Baton Rouge New Orleans High-Speed Intercity Passenger Rail

1. Baton Rouge–New Orleans High-Speed Intercity Passenger Rail 

2. Intercity Passenger RailTransportation SummitNew Orleans, Louisiana July 16, 2010 AGENDA Brief Description of the Project Project Feasibility Discussion: Where do we go from here? 1

3. Description of the Project The project is to introduce a new passenger rail service between Baton Rouge and New Orleans by 2013 The project will utilize existing freight rail tracks:   - Kansas City Southern Railway (KCS) 67.5 miles - Canadian National Railroad (CN) 8.5 miles - New Orleans Union Passenger Terminal (NOUPT) 3.7 miles Total 79.7 miles Project Name: Baton Rouge – New Orleans High-Speed Intercity Passenger Rail (BR-NO HSIPR) 2

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5. Proposed Corridor Improvements The corridor needs to be improved before it can be used for passenger service, including: adding capacity (i.e., new track) to the line raising the track to add sub-base and ballast replacing cross-ties straightening curves rebuilding bridges upgrading the signal system upgrading highway/rail at-grade crossings 4

6. Major Projects The investment will feature three major projects: A new 2-mile bridge at The Bonnet Carré Spillway Realignment of track and installation of new switches and signal systems at East Bridge Junction (EBJ) Addition of a second main track into NOUPT 5

7. Bonnet CarréSpillway Bridge 6

8. East Bridge Junction 7

9. NOUPT Main Track 8

10. Order of Magnitude Cost Estimates for Initial Improvements 9

11. Operating Goals 10

12. Operating Goals Introduce a Second Transportation Mode to Corridor Hurricane Evacuation   Louisiana-owned or dedicated trains in state during an emergency evacuation Numerous short-haul evacuations on passenger rated corridors NO to BR NO to Hammond NO to Hattiesburg 11

13. Gulf Coast High-SpeedRail Corridor 12

14. Service Provider Amtrak Nation-wide insurance indemnification Operates high-speed trains Long track record of operating on freight railroads’ tracks Preference of host railroads 13

15. Passenger Equipment Trains will be propelled by diesel or diesel/electric locomotives Trains will consist of: 1 Locomotive 2 Passenger Coaches (bi-level) 1 Passenger Coach equipped with a Cab Car 14

16. Acquisition of Rolling Stock LADOTD is working with Amtrak to identify appropriate types and sources of equipment Will be state-of-the-art, with wireless internet and TV Food and beverage service is an option Initial service will require three sets of passenger coaches and four locomotives 15

17. Typical Bi-level Passenger Coach 16

18. Ridership Forecasts 17

19. Ridership Increases Over Time Ridership increases over time as: Reliability of the service is established Frequency of service (number of round trips) increases Congestion on I-10 increases Population in the corridor increases Price of gasoline increases 18

20. Environmental Issues No obvious physical fatal flaws or serious environmental issues have been identified East Bridge Junction is a point of contention New Orleans Gateway Environmental Impact Study (EIS) 19

21. Financial Issues 20

22. Sources of Funds to Cover Construction Costs and Operating Deficit Construction Costs Federal (ARRA) 100% or 80% State 0% or 20% Operating Deficit State Motor Vehicle Sales Tax Gas Tax Local Sales Tax Property Tax Hotel/Motel Tax Rental Car Tax Automobile Inspection Tax Head Fee 21

23. Institutional Issues Very important Many Stakeholders Host railroads (KCS, CN, NOUPT) Amtrak Program managers (LADOTD, FRA) State and Local Governments (legislature, mayors, city and parish councils) Public 22

24. 23 Feasibility Study Former Sec. Ankner required a Feasibility Assessment of the project. What does Feasibility Mean? Public Benefits are greater than the State’s investment We conducted an Economic Impact Assessment of the Project in Dec-Feb 2009 (before ARRA) The analysis period was 25 years (2013 – 2038)

25. 24 Feasibility Study Elements Considered: Ridership and Revenue Infrastructure Improvements ($100 m) Operating Costs Public Benefits

26. Feasibility StudyEconomic Impact Analysis Compared two scenarios: 1. Highway only 2. Intercity Passenger Rail Service that: - diverts automobile and bus riders creates transit oriented real estate development around station areas Only benefits directly attributable to the rail service are accounted for. 25

27. Feasibility StudyEconomic Impact Analysis Public Benefits consisted of: Transportation cost savings to users of the rail service Value enhancement to owners and users of property near station areas Cost savings resulting from reductions in environmental degradation Operational cost savings through reductions in the LA SWIFT bus service 26

28. Congestion Management Benefits Congestion management benefits for rail users are a result of: Higher comfort and productivity More reliable travel time Operating savings for travelers switching from car trips Overall reduced vehicle emissions Discounted congestion management benefits amount to $665 million 27

29. Congestion Management Benefits 28

30. Station Area Development Benefits Station Area Development Benefits are estimated as the increase in real estate values associated with proximity to a transit station. Value enhancement was applied to ¼ and ½ mile radii around the six stations. Station area property benefits account for $47.6 million during the plan period. 29

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32. Calculation of Costs  Base Costs 2013 2018 2023 Capital Cost $52.0 $19.0 $29.0 O&M Cost 14.0 19.1 22.0   Average Escalated Costs Capital Cost $52.8 $21.0 $33.7 O&M Cost 15.1 21.6 26.8   Improvements Derived from Capital Cost Max Speed (mph) 79 90 110 # of Trains per Weekday 8 12 16 31

33. Cost Structure 32

34. Findings The BR-NO HSIPR can generally be expected to deliver benefits in excess of costs. The benefits include: Transportation costs savings associated with more comfort and reliability Lower vehicle operating costs Reduced emissions Value appreciation for residential and commercial property around the stations 33

35. Benefit/Cost Ratio At the median value (50/50). Each dollar invested generates $1.40 in benefits. There is a 10% chance that each dollar invested will generate $2.30 in benefits. There is a 10% chance that this value is $0.80. There is a 78% probability of achieving a positive return on investment. 34

36. Results Indicate a Highly Likely Positive Return on Investment 35

37. What are the Next Stepsfor this Project? The project summary document is currently under review by LADOTD, FRA and Amtrak. To move forward, the project needs: Construction Funds A secure, dedicated source of funding for the operating deficit To move to implementation, the project needs: Environmental Review by Stakeholder Agencies Agreements with Host Railroads & Amtrak 36

38. Baton Rouge–New Orleans High-Speed Intercity Passenger Rail