Quotulatiousness

February 6, 2013

Why does every infrastructure project cost more?

Filed under: Bureaucracy, Government, USA — Tags: , , , , — Nicholas @ 00:01

In his nominally NFL-related column, Gregg Easterbrook usually manages to insert interesting topics that are not in the least related to football:

Where Is the Bridge to Nowhere When You Really Need It? Another reason unprecedented increase in the national debt is not resulting in newly built infrastructure to help the economy grow is that government projects keep taking longer and costing more. Two years ago on Reuters, your columnist opined, “A combination of top-heavy bureaucracy, union rules, cost-plus profits and graft have made recent federally funded construction projects insanely expensive and slow. When the funding comes from borrowing by Washington, then businesses, unions and local petty officials have a self-interest in running up the cost while dragging their feet.”

That column ended by noting the slow pace and cost overruns in plans to replace the Tappan Zee Bridge on the Hudson River north of New York City.

Now two years have passed, and guess what’s happened to the Tappan Zee Bridge replacement project? It’s no closer to beginning. New York Magazine reports that $88 million has been spent just to study a bridge replacement — not for architecture drawings, just study. The original Tappan Zee Bridge, completed in 1955, cost $675 million in today’s dollars and required three years to complete. New York State officials are saying the replacement will cost at least $3 billion and take five years to build. New York Magazine warns the price is lowballing for an expected cost much higher.

New York is demanding that the federal government fund most of the new bridge. Borrowed funny-money would be used; contractors and unions would have every incentive to drag their feet, running up the bill, while corrupt politicians would want the project to last as long as possible, so there was more funny-money to steal.

Meanwhile the existing Tappan Zee Bridge continues to crumble and nothing’s being done. At the current snail’s pace, a new bridge is many years away. What if the existing bridge collapses? Politicians will claim they were never warned, just as they claimed they were never warned before storm surge from Hurricane Sandy smashed up lower Manhattan, Long Island and Hoboken, N.J. Running up the national debt is bad enough; not building what the country needs is even worse. But politicians observe that behaving recklessly, then blaming others, is what advances their careers. Barack Obama acted recklessly with the nation’s finances, and was re-elected. Chris Christie did nothing to prepare New Jersey’s low-lying city from storm surge, then blamed others, and made the cover of Time magazine. Where is the political leader who will place acting responsibly ahead of self-promotion?

January 29, 2013

Economic analysis of Imperial Rome

Filed under: Economics, Europe, History — Tags: , , , , , — Nicholas @ 09:43

A post by Jasmine Pui at History Today discusses a new online tool for economic analysis of the Roman Empire:

Sea routes in July AD 200

A recently launched online interactive research source, ORBIS, the Stanford Geospatial Network Model of the Roman World, has made it possible to analyse data about the Roman Empire in new ways that reveal the fragility of Roman communication and freight systems. Conventional maps are often unable to capture the environmental constraints that govern the flows of people, goods and information. Museum and ancient sites usually include titbits of information about the wide-ranging origins of artefacts, hinting at the relative cost of goods and labour in the Roman era, but factors such as sailing times and inland routes for freight cannot be precisely revealed through archaeological finds, Roman coins, taxation records or riot reports.

The first resource of its kind, ORBIS offers comprehensive graphic tools to portray the transport and communication infrastructure that underpinned the Roman Empire’s existence. By typing in a starting point, destination, an imagined weight of goods to transport and the time of year, the site shows whether such a movement would have been feasible and at what cost. Studying movement during the course of the empire’s existence suggests it was far more difficult to hold an empire together than to expand one. There are few scenarios where marching and conquering is not easier and less costly than moving goods and slaves between regions. Cost, rather than distance, was the principal determinant of connectivity in the Roman world.

ORBIS is based on a simplified version of the giant network of cities, roads, rivers and sea lanes that framed movement across the Roman Empire. The Stanford team has relied on data such as historical tide and weather information, size and grade of road surfaces and an average walking distance of 30 kilometres per day. Hundreds of cities, ports and routes, vehicle speeds for ships, ox carts and horses, as well as the variable cost of transport have been logged. The data mainly focuses on the period around AD 200, when Septimius Severus expanded control of Africa and Roman power was at one of its peaks.

