Amtrak in the New Era
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1 Amtrak in the New Era Stephen Gardner Vice President, Policy Development April 17,
2 Amtrak 101 basic company system statistics National railroad: Congressionally chartered corporation owned by DOT operated as quasi-nonprofit corporation We operate a 21,100 mile system 308 daily intercity trains using 528 stations 1,519 cars 469 locomotives, 80 auto carriers, 101 baggage cars More than 19,000 employees Nearly half of our services operate at 100+ mph 70% of our train-miles run on track owned by other railroads Amtrak generated total of $2.3 billion in revenues in FY 09 (incl. ancillary business) Covered more than 80% of operating cost (heavy rail passenger carriers in the U.S. typically fall into the 40-60% range) Roughly $350 million in revenues investment from the operation infrastructure access for commuter services Operate 4 services, provide access or services for 13 agencies in total. Will begin operating Metrolink in July, 2010 Federal funding for Amtrak totals nearly than $1.6 billion in FY 2010 $563 million for operating expenses $1 billion for capital needs 1 2
3 The Amtrak system in perspective Record ridership Six straight years of growth (FY ) Record years in 2007, 2008 (28.7M riders) On track for record in FY10 - Best 1 st quarter 1 st half in Amtrak history - Rising gas prices spurring ridership growth Price in cents Average Regular Retail Gasoline Price Financial & operating improvements Financial: Operating cost recovery over 80% Operational: 80% OTP in FY09 7-Jan-08 7-Mar-08 7-May-08 7-Jul-08 7-Sep-08 7-Nov-08 7-Jan-09 7-Mar-09 7-May-09 Date 7-Jul-09 7-Sep-09 7-Nov-09 7-Jan-10 7-Mar-10 Building blocks for future growth Strong administration public support for passenger rail Blueprint legislation sets stage for major growth development State corridor services: Partnerships with 15 states High-speed experience: Only maintainer operator of 100+ mph service in Western Hemisphere Amtrak s challenges Manpower: 3000 fewer employees than in 2002 an aging workforce throughout the industry Readiness: planning capacity eviscerated during the 00 s. Equipment: Older than any time in Amtrak s history Funding: chronically underfunded, even now our FY 11 request is $2.6 Billion, but looking bleak 2 3
4 Amtrak in California Amtrak operates approximately 70 daily intercity trains in California 11,071,121 riders in FY 09 Amtrak spent $53,312,775 for goods services in FY 09 CA Fiscal Year Surfliner (San Luis Obispo-LA- San Diego) 3 trips 7 trips 8 trips 11 trips 11 trips Train frequency San Joaquin (Oakl- Bakersfield) 1 trip 2 trips 3 trips 6 trips 6 trips Capitol Corridor (San Jose- Sacramento) No service 3 trips 9 trips 16 trips Employs 2,835 California residents Route California Zephyr Boarding 71,893 Alighting 67,515 Total 139,408 California was among the first states to partner with Amtrak for state-supported corridor services Southwest Chief Texas Eagle Sunset Ltd. Coast Starlight 77,452 6,783 26, ,380 78,268 6,553 26, , ,720 13,336 52, ,740 State operating support capital investment have been vital to the success of these services Pacific Surfliner Capitol Corridor San Joaquin Special Trains 2,592,996 1,599, ,172 6,727 2,592,996 1,599, ,172 6,737 5,185,992 3,199,250 1,858,344 13,464 Totals 5,128,520 5,128,530 11,071,
5 Capitol Corridor overview Capitol Corridor FY On-Time Performance Ridership Began service in % 1,263, mile route, served by 16 daily trains (Sacramento-San Jose) Mature operation but still posted 16.8% year-over-year ridership growth in FY % 86.0% 92.3% 1,450,069 1,693,580 1,599,
6 Pacific Surfliner - overview Pacific Surfliner FY On-Time Performance Ridership First California-supported service % 2,657,773 Originally the San Diegan Support dates from % 2,707,188 Service extended to Santa Barbara in 1988 Extended to San Luis Obispo in % 2,898,859 Rebred as Surfliner service, 2000 About a 7% growth, FY % 2,592,996 In some months (particularly summer), carries more passengers than Acela 5 6
7 San Joaquin - overview San Joaquin FY On-Time Performance Ridership Among the first state-supported trains on Amtrak (1979) Began as demonstration route in % 67.9% 799, ,785 State support began in 1979 With support of California, service has grown from 1 to 6 daily round trips % 949,611 18% year-over-year growth between FY % 929,
8 Long Distance service in California 4 long-distance trains serve CA currently 2 long distance trains serving California will be going through legislativelymated performance improvement programs this year (PRIIA, Sec. 210): Sunset Limited California Zephyr Programs designed to improve value of service through greater transportation benefit revenue performance California Zephyr being studied for opportunities for premium service development Sunset Limited Texas Eagle being studied for new combined daily train. Long Distance Train On-Time Performance Route Coast Starlight California Zephyr Southwest Chief Sunset Limited % 6.9% 73% 13.5% % 59.9% 85.2% 79.2% 7 8
