7HFKQLFDO5HSRUW'RFXPHQWDWLRQ3DJH 5HSRUW1R *RYHUQPHQW$FFHVVLRQ1R 5HFLSLHQW¶V&DWDORJ1R
7LWOHDQG6XEWLWOH 5HSRUW'DWH '20(67,&$1',17(51$7,21$/%(6735$&7,&(&$6( )HEUXDU\ 678',(6 $XWKRU V 3HUIRUPLQJ2UJDQL]DWLRQ&RGH +DQL60DKPDVVDQL.HLVKD6ODXJKWHU+XVVHLQ&KHEOLDQG 0LFKDHO0F1HUQH\ 3HUIRUPLQJ2UJDQL]DWLRQ5HSRUW1R 3HUIRUPLQJ2UJDQL]DWLRQ1DPHDQG$GGUHVV :RUN8QLW1R 75$,6 &HQWHUIRU7UDQVSRUWDWLRQ5HVHDUFK 7KH8QLYHUVLW\RI7H[DVDW$XVWLQ &RQWUDFWRU*UDQW1R 5HG5LYHU6XLWH $XVWLQ7; 6SRQVRULQJ$JHQF\1DPHDQG$GGUHVV 7\SHRI5HSRUWDQG3HULRG&RYHUHG 7H[DV'HSDUWPHQWRI7UDQVSRUWDWLRQ 5HVHDUFK5HSRUW± 5HVHDUFKDQG7HFKQRORJ\7UDQVIHU6HFWLRQ&RQVWUXFWLRQ'LYLVLRQ 32%R[ 6SRQVRULQJ$JHQF\&RGH $XVWLQ7;
6XSSOHPHQWDU\1RWHV 3URMHFWFRQGXFWHGLQFRRSHUDWLRQZLWKWKH86'HSDUWPHQWRI7UDQVSRUWDWLRQ)HGHUDO+LJKZD\$GPLQLVWUDWLRQDQGWKH7H[DV 'HSDUWPHQWRI7UDQVSRUWDWLRQ $EVWUDFW $LUWUDQVSRUWDWLRQSOD\VDYLWDOUROHLQWKH7H[DVHFRQRP\$LUSDVVHQJHUFDUJRWUDIILFLVSURMHFWHGWRFRQWLQXHWRLQFUHDVH FRQVLGHUDEO\DWPDQ\RIWKHVWDWH¶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
'20(67,&$1',17(51$7,21$/
%(6735$&7,&(&$6(678',(6 E\ +DQL60DKPDVVDQL .HLVKD6ODXJKWHU +XVVHLQ&KHEOL 0LFKDHO0F1HUQH\ 5HVHDUFK5HSRUW1XPEHU 5HVHDUFK3URMHFW $LUSRUW$FFHVV,QWHUPRGDO6WUDWHJLHVWR$GGUHVV&RQJHVWLRQDW $LUSRUW+LJKZD\,QWHUIDFHV &RQGXFWHGIRUWKH 7(;$6'(3$570(172)75$163257$7,21 LQFRRSHUDWLRQZLWKWKH 86'(3$570(172)75$163257$7,21 )('(5$/+,*+:$<$'0,1,675$7,21 E\WKH &(17(5)2575$163257$7,215(6($5&+ %XUHDXRI(QJLQHHULQJ5HVHDUFK 7+(81,9(56,7<2)7(;$6$7$867,1 )(%58$5<
LY
',6&/$,0(56
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
Y
YL
7$%/(2)&217(176
&+$37(5,1752'8&7,21
86$,532576
12186$,532576 &+$37(5'20(67,&%(6735$&7,&(&$6(678',(6
,1752'8&7,21
&+,&$*22 +$5(,17(51$7,21$/$,53257 6WDWLVWLFV ,QWHUPRGDOLW\ 3DUNLQJ 5DLO6HUYLFH )XWXUH3URMHFWV '(19(5,17(51$7,21$/$,53257 6WDWLVWLFV ,QWHUPRGDOLW\ 5DLO6HUYLFH *URXQG$FFHVV6ROXWLRQV )XWXUH3URMHFWV :$6+,1*7215($*$11$7,21$/$,53257 6WDWLVWLFV ,QWHUPRGDOLW\ 5DLO6HUYLFH )XWXUH3URMHFWV &+$37(5,17(51$7,21$/%(6735$&7,&(&$6(678',(6
,1752'8&7,21
YLL
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
YLLL
&21&/86,216 &+$37(56800$5<$1'&21&/86,216 $,532575$,/ :KHQDQG:K\5DLO:RUNV :KDWWKH&DVH6WXG\$LUSRUWVDUHDRLQJ 2))$,532577(50,1$/6 ,VVXHVWREH&RQVLGHUHGLQ'HYHORSLQJ2II$LUSRUW7HUPLQDOV ,PSOLFDWLRQVIRU7H[DV$LUSRUWV )XWXUH5HVHDUFK 5()(5(1&(6
$33(1',;
L[
[
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¶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¶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¶+DUH'HQYHU5RQDOG5HDJDQ:DVKLQJWRQ1DWLRQDODQG'DOODV )RUW:RUWK,QWHUQDWLRQDO7KHVHOHFWLRQRIWKHVHDLUSRUWVLVEDVHGRQWKHUHODWLYHLPSRUWDQFH RIHDFKDQGWKHLUUHOHYDQFHWRWKHSURMHFWWRSLF &KLFDJR 2¶+DUH ,QWHUQDWLRQDO $LUSRUW LV RQH RI WKH ODUJHVW DLUSRUWV LQ WKH ZRUOG UDQNLQJVHFRQGGXULQJZLWKSDVVHQJHUV7ZRRIWKHDLUSRUW VPRVWQRWDEOH IHDWXUHVDUH7HUPLQDOWKHLQWHUQDWLRQDOWHUPLQDODQGWKH$LUSRUW7UDQVLW6\VWHP $76 DQ HOHYDWHG DXWRPDWHG SHRSOH PRYHU V\VWHP WKDW WUDQVSRUWV SDVVHQJHUV IURP WKH WHUPLQDOV WR ORQJWHUPSDUNLQJIDFLOLWLHVLQDPDWWHURIPLQXWHV7KHSXEOLFWUDQVSRUWDWLRQPDUNHWVKDUHDW &KLFDJR2¶+DUHLVRIZKLFKUDLOVHUYLFHLVXVHGE\OHVVWKDQ 'HQYHU ,QWHUQDWLRQDO $LUSRUW ZDV FRQVLGHUHG EHFDXVH LW LV D QHZ DLUSRUW WKDW PLJKW KDYH WKH SRWHQWLDO WR DFKLHYH KLJK OHYHOV RI SXEOLF WUDQVSRUW XVDJH ,Q LWV SXEOLF WUDQVSRUWDWLRQ PDUNHW VKDUH ZDV ZLWK RI WKRVH XVLQJ EXVHV DQG WKH UHPDLQGHU VKDUHGULGHYDQV 5RQDOG 5HDJDQ :DVKLQJWRQ 1DWLRQDO $LUSRUW '&$ LV FRQYHQLHQW WR WKH HQWLUH 0HWURSROLWDQ :DVKLQJWRQ 5HJLRQ :LWK LWV RZQ VWRS RQ :DVKLQJWRQ V VXEZD\ 0HWURUDLO '&$LVDVKRUWULGHIURPDQ\VWDWLRQRQWKH0HWURUDLOV\VWHP7KLVDLUSRUWKDVWKHODUJHVW VKDUHRIUDLOULGHUVKLSRIDQ\RWKHUDLUSRUWLQWKH86ZLWKRIDOOSDVVHQJHUVXVLQJUDLO ,Q DGGLWLRQ LWV SXEOLF WUDQVSRUWDWLRQ PDUNHW VKDUH LV '&$ UDQNHG WK ZRUOGZLGHLQZLWKSDVVHQJHUV 'DOODV)RUW:RUWK$LUSRUW '): ZDVVHOHFWHGEHFDXVHLWIRUPVWKHEXLOGLQJEORFNRI WKLVSURMHFWZKLFKIRFXVHVLQWKHODQGVLGHDFFHVVLVVXHVDWWKHPDMRU7H[DVDLUSRUWV'): $LUSRUWZLWKDUULYLQJGHSDUWLQJDQGFRQQHFWLQJSDVVHQJHUVLQUDQNHGILIWK LQ WKH ZRUOG LQ DGGLWLRQ WR UDQNLQJ WZHQW\WKLUG ZRUOGZLGH IRU WRWDO ORDGHG DQG XQORDGHG IUHLJKWDQGPDLO 5HI 0RUHRYHU'):$LUSRUWHPSOR\HHVDQGSDVVHQJHUVQRZKDYHD QHZ WUDYHO RSWLRQ IRU JHWWLQJ WR ZRUN RU FDWFKLQJ D IOLJKW WKH 7ULQLW\ 5DLO ([SUHVV 7KH 7ULQLW\5DLO([SUHVV 75( KDVH[WHQGHGLWVURXWHIDUWKHUZHVWIURPGRZQWRZQ'DOODV 'DOODV 8QLRQ 6WDWLRQ WR 5LFKODQG +LOOV DQG QRZ VHUYHV '): $LUSRUW DW WKH &HQWUH3RUW'): $LUSRUW6WDWLRQ)URP0RQGD\WKURXJK6DWXUGD\'):HPSOR\HHVDQGWUDYHOHUVFDQULGHWKH 75(WUDLQIURPDQ\75(UDLOVWDWLRQLQWRWKH&HQWUH3RUWVWDWLRQDQGULGHDIUHHVKXWWOHVHUYLFH IURP&HQWUH3RUWLQWRWKH$LUSRUW 5HI 1HYHUWKHOHVVLWVKRXOGEHQRWHGWKDW'):$LUSRUW ZDVDOVRVHOHFWHGEHFDXVHRIWKHKHDY\UHOLDQFHRILWVSDVVHQJHUVRQWKHXVHRISULYDWHDXWR 7KLVZRXOGSURYLGHDQRSSRUWXQLW\WRDGGUHVVWKHLVVXHRIDXWRRULHQWHGUDWKHUWKDQWUDQVLW RULHQWHGSDVVHQJHUVDQGDWWHPSWDVFKHPHE\ZKLFKZHFRXOGVKLIWWKHPRGHFKRLFHWRZDUGV SXEOLFWUDQVLW7RGD\OHVVWKDQIRXUSHUFHQWRIDUULYLQJDQGRUGHSDUWLQJSDVVHQJHUVWUDYHOE\ SXEOLFPHDQVRIWUDQVSRUWDWLRQ 12186$,532576 $LUSRUW DFFHVV SODQQLQJ KROGV FRQVLGHUDEOH LPSRUWDQFHLQPDQ\FLWLHVRIWKHZRUOG HVSHFLDOO\ EHFDXVH QRUPDO FRQJHVWLRQ OHYHOV LQ WKHVH FLWLHV SUHFOXGH UHOLDEOH DUULYDO DW WKH DLUSRUW XVLQJ WKH UHJXODU WUDQVSRUWDWLRQ QHWZRUN DQG EHFDXVH KLJK XUEDQ GHQVLWLHV UHTXLUH ORFDWLQJ DLUSRUWV YHU\ IDU IURP WKH FLW\ FRUH $ EURDGHU DUUD\ RI PRGDO DOWHUQDWLYHV LV QRUPDOO\DYDLODEOHRYHUVHDVIRUDLUSRUWDFFHVVZLWKKHDYLHUUHOLDQFHRQUDLOWKDQLQWKH86 5HFHQWLQWHUQDWLRQDOH[SHULHQFHVDQGLQQRYDWLRQVLQWKLVUHJDUGDUHUHYLHZHGLQWKLVUHSRUW $LUSRUWV LQFOXGHG LQ WKH GLVFXVVLRQ DUH )UDQNIXUW0DLQ $LUSRUW +RQJ .RQJ ,QWHUQDWLRQDO $LUSRUWDW&KHN/DS.RNDQG=XULFK,QWHUQDWLRQDO$LUSRUW 7KHVH DLUSRUWV ZHUH VHOHFWHG DIWHU DQ H[WHQVLYH UHYLHZ RI PRUH WKDQ DLUSRUWV ZRUOGZLGH DQG WKHLU FKRLFH ZDV EDVHG RQ WKH IDFW WKDW HDFK RIIHUV DQ H[DPSOH RI D SDUWLFXODUO\VXFFHVVIXODSSURDFKWRWKHDFFHVVSUREOHP)RUH[DPSOH+RQJ.RQJ¶V$LUSRUWLV RQHRIWKHPRVWUHFHQWDLUSRUWVSODFHGLQRSHUDWLRQZRUOGZLGHDQG=XULFK$LUSRUWSURYLGHVD JRRGLOOXVWUDWLRQRISDVVHQJHUFKHFNLQDWRIIDLUSRUWVWDWLRQV 5HI 2QSHDNGD\VRYHUWUDYHOHUVSDVVWKURXJK)UDQNIXUW$LUSRUW )5$ RQWKHLU ZD\WRGHVWLQDWLRQVWKURXJKRXW*HUPDQ\(DVWHUQDQG:HVWHUQ(XURSHDQGWKHUHVWRIWKH ZRUOG)UDQNIXUW$LUSRUWUHFHLYHGQHDUO\PLOOLRQSDVVHQJHUV LQPDNLQJ LW*HUPDQ\¶VOHDGLQJDLUSRUW)UDQNIXUW$LUSRUWKDVLQGHHGHYROYHGLQWRDIXOOVHUYLFH ³LQWHUPRGDOWUDYHOSRUW´ZKHUHDLUUDLODQGURDGQHWZRUNVDUHOLQNHGLQDGHOLEHUDWHO\ SODQQHGPDQQHU)UDQNIXUW$LUSRUWFODLPVWRKDYH³SLRQHHUHG´WKHLQWHJUDWLRQRIDLUDQGUDLO WUDQVSRUWDWLRQV\VWHPVDQGWKHRSHQLQJRIWKHQHZ$,5DLO7HUPLQDODGGVDIXUWKHUGLPHQVLRQ LQWKDWUHVSHFWPDNLQJLWRQHDLUSRUWZLWKWZRWUDLQVWDWLRQV +RQJ .RQJ¶V ,QWHUQDWLRQDO $LUSRUW DW &KHN /DS .RN ZDV WKH ODUJHVW HQJLQHHULQJ SURMHFW HYHU XQGHUWDNHQ LQ WKH KLVWRU\ RI +RQJ .RQJ 7KH SODQ WR EXLOG WKH DLUSRUW ZDV ODXQFKHG LQ 8SRQ GHFLGLQJ D ORFDWLRQ IRU WKH DLUSRUW WKH *RYHUQPHQW DQG WKH 3URYLVLRQDO $XWKRULW\ VWLSXODWHG WKDW WKH QHZ DLUSRUW EH HDVLO\ DFFHVVLEOH WR DOO XVHUV SDVVHQJHUVDQGVKLSSHUVDOLNH7KHDLUSRUWZDVOLQNHGWRWKHKHDUWRI+RQJ.RQJE\DOPRVW NLORPHWHUVRIQHZURDGVDGHGLFDWHGKLJKVSHHGUDLOZD\DQGODQGPDUNEULGJHVDQGDQHZ WRZQ7KHUDLOZD\LVFODLPHGWREHWKHZRUOG¶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¶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¶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¶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¶WULSSXUSRVHV Rental Car/Other 12% CTA Bus or Train 6% Hotel/Airport Bus or Van 6% Auto 51% Taxi/Limousine 25% )LJXUH0RGDO6SOLWVIRU2¶+DUH,QWHUQDWLRQDO$LUSRUW 7DEOH&KLFDJR2 +DUH$LU7UDYHOHUV¶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iles 10 5 0 NY JFK Kansas City DFW Int’l Houston Int’l DIA Washington Airport Dulles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¶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x 5HFRQVWUXFWLRQRIWKHLQWHUFKDQJHVDW,QWHUVWDWH,QWHUVWDWHDQG,QWHUVWDWH WK$YHQXH x 5HKDELOLWDWLRQRI,QWHUVWDWHIURP3HQD%RXOHYDUGWR7RZHU5RDG x 5HEXLOGLQJRIWK$YHQXHIURP4XHEHF6WUHHWWR86 :$6+,1*7215($*$11$7,21$/$,53257 5RQDOG5HDJDQ:DVKLQJWRQ1DWLRQDO$LUSRUW '&$ LVFRQYHQLHQWO\ORFDWHGWRWKH :DVKLQJWRQ'&0HWURSROLWDQ5HJLRQ:LWKLWVRZQVWRSRQ:DVKLQJWRQ VVXEZD\ 0HWURUDLO'&$LVDVKRUWULGHIURPDQ\VWDWLRQRQWKH0HWURUDLOV\VWHP:DVKLQJWRQ'&LV DVKRUWWD[LULGHDZD\DVZHOO 6WDWLVWLFV 2SHQHGRQ-XQH:DVKLQJWRQ1DWLRQDO$LUSRUWZDVEXLOWE\WKHIHGHUDO JRYHUQPHQWDQGGHGLFDWHGE\3UHVLGHQW)UDQNOLQ'5RRVHYHOW 7KHDLUSRUWHQFRPSDVVHVDFUHVRQODQGDQGRQZDWHU 7KHDLUSRUW¶VQDPHZDVRIILFLDOO\FKDQJHGWR³5RQDOG5HDJDQ:DVKLQJWRQ1DWLRQDO $LUSRUW´LQ)HEUXDU\E\WKH8QLWHG6WDWHV&RQJUHVV 7HUPLQDO%&RSHQHGRQ-XO\7KHQHZWHUPLQDOKDVPLOOLRQVTXDUHIHHWRI IORRUVSDFHVSUHDGRYHUWKUHHOHYHOVJDWHVDQGGLUHFWFRQQHFWLRQVWRWKH0HWURUDLOSXEOLF WUDQVSRUWDWLRQV\VWHPDQGWKHSDUNLQJJDUDJHVYLDWZRHQFORVHGSHGHVWULDQEULGJHV7KH WHUPLQDOV¶WZROHYHOURDGZD\V\VWHPLPSURYHVWUDIILFIORZWKURXJKWKHDLUSRUWE\VRUWLQJ LQFRPLQJDQGRXWJRLQJWUDIILF'&$¶VKLVWRULF³7HUPLQDO$´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³VKRUWKDXO´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³6KXWWOHWR7HUPLQDO$´EXVVWRSVRQ/HYHO* *URXQG RI *DUDJHV%DQG& 5DLO6HUYLFH 0HWURUDLOWKHUHJLRQ VUDSLGWUDQVLWV\VWHPVWRSVDGMDFHQWWR7HUPLQDOV%DQG& 0HWURUDLOIDUHFDUGVPD\EHSXUFKDVHGIURPPDFKLQHVDWHLWKHURIWZR)DUHFDUGSOD]DV ORFDWHGRQ/HYHOQHDUSHGHVWULDQEULGJHVWKDWOHDGLQWRDQGRXWRI7HUPLQDOV%DQG& $WKLUG)DUHFDUGSOD]DIRUGLVDEOHGDQGRWKHUSDVVHQJHUVXVLQJHOHYDWRUVLVXQGHUWKH0HWUR SODWIRUPPLGZD\EHWZHHQWKHQRUWKDQGVRXWKPH]]DQLQHV 8SRQH[LWLQJ0HWUR¶V'&$VWRSSDVVHQJHUVYLHZWKHSHGHVWULDQZDONZD\WKDWWDNHV WKHPLQWRWKHDLUSRUWWHUPLQDO VFRQFRXUVHRUPLGGOHOHYHOZKHUHWKHMHWJDWHVDUHORFDWHG 0RYLQJZDONZD\VDFFHOHUDWHWKHZDONDFURVVWKHSHGHVWULDQEULGJHOLQNLQJ0HWURWR 7HUPLQDOV%DQG&2QHVLJQLILFDQWVKRUWFRPLQJRI0HWURUDLOLVWKHGLVWDQFHIURPYDULRXV DUHDVRIWKHDLUWHUPLQDOWRWKHUDLOWHUPLQDOWKDWPLJKWEHFRQVLGHUHGH[FHVVLYHZKLOHFDUU\LQJ EDJJDJH 7KHPRGHVSOLWIRU5RQDOG5HDJDQ:DVKLQJWRQ1DWLRQDO$LUSRUWLVVXPPDUL]HGLQ )LJXUH Taxi Auto 36% 37% Rental Car Rail 11% 16% )LJXUH0RGH6SOLWIRU5RQDOG5HDJDQ:DVKLQJWRQ1DWLRQDO$LUSRUW )XWXUH3URMHFWV 7KH 0HWURSROLWDQ :DVKLQJWRQ $LUSRUWV $XWKRULW\ LV VSHQGLQJ ELOOLRQ RQ FRQVWUXFWLRQ RI QHZ DQG H[SDQGHG WHUPLQDOV DW :DVKLQJWRQ¶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¶VEXVLHVWDLUSRUWWKDWKDVHYROYHGLQWRDIXOOVHUYLFH³LQWHUPRGDOWUDYHOSRUW´ZKHUH DLUUDLODQGURDGQHWZRUNVDUHFODLPHGWREH³RSWLPDOO\´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±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¶VODUJHVWHFRQRPLFPDUNHWVZKHUH WKHYDULRXVPRGHVRIWUDQVSRUWDWLRQDUHVWURQJO\FRQFHQWUDWHGDQGLQWHUOLQNHG,WLV DQHFGRWDOO\VWDWHGLQSURPRWLRQDOPDWHULDOWKDW³DOOURXWHVDLUURDGZD\VDQGZDWHUZD\VLQ *HUPDQ\OHDGWR)UDQNIXUWDQG)5$´ 5HI )UDQNIXUW¶VORFDWLRQQHDUWKHMXQFWLRQRIWKH5KLQHDQG0DLQULYHUVHVWDEOLVKHGWKH FLW\DORQJRQHRIWKHZRUOG¶VPRVWLPSRUWDQWLQODQGZDWHUZD\VIRUSDVVHQJHUDQGIUHLJKW WUDIILF$WWKHQRUWKHDVWHUQFRUQHURIWKHDLUSRUWDQGQRWIDUIURPSDVVHQJHUWHUPLQDOVLV (XURSH¶VILUVWDQGFXUUHQWO\EXVLHVWH[SUHVVZD\FORYHUOHDIWKH)UDQNIXUWHU.UHX]7KLVLV WKHVLWHRIWKHLQWHUVHFWLRQRIWKH$DQGWKH$DXWREDKQV WKHPRVWLPSRUWDQWPRWRUZD\VLQ *HUPDQ\ 7KLVDOORZVTXLFNDFFHVVWR*HUPDQ\¶VUHQRZQHGDXWREDKQQHWZRUNDQGRWKHU H[SUHVVZD\VWKURXJKRXW(XURSH$GGLWLRQDOO\EHJLQQLQJZLWKWKHJROGHQDJHRIWUDLQV )UDQNIXUWKDVEHHQDQLPSRUWDQWUDLOFHQWHU)UDQNIXUW¶VFHQWUDOUDLOZD\VWDWLRQ +DXSWEDKQKRILVRQHRI(XURSH¶VEXVLHVWVWDWLRQV 5HI ,QWHUPRGDOLW\LVDERXWWKHLQWHJUDWLRQRIGLIIHUHQWWUDQVSRUWDWLRQV\VWHPV²IRU LQVWDQFH5DLO$LU²DQGDOODVVRFLDWHGVHUYLFHVDORQJWKHHQWLUHWUDYHOFKDLQ)UDQNIXUW0DLQ ,QWHUQDWLRQDO$LUSRUWKDVDJJUHVVLYHO\SXUVXHGVXFKFORVHLQWHJUDWLRQDVUHIOHFWHGLQWKH RSHQLQJRIWKH$,5DLO7HUPLQDO,QWKLVVHQVH)5$KDVGHYHORSHGLQWRDQ³LQWHUPRGDOWUDYHO SRUW´PDNLQJLWRQHDLUSRUWZLWKWZRWUDLQVWDWLRQV)LJXUHVDQGGHSLFWPRGDOVSOLWVDW )5$WKHILUVWLVDSORWRIWKHYDULDWLRQRIPRGDOVSOLWIRUYDULRXVPRGHVRYHUILYH\HDUV ZKLOHWKHVHFRQGLVDPRUHIRFXVHGSORWRIWKHPRGDOVSOLWVGXULQJWKHRQH\HDU SHULRGIURP-XO\WR-XO\ 5HI Modal Split at Frankfurt Airport 50 1996 1997 40 1998 1999 2000-present 30 Percent 20 10 0 Passenger Rented Taxi Bus S-Bahn Main Line ICE Other Car Car Train Mode of Transport )LJXUH0RGDO6SOLWGXULQJWKH3DVW)LYH 50 1998 -1999 1999 - 2000 40 30 Percent 20 10 0 Long-distance train/ S-Bahn/ BusCar/Rented Car Taxi Other ICE Mode )LJXUH0RGDO6SOLW)URP-XO\WR-XO\DW)UDQNIRUW$LUSRUW $,5DLO7HUPLQDO )UDQNIXUW0DLQ,QWHUQDWLRQDO$LUSRUWLVVWULYLQJWREHFRPHDNH\KXEIRUWKHWUDQV (XURSHDQKLJKVSHHGUDLOQHWZRUN7KHXOWLPDWH DQGHOXVLYH JRDOLVWRDFKLHYHLQWHJUDWLRQ EHWZHHQDLUDQGUDLOV\VWHPVUHVXOWLQJLQDVLQJOHHDV\WRXVHVHUYLFHFRQYHQLHQWIRUDOO WUDYHOHUV7KHFRUQHUVWRQHRI)5$¶VVHFRQGSDVVHQJHUVWDWLRQWKHVRFDOOHG$,5DLO7HUPLQDO ZDVODLGLQSODFHRQ2FWREHUPDUNLQJWKHEHJLQQLQJRIDQHZPLOOHQQLXPDQGDQHZ HUDLQ³VHDPOHVVWUDYHO´IRU³UDLODQGIO\´VHUYLFHV)5$LVWU\LQJWRHQKDQFHLWVUROHE\ DGGLQJWKLVVWDWHRIWKHDUWUDLOZD\VWDWLRQGHVLJQHGH[FOXVLYHO\IRUORQJGLVWDQFHVHUYLFHV SDUWLFXODUO\KLJKVSHHGWUDLQV*HUPDQ5DLOLVIRUHFDVWLQJWKDWWRSDVVHQJHUV SHUGD\RUDSSUR[LPDWHO\PLOOLRQDQQXDOSDVVHQJHUVE\ZLOOEHXVLQJWKLVKLJKVSHHG UDLOZD\QHWZRUNHVSHFLDOO\DIWHUWKHQHZKLJKVSHHGWUDFNEHWZHHQ)5$DQGGRZQWRZQ &RORJQH DQG&RORJQH$LUSRUW LVFRPSOHWHGE\7KHVKLIWRIPDQ\VKRUWKDXOIOLJKWV SDUWLFXODUO\WKRVHZLWKLQDWRNLORPHWHUUDGLXV WRPLOHV IURPWKHDLUSRUW WRWKHKLJKVSHHGUDLOQHWZRUNLVEHLQJHQFRXUDJHGDW)5$$SSUR[LPDWHO\PLOOLRQSHRSOH OLYHZLWKLQDNLORPHWHUUDGLXV PLOHV RI)5$ZKLFKLVPRUHWKDQWKHSRSXODWLRQ VXUURXQGLQJ$PVWHUGDP3DULVRU/RQGRQ7KLVVKLIWZLOOSRVLWLYHO\LPSDFWWKHHQYLURQPHQW LQWZRZD\VURDGWUDIILFWRWKHDLUSRUWZLOOEHUHGXFHGDQGWKHIUHHGXSIOLJKWFDSDFLW\ VKRUW KDXOIOLJKWV FDQEHXWLOL]HGIRUH[SDQGLQJLQWHUFRQWLQHQWDODLUVHUYLFHV 5HI :LWKWKHHPHUJHQFHRIWKHWUDQV(XURSHDQKLJKVSHHGUDLOQHWZRUNWKHVWUDWHJLF YLVLRQIRU)5$LVWREHFRPHDNH\KXEIRUKLJKVSHHGWUDLQVWUDYHOLQJIURPDVIDUZHVWDV %ULWDLQYLDWKH&KDQQHO7XQQHODVIDUVRXWKDV,WDO\YLDWKH$OSVDVIDUQRUWKDV6FDQGLQDYLD DQGSHUKDSVDVIDUHDVWDV:DUVDZDQG0RVFRZ 5HI )5$LVWKHRQO\DLUSRUWLQ*HUPDQ\ WKRXJKVLPLODUWR3DULV¶&KDUOHVGH*DXOOH $LUSRUW WREHGLUHFWO\VHUYHGE\KLJKVSHHGWUDLQV%HJLQQLQJ0D\KLJKVSHHGUDLO VHUYLFHVWRPDMRUFLWLHVWKURXJKRXW*HUPDQ\KDYHEHHQRIIHUHGIURPWKHQHZ$,5DLO 7HUPLQDO ORFDWHGQHDUWKH6KHUDWRQ+RWHODQG7HUPLQDO 7KLVVWDWLRQLVVHUYHGE\DWRWDO RIIRXUQDWLRQDOOLQHVWZRUHJXODUVSHHG,QWHU&LW\ ,& OLQHVDQGWZRKLJKVSHHG,QWHU&LW\ ([SUHVV ,&( OLQHV3UHYLRXVO\SDVVHQJHUVZHUHUHTXLUHGWRWDNHDFRPPXWHUWUDLQWR GRZQWRZQ)UDQNIXUW¶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¶V/RQJGLVWDQFH7UDLQ6WDWLRQ $,5DLO7HUPLQDO E\ ,QWHU&LW\ ,& RUKLJKVSHHG,QWHU&LW\([SUHVV ,&( WUDLQVIURPGHVWLQDWLRQVDFURVV *HUPDQ\KDYHWKHRSWLRQRIFKHFNLQJLQIRUWKHLUIOLJKWVDWWKHQHZ³&KHFNLQ7´DUHD ORFDWHGLQWKHFRQQHFWRUEXLOGLQJWKDWOLQNVWKH/RQJGLVWDQFH7UDLQ6WDWLRQZLWK7HUPLQDO DVKRUWZDONIURPWKHUDLOSODWIRUPV$W³&KHFNLQ7´SDVVHQJHUVDUHDEOHWRFKHFNLQWKHLU EDJJDJHDQGUHFHLYHDERDUGLQJFDUGXSWRPLQXWHVEHIRUHWKHLUIOLJKWGHSDUWXUH 5HI 7KH$,5DLO7HUPLQDOKDVEHHQOLQNHGWRWKH(XURSHDQKLJKVSHHGQHWZRUNE\ZD\RI WKH,QWHUFLW\([SUHVV,&(/RQJGLVWDQFH7UDLQ6WDWLRQEHJLQQLQJLQ0D\7KH IROORZLQJLVDGHVFULSWLRQRIWKHVWDWLRQ 5HI x 3DVVHQJHUWKURXJKSXW DSSUR[LPDWHO\SDVVHQJHUVGDLO\ SURMHFWHG DSSUR[LPDWHO\SDVVHQJHUVGDLO\ 7RWDOFDSDFLW\DSSUR[LPDWHO\PLOOLRQSDVVHQJHUVSHU\HDU x 7ZRSODWIRUPVZLWKWUDFNVQXPEHUHG± x 7KH/RQJGLVWDQFH7UDLQ6WDWLRQLVFORVHGIURPDP±DPWKXVORQJ GLVWDQFHWUDLQVRSHUDWHIURPWKH5HJLRQDO7UDLQ6WDWLRQGXULQJWKLVSHULRG x $W SUHVHQW VHUYLFHV DUH RIIHUHG GDLO\ ZLWK DGGLWLRQDO GLUHFW FRQQHFWLRQV SODQQHGIRUWKHIXWXUH 5HJLRQDO7UDLQ6WDWLRQ 7KLVXQGHUJURXQGVWDWLRQRSHQHGLQDQGSURYLGHVUHJLRQDODQGORFDOWUDLQ VHUYLFHV 5HI x $SSUR[LPDWHO\WUDLQVGDLO\ x 7UDYHOWLPHWR)UDQNIXUW&HQWUDO6WDWLRQPLQXWHV ³6%DKQ´OLQHV6DQG6 6WDGW([SUHVVDQG5HJLRQDO([SUHVVDW±PLQXWHLQWHUYDOV x )UHTXHQWUHJLRQDOWUDLQVHUYLFHVWR.REOHQ]6DDUEUXFNHQ%DPEHUJ+RI x &DSDFLW\FXUUHQWO\DSSUR[LPDWHO\SDVVHQJHUVGDLO\ SOXVDLUSRUWHPSOR\HHV DQGYLVLWRUVHWF x 7ZRSODWIRUPVWUDFNVQXPEHUHG± 2QH$LUSRUW±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±WZRSDVVHQJHUWUDLQVWDWLRQV LVFODLPHGWREHDGYDQWDJHRXVWR SDVVHQJHUVIRUWKHIROORZLQJUHDVRQV 5HI x 'LUHFWFRQQHFWLRQVWRDQGIURPWKHDLUSRUWE\,&(DQG(XUR,QWHU&LW\WUDLQVWR GHVWLQDWLRQVZLWKLQ*HUPDQ\DQGQHLJKERULQJFRXQWULHV 1HWKHUODQGV 6ZLW]HUODQG,WDO\$XVWULD&]HFK5HSXEOLFDQG+XQJDU\ x &RRUGLQDWLRQEHWZHHQUDLODQGDLUWLPHWDEOHV x ,QFUHDVHGIUHTXHQFLHV KRXUO\ UHVXOWLQJLQUHGXFHGZDLWLQJWLPHVDQGVKRUWHU SRLQWWRSRLQWMRXUQH\V x 2YHUDOOWLPHVDYLQJVDUHH[SHFWHGZLWKWKHFRPSOHWLRQRIWKHQHZ,&(KLJKVSHHG WUDFN&RORJQH5KLQH0DLQLQ)RUH[DPSOHWKHWULSIURP)5$WR&RORJQH 7UDLQ6WDWLRQZRXOGEHFRPSOHWHGLQOHVVWKDQRQHKRXU %ULGJHV%HWZHHQ$LUDQG5DLO 7KHLQWHUFKDQJHEHWZHHQGLIIHUHQWPRGHVRIWUDQVSRUWDWLRQLVLQWHQGHGWREHVLPSOH DQGFRQYHQLHQW7KH/RQJGLVWDQFH7UDLQ6WDWLRQLVFRQQHFWHGWRWKHDLUSRUWWHUPLQDOVLQWKH IROORZLQJPDQQHU 5HI 7HUPLQDO x 9LDWKHSHGHVWULDQEULGJHOHDGLQJIURPWKH)UDQNIXUW$LUSRUW&HQWHU )$& WR 'HSDUWXUH$UULYDO+DOOV$DQG% x 9LDWKH6KHUDWRQ+RWHODQGSHGHVWULDQEULGJHOHDGLQJWR'HSDUWXUH$UULYDO+DOO& x 'LUHFWOLQNWR'HSDUWXUH$UULYDO+DOO%LVVFKHGXOHGIRUFRPSOHWLRQLQ x :DONLQJGLVWDQFHWRWKH³0HHWLQJ3RLQW´LQ7HUPLQDOLVDERXWPLQXWHV 7HUPLQDO x 6KXWWOHEXVHVGHSDUWHYHU\PLQXWHVZLWKWKHEXVVWRSVLWXDWHGDWWKHVWDWLRQLQ IURQWRI7HUPLQDO x 3DVVHQJHUVFDQZDONYLD7HUPLQDODQGULGHWKH6N\/LQHVKXWWOHWUDLQ x &RQQHFWLRQVWRWKH5HJLRQDO7UDLQ6WDWLRQDQG%XV6WDWLRQDUHDYDLODEOHYLDWKH VWDLUFDVHVDQGOLIWV $FFHVVLELOLW\,PSURYHPHQWV x 'LUHFWFRQQHFWLRQVIURP)UDQNIXUW$LUSRUW/RQJGLVWDQFH7UDLQ6WDWLRQDUH DYDLODEOHHYHU\WZRKRXUV x ,&(±/LQH +DPEXUJ±+DQRYHU±.DVVHO±)UDQNIXUWPDLQVWDWLRQ±)UDQNIXUW $LUSRUW±0DQQKHLP±6WXWWJDUW x ,&(±/LQH %HUOLQ±+DQRYHU±'RUWPXQG±&RORJQH±)UDQNIXUW$LUSRUW± )UDQNIXUWPDLQVWDWLRQ±1XUHPEHUJ x ,&(±/LQH 'UHVGHQ±+DQRYHU±'RUWPXQG±&RORJQH±)UDQNIXUW$LUSRUW± )UDQNIXUWPDLQVWDWLRQ±1XUHPEHUJ $QGHYHU\KRXU x ,&±/LQH +DPEXUJ±%UHPHQ±0XQVWHU±'RUWPXQG±&RORJQH±)UDQNIXUW $LUSRUW±0DQQKHLP±%DOH $YRLGLQJWKHQHFHVVLW\RIFKDQJLQJWUDLQVDW)UDQNIXUW&HQWUDO6WDWLRQKDVUHVXOWHGLQ WLPHVDYLQJVWRWKHIROORZLQJFLWLHVVWDUWLQJLQ-XQH 5HI %DOHo$,5DLO7HUPLQDO PLQXWHV +DPEXUJo$,5DLO7HUPLQDO PLQXWHV 6WXWWJDUWo$,5DLO7HUPLQDO PLQXWHV )XUWKHUGHYHORSPHQWVLQWHQGHGE\LQFOXGH 5HI x ,&(QHZKLJKVSHHGOLQN&RORJQH±5KLQH0DLQMRLQVWKHQHWZRUN x ,QWURGXFWLRQ RI WKH QHZ JHQHUDWLRQ ,&(WUDLQV ZLWK VSHHGV XS WR NPK PLOHVK WKXV WKH MRXUQH\ IURP &RORJQH &HQWUDO 6WDWLRQ WR )UDQNIXUW $LUSRUWZLOOEHFRPSOHWHGLQOHVVWKDQRQHKRXU x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²IRUDLUWUDYHOZLWKRYHUSDUWQHUDLUOLQHV 5HI $,5DLO([SUHVV3LORW3URMHFWRQ5DLO/LQNLQJ)UDQNIXUW$LUSRUWZLWK6WXWWJDUW5DLO6WDWLRQ 7KLVSURMHFWZLOOEHJLQRQ0DUFKFUHDWLQJDFRQQHFWLRQEHWZHHQ)5$ $,5DLO7HUPLQDO DQG=:6 6WXWWJDUW&HQWUDO55VWDWLRQ ZLWKDWUDYHOWLPHRIKRXUDQG PLQXWHV+LJKVSHHG,&(WUDLQVZLOOGHSDUWIURP)5$EHWZHHQDPDQGSP DQGZLOOGHSDUWIURP=:6EHWZHHQDPDQGSPZLWKDIUHTXHQF\RIVHYHQWUDLQV LQHDFKGLUHFWLRQEHJLQQLQJ-XO\7KHWUDLQVZLOOKDYHVHDWVIRUSDVVHQJHUVDQGVL[ FRQWDLQHUV 5HI %DJJDJHZLOOEHIRUZDUGHGVLPXOWDQHRXVO\WRWKHSDVVHQJHUVDQGORDGHGLQ VSHFLILFDOO\GHVLJQHGFRQWDLQHUVZKLFKDUHSODFHGLQGHGLFDWHGVHFWLRQVRIWKHWUDLQ$OO VHFXULW\VFUHHQLQJZLOOEHSHUIRUPHGDW)5$ 5HI 7KHODWHVWFKHFNLQWLPHZRXOGPRVWOLNHO\EHWRPLQXWHVIRUEXVLQHVVSULYDWH SDVVHQJHUVSULRUWRWUDLQGHSDUWXUH 5HI $QHZFROOHFWLRQGLVWULEXWLRQVWDWLRQZLOOEHHVWDEOLVKHGLQWKH$,5DLO7HUPLQDODQG ZLOOEHOLQNHGWRWKHFRPSXWHUL]HGFHQWUDOEDJJDJHFRQYH\LQJDQGVRUWLQJV\VWHP,Q DGGLWLRQVSHFLILFIDFLOLWLHVIRUFKHFNLQFKHFNRXWFXVWRPVDQGORJLVWLFVZLOOEHIRXQGDW =:6 5HI ,QWKHVSULQJRIWKH$,5DLO3DUWQHUVZLOOODXQFKDQLQWHUPRGDOSLORWSURMHFW5DLO WUDYHOHUVGHVWLQHGIRU)5$IRUWUDYHORQ/XIWKDQVDZLOOEHDEOHWRFKHFNLQEDJJDJHXSWR PLQXWHVEHIRUHWKHWUDLQGHSDUWVIURP6WXWWJDUW&HQWUDO7UDLQ6WDWLRQ7KXVWKH\ZLOOQRWKDYH WRFODLPWKHLUEDJJDJHXQWLODUULYLQJDWWKHLUILQDOGHVWLQDWLRQDLUSRUW,QLWLDOO\GDLO\WUDLQ FRQQHFWLRQVZLOOEHDYDLODEOHIRUWKLVSLORWURXWH 5HI +21*.21*¶6,17(51$7,21$/$,53257$7&+(./$3.2. +RQJ.RQJ¶V,QWHUQDWLRQDO$LUSRUWDW&KHN/DS.RN +.,$ LVWKHODUJHVW HQJLQHHULQJSURMHFWHYHUXQGHUWDNHQLQWKHKLVWRU\RI+RQJ.RQJ7KHSODQWREXLOGWKH DLUSRUWZDVODXQFKHGLQ7KHDXWKRULWLHVVWLSXODWHGWKDWWKHQHZDLUSRUWVKRXOGEHHDVLO\ DFFHVVLEOHWRDOOXVHUVERWKSDVVHQJHUVDQGIUHLJKWVKLSSHUVDOLNHDQGVKRXOGPHHWWKH ³KLJKHVWVWDQGDUGV´RIRSHUDWLRQDOHIILFLHQF\ 5HI 7KHGHVLJQWHDPGHILQHGWKHVKDSHDQGVL]HRIWKHSURMHFWHGDLUSRUWODQGWREH KHFWDUHV DFUHV ZKLFKLVDSSUR[LPDWHO\IRXUWLPHVWKHVL]HRI.DL7DNWKHSUHYLRXV DLUSRUWLQ+RQJ.RQJ)RUFRPSDULVRQWKLVLVRQO\RQHWHQWKWKHVL]HRIWKHQHZ'HQYHU ,QWHUQDWLRQDO$LUSRUWLQWKH8QLWHG6WDWHV$SSUR[LPDWHO\RIWKHWRWDODLUSRUWDUHDOLHVRQ WKHH[LVWLQJLVODQGVRI&KHN/DS.RNDQG/DQWDXWKHUHPDLQGHUFRQVLVWLQJRIQHZODQG UHFODLPHGIURPWKHVHD 5HI 7KHSODQQLQJDQGGHVLJQRIWKHDLUSRUWZDVVLPLODUWRSODQQLQJDQHZWRZQ³/LNHDQ\ WRZQWKHDLUSRUWUHTXLUHVLWVRZQQHWZRUNRIURDGLQIUDVWUXFWXUHDQGXWLOLW\VHUYLFHVWRHQVXUH WKHHIILFLHQWPRYHPHQWRISHRSOHLQWKHDLUSRUW¶VFDVHERWKLWVSDVVHQJHUVDQGWKH SHRSOHZKRZRUNWKHUH´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¶VORQJHVW VSDQVXVSHQVLRQEULGJHFDUU\LQJERWKURDGDQGUDLOWUDIILFZKLOHWKH.DS6KXL0XQ%ULGJHDW PHWHUV \DUGV ORQJLVWKHZRUOG¶VORQJHVWVSDQQLQJFDEOHVWD\HGEULGJHDOVR FDUU\LQJURDGDQGUDLOWUDIILF)LQDOO\WKH0D:DQYLDGXFWLVPHWHUVORQJ \DUGV 5HI $WWKHDLUSRUWDWUDQVSRUWDWLRQFHQWHULVORFDWHGGLUHFWO\LQIURQWRIWKHWHUPLQDO EXLOGLQJ7KLVEXLOGLQJFRQWDLQVDUULYDODQGGHSDUWXUHSODWIRUPVIRUWKHKLJKVSHHGUDLOWRWKH FLW\¶VXUEDQEXVLQHVVGLVWULFWV0RUHRYHUVHUYLFHLVDOVRSURYLGHGIRUEXVWD[LDQGUHQWDO FDUV$IHUU\WHUPLQDOLVDOVRDYDLODEOHSURYLGLQJVHDDFFHVVWR+RQJ.RQJ0DFDXDQG SRLQWVDORQJWKHFRDVWRI6RXWKHUQ&KLQDDQGWKH3HDUO5LYHUHVWXDU\ 5HI 2QFHSDVVHQJHUVUHDFKWKHVWDWLRQV FRPLQJIURPWKHDLUSRUW WKH\DUHSURYLGHGIUHH VKXWWOHEXVULGHVWRWKHDUHD¶VKRWHOVDQGFRQQHFWLRQVDUHDYDLODEOHWRWKH0DVV7UDQVLW 075 VXEZD\QHWZRUN2IIDLUSRUWSDVVHQJHUSURFHVVLQJLVDYDLODEOHDWWKHVHVWDWLRQV ZKHUHSDVVHQJHUVDUHDOORZHGWRFKHFNEDJJDJHZKLFKLVWKHQWUDQVSRUWHGWRWKHDLUFUDIW 5HI 7UDLQVGHSDUWHYHU\HLJKWPLQXWHVIURP+RQJ.RQJ6WDWLRQDW9LFWRULDWRWKHDLUSRUW 7KHWULSWDNHVDERXWPLQXWHVDQGFRVWVDERXW$GGLWLRQDOO\EXVHVGHSDUWHYHU\WR PLQXWHVWDNLQJWRPLQXWHVWRUHDFKWKHDLUSRUWDWDERXWKDOIWKHIDUHRIWKHWUDLQWULS 5HI 7KHDLUSRUWUDLOVWDWLRQLVRQWZROHYHOV7UDLQVDUULYHIURP+RQJ.RQJDWWKHDLUSRUW¶V GHSDUWXUHOHYHOWKHQFRQWLQXHWRDEDFNVLGLQJZKHUHWKH\UHYHUVHDQGUXQDWDORZHUOHYHOWR ORDGDWWKHDUULYDOVVWDWLRQEHIRUHFRQWLQXLQJWRWKHFLW\FHQWHU&LW\VWDWLRQVDUHGHVLJQHGVR WKDWSDVVHQJHUVDUHQRWUHTXLUHGWRFKDQJHOHYHOVRQFHWKH\DUULYHE\FDURUGHSDUWE\WD[L 5HI ,WZDVHVWLPDWHGWKDWQHDUO\RIDLUSRUWSDVVHQJHUVZRXOGEHXVLQJWKLV WUDQVSRUWDWLRQFHQWHUGXULQJWKHDLUSRUW¶VILUVWPRQWKVRIRSHUDWLRQ+RZHYHUE\ RIDOODLUSDVVHQJHUVWKHLUIULHQGVDQGIDPLOLHVDQGDLUSRUWHPSOR\HHVDUHH[SHFWHGWR DUULYHDWDQGGHSDUWIURPWKHDLUSRUWE\WKH$LUSRUW([SUHVV)LJXUHVKRZVWKHRYHUDOO PRGDOVSOLWDWWKHDLUSRUWFROOHFWHGIURPWKH0RGDO6SOLW6XUYH\FDUULHGRXWLQ0DUFK E\WKH$LUSRUW$XWKRULW\LQ+RQJ.RQJ 5HI Airport Express Line, Taxi Ferry Mass Transit Railway 4% 2% 21% Hotel Vehicle 2% Private Car 13% Tour Coach 3% Public Bus Tung Chung Line, Employee Bus 45% Mass Transit Railway 2% 8% )LJXUH2YHUDOO0RGDO6SOLWDW+RQJ.RQJ¶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x 7KHSULPDU\DFFHVVURXWHWR&KHN/DS.RNWKH1/(FURVVHVWKHVHDFKDQQHODW WKHVRXWKHDVWHUQFRUQHURIWKHDLUSRUWUHFODPDWLRQDQGIROORZVWKH$(;FRUULGRU DORQJ WKH HDVWHUQ HGJH RI WKH VLWH WR DQ DFFHVV ORRS V\VWHP DGMDFHQW WR WKH SDVVHQJHU WHUPLQDOV $Q LQWHUFKDQJH LPPHGLDWHO\ QRUWK RI WKH VHD FKDQQHO FURVVLQJOLQNVWKH1/(WRWKHVRXWKHUQDUHDVRIWKHDLUSRUWUHFODPDWLRQ x $ VHFRQG URDG DFFHVV ORFDWHG DSSUR[LPDWHO\ NP PLOHV ZHVW RI WKH SULPDU\ URDG DFFHVV 7KLV VHFRQG URDG SURYLGHV DFFHVV WR &KHN /DS .RN IURP 7XQJ &KXQJ ZKLFK LV QRW DYDLODEOH YLD WKH 1/( 7KH RSHQLQJ RI WKH DLUSRUW PDUNHG WKH FRPSOHWLRQ RI WKH SULPDU\ DQG VHFRQGDU\ DFFHVV URDGV 7KH PDLQ IXQFWLRQVRIWKLVVHFRQGURDGDUHWRSURYLGHGLUHFWDFFHVVWR7XQJ&KXQJDQGWR VHUYHWKHVRXWKHUQDUHDVRIWKHDLUSRUWUHFODPDWLRQ,WDOVRVHUYHVDVDQLPSRUWDQW EDFNXSIDFLOLW\LQFDVHWKH1/(FURVVLQJLVEORFNHG x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x +LJKHVWOHYHOGHSDUWXUHFXUE &KHRQJ+RQJ5RDG 'XHWRVLPSOHURXWLQJGHVLJQ EXVHV WD[LV DQG SULYDWH FDUV DUH DEOH WR GULYH XS DQ HOHYDWHG UDPS WR GURS RII GHSDUWLQJ SDVVHQJHUV DW WKH IURQW GRRU RI WKH SDVVHQJHU WHUPLQDO )URP KHUH DQ\RQHHQWHULQJWKHSDVVHQJHUWHUPLQDO&KHFNLQ+DOOFURVVHVZDONZD\VRYHUWKH PDJQLILFHQW DWULXP ZLWKRXW DQ\ OHYHO FKDQJHV 7KHUH DUH DOVR GHVLJQDWHG ED\V DORQJWKHFXUEIRUWKHGLVDEOHG x 6HFRQG OHYHO $LUSRUW ([SUHVV GHSDUWXUHV OHYHO SODWIRUP 'HSDUWLQJ SDVVHQJHUV ZKRWUDYHOE\WKH$LUSRUW([SUHVVIURP&HQWUDO+RQJ.RQJRU.RZORRQFURVVRQH RIWKHOLQNEULGJHVWKURXJKDQDWULXPWRWKHSDVVHQJHU&KHFNLQ+DOO x )LUVWOHYHO$LUSRUW([SUHVVDUULYDOVOHYHOSODWIRUP$UULYLQJSDVVHQJHUVWUDYHOLQJ WRWKHFLW\RQWKH$LUSRUW([SUHVVHQWHUWKH*7&E\RQHRIWKHWZROLQNEULGJHV IURPWKHSDVVHQJHUWHUPLQDOPHHWHUVDQGJUHHWHUVKDOO x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±YHKLFOHV$GGLWLRQDOSDUNLQJVSDFHVDUH DOVRDYDLODEOHLQ6WDJLQJ$UHD,,IRUOLPRXVLQHVDQGPLQLEXVHV 5HI 7D[L6WDWLRQ 7KHUHDUHIRXUSLFNXSODQHV²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¶VPDLQVWDWLRQDQGWKH=,$¶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x )O\EDJJDJH IURPKRPHWRZQWRGHVWLQDWLRQ FOLHQWV\HDU x 5DLOEDJJDJH IURPGHVWLQDWLRQWRKRPHWRZQ FOLHQWV\HDU x &KHFNLQDWUDLOZD\VWDWLRQLQKRPHWRZQWUDLQVWDWLRQV x (OHYHQ EXV URXWHV FRQQHFWLQJ WKH UHJLRQ GHSDUWXUHVGD\± GHSDUWXUHV DW SHDNKRXU x &DUSDUNSULFHVIRUGD\VUDQNLQJLQXSSHUOHYHORI(XURSHDQPDUNHW 5DLODFFHVVDW=XULFK,QWHUQDWLRQDO$LUSRUWKDVEHHQDYDLODEOHVLQFHWKHHDUO\¶V ,WKDVJRQHWKURXJKVHYHUDOVWDJHVZKLFKLQFOXGH 5HI x WUDFNWUDLQVWDWLRQRSHQHGDWWKHDLUSRUWLQWHUFLW\VWRS *HQHYD±%HUQH± =XULFK±=XULFK$LUSRUW±6W*DOO x ,PSOHPHQWDWLRQ RI D IXOO\ LQWHJUDWHG UHJLRQDO WUDLQ V\VWHP ]RQHVFKDUJHVWLPHWDEOHV x )UHTXHQF\LQFUHDVHGWRWUDLQVKRXU HDFKGLUHFWLRQ WUDLQVSHUGD\WR =XULFKPDLQVWDWLRQ 7KHIROORZLQJLVDOLVWRIPHDVXUHVWKDWDUHEHLQJLPSOHPHQWHGDW=XULFK$LUSRUWLQDQ DWWHPSWWRLPSURYHDFFHVVE\SXEOLFWUDQVSRUWDWLRQDQGWRHQKDQFHLWVXVDJH 5HI x 6L[W\FKHFNLQFRXQWHUVDYDLODEOHGLUHFWO\DERYHWKHSODWIRUPV x 1HZGLUHFWVKRUWFXWIURPEDJJDJHUHFODLPKDOOWRWUDLQVWDWLRQ x 6HSDUDWHEXVODQHVZLWKRXWOLJKWV x 1HZFHQWUDOEXVVWDWLRQZLWKSODWIRUPV x 2SWLPL]HGEXVVWRSVLQIURQWRIPDLQEXLOGLQJV x )XOO\GHYHORSHGELNHFRQFHSW x /LPLWHGQXPEHURIQHZSDUNLQJVORWV x $GGLWLRQDODQGIDVWHUWUDLQVLQWKH6ZLVV(XURSHDQV\VWHP x 0RUHWUDLQ±SHULSKHUDOFRQQHFWLRQVZLWKRXWVWRSDW=XULFK ZLWKVSHFLDODWWHQWLRQ WRUHJLRQVZLWKORZSXEOLFWUDQVSRUWUHVXOWV x 0RUHORFDOWUDLQOLQHVWKURXJKWKHWUDLQVWDWLRQ x &KHFNLQ DW UDLOZD\ VWDWLRQV DOO RYHU 6ZLW]HUODQG LQ SURPRWLRQV VSRQVRULQJRIEDJJDJHWUDQVSRUWGXULQJSHDNVHDVRQ x )O\EDJJDJHUDLOEDJJDJHLQFOXGHGFKHFNLQWRDQGIURPKRPH x ,PSURYHPHQWRIWKHWUDLQEXVWLPHWDEOHEHIRUHDP x ,QFUHDVHGVHDWFDSDFLW\ GRXEOHGHFNWUDLQV x 5HGXFWLRQDQGGLVORFDWLRQRIFHQWUDOSDUNLQJSODFHVIRUHPSOR\HHV x ,PSURYHPHQWRIFDUVKDULQJFDUPRELOLW\HIIRUWV x 5RDGSULFLQJVSHFLDOWD[RQDUULYDOGHSDUWXUHOHYHOV 0RGDO6SOLWV =XULFK,QWHUQDWLRQDO$LUSRUWDWWUDFWVDKLJKOHYHORISXEOLFWUDQVSRUWXVDJH,Q WKHSDVVHQJHUPRGDOVSOLWZDVSXEOLFWUDQVSRUWZKLOHLWLQFUHDVHGWRLQ )LJXUHLOOXVWUDWHVWKHPRGDOVSOLWDPRQJSDVVHQJHUVUHDFKLQJWKHDLUSRUWLQ 5HI )LJXUHVKRZVWKHHPSOR\HHPRGDOVSOLWIRUZKLOHWKHPRGDOVSOLWDPRQJDLUSRUW YLVLWRUVGXULQJLVVKRZQLQ)LJXUH)LJXUHFRPSDUHVSXEOLFWUDQVSRUWDPRQJ GLIIHUHQWDLUSRUWVLQ(XURSH Hotel Bus Taxi Bus Train 5% 9% 2% 41% Bike - Pedestrian 1% Car Self-Drivers 13% Co-Drivers Rental Car 26% 3% )LJXUH3DVVHQJHU0RGDO6SOLW Bike - Pedestrian No Information Bus 8% 1% 7% Train 16% Co-Drivers 3% Car Self-Driver 65% )LJXUH(PSOR\HH0RGDO6SOLW 5HI Airport related Airport not final business destination 1% 8% Flight Passengers Deck visitors 41% 2% Employees 28% Previous evening check-in Drop off or pick up 4% 16% )LJXUH6SOLWDPRQJ$LUSRUW9LVLWRUV 5HI Comparison of Some Airports Concerning Public Transport 50 Passengers Employees 40 30 Percent 20 10 0 Orly AmsterdamFrankfurt München CDG Heathrow Geneve Zürich Airport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¶ FKRLFHRIWKHLUPHDQVRIWUDQVSRUWWRWKHDLUSRUWDQGDOVRWKHUHDVRQVIRUFKRRVLQJ=XULFK $LUSRUWLQWKHILUVWSODFH)URPWRDGGLWLRQDOVHJPHQWVRIORFDOSDVVHQJHUVDQG DLUSRUWHPSOR\HHVZLOOEHVXUYH\HGWRGHULYHLQVLJKWVWKDWZLOODLGLQWKHGHYHORSPHQWRI HIIHFWLYHPHDVXUHVWRFKDQJHWKHPRGDOVSOLW 5HI 7KHLQYHVWLJDWLRQDUHDVIRUWKHDXWXPQVXUYH\VZHUHWKHVRFDOOHGDLUSRUWKHDGV DQGWKHWHFKQLFDODUHD7KHIROORZLQJWUDIILFVHJPHQWVZHUHFRQVLGHUHGSDVVHQJHUVGHSDUWLQJ IURP=XULFKFRPSDQLRQVRISDVVHQJHUVSDVVHQJHUVZLWKSUHYLRXVHYHQLQJFKHFNLQDLUSRUW HPSOR\HHVYLVLWRUVRIZRUNSODFHVLQWKHDLUSRUWRUPHHWLQJVKHOGDWWKHDLUSRUWYLVLWRUVRI WKHREVHUYDWLRQGHFNYLVLWRUVZKRVHPDLQPRWLYHZDVWRXVHDLUSRUWUHVWDXUDQWVRUWRYLVLW VWRUHDWWHQGDQWVDQGSHRSOHZKRJRWRIIDWWKHDLUSRUWEXWKDGQRVSHFLILFEXVLQHVVWKHUH 3DVVHQJHUVWKDWZHUHMXVWPDNLQJWUDYHOFRQQHFWLRQVWKURXJK=XULFKZHUHQRWFRQVLGHUHG7KH VXUYH\VZHUHFRQGXFWHGIRUWZRZHHNVIURP2FWREHUWR DVDKROLGD\ZHHN DQGIURP 2FWREHUWR1RYHPEHU DVD³QRUPDO´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x 3DVVHQJHUV7KHSUREDELOLW\RIXVLQJSXEOLFWUDQVSRUWDWLRQGHFUHDVHVFRQVLGHUDEO\ LI WKH WULS ZLWK WKDW PRGH ODVWV PLQXWHV ORQJHU WKDQ LW GRHV ZLWK D SULYDWH YHKLFOH RU LI WKH SDVVHQJHUV FRPH ZLWK RWKHUV WR WKH DLUSRUW 3DVVHQJHUV IURP =XULFKDQGWKH=XULFK&DQWRQXVHSXEOLFWUDQVSRUWWRDOHVVHUH[WHQWFRPSDUHGWR SDVVHQJHUVIURPRWKHUFDQWRQV 5HI x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x $LUSRUWHPSOR\HHVFKRRVHSXEOLFPHDQVRIWUDQVSRUWDWLRQOHVVRIWHQLIWKHWUDYHO WLPH LV PLQXWHV ORQJHU E\ EXV RU UDLO WKDQ E\ D SULYDWH YHKLFOH +RZHYHU HPSOR\HHV ZLWK LUUHJXODU ZRUN VKLIWV XVH SXEOLF WUDQVSRUW OHVV WKDQ WKRVH HPSOR\HHVZLWKVWDQGDUGZRUNLQJWLPHV 5HI x 5HVLGHQFH ORFDWLRQ VWURQJO\ LQIOXHQFHV WKH FKRLFH