January 28, 2013

India’s Chinese border to be reinforced

Filed under: China, Economics, India, Military — Tags: , , — Nicholas @ 09:43

Strategy Page on the Indian government’s planned upgrades along the shared border with China:

The Indian Army wants $3.5 billion in order to create three more brigades (two infantry and one armored) to defend the Chinese border. Actually, this new force is in addition to the new mountain corps (of 80,000 troops) nearing approval (at a cost of $11.5 billion). The mountain corps is to be complete in four years. The three proposed brigades would be ready in 4-5 years. By the end of the decade India will have spent nearly five billion dollars on new roads, rail lines and air fields near the 4,057 kilometer long Chinese border.

The Indian Army currently has 37 Divisions including; 4 RAPID (Reorganised Army Plains Infantry Divisions) Action Divisions, 18 Infantry Divisions, 10 Mountain Divisions, 3 Armored Divisions and 2 Artillery Divisions. There are also 12 independent combat brigades (five armor and seven mechanized infantry). Most of the army has been organized and trained to fight the Pakistani army in flat terrain. The Chinese border is largely mountainous.

Three years ago India quietly built and put into service an airfield for transports in the north (Uttarakhand) near their border with China. While the airfield can also be used to bring in urgently needed supplies for local civilians during those months when snow blocks the few roads, it is mainly there for military purposes in case China invades again. Uttarakhand is near Kashmir, and a 38,000 square kilometer chunk of land that China seized after a brief war with India in 1962. This airfield and several similar projects along the Chinese border are all about growing fears of continued Chinese claims on Indian territory. India is alarmed at increasing strident Chinese insistence that is owns northeastern Indian state of Arunachal Pradesh. This has led to an increased movement of Indian military forces to that remote area.

India quickly discovered that a buildup in these remote areas is easier said than done. Moreover, the Indians found that they were far behind Chinese efforts. When they took a closer look three years ago, Indian staff officers discovered that China had improved its road network along most of their 4,000 kilometer common border. Indian military planners calculated that, as a result of this network, Chinese military units could move 400 kilometers a day on hard surfaced roads, while Indian units could only move half as fast, while suffering more vehicle damage because of the many unpaved roads.

November 23, 2012

The bridge that eats trucks

Filed under: Railways, Randomness, USA — Tags: , — Nicholas @ 09:38

It’s a bridge so fearsome that it has its own website for breathtaking footage of trucks coming to grief at 11’8″:

If you’re paying attention this week when you drive that tall truck down South Gregson Street, you’ll get fair warning about the low bridge ahead.

A series of yellow diamond signs, starting a block in advance, will tell you about the 11-foot, 8-inch clearance.

Then the yellow lights will go crazy, the ones with an overhead sign that says: OVERHEIGHT WHEN FLASHING.

You’ll have one last chance to escape disaster. You can turn onto Peabody Street, just before Gregson runs beneath the railroad bridge that carries freight and passenger trains across downtown Durham.

But if you’re not paying attention — you dummy! — you’ll make plenty of noise as you crash into that low bridge. It will peel the roof off your moving van. It will scatter the hay bales or building supplies stacked much too high on your flatbed.

It might leave your box truck wedged beneath the overpass. The tow-truck driver will have to deflate your tires before he can haul your sorry self away.

You can watch a collection of truck decapitation clips here: http://11foot8.com/

October 25, 2012

A contrarian view of the proposed Detroit-Windsor bridge

Filed under: Cancon, Government, Liberty, USA — Tags: , , , , — Nicholas @ 10:02

Terence Corcoran points out that the proposed new bridge connecting Detroit and Windsor is not quite the simple story of Canadian generosity to cash-strapped Michigan:

In this view, Mr. Harper as Captain Canada had vanquished not only the state of Michigan and its governor, Rick Snyder. He had also declared war on the real battle target, the private corporation that controls the other Detroit-to-Windsor crossing, the Ambassador Bridge owned and controlled by the Moroun family, headed by 83-year-old billionaire Manuel Moroun.

Mr. Moroun, whose family has owned the bridge since the late 1970s — maintaining it and collecting all tolls — is portrayed as an influence-buying Tea Party capitalist who seeks tax breaks to prosper, a monopolist who wants to keep out competition, a symbol of all that is wrong with America’s special-interest dominated governments. Mr. Harper and Canada stand as principled, influence-free promoters of international trade, commerce and the public good.

It takes a lot of ideological twisting to reach that conclusion, especially for Conservatives who portray Mr. Harper as the economic good guy — despite all evidence to the contrary that Mr. Harper is the heavy-handed statist attempting to cripple a private entrepreneur. What Mr. Harper is really doing is using government power to do what Canadian governments have wanted to do for at least five decades: thwart the private ownership — and if possible take control — of the Ambassador Bridge.

[. . .]

So Mr. Harper, by moving in to fund a competing bridge using taxpayers’ dollars, is re-enacting the Trudeau policy, using more direct methods. Ottawa will pay to build a second bridge, potentially driving the Moroun family out of business.

Being a billionaire, Manuel Moroun isn’t a sympathetic figure. He is described, among other things, as being a fake capitalist, a rent-seeking monopolist who does not want to face competition. It’s a charge that belittles Mr. Moroun and elevates the dubious intentions of the government. When a foreign national government shows up on your door, with the support of the governor of your state and likely the president of the United States, to announce that “We’re from the government and were here to compete with you,” Mr. Moroun has good reason to run to the courts and the political process.

For doing so, Mr. Moroun has been described as litigious, a wealthy manipulator and a purchaser of political favours. When it comes to manipulation, however, it’s hard to beat Ottawa and the massed forces of special-interest industries, unions and government bureaucrats who have joined to promote and build a new bridge at government expense.

October 24, 2012

Persuading Michigan voters to refuse a new free bridge to Canada

Filed under: Cancon, Politics, USA — Tags: , , , , , , , — Nicholas @ 10:05

The announcement back in June must have appeared too good to be true: a new bridge between Detroit, Michigan and Windsor, Ontario to be completely funded by Canada. Michigan voters are being urged to refuse the deal:

Canada, understand, has agreed to pay for the bridge in full, including liabilities — and potential cost overruns — under an agreement that was about a decade-in-the-making and officially announced to much fanfare, at least on the Canadian side of the border, by Prime Minister Stephen Harper and Michigan Governor Rick Snyder in Windsor/Detroit in mid-June.

For Michigan, it is a slam-dunk arrangement. As Mr. Norton told one audience: ‘‘If this proves to be a dumb financial decision, it’s on us, not on you.’’

It’s a free bridge, a vital new piece of publicly owned infrastructure — for both countries — and yet one that is in grave danger of being demolished before construction even begins when Michigan voters head to the polls for a ballot initiative attached to the Nov. 6 elections.

[. . .]

Manuel (Matty) Moroun, an 85-year-old self-made billionaire who owns the 83-year-old Ambassador Bridge, is Cynic-in-Chief. The Ambassador is currently the only transport truck-bearing bridge in town. Twenty-five percent of Canadian-American trade, representing about $120-billion, flows across it each year.

It is a perfect monopoly for the Moroun family, a golden goose that just keeps on laying eggs, putting upwards of $80-million a year in tolls, duty free gas and shopping sales in their pockets. Allowing a Canadian-financed competitor into the ring without a fight isn’t an option.

August 13, 2012

Did China peak in 2008?

Filed under: China, Economics, Environment — Tags: , , , , , , — Nicholas @ 07:53

Walter Russell Mead wonders if the Chinese economy actually hit its peak in 2008 and will not be able to get back to that level of performance:

According to The Diplomat, the long term outlook is even more depressing. China will have to confront a series of structural challenges if it is to continue to achieve the kind of dynamic growth that lifted the country from economic backwater to emerging great power in just three decades.

The most obvious challenge is demographics. A RAND study observed that the proportion of the Chinese population of working age peaked in 2011 and began slowing this year. The share of the elderly population is rising. Healthcare and pension costs will soar as a result. So will labor costs. Investment and savings will diminish. In short, China may face the prospect, unknown in human history, of growing old before it gets rich.

The environment presents another dilemma. Like many rapidly industrializing economies, China sacrificed environmental protection at the altar of economic growth. But the effects of this approach have taken a toll: already, argues The Diplomat, ”Water and air pollution today cause 750,000 premature deaths and around 8 percent of GDP.” And as Via Meadia recently pointed out, the political costs of this approach are starting to mount as well. An outbreak of NIMBYism has forced many local officials to cancel major industrial projects as ordinary Chinese citizens demand an end to environmentally unsound development.

Of greater concern is that China has backed away from market reforms in the last decade and embraced a version of “state capitalism” that emphasizes the state far more than it does capitalism. But as state-run entities have become more powerful, their political backers — and financial beneficiaries — have an even greater stake in blocking attempts at reform.

H/T to Jon, my former virtual landlord, for the link.

August 6, 2012

India’s blackouts are a sign that reform is desperately needed

Filed under: Economics, India — Tags: , , , , — Nicholas @ 10:20

The Economist on the massive blackouts in India recently:

FOR an aspiring economic superpower, there can be few more chastening events than electricity cuts as massive as those that struck northern and eastern India this week. An area (including the capital, Delhi) in which more than 600m people live faced blackouts over two days. Infrastructure, from traffic lights to trains, stopped working. Hospitals, sanitation plants and offices ground to a halt. Airports and factories had to rely on backup generators, often fuelled by truckloads of diesel.

The impact on India’s economy goes far beyond lost output. The blackout will badly damage the country’s reputation, and highlights the rotten infrastructure that is hobbling its efforts to catch up with China.

[. . .]

At one end, not enough cheap coal is being dug up and gasfields are sputtering. At the other, the national transmission grid needs investment. Meanwhile the “last mile” distribution companies, largely state-owned, that buy power and deliver it to homes and firms, are financial zombies. Much of their power is pinched or given away free. Local politicians put pressure on them to keep tariffs low, which leads to huge losses. Squeezed between a shortage of fuel and end-customers who are nearly bust, those private generating firms are now cutting back on vital long-term investment in new plants.

[. . .]

The solution is to cut graft, tackle vested interests and allow markets to work better. The coal monopoly needs to be broken up and local distribution firms privatised. Yet despite the looming crisis, for a decade the government has shirked doing what is clearly necessary, just as it has failed to implement key tax reforms, cut public borrowing or open the retail sector to competition. It has allowed corruption and red tape to damage other vital industries, such as telecoms.

July 13, 2012

The only long-term answer to road congestion: real-time tolls

Filed under: Cancon, Economics, Politics, Technology, USA — Tags: , , — Nicholas @ 00:04

I know, I know … I hate paying road tolls as much as the next driver. But the current road pricing scheme is broken and getting broken-er. Andrew Coyne points out the unpleasant realities:

… the demand for road use — traffic — is not a fixed quantity. Like anything else, it fluctuates with the price. And the price to use the roads, under present policies, is denominated in time: that is, by how long people are prepared to stew in traffic. This is, when you think about it, perverse. The people who get first claim on the roads are the ones who put the lowest value on their time. Or in other words, the people who need them the least.

That’s why analysts have long recommended pricing roads in more conventional terms, i.e. dollars and cents. But there are lots of ways of getting even this wrong, so we need to eliminate a couple more alternatives, such as:

More taxes. Many people’s first response to the notion of pricing roads is to say “but I already pay a gas tax.” The more knowledgeable will point to statistics showing that revenues from gas taxes more than pay for the cost of building and maintaining the roads.

But these are far from the only costs at issue, or even the most important. As far as congestion is concerned the cost that matters is not the cost of building the road, but the cost of using it. Every time you use the road, you impose a cost on other drivers, so far as you make the roads that much more crowded — as they, of course, do you. Add up those costs over millions of drivers every day — costs measured not only in delays, but in more collisions, more wear and tear, more pollution, and so on — and we are well into the billions, according to several estimates.

