Talgo sues Wisconsin over unused train cars

Amtrak Unlimited Discussion Forum

Help Support Amtrak Unlimited Discussion Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

CHamilton

Engineer
AU Supporting Member
Gathering Team Member
Joined
Jul 13, 2011
Messages
5,301
Location
Seattle
Suit filed over $40 million unused train cars
MILWAUKEE - The Milwaukee to Chicago Amtrak route is bursting with passengers. So the state hired Talgo to build two new sets of train cars. Now one year later, court battles and endless politics have the trains sitting in mothballs.
Taxpayers spent more than $40 million to build the new train cars.

TODAYS' TMJ4 has learned the feud is about to blow up into a bigger lawsuit as Talgo goes after the state for more money - claiming the state has not lived up to its end of the deal.

The state strongly disagrees.
 
I just found this interesting article. The passenger commenting sounds exactly like comments about the mess in Washington. People are tired of all the politics and the posturing going on everywhere.

These trains could be running now. This will cost more money in the long run by Wisconsin being sued and the train sets rotting.

40 million already spent and sitting doing nothing.
 
Talgo seeks nearly $66 million for canceled deal

MADISON, Wis. (AP) — Train-maker Talgo Inc. filed a nearly $66 million claim against Wisconsin on Thursday, saying the money is owed after Gov. Scott Walker acted in bad faith in deciding to abandon a high-speed rail line connecting Milwaukee and Madison.
The Seattle-based arm of the Spanish train company made the filing with the Wisconsin Claims Board. A spokeswoman for the state Department of Justice had no comment.
 
This is what I don't understand, why can't these trains be useful on another route?
 
Here in the Northwest, we would love to see the Wisconsin Talgos. We have the infrastructure and the trackage that would put their tilt technology to good use. The Wisconsin trainsets have no business class, but that could be remedied.

It's just a matter of coming up with the money to purchase them and their associated maintenance contracts, buy the needed slots from BNSF, and find the operating money. Which is not going to be easy. But I hope that WSDOT and ODOT are negotiating with Talgo to give them a good home.
 
The dirty little secret with the Talgo trainsets is, has and will continue to be the maintenance. From the AP:

The state also entered into a separate 20-year maintenance agreement to service the trains, a deal to provide a maintenance facility, along with an option to purchase two additional train sets.
Not only does a state need to agree to buy the trainsets at a cost of $20 million a piece... but they have to agree to pay Talgo to maintain them for 20 years.

In the Pacific Northwest... this was a good agreement considering there wasn't a major passenger train maintenance facility in Seattle before Talgo. But in Wisconsin... there is already large maintenance facility on the other end of the line in Chicago.

That's also why California isn't interested in purchasing or leasing the Talgo trainsets (despite desperately needing more train cars here in the Golden State.)

They are beautiful trains. I hope they find a home somewhere.
 
Last edited by a moderator:
Here in the Northwest, we would love to see the Wisconsin Talgos. We have the infrastructure and the trackage that would put their tilt technology to good use. The Wisconsin trainsets have no business class, but that could be remedied.

It's just a matter of coming up with the money to purchase them and their associated maintenance contracts, buy the needed slots from BNSF, and find the operating money. Which is not going to be easy. But I hope that WSDOT and ODOT are negotiating with Talgo to give them a good home.
A Seattle-Auburn-Ellensburg-Yakima-Pasco-Spokane train would be nice.
 
FWIW, based on what little I know about these things, nobody else is likely to be able to buy the trains until the lawsuit with Wisconsin is settled. I do hope that either Wisconsin (perhaps under a new Governor) or Washington/Oregon is able to buy and use these trains eventually.
 
Last edited:
So speaking of Talgo... does anyone know why the brand-new Series 8 trainsets STILL aren't running on the Cascades... almost 7 months after they were delivered?
 
So speaking of Talgo... does anyone know why the brand-new Series 8 trainsets STILL aren't running on the Cascades... almost 7 months after they were delivered?
I've heard no credible explanation. They won't be used for the extra Thanksgiving week trains, either. They've had no less than two open houses

in PDX where the public could tour the new trains (May and October) but the new trains remain unused in revenue service to this point.
 
