Times of Northwest Indiana
The talk of privatizing the South Shore passenger service raises some very interesting questions about the role of government vs. that of the private sector.
Should commuter rail service be privatized? Let's put that decision on hold until some more facts are known.
Transportation infrastructure has long been considered the government's responsibility. Highways are subsidized, and so is commuter rail service. So are airports, ports and even sidewalks.
And don't forget the reason the government took over the South Shore passenger service in the 1970s was because the privately owned railroad wanted to abandon the service.
Under no circumstances should shutting down or reducing passenger rail service be seriously contemplated.
But who should operate the railroad?
The Government Efficiency Commission, a group of public-sector advisers named last year by Indiana General Assembly leaders, said in the commission's report, "We question if the Northern Indiana Commuter Transportation District is a candidate for sale or lease."
The Times obtained that report through a public records request.
Gov. Mitch Daniels has called the discussion of privatizing the South Shore a "bad rumor." His press secretary, Jane Jankowski, said, "The governor has zero interesting in selling or leasing out the South Shore, and has no ability to do so if he did."
But Gerald Hanas, general manager of the Northern Indiana Commuter Transportation District, said Indiana Department of Transportation Commissioner Tom Sharp broached the subject a month ago during a meeting with Hanas on another topic.
"He said, 'Look, we've gained some significant revenue under the P3 (public-private partnership) thing with the Toll Road. Is there any way you guys could look at the options for the railroad? Is there anything that you could lease or sell or anything that would make any sense to leverage capital?" Hanas said.
The Daniels administration's sputtering about The Times' stories on the idea is a sideshow. The real issue is whether privatization makes sense.
We already know extending South Shore service to Lowell and Valparaiso is likely to cost hundreds of millions of dollars, and the competition for federal funds is fierce.
That project must keep moving forward. It is vital to the economic well-being of Northwest Indiana.
Is privatization the answer to generating the capital needed for this project? No one will know until the numbers are crunched.
So start researching that idea. See what interest might exist in the private sector.
Then -- and only then --- make the decision that is best for the riders and the rest of the region.