Subject: Amtrak seeks private sector aid for NEC
From: "Michael Muldoon" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Date: Thu, 19 May 2011 17:56:16 -0400

Amtrak seeks private sector aid for NEC [image:
E-mail]<http://www.railwayage.com//index2.php?option=com_content&task=emailform&id=3162&itemid=256>
  Thursday,
May 19, 2011
Amtrak said Thursday it is developing an in-depth business plan that will
maximize the opportunity for private investment to finance the construction
of infrastructure and the acquisition of equipment required to provide 220
mph next-generation high speed rail service in the Northeast Corridor.

“Amtrak will aggressively pursue private investment, in
combination with funding from the federal government and from other public
sources, to achieve our goal of initiating true high speed rail from
Washington to Boston,” said Amtrak Vice President, High-Speed Rail Al Engel
(pictured at left).

Last month, Amtrak issued a request for proposals for a fully implementable
and robust business and financial plan where Amtrak is the key developer and
operator of the HSR system. It will identify and develop public and private
funding sources and address fundamental issues of risk, credit, debt, and
investment phasing, among other criteria.

The business plan also will include strategies and tactics for meeting the
project delivery timelines and achieving financial targets, provide
information for Amtrak’s FY 2013 federal budget request and lay out the
strategy for subsequent forays into the private investment and capital
markets.

Amtrak says that numerous private investment firms have expressed interest
in working with it. Proposals are due June 10.

Engel said the active pursuit of private financing is one of several actions
taken by Amtrak to move forward its next-generation high-speed railvision
plan since it was announced last September. Another key action is the
development of a stair-step approach outlining a clear, structured, and
coordinated path to achieve 220 mph service on exclusive operational
segments first between Philadelphia and New York, then New York to
Washington, followed by New York to Hartford and, finally, Hartford to
Boston.

Amtrak recently was awarded $450 million by the Department of Transportation
to upgrade a 24-mile section of its Northeast Corridor infrastructure,
located in New Jersey, to support maximum speeds of 160 mph.

Amtrak says it has distributed its HSR vision plan for international peer
review by HSR operators in Europe and Asia, and notes most reviewers agreed
with the stair-step approach, saying the current strategy is needed for
successfully implementing next-generation HSR in the NEC.[image:
amtrak_logo.jpg]

Many reviewers also said Amtrak ridership estimates were too low, and
several major operators indicated there are construction cost reduction
opportunities that could reduce the capital investment. Many also suggested
Amtrak would likely capture a larger share of the intercity travel market
than what is projected in the plan. “This bodes well for an even higher
benefit/cost ratio than the current 2.3 stated in the report,” said Engel.

Amtrak is a partner in the 8th World Congress on High-Speed
Rail<http://www.railwayage.com/breaking-news/u.s.-to-host-8th-world-congress-on-hsr-3148.html>that
will be held in Philadelphia in July 2012. As a partner with the
International Union of Railways, the American Public Transportation
Association, and the Association of American Railroads, Amtrak will host the
world congress. The event is expected to attract some 2,000 attendees
worldwide to exchange views on the development and achievements of HSR.

“Even with limited funding, Amtrak is continuing to make bold moves
forwardtoward realizing its vision for 220-mph next-generation high speed
rail in the Northeast Corridor,” Engel said.
-- 
Mike Muldoon
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]