FWIW, based on what little I know about these things, nobody else is likely to be able to buy the trains until the lawsuit with Wisconsin is settled. I do hope that either Wisconsin (perhaps under a new Governor) or Washington/Oregon is able to buy and use these trains eventually.
I agree. The Wisconsin Talgos are going to remain in storage until the legal disputes are settled. Given the tone and words from the WI officials, this may drag on in courts for years. With Gov. Walker running for re-election next November, either they settle out of court soon so the matter is closed and done before the election campaign heats up or the Walker's administration pushes any trial or extended court hearings off to 2015 or beyond.
Since the Cascades corridor can't add more frequencies until 2016-2017, WA state can sit back and wait for the WI versus Talgo legal battle to play out. If they can pick the right moment, they might be able to buy the 2 Talgo trainsets at a huge discount.
 
With Gov. Walker running for re-election next November,
I know I'm not supposed to get political, but good grief I hope the voters throw out Walker. As far as I can tell he's a criminal -- he keeps escaping indictment while *every one of his closest aides* goes to prison. He had a record of dangerous incompetence (allowing city buildings to collapse, dumping hunks of concrete on people's heads) back in Milwaukee before becoming governor. It's embarrasing that he eve has a chance of re-election, but polls say he does.
If Walker is tossed, it's possible the new governor would just comply with the original contract.

Since the Cascades corridor can't add more frequencies until 2016-2017, WA state can sit back and wait for the WI versus Talgo legal battle to play out. If they can pick the right moment, they might be able to buy the 2 Talgo trainsets at a huge discount.
Yeah.
 
So speaking of Talgo... does anyone know why

the brand-new Series 8 trainsets STILL aren't

running on the Cascades... almost 7 months

after they were delivered?
I've heard no credible explanation. ... They've had no less

than two open houses in PDX where the public could tour

the new trains (May and October) but the new trains remain

unused in revenue service to this point.
Almost a billion dollars in Stimulus funds is being spent

to upgrade the tracks between Portland and Seattle.

The biggest item is a short-cut over (mostly?) existing tracks

to avoid a single-track tunnel that's the ultimate choke point.

There's also a couple of new flyovers, some double tracking,

new or extended sidings, whathaveyou, underway at last.

The Wash DOT has pages on this.

The upshot is, until all the work is done, ALL the work, BSNF

says there's no slot for even one more frequency. None.

The work started a little later than hoped for -- "There are no

shovel-ready projects," ruefully said President Barack Obama --

due to Environmental Impact Studies and the usual other stuff.

Maybe Talgo was too damn fast building the new train sets;

if they'd been on a schedule like CAF for the Viewliners, it

wouldn't be so embarrassing now. LOL.

South of Portland, the Oregon DOT is studying several options

for higher-speed tracks (up to 110-mph) with hearings going on

this month. Then they select a preferred route, the usual

further studies, engineering plans, etc before beginning

the necessary upgrades to the route.

Of course, nobody wants to invest in the current route PDX-

Eugene if it's to be replaced by a different route in a few years.

Maybe they can squeeze in one more round trip on the present

route. Not sure.
 
Last edited by a moderator:
A Seattle-Auburn-Ellensburg-Yakima-Pasco-Spokane train would be nice.
Such a train is in the draft state rail plan, but there are no dates or funding.
Sorry. I couldn't find a word of mention in that link. A map

shows all the rail lines in the state, and it's on there as

an existing freight line. But nothing indicates that the state

has even one body with one computer working on plans for

such a service. Nothing. When the next Stimulus is needed,

Wash State will not have this as a shovel-ready project.
 
The upshot is, until all the work is done, ALL the work, BSNF

says there's no slot for even one more frequency. None.
ODOT has said all along that the new Talgo sets are not going to provide an additional frequency in the shortrun. They are

to permit more efficient use of the current sets by eliminating the need to terminate one of the two daily n/b trains in PDX

and instead run them both all the way through to SEA. ODOT was even passing out copies of the proposed new schedule

on National Train Day last May, with the promise that the new schedule would be implemented soon. That was 6 months ago

and the new schedule is still a dangling carrot. Meanwhile the two trainsets are presumably collecting dust somewhere.
 
Yeah a quick read through the state rail plan suggest that the only plan is about enhancing the Cascade Service. That is about it. Nothing is said about any East-West corridor other than that Amtrak LD covers it and is expected to continue doing so.
 
A Seattle-Auburn-Ellensburg-Yakima-Pasco-Spokane train would be nice.
That would be very nice. Spokane only sees trains midnight or later.

Those smaller cities in between could also provide ridership, as from

Central Washington State U.

And the Stampede Pass route thru the Cascades Range, Spokane-

Pasco-Yakima-Ellensburg-Auburn-Seattle, is said to be very scenic.

