NYMTA cuts $2 billion more from capital program
Written by William C. Vantuono, Editor-in-ChiefNew York Metropolitan Transportation Authority Chairman and CEO Jay H. Walder announced Wednesday that MTA is cutting an additional $2 billion from its 2010-2014 Capital Program.
“We cut $2 billion from our Capital Program last year by planning our program more effectively,” said Walder (pictured at left). “Today I’m committing the MTA to doubling the savings we’ve achieved in our capital program to $4 billion, not by deferring vital projects but instead by finding better ways of delivering benefits.
“Last April, the State’s Capital Program Review Board approved our revised plan which called for $26.3 billion of investments over five years," said Walder. "The program included a $2 billion cost reduction that was achieved by reducing rolling stock costs, shifting to a component-based station rehabilitation program, and sharing shop space across agencies. Today’s announcement details a series of strategies that will allow us to save an additional $2 billion, reducing the cost of the program to $24.2 billion.”
The savings measures are detailed in a new report, “Making Every Dollar Count: Capital Program.” They include the following:
“Slash Administrative Costs ($150 million savings): We will reduce administrative payroll expenses by 15%, just as was done with our annual Operating Budget.
“Create Project Approval Gates ($800 million savings): We will review every capital project through approval gates at each stage of its development to ensure that the agency is moving forward at the lowest cost. This strategy, combined with a softer construction market, has already delivered savings of $800 million.
“Make Changes to Track Work ($300 million savings): The MTA and its agencies are taking steps to overhaul the way employees and contractors perform work on tracks, saving more than $300 million.
“Change Rolling Stock Acquisition and Maintenance ($300 million savings): We are reducing costs of buying and maintaining trains and buses by changing design specifications, increasing competition among suppliers, getting more life out of existing units, and embracing new technologies. These changes will save $300 million.”