9 PRIIA is a Blueprint for a New Era Passenger Rail Investment Improvement Act of 2008 (PRIIA) passed in October 2008 Reauthorized Amtrak (approximately $2 billion annually) Creates Federal matching grant program for intercity/hsr capital investments Clear vision for Amtrak intercity passenger rail within the national transportation system Amtrak to pursue operation of national rail passenger transportation system : LD network: create greater value for existing system HSR corridors: help plan, develop, operate in cooperation with states private sector State-sponsored corridors: stardize, improve facilitate expansion NEC: repair, renew, cooperatively plan for expansion Commuter: pursue strategically Amtrak s new mission: provide efficient effective intercity passenger rail mobility consisting of high-quality service that is trip-time competitive with other intercity travel options. 8 9
10 PRIIA Partnerships are the Key PRIIA establishes a new partnership to develop the national rail passenger transportation system between: DOT/FRA Amtrak States Host Railroads Additionally, with system growth, come new public private sector partners: Commuter RR s regional authorities Suppliers Developers Builders Operators Other modes Each has their role collaboration among us all is essential WE ARE ALL DEPENDENT ON ONE ANOTHER 9 10
11 Evolving into our New Roles State Federal partners States will be lead partners Create integrated rail plans establishing rail s role priorities federal grant recipients for capital funds Provide operating capital funding for corridor services - Provide 20% capital match (stimulus funds excepted) - Under PRIIA, all short distance routes must be state-supported by 2013 Own manage some system assets FRA leads national policy National rail plan Safety performance stards Administers grant loan programs Manages Amtrak Facilitates among partners states, Amtrak, freights Amtrak s Illinois Zephyr 10 11
12 Evolving into our New Roles - Amtrak As the Federal operating arm, Amtrak facilitates intercity rail operations development Operator of the national network - National systems: reservations, yield management, marketing, e-ticketing, wifi - Equipment facilities - Statutory access to all US railroads ROW Imminent domain authority - Longsting relationships with all major Class Is - Uniform liability arrangement - The only current high speed provider in North America - All track approved for 110+ mph service in North America maintained by Amtrak - Existing labor agreements, qualified workforce - Training - Safety security leaders - Tax exempt Planning services for states other partners - Market knowledge - Regulatory understing - Service integrator: HS, intercity, commuter, freight - National jurisdiction to facilitate multi-state regional efforts Amtrak has the know-how, physical legal assets, economies of scale, national interest relationships But Amtrak must use these tools to get the job done for our key customers: the Feds, the States, the traveling public 11 12
13 Recent FRA-to-States vs. Amtrak Federal Funding Trends As California knows, While Amtrak remains the national intercity passenger railway, our future is in collaborations partnership Recipient FY09 FY10 Enacted ARRA States $90 million $2.5 billion $8 billion Amtrak $1.5 billion $1.6 billion $1.3 billion $10.5b vs. $2.9b We must build the system together 12 13
14 For the New Era, PRIIA Requires: Sec. Sec Metrics Metrics Stards: Stards: Amtrak Amtrak FRA FRA must must develop develop or or improve improve metrics metrics stards stards to to measure measure train train performance performance service service quality quality Sec. Sec State-supported State-supported routes: routes: Amtrak, Amtrak, states, states, FRA FRA must must develop develop implement implement a a single single nationwide nationwide stardized stardized methodology methodology for for establishing establishing allocating allocating operating operating capital capital costs costs among among the the states states Sec. Sec Long Long Distance Distance Routes: Routes: Amtrak, Amtrak, using using the the metrics metrics stards, stards, evaluate evaluate each each long long distance distance route route annually, annually, develop develop performance performance improvement improvement plans; plans; implement implement them them over over the the LD LD network network by by thirds, thirds, beginning beginning in in Sec. Sec NEC NEC Infrastructure Infrastructure operations operations improvements: improvements: DOT DOT must must establish establish advisory advisory commission commission on on NEC NEC ops, ops, infrastructure; infrastructure; commission commission shall shall develop develop stardized stardized formula formula for for allocating allocating costs, costs, revenues, revenues, compensation compensation for for NEC NEC commuter commuter services services Sec. Sec State State rail rail plans: plans: States States must must complete complete state state passenger passenger freight freight rail rail plans plans that that are are coordinated coordinated with with other other state state transportation transportation plans plans Sec. Sec Corridor Corridor equipment equipment pool pool committee: committee: Amtrak Amtrak establishes establishes committee committee to to develop develop specs, specs, procure procure stardized stardized next-gen next-gen corridor corridor equipment equipment together together states states & FRA. FRA. Suppliers Suppliers & hosts hosts also also participate. participate