Many tourists, including tourists (and voters) from the Puget Sound

area as well as from Spokane, might like to ride out thru the Stampede

Pass and return via the Cascades Tunnel Empire Builder route.

How about a second train Chicago-St Paul-Fargo-Grand Forks-

Williston-Spokane-Stampede Pass-Seattle? Call it the Sacajawea.

Well, this is not the time for Amtrak to be announcing any great

new train intentions. Might disturb the haters.

So get there in stages:

First add a second frequency Chicago-Milwaukee-St Paul.

Minnesota wants to do that, and by all means the feds

should help.

Second, extend that second frequency to St Cloud-Fargo-

Grand Forks. Don't laugh, the first and third largest cities

in ND each have more than 25,000 on/offs despite service

in the dead of night. No doubt due in large part to Minnesota

State adjoining Fargo and the Univ of North Dakota in Grand

Forks.

Third, start Talgo service Spokane-Seattle via Stempede Pass.

Fourth, a begin second frequency Chicago-Spokane-

Stampede Pass-Seattle, the Sacajawea.

Of course, we'll need more Superliner equipment, but we need

more equipment everywhere anyway.
I'm not a fan of the proposal for a revived train (nothing personal

to your sig, sorry!) to serve the southern parts of North Dakota and

Montana. Counting the potential riders, that thinly populated route

is far down the priority list.

I am sure there's plenty of demand to sustain a second train Chicago-

St Paul-Fargo-Grand Fork.

Then that second train Spokane-Seattle over the Stampede Pass,

and using unloved Talgos would be the way to start..

I'm pretty sure a second Empire Builder run would do fine with

its timetable 6 or 8 or 12 hours off from the main train's schedule.

Establishing a new second run train called the Sacajawea in

easy steps breaks down the costs of upgrades to the freight

lines into affordable segments. These could be done by using

future Stimulus funds, or even annual capital investment

appropriations, if Congress ever gets over the crazies.

Well, a guy can dream.
 
According to the Milwaukee Sentinel article, Wisconsin DOT claims the trainsets don't comply with ADA. Is this just smoke being blown to cover up Scott's decision or is their some truth to it? How can Wisconsin only be discovering now that they don't meet specs?
 
According to the Milwaukee Sentinel article, Wisconsin DOT claims the trainsets don't comply with ADA. Is this just smoke being blown to cover up Scott's decision or is their some truth to it? How can Wisconsin only be discovering now that they don't meet specs?
this is nothing but smoke being blown around. The sets were designed ADA compliant.

Overall, the entire situation angers me. Walker has set passenger train improvements back for a decade, possibly a generation, in Wisconsin.
 
Last edited by a moderator:
According to the Milwaukee Sentinel article, Wisconsin DOT claims the trainsets don't comply with ADA. Is this just smoke being blown to cover up Scott's decision or is their some truth to it? How can Wisconsin only be discovering now that they don't meet specs?
this is nothing but smoke being blown around. The sets were designed ADA compliant.
Overall, the entire situation angers me. Walker has set passenger train improvements back for a decade, possibly a generation, in Wisconsin.
Attacking and undermining public transit seems to be a guiding principle of the Tea Party at large and not just Scott Walker.

So in that sense Walker's just doing his job, at least in the eyes of his principle donors.

What still amazes me is how easy it was to change an ostensibly friendly and moderate Wisconsin into yet another fiercely partisan anti-compromise state.

I have no idea how things will go in 2014, but I would be shocked if Walker's administration compromises on anything, with Talgo or anybody else.
 
Last edited by a moderator:
Details from NARP:

Talgo Inc.’s $65.9 million claim breaks down to $23.5 million in lost business, $18.6 million in unpaid invoices (plus interest), $10.5 million in damages stemming from state officials "continually defaming" the company’s reputation, and $9.8 million in foregone maintenance work. Wisconsin has already paid $40 million to Talgo. Regardless of whether or not the state pays, it will not take ownership of the train sets because it breached the purchasing contract by refusing to accept delivery when Talgo informed the WI DOT the trains were completed, per the their contractual agreement.

In an added wrinkle, the manufacturing company is claiming that the state must immediately repay $70 million to the bond holders it borrowed from to finance the trains it never took possession of. Wisconsin had planned to pay the sum back, but over the course of many years.
 
*whistles* I really don't like the fact that Wisconsin tax payers are on the hook financially, but I am hoping the judge sides fully with Talgo on this one. A $175,900,000 blunder on the head of Walker. Man, if I were his opponent in the Governor's race, I'd make that price tag my main attack on his ineptitude. :angry2:
 
Back
Top