RI PRGH RI WUDQVSRUWDWLRQ SXEOLF WUDQVSRUW XVDJH LV ORZHVW IRU HPSOR\HHV IURP WKH =XULFK &DQWRQ LW LV VRPHZKDW KLJKHU IRU HPSOR\HHV IURP =XULFK FLW\ DQG DERYH DYHUDJH IRU HPSOR\HHV IURP QHLJKERULQJ PXQLFLSDOLWLHV ZKR PD\ DOVR FRPH E\ IRRW RU PRWRUF\FOH SURSRUWLRQE\IRRWRUPRWRUF\FOHLVDSSUR[LPDWHO\ 5HI x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¶VODUJHVL]HWKLVLVDQHIIHFWLYHZD\WRRUJDQL]HDQGUHVSRQGWRWKH VSHFLILFQHHGVRIWKHDLUSRUW:LWKPRUHWKDQDFUHV'):LVWKHVHFRQGODUJHVWDLUSRUW LQWKH86DVPHDVXUHGLQWHUPVRIODQGDUHD:LWKPRUHWKDQDLUFUDIWRSHUDWLRQVD GD\LWLVHLWKHUWKHVHFRQGRUWKLUGEXVLHVWDLUSRUWLQWKH86GHSHQGLQJRQKRZWKHDFWXDO PHDVXUHPHQWRIDQQXDODLUFUDIWRSHUDWLRQVLVPDGH7KLVFKDSWHUSUHVHQWVDQRYHUYLHZRI '):VWUHVVLQJJURXQGDFFHVVDQGWHPSRUDOSDWWHUQVRIWUDIILFHQWHULQJWKHDLUSRUW$Q H[WHQVLYHVHWRISORWVRIWUDIILFFKDUDFWHULVWLFVDWWKHDLUSRUWIRUGLIIHUHQWYHKLFXODUFDWHJRULHV KDYHEHHQFRPSLOHGDQGDUHSUHVHQWHGLQWKH$SSHQGL[ *5281'$&&(66352%/(0 'DOODV)RUW:RUWK,QWHUQDWLRQDO$LUSRUWKDVDVRPHZKDWXQXVXDOJURXQGDFFHVV SUREOHPWKDWGRHVQRWDSSHDUWREHIRXQGDWRWKHUPDMRUDLUSRUWV%HFDXVHRILWVODUJHDFUHDJH DQGVWUDWHJLFORFDWLRQEHWZHHQWKHKLJKHPSOR\PHQWJURZWKDUHDRIQRUWK'DOODVDQGWKHKLJK UHVLGHQWLDOJURZWKDUHDRIVRXWK)RUW:RUWK'):KDVHPHUJHGLQWRDPDMRUWUDQVSRUWDWLRQ DUWHU\EHWZHHQWKHWZRDUHDV)LJXUHSURYLGHVWKHOD\RXWRIWKHDLUSRUWVKRZLQJLWVFHQWUDO PXOWLODQHGLYLGHGWKRURXJKIDUHRULHQWHGQRUWKVRXWKZKLFKDWWUDFWVDODUJHQXPEHURI FRPPXWHUYHKLFOHVWKDWGRQRWLQWHQGWRXVHWKHDLUSRUWEXWPHUHO\SDVVWKURXJKDVDPHDQVRI REWDLQLQJWKHVKRUWHVWWLPHFRPPXWH$QHFGRWDOHYLGHQFHUHSRUWHGE\WKHDLUSRUWVWDIIKDV LQGLFDWHGWKDWGXULQJUXVKKRXUWKHZDLWLQJTXHXHWRHQWHUWKHDLUSRUWSDUNLQJJDWHFDQH[FHHG PLQXWHVZLWKDOOODQHVRSHQ$VIXUWKHUHYLGHQFH'):UHSRUWHGLQDQDLUSRUWSDUNLQJ VXUYH\FRQGXFWHGE\WKH$LUSRUWV&RXQFLO,QWHUQDWLRQDOWKDWPLOOLRQYHKLFOHVH[LWHGWKHLU SDUNLQJIDFLOLW\WROOERRWKVLQFRPSDUHGWRPLOOLRQRULJLQDQGGHVWLQDWLRQ SDVVHQJHUV7KHVHILJXUHVDUHUHODWLYHO\KLJKFRPSDUHGZLWKWKRVHIRURWKHUDLUSRUWVIRUWKH VDPH\HDUIRUH[DPSOH&KLFDJR¶V2¶+DUH,QWHUQDWLRQDO$LUSRUWKDGPLOOLRQYHKLFOHV H[LWLQJSDUNLQJIRUPLOOLRQRULJLQDQGGHVWLQDWLRQSDVVHQJHUV )LJXUH'):$LUSRUW/D\RXW3ODQ ,QDQDWWHPSWWRPLWLJDWHWKLVSUREOHPE\GLYHUWLQJWKLVW\SHRIQRQDLUSRUWWKURXJK WUDIILFGHPDQGWKHDLUSRUWDXWKRULW\GXULQJWKHVSULQJRILQVWLWXWHGDQHZSDUNLQJUDWH RIIRUSDUNLQJWLPHVEHWZHHQDQGPLQXWHV7KHWROOUHPDLQV³QRFKDUJH´IRUWLPHV EHWZHHQDQGPLQXWHV7KHLQWHQGHGSXUSRVHLVQRWWREHFRPHDWROOURDGDXWKRULW\EXW LQVWHDGWRUHGXFHGHPDQGIRUWKHSULPDU\DFFHVVURDGZD\E\FKDUJLQJDSDVVWKURXJKWROOIRU GULYHUVKDYLQJQRLQWHQWLRQRIVWRSSLQJDWWKHDLUSRUW)LJXUHLVDSORWRIWKHWRWDOPRQWKO\ WUDQVDFWLRQVIRUWKH³SDVVHUWKURXJK´YHKLFXODUFDWHJRU\DW'):DLUSRUWGXULQJWKHSHULRG IURP-DQXDU\WR0DUFK Pass Through Transactions during 1999 350 300 250 (x 1000) 200 150 100 Total number of passers through per month Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 1999 2000 Month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x &RPPXWHU3DVV7KURXJK$FXVWRPHUZKRHQWHUVRQHSDUNLQJSOD]DDQGH[LWVD GLIIHUHQWSDUNLQJSOD]DLQPLQXWHVRUOHVV7KHDVVXPSWLRQKHUHLVWKDWDSHUVRQ ZKRHQWHUVIURPRQHSOD]DDQGH[LWVIURPDGLIIHUHQWRQHLQVXFKDVKRUWSHULRG PLQ PRVW OLNHO\ KDV QR EXVLQHVV DW WKH DLUSRUW DQG WKXV LV FRQVLGHUHG D ³SDVVHUWKURXJK´ x &RXUWHV\9HKLFOH+RWHORUPRWHOYHKLFOH x 'URS2II$FXVWRPHUZKRHQWHUVDSDUNLQJSOD]DDQGH[LWVWKHVDPHSDUNLQJ SOD]DLQPLQXWHVRUOHVV x 0HHWHU DQG *UHHWHU $ FXVWRPHU ZKR HQWHUV DQG H[LWV WKH SOD]DV ZLWKLQ PLQXWHVWRWZRKRXUV x 1RQ5HYHQXH%DGJH$LUOLQHH[HFXWLYHVFLW\RIILFLDOVHWF x 2II$LUSRUW5HQWDO5HQWDOFDUV x 3XEOLF3DUNHU$FXVWRPHUZKRHQWHUVDQGVWD\VPRUHWKDQWZRKRXUV x 5HJXODWHG%XV&LW\EXV x 5HJXODWHG/LPR x 5HJXODWHG 9HKLFOH 0DLQWHQDQFH YHKLFOHV DLUSRUW PDQDJHPHQW YHKLFOHV HPHUJHQF\YHKLFOHVHWF x 5HQWDO([LW3DVV7RGD\UHQWDOFDUVGRQRWXVHWKHSOD]DFRQWUROOHGURDGZD\VGXH WRWKHQHZUHQWDOFDUIDFLOLW\+RZHYHUZKHQWKH\GLGXVHWKHSOD]DVUHQWHUVZHUH JLYHQUHQWDOH[LWSDVVHVWRDOORZIUHHHQWU\DQGH[LWLQWKHUHQWDOFDU x 6KDUHG5LGH$VXSHUVKXWWOHSDUNDQGULGH RIIDLUSRUW x 65'7DJ(PSOR\HHVXVLQJDPRXQWHGRUKDQGKHOGDFFHVVFDUG x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³PRGH´DQGSXUSRVHVSOLWDW'):ZDV HVWLPDWHGDVVKRZQLQ)LJXUH7KLVZDVREWDLQHGE\FRPELQLQJWKHGDWDRIWKHGD\V LQWRRQHVLQJOHILJXUHDQGGLYLGLQJWKDWE\WKHWRWDOQXPEHURIYHKLFOHVWKDWHQWHUHGWKH DLUSRUWGXULQJWKDWPRQWK$VVHHQLQWKHILJXUHWKHW\SHRIYHKLFOHDQGSXUSRVHDUH VRPHZKDWFRQIRXQGHGKHUH1RWHDOVRWKDWWKLVLVDGLVWULEXWLRQRIWKHQXPEHURIYHKLFOHV GHWHFWHGQRWDVSOLWRISDVVHQJHURUWULSPDNHUVE\W\SHRIYHKLFOHV Computer/ Courtesy Vehicle Drop Off Taxi Pass-Through 3% 26% SRD Tag 7% 10% 3% Shared Ride 1% Regulated Vehicle 4% Regulated Limo 3% Off-Airport Non-revenue Meeter and Public Parker Rental Badge Greeter 19% 1% 1% 22% Note: Regulated Bus 0% and Rental Pass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x &RPPXWHU3DVV7KURXJK )LJXUHV±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x &RXUWHV\9HKLFOH )LJXUHV± 7KLVFDWHJRU\GRHVQRWH[KLELWSURQRXQFHGYDULDWLRQVWKURXJKRXWWKHPRQWKRI 0DUFK DOO GD\V DSSHDU WR EH TXLWH VLPLODU ,W LV QRWHG WKDW WKHUH LV D ZHHNO\ VWUXFWXUH WKDW UHSHDWV LWVHOI GXULQJ WKH PRQWK LQ WKDW HYHU\ 6DWXUGD\ PLQLPXP YDOXHV DUH REVHUYHG $ W\SLFDO GD\ SORW RQ :HGQHVGD\ WKH VWUHYHDOVWKDWODUJH IOXFWXDWLRQV DUH REVHUYHG GXULQJ WKH GD\ EHJLQQLQJ DW DP ZLWK YDOXHV UDQJLQJEHWZHHQDQGYHKLFOHV3HDNYDOXHVRFFXURQ6DWXUGD\0DUFK x 'URS2II )LJXUHV± 'URS 2II YDOXHV WHQG WR EH VWDEOH GXULQJ WKH ZHHN EXW SHDNV DUH REVHUYHG GXULQJWKHZHHNHQGVPDLQO\RQ6XQGD\VDQGRQ0RQGD\V7KHWRWDOGDLO\SORW GRHVQRWDGGPXFKWRWKHLQIRUPDWLRQREWDLQHGIURPWKHILUVWSORWEHFDXVHQRFOHDU SDWWHUQLVREVHUYHGRQDZHHNO\EDVLV2Q:HGQHVGD\WKHVWDSHDNYDOXHRI RFFXUV DW SP KRZHYHU GXULQJ WKH GD\ QR SURQRXQFHG YDULDWLRQV DUH REVHUYHG7KHSHDNYDOXHIRUWKLVFDWHJRU\RFFXUVRQ0DUFKZKHQDYDOXHRI RFFXUVDWSP7KLVVXJJHVWVWKDWWKH'URS2IIFDWHJRU\GRHVQRWH[KLELW PDMRUYDULDWLRQVEHFDXVHSHDNVIRUWKHW\SLFDODQGSHDNGD\RFFXUDWH[DFWO\WKH VDPHWLPHDQGWKHEHKDYLRURQWKRVHGD\VLVQHDUO\LGHQWLFDO