[. . .]

What’s really needed, then, is a more comprehensive approach. With modern technology, there’s no reason to toll only some roads and not others. Using GPS-style in-car transponders and satellites, it’s now possible to charge drivers to use the roads generally, with the highest charges applying in downtown centres and at rush-hour — just as you pay a higher charge to use your cellphone depending on the location and time of day. You’d even get a monthly bill in the mail.

Far-fetched? Britain and the Netherlands have each been on the verge of adopting similar schemes in recent years. That each backed down in the end tells you something of the political sensitivities involved: It’s always hard to get people to pay for things they are used to getting for free. But the roads aren’t free. We’re paying more and more to use them every year.

Pay in congestion, in time and noise and aggravation — or pay by credit card. Once you think of it that way, the choice should be easy.

July 8, 2012

Economic land mines laid by Blair and Brown’s governments exploding now

Filed under: Britain, Economics, Government — Tags: , , , , , — Nicholas @ 10:34

At The Commentator, John Phelan wonders if it’s now time for “an economic Nuremburg” for the 1997-2010 British governments of Tony Blair and Gordon Brown:

Like an iceberg, the extent of the damage wrought by the last Labour government is still becoming apparent.

One of the wheezes Labour used to camouflage its vast spending spree was the Private Finance Initiative. These had been brought in by John Major’s Conservatives (to criticism from the then Labour opposition) and involved a private sector entity building something and then selling it or leasing back to the government over a number of years, usually decades.

Upon winning the election in 1997 however, Labour performed a volte face and embraced PFIs. They appealed to Gordon Brown because the liabilities taken on under PFIs would not show up on the government’s balance sheet. In other words, they wouldn’t be included in the national debt figure.

Labour signed up to an estimated £229 billion of PFI projects. That’s almost two and a half times the entire projected budget deficit for 2012 – 2013, or 16 percent of GDP.

[. . .]

Indeed, like the cat who leaves little ‘presents’ around the house for you to discover when you return from holiday, the Labour government of 1997 to 2010 is the gift that keeps on crapping on your carpet. We will be discovering fiscal turds left by Labour for literally decades to come.

If you were being charitable you would ascribe the fiscal incontinence of the Blair/Brown governments to some sort of Keynesian economic theory, though that fails to explain why they applied fiscal ‘stimulus’ for seven years to an already growing economy.

If you were being slightly less charitable you might ascribe it to incompetence of a quite staggering degree. The last Labour government, after all, were probably the biggest set of mediocre idiots ever to govern this country.

And, if you were being even less charitable, you might ascribe it to something more sinister – Brown poisoning the wells when he heard opposition tanks at the end of his strasse.

July 2, 2012

Alex Tabarrok on the slow rail and infrastructure bottleneck

Filed under: Bureaucracy, Economics, Government, Railways, USA — Tags: , , , , , , — Nicholas @ 10:58

Writing at Marginal Revolution, Alex Tabarrok wonders “Why haven’t the $500 bills been picked up?”:

High speed rail, especially California’s project, looks to me to be monorail economics, a costly boondoggle whose appeal lies not in rational calculation […] but in the desire of some politicians (and voters) to feel visionary and sexy. In theory, CA HSR might work but the inevitable reviews, delays, lawsuits and special interest payoffs make the prospects of a beneficial project look dim, demosclerosis kills.

Slow speed rail, however, i.e. freight transport, isn’t sexy but Warren Buffett is investing in rail and maybe we should as well. In particular, there are basic infrastructure projects with potentially high payoffs. Congestion in Chicago, for example, is so bad that freight passing through Chicago often slows down to less than the pace of an electric wheel chair. Improvements are sometimes as simple as replacing 19th century technology with 20th century (not even 21st century!) technology. Even today, for example:

    …engineers at some points have to get out of their cabins, walk the length of the train back to the switch — a mile or more — operate the switch, and then trudge back to their place at the head of the train before setting out again.

