchase of EJ&E among factors.
Comments

July 29, 2009
By Charles M. Bartholomew, Post-Tribune correspondent

CHESTERTON -- A South Shore Railroad spokesman said Tuesday the proposed Westlake commuter service extension to Lowell still has a chance for federal funding, despite revised figures that show the project no longer meets cost-effectiveness guidelines.

"It's all preliminary. We're still within striking distance," said John Parsons, marketing and planning director for the Northern Indiana Commuter Transportation District.

His comment was prompted by early release of figures from the updating of a 2006 study by consultant STV of Chicago, showing the estimated cost of the line has risen from $551 million to $737.8 million, a 28.5 percent increase.

Parsons noted that inflation is not among the primary causes, which include higher population projections for the region in a 2008 study, Canadian National Railways' purchase of the Elgin, Joliet & Eastern line, and omission by STV of a key factor in the government's cost-effectiveness ratio.

"The suggested upper limit on that (ratio) number is 24.5. We were originally between 16 and 18 for the Lowell line. Now we're at 27 to 29," he said.

He said increases in the yearly capital costs and yearly operating costs combined to drive the ratio upward for several reasons.

"Our estimated ridership rose with the increased population figures, which by itself would lower the ratio, but it means the number of cars we will need for the new line is 32, up from 12, which means more capital and maintenance expense," he said.

He said a "light maintenance" facility in Lowell would also be needed to save the costs of sending the Westlake cars all the way to Michigan City for cleaning and washing.

"Then the CN bought the EJ&E, which crosses our line north of U.S. 30 in Dyer. We have to build a flyover (bridge) so that the increased traffic there doesn't disrupt our passenger service," he said.

He said increased ridership also means adding more parking spaces, especially at the stations along the new line.

And, Parsons said, when STV reran the numbers for 2009, it discovered that it had omitted $14.9 million in annualized operating costs from the 2006 cost effectiveness formula.

Finally, the ratio will be pushed still higher by the government practice of tacking on another 20 percent to 25 percent in contingency costs plus service fees, which apply to projects nationwide, he said.

"The key question for them is, 'Do you have the financial resources to adequately fund the project without jeopardizing existing service? The key will be local funding, which is why action by the General Assembly is so important," Parsons said.

He said STV has been told to go back over its figures and look for cost savings opportunities.
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