15 ARRA Funding for PRIIA American Recovery Reinvestment Act (ARRA) - High Speed Intercity Passenger Rail Grant Program (HSIPR) $8 billion to fund the PRIIA vision grant programs (sec. 301, 302, 501) match state rail plan requirements waived. Funding flexibility acknowledges different stages of development Grants require enduring state leadership commitment - operating capital funding Grant competition dems results: public benefits Capital investments are proceeding policy relationship development, which poses a challenge. Amtrak has many roles Grant recipient/partner Can lead or partner with states for funding Can help bridge projects across multiple states Service planner Liaison between other partners A la carte Service provider (Transportation, Mechanical, Engineering, etc) 14 15
16 PRIIA/ARRA: Amtrak s role to date Amtrak partnered with more than 25 states to support over 100 projects corridor applications in the first round of grant requests Stakeholder agreements Service development plans Ridership/revenue estimates Project scope Planning assistance Application assistance 15 16
17 First Round Grant Announcements $4.5 billion worth of announced projects will benefit 13 existing Amtrak routes Higher speeds/reduced trip times Increased frequencies Improved stations Increased reliability Funds new/extended services Downeaster extension (Portl Brunswick, ME) Ohio 3C Corridor (Clevel Columbus Cincinnati) Hiawatha extension (Milwaukee Madison, WI) $3.5 billion for Greenfield HSR projects in California & Florida Planning grants, funded with 2009 appropriations, to help develop future applications Additionally, several TIGER grants will benefit Amtrak stations services Now, FRA grant agreements must be completed project details agreements must be finalized
18 17 18
19 ARRA HSIPR Grants for California corridors Pacific Surfliner $51M for some triple-tracking crossovers Will improve service, reduce congestion, raise speeds San Joaquin $8M for equipment improvements Upgrades to train sets emissions control equipment Capitol Corridor $23M to: - Relocate track in Sacramento - Upgrade San Jose Diridon station - Install new crossover at Yolo Goal is congestion reduction Improvements to right-of-way will also improve performance of several long distance trains 18 19
20 California HSR project Plan envisions 220 mph/ 350 kph service on dedicated rights of way Proposition 1A authorized $9.9 billion bond issue California has received $2.25 billion in HSIPR grants Where to start? Minimum operable intercity segment? 19 20
21 High Speed Rail our view Developing new high speed services is a national imperative part of Amtrak s core mission. HSR works best when built upon a foundation of local regional connectivity provided by highquality transit conventional intercity services Market-competitive trip-time, frequency, reliability are key, not top speed Operations design/construction must be linked High Speed Express Regional-Intercity Commuter-Local Transit 20 21
22 Amtrak High Speed Rail Amtrak is seeking to operate new dedicated HSR corridors - this is the future! Establishing new Amtrak HSR Department Greenfield projects - participate in design operation of new HSR corridors Lead next-gen HSR development on the Northeast Corridor: - Major reductions in trip time - Significant increases in frequency - Increases in speed up to 220mph, using dedicated trackage some new alignments We have much of the experience needed for HSR Electrified services Operations Maintenance Planning engineering We envision ourselves working with other partners Amtrak s principal interest is operational We are the only partner with the universal access, liability arrangements, Federal authorities needed to get projects done We bring planning skills, experience, support networks such as reservation systems Our workforce is a tremendous asset Interconnectivity: can help integrate new existing services, especially during development 21 22
23 Different Approaches to HSR We need both for the US The The Big Big Bang Bang Substantial Substantial trip-time trip-time frequency frequency improvements improvements Lots Lots of of trains trains at at very very high high sustained sustained speeds, speeds, e.g., e.g., mph mph High High capital capital cost cost More More likely likely to to require require dedicated dedicated ROW. ROW. Dedicated Dedicated trackage trackage a a must must Extensive Extensive community community impacts impacts (pro/con) (pro/con) Takes Takes decades decades to to realize, realize, but but builds builds big big large large market market share share Higher Higher operating operating revenues revenues Sexy Sexy Incremental Improvement Produces Produces a string string of of small small trip-time trip-time improvements improvements Quick Quick results results that that add add up up Build Build ridership ridership market market share share as as you you go go Lower Lower capital capital costs costs Fewer Fewer big, big, immediate immediate improvements improvements Less Less market market excitement excitement Minimal Minimal community community impacts impacts (pro/con) (pro/con) Lower Lower operating operating revenues revenues Amtrak has the expertise to make both approaches work so let s take a look at them 22 23
