King Of Prussia Rail On Hold Despite $1.2 Trillion Infrastructure Act

By Linda Stein, Delaware Valley Journal

March 24, 2023

The Southeastern Pennsylvania Transportation Authority (SEPTA) blamed rising costs and inflation, as well as a federal agency, for pausing the plan to extend the high-speed line to King of Prussia, KOP Rail.

The cost of the four-mile extension from Norristown had risen to more than $3 billion. Officials said SEPTA spent $53 million on planning for the project in the last 10 years.

The delay and possible demise of the project is not just a setback for the approximately 9,000 people who would likely have ridden the new rail line but also for businesses in King of Prussia.

Ryan Rosenbaum, executive director of the Montgomery County Chamber of Commerce, said, “The impact of not having the KOP Rail line will be felt in this area in the years to come.

“Here is why. This region is booming with hotels, retailers, restaurants, and a major casino. Many of the employees of these businesses live in other regions of the Greater Philadelphia area and find it difficult (from a transportation perspective) to come to King of Prussia to work.

“Many are without cars and rely heavily on SEPTA,” he said. “The problem of finding quality employees to come here to work is an issue that’s been percolating here for a while. The suspension of this project can have ramifications in retaining quality employees, who spend a considerable time commuting to King of Prussia.

“The impact runs much deeper. This project could have been a gateway to reducing congestion on major highway arteries in this township. Workers could have depended on reliable train service, which would have reduced the carbon footprint in the region.

“This also has an adverse effect as the rail system could have been utilized by residents in Upper Merion who may have used the rail to go into the city to dine, see theater and or get to the airport,” Rosenbaum added.

Eric Goldstein, president and CEO of the King of Prussia Business District, is also disappointed.

“This is a huge loss for this region, and the federal dollars that could have come here will now go to one of our national competitors,” Goldstein said in a statement. “I am disappointed that we are not going to help the thousands of Philadelphia and Delaware County residents stuck on congestion-delayed buses trying to get to their jobs in King of Prussia in a timely fashion. My biggest regret is that they are now forced to continue riding buses with only a 66 percent on-time performance.

“I am disappointed that Upper Merion will not have a way to get thousands of cars off the roads as 60,000-plus employees and even more shoppers, diners, and visitors come here daily,” Goldstein said.

John Golden, a spokesman for SEPTA, said, “The project is not recommended for federal New Starts funding in Fiscal Year 2024, and SEPTA will use resources allocated for KOP Rail to bolster essential infrastructure work.”

A major factor preventing KOP Rail from advancing is the lack of flexibility in the transit agency’s capital budget. Federal Transit Administration officials expressed reservations about SEPTA’s ability to fund its project share, including any cost overruns. SEPTA’s capital budget is constrained compared to peer transit agencies that have more state and local funding. SEPTA would not jeopardize other critical projects, such as the Market-Frankford Line fleet replacement, Trolley Modernization, or station accessibility improvements, to advance an expansion project, he said.

“SEPTA’s capital budget has been underfunded for decades. This has left the Authority with significantly fewer resources than peer agencies to pursue system expansion while also addressing critical infrastructure needs,” said SEPTA General Manager and CEO Leslie Richards. “With the funding we have currently, SEPTA must prioritize essential infrastructure work and safety and security improvements to maximize the reliability and effectiveness of our aging system.”

With each year of delay, the cost of KOP Rail increases by about $100 million, which rises with inflation and higher interest rates. From August 2020 to August 2022, officials said the project estimate increased from $2.08 billion to $2.6 billion.

Congresswoman Madeleine Dean (D-Montgomery), who voted for and praised the $1.2 trillion Biden administration Infrastructure Act, did not respond when DVJournal asked why funding for the King of Prussia Rail was not included. According to a White House fact sheet, that bill included $39 billion for mass transit.

State Rep. Andy Briggs (D-King of Prussia) also declined to comment.

“The news is disappointing, but I’m hopeful that the hard work is not for naught. Perhaps this vision can rekindle in the future,” said Rosenbaum.

Please follow DVJournal on social media: Twitter@DVJournal or Facebook.com/DelawareValleyJournal

The Delaware Valley Journal provides unbiased, local reporting for the Philadelphia suburbs of Bucks, Chester, Delaware and Montgomery Counties. For more stories from the Delaware Valley Journal, visit DelawareValleyJournal.com