In a useful article Phillip Longman points out that there are choke points on the Eastern Seaboard which severely reduce the potential for rail:

    …railroads can capture only 2 percent of the container traffic traveling up and down the eastern seaboard because of obscure choke points, such as the Howard Street Tunnel in downtown Baltimore. The tunnel is too small to allow double-stack container trains through, and so antiquated it’s been listed on the National Register of Historic Places since 1973. When it shut down in 2001 due to a fire, trains had to divert as far as Cincinnati to get around it. Owner CSX has big plans for capturing more truck traffic from I-95, and for creating room for more passenger trains as well, but can’t do any of this until it finds the financing to fix or bypass this tunnel and make other infrastructure improvements down the line.

July 1, 2012

“Canada was born in debt”

Filed under: Cancon, Economics, Government, History, Railways — Tags: , , — Nicholas @ 11:08

At the Worthwhile Canadian Initiative blog, Livio Di Matteo explains one of the less mentioned but urgent reasons behind confederation in 1867:

The trials and tribulations of the European Union, its debt crisis and the Euro and the suggestion that part of the solution lies in a stronger fiscal union reminds me of the forces behind the drive for Canadian confederation in the mid-nineteenth century. Canadians are usually taught in school that major forces driving Confederation were the potential threat of territorial aggrandizement by the United States in the wake of the Civil War or the need for a larger market given Britain’s move to free trade and the end of Reciprocity with the Americans or the desire to generate the economic resources to build a railway to the west so that it could serve as an investment frontier.

One factor that receives very little mention is the fact that the prior to 1867 the colonies of British North America were heavily in debt and faced a fiscal crisis of their own. The solution to the colonial debt crisis that Confederation allowed was the creation of the federal government that was given strong revenue raising powers and assumed provincial debts and thereby stabilized the public credit. Public debt charges in 1867 already accounted for 29 percent of federal budgetary expenditure and by 1880 had only been whittled down to about 24 percent. Canada was born in debt.

Canada was created with a large debt as the provincial and local levels of government had invested heavily in transportation infrastructure — canals and railways in particular. In 1850, there were only about 66 miles of track in operation but by 1860 about 2000 miles of track had been built in eastern Canada. The total cost of building these railways in British North America up to 1867 was 145.8 million dollars the bulk of which was for the Province of Canada — Ontario and Quebec. By way of comparison, Canada’s GDP in 1870 has been estimated at about 383 million dollars.

[. . .]

Confederation was designed to fix a massive debt problem. Creation of a new political entity — the dominion government — would allow for the current debt burden to be serviced and for more credit to be obtained on foreign markets to fund the railway projects of the late 19th century — the CPR, Canadian Northern, etc… Confederation was a solution to the debt crisis but required a form of government that reduced sovereignty for the member units in order to stabilize the public credit. In the Canadian case, as acrimonious as the discussions were, the process was facilitated by the fact that the member units were all British colonies with similar institutions.

June 1, 2012

This is why I always cheer for whoever is bidding against Toronto to host the Olympics

Filed under: Britain, Economics, Sports — Tags: , , , , — Nicholas @ 00:02

If publicly funded professional sports stadiums are bad for the local economy (and they almost always are), “winning” the bid to host the Olympic Games is far worse:

The history of the modern Olympics (and of other large-scale sporting events) reveals a consistent pattern. Organizers or local politicians in the host city commission “impact studies,” which almost always promise extravagant economic benefits. Studies performed after the event, however, find no positive effect at all — let alone one approaching the initial estimates. So it isn’t surprising that a PriceWaterhouseCoopers study commissioned by the British government forecasts that the Games would add about $9.4 billion to London’s GDP between 2005 and 2016. That seems like a large number until you realize that the London metro area’s GDP is roughly $712 billion annually. If the Games’ benefits were spread evenly throughout the decade, they would increase London’s GDP level by 0.1 percent each year.