24 Both approaches in action Amtrak Keystone Corridor Improvements (2006) Madrid-Valladolid high speed line (Dec 2007) Route 104 mile line (Philadelphia- Harrisburg) 111 mile line (Madrid- Valladolid) Scope of improvements Restored electrification, improved track signals for 110 mph service Constructed dedicated ROW for 186 mph service, including a 28 km tunnel Segovia-Guiomar station Intermediate stops 10 intermediate stops, shared ROW with Norfolk Southern SEPTA 1 intermediate stop Trip time improvement Harrisburg-Philly trip cut from 1:50 to 1:35 Trip time cut from 1:30 to 55 minutes Annual Ridership 1,183,821 riders in FY ,043 riders in 2008 Program cost $145 million $5.9 billion Alberto Saviejo photo Harrisburg station 23 24
25 Equipment: Amtrak Fleet Whatever happens, we all need equipment! Average passenger car 25 years old, older than ever Comprehensive fleet plan for all Amtrak business lines Total fleet procurement over a 30-year period will include 2,500 cars 700 locomotives = 100 cars annually Total anticipated cost (2009 dollars) - $11 billion through 2023, $23 billion through Not including needs for projected state-supported corridor frequency increases new services Designed for baseline 2% ridership growth on existing services Procurement model scalable for higher growth (options retirement rate) Fleet design to be coordinated with Sec. 305 process/specs as much as possible to create common designs/subsystems/parts/processes across entire system Creates sustainable domestic manufacturing capacity 24 25
26 Equipment: States Amtrak s fleet needs create a major opportunity High sustained Amtrak dem supports supplier investments competitive marketplace Piggyback on Amtrak orders lowers per unit costs PRIIA Sec Next gen corridor equipment pool Committee with representatives of States, Amtrak, FRA, etc. Goal: Stardized, interoperable equipment efficient equipment management to support growth State participation creates opportunity for: - Economies of scale in equipment design purchases to lower acquisition costs reduce risk - Efficiencies in operations maintenance, which reduce operating costs - New opportunities for innovative procurement, management, financing strategies Sec. 305 work is basis for HSIPR equipment grant-funding 25 26
27 Looking ahead: Amtrak s objectives Support the expansion, improvement establishment of intercity high-speed intercity passenger rail service Rebuild planning development capacity after years of neglect turmoil Develop new organization, business processes, resources policies to support growth Improve service delivery, especially mechanical services Become a better, more nimble partner for state customers Integrate new improved services into a seamless national network with enhanced intermodal connectivity Provide leadership role in equipment acquisition/planning Facilitate partnerships among states, host/commuter railroads Amtrak 26 27
28 Looking ahead: State Amtrak activities Participation in PRIIA-initiated processes PRIIA 209 (state corridor pricing) joint responsibility PRIIA 210 (long-distance trains) work with Amtrak on opportunities to better integrate LD routes corridor services PRIIA 212 (NEC Infrastructure & Operations Advisory Committee) joint undertaking between DOT, NEC states, Amtrak PRIIA 305 (equipment pool) - joint undertaking between DOT, NEC states, Amtrak Future grant rounds: $2.5 billion for FY 2010 capital program States Amtrak will again work together to identify/advance fundable projects State capital match (at least 20%) beginning in FY10 Operating funds Completion of state rail plans Host RR agreements Adapt organizational structures/processes to new environment Section 207 compliance Working together to meet stards raise train performance Building support to sustain grow HSIPR program Amtrak 27 28
29 Looking Ahead: California Amtrak Amtrak organization growing changing to promote more local control responsiveness to our #1 partner FY 2010 HSIPR grants opportunities for additional funding for existing corridors HSR project HSR project can assist with integration of services during development phase. Amtrak has assets to help advance the project Amtrak Caltrans working together on Sec. 305 specs for new Bilevels New intrastate corridor services being discussed Coast Daylight, Coachella Valley LOSSAN Corridor increasing levels of joint planning cooperation Desert Express, X Train, other proposals for LV-CA service Wifi for all three CA corridors coming E-ticketing PIDS Stations improvements Amtrak ADA program Long Distance enhancements for CA trains Sec
30 Major Challenges Dedicated, multiyear funding for HSIPR grants Amtrak funding is the #1 priority. Without it, this could all end very soon. Deficits, politics, funding needs of established modes pose major risks. The FRA, the States, Amtrak are making it up as we go the money came before the relationships had time to adapt. Our collective workload is intense dominated by operating the current system not growing innovating. No one states, Amtrak, FRA, hosts are organized or resourced for the new era, yet we re in it. Communication is evolving lacks clarity Confusion exists about roles, responsibilities, priorities. Everything takes longer costs more than you think
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