Expanding Intercity Corridors: Amtrak Refined

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Expanding Intercity Corridors Amtrak Refined?
Prepared by Amtrak Strategic Partnerships Stand
ing Committee on Rail Transportation Milwaukee,
Wisconsin August 18, 2008
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Amtrak Reauthorization
Funding levels and authorization periods will be
reconciled in conference
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FY 09 Amtrak Budget

• Legislation and Grant Request
• Operating grant request 525M
• Capital grant request 801M
• Debt Service 345M
• Total 1.671M
• Current Senate Appropriations Committee Markup
• 550M operating (includes back pay)
• 1B for capital and debt
• Total 1.55B

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Current Amtrak National Network with Corridors
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Corridors Leading Growth

• Currently (FY 08 Oct - Jun)
• 49 of all Amtrak ridership
• 300 million ticket revenue 21 of total up
  30
• 170 million additional state support for
  operating losses
• 130 million additional contribution via
  connecting revenue and fixed cost spread

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Corridors Leading Growth even on Long Distance
Trains

• Growth patterns vary by route, but largest gains
  are concentrated in the shorter segments most
  directly affected by gas prices

Route Segments With 20 Or More Growth (Q3-08 vs.
Q3-07)
250
0
500
1,000
Trip Length (Miles)
NEC
Short Distance
Long Distance
Total Segment Ridership ( chg)
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Corridors Benefits States
States have demonstrated this value by increasing
operating support and capital investment despite
absence of federal matching funds
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Corridors Benefits Intercity Mode

• Assumes sufficient equipment capacity to meet
  projected demand forecasts based on analysis of
  economic/ demographic data, market reactions to
  changes in Amtrak service/fares, and historical
  demand trends
• SOURCE Amtrak Market Research (with support from
  AECOM)

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Corridors Benefits Amtrak
Oct-Jul FY08 Ticket Revenue Ridership Estimates
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Corridor Growth The Perfect Storm

• Repopulation Of City Centers
• Deteriorating Airline/Airport Experience
• Commuter Fatigue/Congestion
• Fuel Economics/Volatility
• Environmental Responsibility/Consciousness
• Inter/Multi-modal Opportunities
• Growth-oriented Business/Real Estate Environments
• Host Railroad Need for Public Investment

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Corridor Growth Benefits Nation

• Enhances mobility, particularly in congested,
  dense population centers
• Aids in security / multi-modal redundancy
• Potential to improve environmental
  quality/climate change
• Reduces energy consumption growth
• Provides economic development tool
• Improves intermodalism freeing up
  airport/highway capacity

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Corridor Growth Policy Consensus

• Administration legislation (2005) creates
  corridor development program of capital
  matching grants to states to foster integrated
  regional services
• McCain legislation (2004) creates a national
  network of interconnected short-distance
  passenger rail corridor services with federal
  and state governments sharing both capital and
  operating costs
• Lautenberg/Lott legislation (2007) establishes
  a corridor development program including a
  federal-state capital match
• AASHTO (state transportation officials) calls
  for creation of a dedicated, sustainable source
  of funding for intercity rail passenger
• Passenger Rail Working Group Recommends the
  development of an intercity passenger rail
  program to implement a 48-state national and
  regional corridor vision plan initially funded at
  5 billion per year including Amtrak funding and
  grants to states

January 2008 Surface Transportation
Revenue/Policy Commission findings Our Nation
will need to put more emphasis on transit and
intercity passenger rail and make them a priority
for our country. A cultural shift will need to
take place across America to encourage our
citizens to take transit or passenger rail when
the option is given.
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Corridor Growth Modal Synergies?

• Challenge Manage infrastructure investments to
  benefit all rail commuter, intercity, and
  freight
• Multi-modal/shared facilities with commuters,
  transit, intercity bus
• ala Miami Inter-modal, Charlotte, Atlanta MMPT,
  New Orleans, San Antonio, St. Louis, Milwaukee,
  Seattle, San Jose, Los Angeles, etc
• Public host railroad capacity investments, with
  associated capacity and performance guarantees
  for passenger trains
• Passenger train performance as bell weather of
  rail system performance
• Air/rail station connectivity
• Fastest growing ridership locations in Amtrak
  system
• Response to airline/airport slot retraction

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Future Amtrak? Corridors Connected by Network
(Route Map Illustrative)
2050 population forecastBackground map based on
America 2050 A Prospectus, www.america2050.org
, Regional Plan Association
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Corridor Growth Amtrak Strategic Role

• Corporate Goal
• Increase intercity passenger rail ridership 50
  by 2020 while cutting Amtraks federal operating
  support ratio in half.

• Objectives
• Expand Intercity Rail Corridors
• -Safe, Secure, Reliable, Quality Service and
  Operation
• Leverage Amtraks Unique Position and Role via
  Legislative Advocacy
• -Federal Matching Funds for State Intercity Rail
  Capital Investment
• -Intercity Passenger Rail Benefits from Public
  Investment in Freight RRs
• Leverage Amtraks Unique Position and Role via
  Railroad Expertise
• -Equipment Standardization and Availability
• -Network Infrastructure / Operating Expertise
• -Host Railroad Access and Performance

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Corridor Growth Past is NOT Prologue

• Current corridors
• were either inherited with network or created
  according to varying federal (e.g. 403b)
  requirements
• No clear or consistent standards
• had historic absence of Federal matching funds
• Artificially constrained investment
• had reduced capital entry hurdles
• Utilized surplus Amtrak equipment none
  remaining
• Accessed then less congested host railroads
• were State by State initiatives
• Not part of national transportation
  policy/mobility plan

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Corridor Growth Future Approach

• Supported by Federal Matching Funds
• Railroad Infrastructure/Capacity Investments
• Station Improvements
• Equipment
• Utilizing Standardized Equipment Pool
• Single Level
• Bi-level
• DMU
• Diesel Power
• Defined Corridor System?
• Metric-based (frequencies, ridership, speed,
  modal share)
• Tier 1 Corridors of National Significance
• Tier 2 Corridors of State/Regional
  Significance
• Tier 3 Emerging Corridors
• Redefined role for federal operating funds ala
  transit?

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Corridor Growth Amtraks Unique Added Value

• Access to railroad expertise
• Operations/transportation
• Engineering
• Mechanical
• Institutional/Legal
• Access to equipment/expertise/interoperability
• Access to host railroads at incremental cost
• Access to insurance/liability coverage
• Access to IT systems support (reservations, train
  status, ticketing)
• Ability to offer turn-key service start-up
• Broker for Amtrak and non-Amtrak service bundles
• National visibility and voice

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Corridor Growth Basic Requirements

• Expertise/Studies
• Market Demand Forecasting
• Infrastructure Operations/Capacity Analysis (with
  host RR)
• Performance Characteristics/Alternatives
• Cost/Revenue Analysis
• Capital Investment
• Equipment
• Stations
• Rail Infrastructure
• Yards/Maintenance Facilities
• Subsidy
• Operating Loss Recovery
• Time
• 3-5 years from conception to launch of new
  service
• Modal Leadership

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Corridor Growth Key Tasks FY 2008/09

• Solidify/consolidate stakeholder leadership
  message
• Stimulate standardized/interoperable equipment
  supply
• Propose corridor network criteria
• Advance/advocate in transportation authorization
  bills via rail caucus with states
• Ensure proper links with public investment in
  freight rail
• Launch new pricing/financial reporting system
• Ensure service quality
• Replenish workforce expertise