x 0HHWHUVDQG*UHHWHUV )LJXUHV±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x 1RQ5HYHQXH%DGJH )LJXUHV )RU DOO SUDFWLFDO SXUSRVHV QRQUHYHQXH EDGJH FRXQWV DSSHDU WR EH FRQVWDQW GXULQJ WKH ZKROH PRQWK RI 0DUFK 7KH GDLO\ FRXQWV UHYHDO D SDWWHUQ ZKLFK UHSHDWV LWVHOI RQ D ZHHNO\ EDVLV ZLWK SHDNV RFFXUULQJ HYHU\ )ULGD\ DQG WKH PLQLPXP RFFXUULQJ RQ 6DWXUGD\ 2Q :HGQHVGD\ WKH VW WZR SHDN YDOXHV DUH REVHUYHGWKHILUVWDWDPZLWKDYDOXHRIDQGWKHVHFRQGDWSPZLWK D FRUUHVSRQGLQJ YDOXH RI ,Q EHWZHHQ WKRVH WZR SHDNV YDULDWLRQV RFFXU EXW YDOXHV DUH FRQILQHG EHWZHHQ DQG 'XULQJ WKH SHDN GD\ )ULGD\ WKH UG YDULDWLRQV DUH PXFK PRUH SURQRXQFHG KRZHYHU WKH SKHQRPHQRQ RI WZR SHDNV VWLOOKROGV7KHSHDNYDOXHRIRFFXUVDWDP x 2II$LUSRUW5HQWDO )LJXUHV± )RUWKLVFDWHJRU\YDULDWLRQVDUHPLQLPDOGXULQJWKHODUJHVWSDUWRIWKHPRQWK +RZHYHUVWDUWLQJRQWKHWKRI0DUFKYDOXHVGURSVKDUSO\WRQHDUO\]HURGXHWR DSROLF\FKDQJHDW'): UHORFDWLRQRIIDFLOLW\ ZKLFKKDVHIIHFWLYHO\VXFFHHGHG LQOLPLWLQJWKHWUDIILFLPSDFWFDXVHGE\WKHVHYHKLFOHV x 3XEOLF3DUNHU )LJXUHV± )RUWKLVFDWHJRU\LWLVQRWHGWKDWSHDNYDOXHVRFFXUODWHGXULQJWKHZRUNZHHN HVSHFLDOO\:HGQHVGD\WKURXJK)ULGD\9DOXHVGURSGXULQJWKHZHHNHQGDQGHDUO\ GXULQJWKHZHHN 0RQGD\DQG7XHVGD\ $ZHHNO\UHSHWLWLYHSDWWHUQRISHDNVRQ )ULGD\VDQGPLQLPXPYDOXHVRQ6DWXUGD\VFDQEHREVHUYHGIURPWKHVHFRQGSORW 2Q:HGQHVGD\WKHVWLWLVREVHUYHGWKDWWKHFRXQWHGYDOXHVDUHRQWKHULVHWLOOWKH SHDN YDOXH RI RFFXUV DW SP DQG WKHQ WKH YDOXHV VWDUW GURSSLQJ 7KLV VDPHEHKDYLRULVUHSOLFDWHGRQ7KXUVGD\WKHWK SHDNGD\ ZKHQWKHSHDNYDOXHRI RFFXUVDWSP x 5HJXODWHG%XV )LJXUHV± 1R FOHDU SDWWHUQ LV REVHUYHG GXULQJ WKH PRQWK RI 0DUFK HVSHFLDOO\ EHFDXVH YDOXHV DUH KLJKO\ YDULDEOH 7KH W\SLFDO GD\ SORW :HG WKH VW GRHVQRWVXJJHVW DQ\EHKDYLRUDOSDWWHUQEHVLGHVWKHIDFWWKDWDSHDNRIRFFXUVDWSP7KH SHDNIRUWKLVFDWHJRU\RFFXUVRQ)ULGD\WKHWKZLWKDYDOXHRIRFFXUULQJDW SP x 5HJXODWHG/LPR )LJXUHV± 7KH EHKDYLRU KHUH LV VLPLODU WR WKDW REVHUYHG IRU SXEOLF SDUNHUV LQ ZKLFK YDOXHV GURS VKDUSO\ GXULQJ ZHHNHQGV WKRXJK YDOXHV GXULQJ WKH ZRUNZHHN DUH QHDUO\ FRQVWDQW 7KH VHFRQG SORW UHYHDOV D KLJKO\ UHSHWLWLYH SDWWHUQ ZKLFK PDQLIHVWVLWVHOILQ6DWXUGD\PLQLPXPVDQG)ULGD\SHDNVHDFKDQGHYHU\ZHHN2Q :HGQHVGD\ WKH VW VKDUS UHSHWLWLYH LQFUHDVHV DQG GURSV LQ UHFRUGHG YDOXHV DUH REVHUYHGVWDUWLQJDWDPZLWKDSHDNRIRFFXUULQJDWSP7KHVDPH EHKDYLRU LV REVHUYHG RQ 0DUFK WKH WK SHDNGD\ KRZHYHUWKHSHDNLVDQG RFFXUVDWSP x 5HJXODWHG9HKLFOH )LJXUHV± 7KLV LV RQH RI WKH PRVW VWDEOH FDWHJRULHV DV YLUWXDOO\ QR YDULDWLRQV DUH REVHUYHG GXULQJ WKH ZKROH PRQWK $ SDWWHUQ VLPLODU WR WKDW REVHUYHG ZLWK WKH UHJXODWHGOLPRFDWHJRU\RFFXUVKHUHZLWKWKHH[FHSWLRQRI6XQGD\PLQLPXPVDQG )ULGD\SHDNV2Q:HGQHVGD\WKHVWYDOXHVLQFUHDVHXQWLODSHDNRIRFFXUVDW SPWKHQDGURSZKLFKLVDPLUURULPDJHRIWKHULVHRFFXUV$UHSOLFDRI WKDWFDQEHREVHUYHGRQ0RQGD\WKHWKZKHQDSHDNYDOXHRIRFFXUVDWWKH VDPHWLPH SP x 5HQWDO([LW3DVV )LJXUHV± 3DWWHUQVDUHQRWHDVLO\GHWHFWHGLQWKLVFDWHJRU\DVEHJLQQLQJ0DUFKUHQWDO H[LWSDVVHVZHUHQRORQJHULVVXHGEHFDXVHWKHUHQWDOFDUIDFLOLW\ZDVPRYHGWRD QHZ ORFDWLRQ 7KH VDPH UHORFDWLRQ DOVR DIIHFWHG WKH RIIDLUSRUW UHQWDO FDWHJRU\ GLVFXVVHG HDUOLHU +RZHYHU EHIRUH WKH WKDZHHNO\SDWWHUQRI6DWXUGD\ PLQLPXPVFRXOGEHREVHUYHG x 6KDUHG5LGH )LJXUHV± 9DULDWLRQV DUH PLQLPDO GXULQJ WKH PRQWK LQ TXHVWLRQ DQG WKXV YHU\ VLPLODU EHKDYLRULVREVHUYHGRQWKHVWRI0DUFKDQGRQWKHUG SHDNGD\ 2QERWKRI WKHVH GD\V YDOXHV LQFUHDVH WR D SRLQW ZKHUH ODUJH YDULDWLRQV DUH REVHUYHG ZLWK SHDNVRFFXUULQJVWDUWLQJDWSP7KHSHDNYDOXHRIRFFXUULQJDWSP LVREVHUYHGRQWKHUGRI0DUFK1RFOHDUZHHNO\SDWWHUQFRXOGEHREVHUYHGIURP WKHWRWDOGDLO\SORW x 65'7DJ )LJXUHV± 3ORWWLQJ WKHVH REVHUYDWLRQV GXULQJ WKH PRQWK RI 0DUFK UHYHDOV WKDW WKH\ DUH QHDUO\FRQVWDQWGXULQJWKHZRUNZHHNZKLOHVKDUSGURSVDUHREVHUYHGGXULQJWKH ZHHNHQG7KHWRWDOGDLO\SORWVKRZVDSODWHDXGXULQJWKHZRUNZHHNDQGDGURSLQ YDOXHVRQ6DWXUGD\DQG6XQGD\2Q:HGQHVGD\WKHVWYDOXHVLQFUHDVHWLOO SPZKHQWKHSHDNYDOXHRIRFFXUVDIWHUZKLFKYDOXHVFRPPHQFHDGURSSLQJ SKDVH7KHVDPHEHKDYLRULVREVHUYHGRQWKHWKRI0DUFKEXWZLWKDSHDNRI RFFXUULQJDWSP x 7D[L )LJXUHV±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±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±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± 'LUHFW FRQQHFWLRQV WR DQG IURP /RQJ WKHDLUSRUWE\,&(DQG(XUR,QWHU GLVWDQFH &LW\ WUDLQV WR GHVWLQDWLRQV ZLWKLQ WUDLQV *HUPDQ\ DQG QHLJKERULQJ HYHU\ FRXQWULHV 0RUHRYHU UDLO DQG DLU ± WLPHWDEOHV DUH FRRUGLQDWHG ³5DLO KRXUV )O\´RU³)O\ 5DLO´WLFNHWVDUH DYDLODEOH +RQJ.RQJ W\SHV RI UDLO VHUYLFHV DUH DYDLODEOH $LUSRUW ([SUHVV DQG GRPHVWLF 2IIDLUSRUW FKHFNLQ IDFLOLWLHV DUH DYDLODEOH DW VHYHUDO VWDWLRQVLQ+RQJ.RQJ &KLFDJR KRXU VHUYLFH EHWZHHQ 2¶+DUH GRZQWRZQ&KLFDJRDQG2¶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³&KHFNLQ 7´ DUHD ZKLFK LV D VKRUW ZDON IURP WKHUDLOSODWIRUPV +RQJ.RQJ 'LUHFWO\FRQQHFWHG 7KH JURXQG WUDQVSRUWDWLRQ WRWKHSDVVHQJHU FHQWHU DYDLODEOH DW WKH WHUPLQDO DLUSRUW LV XQLTXH LQ WKDW LW RIIHUV FRQYHQLHQW DFFHVV WR DOOIRUPVRIWUDQVSRUWDWLRQ &KLFDJR2¶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± WKDQ86DLUSRUWOLQNV ±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x 3URSRUWLRQRIDLUOLQHSDVVHQJHUVZLWKWULSVHQGLQJGRZQWRZQ x &KDUDFWHULVWLF RI WKH SDVVHQJHU PDUNHW HJ ZKHWKHU WUDYHOLQJ DORQH RU ZLWK RWKHUVDPRXQWRIEDJJDJHIDPLOLDULW\ZLWKWKHUHJLRQDOWUDQVLWV\VWHP x 5HJLRQDOWUDYHOWLPH x &RQYHQLHQFHWRZDONEHWZHHQVWDWLRQDQGGHVWLQDWLRQ x ([WHQVLYHUHJLRQDOFRYHUDJH x $WDLUSRUWWUDYHOWLPH3DVVHQJHUVXVLQJUDLOSUHIHUWRPLQLPL]HWLPHUHTXLUHGWR WUDYHOIURPVWDWLRQWRIOLJKWJDWH x )UHTXHQF\RIVHUYLFHDQGDVVRFLDWHGZDLWLQJWLPH x $YDLODELOLW\RISDUNLQJDWQRQDLUSRUWVWDWLRQV :KDWWKH&DVH6WXG\$LUSRUWVDUH'RLQJ x 3URSRUWLRQRIDLUOLQHSDVVHQJHUVZLWKWULSVHQGLQJGRZQWRZQ)RUH[DPSOHDW 5RQDOG 5HDJDQ :DVKLQJWRQ 1DWLRQDO $LUSRUW DERXWRIDOOSDVVHQJHUVKDYH WULSVHQGLQJLQWKHGRZQWRZQDUHD&KLFDJR2¶+DUH,QWHUQDWLRQDO$LUSRUWDOVRKDV ODUJHSURSRUWLRQVRISDVVHQJHUVZKRVHWULSVHQGGRZQWRZQ x &KDUDFWHULVWLFVRISDVVHQJHUPDUNHW3DVVHQJHUVZLWKIHZRUQRFKHFNHGEDJV DUHPRUHOLNHO\WRXVHUDLOVHUYLFH/DUJHIDPLO\JURXSVDUHOHVVOLNHO\WRXVHUDLO :DVKLQJWRQ1DWLRQDOKDVRISDVVHQJHUVPDNLQJEXVLQHVVUHODWHGWULSVZKLOH )UDQNIXUWKDV x 5HJLRQDOWUDYHOWLPH7KHDYDLODELOLW\RIGLUHFWVHUYLFHEHWZHHQWKHDLUSRUWDQG GRZQWRZQDOORZLQJSDVVHQJHUVWRDYRLGWUDQVIHUVRUPXOWLSOHVWRSVLVLPSRUWDQW 3DVVHQJHUV WUDYHOLQJ EHWZHHQ WKH DLUSRUW DQG GRZQWRZQ HQFRXQWHU VL[ WR QLQH VWDWLRQVWRSVDW:DVKLQJWRQ1DWLRQDO x &RQYHQLHQFH WR ZDON EHWZHHQ VWDWLRQ DQG GHVWLQDWLRQ 3DVVHQJHUV PD\ ILQG XVLQJUDLOVHUYLFHPRUHDWWUDFWLYHLIWKHLUILQDOGHVWLQDWLRQLVZLWKLQHDV\ZDONLQJ GLVWDQFH RI WKH VWDWLRQ DQG OHVV DWWUDFWLYH DQG OHVV FRQYHQLHQW LI WKH\ PXVW WUDQVIHUWRDVHFRQGPRGH HJDEXVRUWD[LFDE WRWUDYHOWRIURPWKHVWDWLRQ x ([WHQVLYH UHJLRQDO FRYHUDJH $ FRPSUHKHQVLYH UDLO QHWZRUN VHUYLQJ D ODUJHU FDWFKPHQW DUHD ZLOO VHUYH D ODUJHU SRWHQWLDO PDUNHW 7KHUHIRUH LW ZLOO SURYLGH SDVVHQJHUV ZLWK PRUH WUDYHO RSSRUWXQLWLHV HJ WKRVH ZKR PD\ ZLVK WR OHDYH IURP WKHLU SODFH RI ZRUN DQG UHWXUQ WR WKHLU KRPH WKDQ GRHV D UDLO V\VWHP FRQVLVWLQJRIDVLQJOHOLQHEHWZHHQGRZQWRZQDQGWKHDLUSRUW x 2QDLUSRUW WUDYHO WLPH 7KH WLPH GLVWDQFH DQG FRQYHQLHQFH SDVVHQJHUV DUH UHTXLUHG WR WUDYHO EHWZHHQ WKH VWDWLRQ DQG WKHLU JDWH LV YHU\ LPSRUWDQW 7KH DYHUDJH GLVWDQFH EHWZHHQ WKH UDLO VWDWLRQ DW &KLFDJR 2¶+DUH DQG :DVKLQJWRQ 1DWLRQDO LV PHWHUV DQG PHWHUV DQG \DUGV UHVSHFWLYHO\ 7KH DYDLODELOLW\RIEDJJDJHWUROOH\VQXPEHURIYHUWLFDOHOHYDWLRQVFKDQJHV HOHYDWRURU HVFDODWRU DQGH[SRVXUHWRWKHHOHPHQWVDUHVRPHRIWKHPHDVXUHVRIFRQYHQLHQFH WKDWSRWHQWLDOXVHUVZHLJKLQWKHLUPRGHFKRLFHVHOHFWLRQ x )UHTXHQF\RIVHUYLFH$YHUDJHZDLWLQJWLPHVRIPLQXWHVRUOHVVDUHSUHIHUUHG 7KH DYDLODELOLW\ RI ODWHQLJKW DQG ZHHNHQG VHUYLFH LV DOVR LPSRUWDQW 7KH &7$ %OXHOLQHWUDLQSURYLGHVKRXUVHUYLFHEHWZHHQGRZQWRZQ&KLFDJRDQG2¶+DUH ,QWHUQDWLRQDO $LUSRUW 7KH UDLO SHDN KHDGZD\V DW 2¶+DUH DUH VHYHQ PLQXWHV :DVKLQJWRQ 1DWLRQDO KDV UDLO SHDN KHDGZD\ RI WKUHH PLQXWHV 7KH SHDN UDLO KHDGZD\VDW)UDQNIXUW=XULFKDQG+RQJ.RQJDUHPLQXWHVPLQXWHVDQG PLQXWHVUHVSHFWLYHO\ x $YDLODELOLW\RISDUNLQJDWQRQDLUSRUWVWDWLRQV0DQ\WUDQVLWDJHQFLHVSURKLELW RYHUQLJKW SDUNLQJ DW VWDWLRQV GLVFRXUDJLQJ SDVVHQJHUV ZKR PD\ ZLVK WR OHDYH WKHLUFDUDWWKHUDLOVWDWLRQIRUWKHLUGXUDWLRQRIWKHLUWULS 7KHFDVHVWXGLHVDGGUHVVHGLQWKLVUHSRUWKDYHVHUYHGDVDVDPSOHRI86DQGQRQ 86DLUSRUWV7KHQRQ86DLUSRUWV )UDQNIXUW+RQJ.RQJDQG=XULFK KDGPRVWRIWKH VXFFHVVIXOFKDUDFWHULVWLFVDQGWKLVH[SODLQVWKHPDMRUGLIIHUHQFHLQPRGDOVSOLWVEHWZHHQWKHVH DLUSRUWVDQGWKH86DLUSRUWV $LUSRUWVLQWKH86KDYHOLWWOHFRQWURORYHUPDQ\RIWKHVXFFHVVIXOFKDUDFWHULVWLFVRI (XURSHDQDQG$VLDQUDLODFFHVVIRUDLUSRUWV0RVW86DLUSRUWVGRQRWKDYHFLWLHVDQGUHJLRQV ZLWKKLJKUHJLRQDOUDLOXVDJHQRUYHU\KLJKFRQVROLGDWHGWULSJHQHUDWLRQV7KHUHIRUHLWLV XQOLNHO\WKDWLQWKH86WKHSRWHQWLDOPDUNHWIRUUDLOVHUYLFHZLOODFKLHYHWKHKLJKHUPRGDO VSOLWVVHHQLQWKHVWXG\DLUSRUWV7KXVGHVSLWHWKHVXFFHVVRIUDLOVHUYLFHLQ(XURSHDQG$VLDLW ZRXOGDSSHDUWKDWDLUSRUWUDLOVHUYLFHSDUWLFXODUO\LQYHVWPHQWVLQQHZUDLOVHUYLFHLVGLIILFXOW WRMXVWLI\RQDSXUHO\HFRQRPLFEDVLVDVIHZ86FLWLHVFDQJHQHUDWHWKHULGHUVKLSIRU VXFFHVVIXOVHUYLFH 2))$,532577(50,1$/6 3UHYLRXVFKDSWHUVKDYHGLVFXVVHGWKHPHWKRGVDLUSRUWVDURXQGWKHZRUOGKDYHXVHGLQ DGGUHVVLQJWKHJURXQGDFFHVVLVVXHV7KHRSWLRQVYDULHGIURPUDLOWHUPLQDOVGLUHFWO\VHUYLQJ DLUSRUWVWRJURXQGWUDQVSRUWDWLRQFHQWHUVWKDWKRXVHDOOWUDQVSRUWRSWLRQVDQGILQDOO\LQVRPH FDVHVWRRIIDLUSRUWFKHFNLQIDFLOLWLHVZKLFKDGGWRWKHFRQYHQLHQFHRIWUDYHOLQJYLDSXEOLF PRGHVRIWUDQVSRUWDWLRQ ,WZDVQRWHGWKDWVRPHRIWKHVHDLUSRUWVZRXOGQRWKDYHEHHQDEOHWRDFKLHYHVXFK KLJKOHYHOVRISXEOLFWUDQVSRUWPRGDOVSOLWVZLWKRXWUHO\LQJRQDFRPELQDWLRQRIIDFWRUV%\ IDUWKHWZRPRVWSURPLQHQWIHDWXUHVDYDLODEOHDUHWKHLQWHJUDWLRQRIWKHDLUSRUWUDLOVWDWLRQVLQ WKHQDWLRQDODQGVRPHWLPHVLQWHUQDWLRQDOQHWZRUNVDQGWKHDYDLODELOLW\RIRIIDLUSRUWRU VDWHOOLWHWHUPLQDOV7KHKLJKOHYHOVRISXEOLFWUDQVSRUWDWLRQXVDJHFDQQRWEHDWWULEXWHGWR VDWHOOLWHWHUPLQDOVDORQH5DWKHULWLVWKHLQWHJUDWLRQRIUDLODQGRIIDLUSRUWWHUPLQDOVWKDWKDV PRWLYDWHGWKLVVXFFHVV2IIDLUSRUWWHUPLQDOVSURYLGLQJEDJJDJHFKHFNLQDQGRUFODLP IDFLOLWLHVDUHLQRSHUDWLRQLQVHYHUDOFLWLHVLQFOXGLQJ+RQJ.RQJ/RQGRQDQG=XULFK,Q 1RUWK$PHULFDYDULRXVDLUOLQHVRQFHRSHUDWHGVDWHOOLWHWHUPLQDOVLQVHYHUDOFLWLHVLQFOXGLQJ 1HZ x 'LIILFXOW\RISURYLGLQJEDJJDJHFODLPVHUYLFHV,IEDJJDJHFODLPLVSURYLGHGDWWKH VDWHOOLWHWHUPLQDOZRXOGHDFKDLUOLQHKDYHWRSURYLGHORVWEDJJDJHFODLPSHUVRQQHO RU ZRXOG WKH\ EH FRQVROLGDWHG" ,Q DGGLWLRQ WR FXVWRPHU VHUYLFH LVVXHV WKHUH LV DOZD\V WKH SUREOHP WKDW FKHFNHG EDJV DQG SDVVHQJHUV ZLOO QRW DOZD\V FRUUHFWO\ PDWFK EDJJDJH FODLP ORFDWLRQV ,QHYLWDEO\ WKURXJK FRQIXVLRQ PLVWDNHV RU FKDQJHVLQSODQVDIUDFWLRQRIHLWKHUSDVVHQJHUVRUEDJJDJHZLOOHQGXSDUULYLQJDW WKHZURQJORFDWLRQ x 7UDYHOWLPHDGYDQWDJHV7KHPRGHRIWUDYHOEHWZHHQWKHWHUPLQDODQGWKHDLUSRUW PXVWSURYLGHUHOLDEOHDQGUHGXFHGWUDYHOWLPHVDVFRPSDUHGWRSULYDWHYHKLFOHVWR EHDWWUDFWLYH HJLIEXVFDQPDNHXVHRI+29ODQHVRUEXVSUHHPSWLRQDWWUDIILF VLJQDOVLWZRXOGEHFRPHKLJKO\FRPSHWLWLYH x $YDLODELOLW\RISDUNLQJ,IWKHGHVLUHLVWRDWWUDFWORFDOUHVLGHQWLDOWUDYHOHUVWRWKH VDWHOOLWHWHUPLQDODGHTXDWHSDUNLQJDWUHGXFHGUDWHVPXVWEHSURYLGHG x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¶V UROHLQWKHFRQWH[WRILWVPHWURSROLWDQDUHD¶VVWUDWHJLFPRELOLW\QHHGV 5()(5(1&(6 $LUSRUWV&RXQFLO,QWHUQDWLRQDO±1RUWK$PHULFDKWWSZZZDFLQDRUJ 'DOODV)RUW:RUWK,QWHUQDWLRQDO$LUSRUWKWWSZZZGIZDLUSRUWFRP )UDQNIXUW0DLQ,QWHUQDWLRQDO$LUSRUW3UHVV&HQWHU±3UHVV$UFKLYH KWWSZZZIUDQNIXUWDLUSRUWGH *UHHQ * 9LVLRQ WR 5HDOLW\,Q 7RWDO +DUPRQ\ +RQJ .RQJ $LUSRUW $XWKRULW\RI+RQJ.RQJ =XULFK,QWHUQDWLRQDO$LUSRUWKWWSZZZXQLTXHDLUSRUWFRPHBGHIDXOWKWP )RRWH 3 /DEHOOH 6 DQG 6WXDUW ' ³,QFUHDVLQJ 5DLO 7UDQVLW $FFHVV WR $LUSRUWV LQ &KLFDJR´ ,Q 7UDQVSRUWDWLRQ 5HVHDUFK 5HFRUG SS± :DVKLQJWRQ'&1DWLRQDO5HVHDUFK&RXQFLO 0DQGOH3³5DLO6HUYLFHWR$LUSRUWV´,Q$YLDWLRQ&URVVURDGV&KDOOHQJHV LQD&KDQJLQJ:RUOG3URFHHGLQJVRIWKHUG$LU7UDQVSRUW&RQIHUHQFHS $UOLQJWRQ9LUJLQLD-XQH±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