Further, that $9.4 billion benefit pales compared with the cost of hosting the Olympics. In 2002, the UK’s Department for Culture, Media and Sport estimated that the cost would be $2.8 billion. Ten years later, London’s budget for hosting the Games is $15 billion. Costs already run above that figure and are likely to rise to approximately $38 billion, according to an investigation by the TV network Sky Sports. That would easily dwarf the economic benefits that the PriceWaterhouseCoopers study predicts. Security alone will be extremely costly: more British troops will patrol London than there are currently at war in Afghanistan. And these figures don’t count many hidden and indirect costs of hosting the Olympics — most prominently, disruption to business and traffic congestion. Traffic in London is already difficult; with special lanes for Olympics-related traffic, daily commutes will become a nightmare. (London’s transportation commissioner, Peter Hendy, helpfully advises commuters to go to the pub to avoid rush hour.)

Update, 5 June: The good news just keeps on coming for the London Olympics:

The boom to the economy that the Government hoped the Games would bring to the capital appears to become a bust with tens of thousands to tourists spurning the hiked prices, congestion and heightened security.

While bookings for July and August are down by 35 per cent on last year other European capitals appear to be prospering from London’s gloom.

French ministers, who lost the Olympic bid to Britain, might be quietly rubbing their hands with glee not only for dodging the £10 billion Games bill but also with a 50 per cent rise in tourism bookings. Similarly Barcelona and Berlin have seen their tourist numbers soar by 100 per cent over the summer.

This is an example of why, when the announcement was made that Paris had lost out on the bid for the 2012 Olympics to London, Reason titled their coverage “Lucky Paris“.

May 8, 2012

“If this drought continues much longer, we’re going to run out of umbrellas”

Filed under: Britain, Environment, Government — Tags: , , — Nicholas @ 10:40

Rob Lyons on the amusing juxtaposition of a “hosepipe ban” in the south of England and the wettest April since record keeping began:

It never rains but it pours scorn. That must be how many of England’s water companies feel as millions make fun of them. Having just declared a hosepipe ban and spent a fortune on posters declaring ‘WE ARE IN DROUGHT’, the heavens have opened. Result? The surreal combination of drought restrictions on water use going side-by-side with the wettest April since records began in 1910.

It is as if the declaration of drought were a latter-day raindance. Comedian Jimmy Carr quipped what everyone was thinking: ‘If this drought continues much longer, we’re going to run out of umbrellas.’ The combination of dramatic flooding in some parts of the country that are under drought restrictions caused one friend of mine to coin the term for our current water status: ‘flought’. Pictures of Thames Water’s bus adverts juxtaposed with people in the street huddling under brollies made newspaper front pages.

Yet, while the current situation is bizarre, the water companies do have a point. If the current storage sites are running low of water after two years of well-below-average rainfall, then we need to start preserving stocks. One month of heavy rain is welcome, but unless we have a particularly sodden summer and, more importantly, a damp-and-dreary winter, supplies could start to look very sparse indeed. That’s particularly true in the south and east of England, which depend on underground aquifers to store a large proportion of water supplies. The levels in these aquifers rely on winter rain to drip through the rocks above. Summer rain tends to run off, evaporate or get absorbed by growing plants. A quick look back to February and the warnings coming from Thames Water and others show how serious the problem had become before the deluge.

May 7, 2012

Chicago and the everlasting rail bottleneck

Filed under: Economics, Railways, USA — Tags: , — Nicholas @ 15:36

Chicago is where rail traffic goes to get delayed:

When it comes to rail traffic, Chicago is America’s speed bump.

Shippers complain that a load of freight can make its way from Los Angeles to Chicago in 48 hours, then take 30 hours to travel across the city. A recent trainload of sulfur took some 27 hours to pass through Chicago — an average speed of 1.13 miles per hour, or about a quarter the pace of many electric wheelchairs.

With freight volume in the United States expected to grow by more than 80 percent in the next 20 years, delays are projected to only get worse.

The underlying reasons for this sprawling traffic jam are complex, involving history, economics and a nation’s disinclination to improve its roads, bridges, and rails.

Six of the nation’s seven biggest railroads pass through the city, a testament to Chicago’s economic might when the rail lines were laid from the 1800s on. Today, a quarter of all rail traffic in the nation touches Chicago. Nearly half of what is known as intermodal rail traffic, the big steel boxes that can be carried aboard ships, trains or trucks, roll by, or through, this city.

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