The Gateway Program and Hudson Tunnel Project

Presented to: NJ State Senate Oversight Committee

Stephen Gardner Executive Vice President NEC Business Development

August 10, 2015 1

The Need for Gateway

3 The NEC in Context

The Northeast Megaregion – with 17% of the population on 2% of U.S. land area – is North America’s best rail market similar in density and population to successful rail corridors in Europe.

4 NEC Vital to Local Economies

• NEC and connected commuter networks provide access to: – good jobs – large labor market • For some counties, commuter rail is the major means of transport to Manhattan jobs • Income earned by rail commuters provides significant economic value to suburban areas: – For some counties, such as Essex, income earned by rail commuters is in the billions of dollars 5 NEC Vital to Region

Washington to New York Air-Rail Market

100%

90% 80% 70% 60% Rail Market Share Rail Market 50% Air Rail Air - 40% 76% 69% 75% 30% 63% 56% 55% 56% 61% 45% 50% 50% 51% 20% 37% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fiscal Year Acela Service introduced Amtrak carries three times as many passengers DC-NY than all of the airlines put together

6 6 NEC Passenger Growth

• NEC passenger demand continues to grow • How much of that demand the NEC can accommodate depends primarily on the level of investment.

7 Growth is Threatened By: Bottlenecks

800 750 VRE 700 MARC 650 LIRR 600 NJT SEPTA 550

CSX 500 NS 450 MBTA 400 MN 350 TRAINS per DAY DAY per TRAINS

SLE 300 P&W 250 AMTRAK 200 150 100 50 0

8 Century-Old Assets

Connecticut River Bridge, 1907 Hudson River Tunnel, 1910

Portal Bridge (NJ), 1906 Susquehanna River Bridge (MD), 1906

Pelham Bay Bridge (NY), 1907 B&P Tunnel (MD), 1873

9 Station Capacity

• PENN STATION – 410,000 daily passenger trips

• Long Island Railroad – 222,000 trips • NJ Transit – 160,000 trips • Amtrak – 28,000 trips • PLUS NYC Transit - 344,800 daily trips at Penn Station • 1/2/3 - 178,200 trips • A/C/E - 166,600 trips

10 Super Storm Sandy Impacts

• Super Storm Sandy forced ~4-day closure of the NEC: • Flooded substations • Inundated East River and Hudson River Tunnel systems • Ongoing damage to internal components requires complete renewal. • Tunnel reconstruction requires closure of each tube for outages of >1 year. • Rebuilding of the Hudson River Tunnel cannot begin until the new Hudson Tunnel Project is completed.

11 Super Storm Sandy Impacts

12 Decades of Underinvestment by All

Source: NEC Commission 5-Yr Plan, FY16-20

13 Gateway Program Overview

14 15 Gateway Program Principles

Service Preservation and Resiliency • Secure critical alignments for future operations • Priority to modular project • Undertake design /construction where required • Preserve existing service to Penn Station designs permitting • Rebuild Existing Infrastructure development of program • Provide resiliency / storm protection elements with independent • Bring to State of Good Repair utility. Capacity • Advance elements as • 100% increase trans-Hudson River funding and timing permits. • 38% increase at Penn Station • Build redundancy for stable operations

16 Gateway Program Studies

Feasibility Study (completed)

Systems Level Design (completed)

Program Development (underway)

NEPA/ Preliminary Engineering (underway)

17 Hudson Tunnel Project Study Area

• NEPA Environmental Review and Preliminary Engineering • Expected 2-4 year process to start this year • FRA will serve as USDOT Federal Lead Agency • Evaluating options for expediting NEPA • Requires regional participation

18 Hudson Tunnel Project NEPA/Design

19 ROW Preservation – Hudson Yards

Amtrak began construction in August 2013 to preserve a potential future pathway for a new Hudson River tunnel through Hudson Yards – or risk losing Penn Station access forever.

20 Hudson Yards Concrete Casing

• Casing construction underway or complete from 10th Ave to the western edge of 11th Ave in Manhattan

• Funded primarily by Sandy Act grants to Amtrak of approximately ~$235m

• Additional ~$300m required to complete casing across Hudson Yards site.

• Design underway and construction needs to begin in advance of development 21

Early Actions: Portal Bridge / Sub 41

• Portal North Bridge design and environmental work complete. • ~$1 billion construction costs over 5 years • Needs NJT/Amtrak/Federal funding

• Substation 41 was flooded by Super Storm Sandy • Will be rebuilt in conjunction with NJ TransitGrid Project Portal North Bridge rendering

22 Expanded Penn Station Concourses

Station plans evaluated for • Train operations • Station connectivity • Future line extensions • Development potential

Confidential and deliberative material 23 NEC Future – Environmental Study

• The Federal Railroad Administration (FRA) is currently leading NEC FUTURE Environmental Impacts Statement (EIS) and Service Development Plan process to study options for expanding capacity on the NEC.

• These studies are a pre-requisite for advancing any projects that significantly expand rail service levels on the NEC, including the new capacity elements of the Gateway Program.

• The Draft EIS is expected to be released this fall and a final EIS is expected in 2016.

24 Gateway Preservation & Resiliency

Conceptual 2016- 2019- 2022- 2025- 2029- Timeline 2018 2021 2024 2028 2030

Open to Portal North Begin Complete revenue construction construction Bridge service

Hudson NEPA/PE Final design Construction, Open New New and Old Tunnel and begin Testing, Tunnel, Rehab Tunnel Complete Permitting Commissioning Old Tunnel (4 Tracks Total) Project construction

Open to “Sawtooth” Preliminary Final Design Construction Revenue Engineering Bridges Service

Assumes adequate funding available for all activities

25 Gateway New Capacity

Conceptual 2016- 2019- 2022- 2025- 2028- 2031-2033 Timeline 2018 2021 2024 2027 2030

Final Design Demolition Commission Concept NEPA and PE and property and Construction and Open to Penn South Design acquisition Construction Service

Secaucus Concept Final Design Commission NEPA and PE and property Construction and Open to Station and Design Loop acquisition Service

Commission Portal South Concept NEPA and PE Final Design Construction and Open to Design Bridge Service

Commission Highline Concept Begin NEPA and PE Final Design and Open to Design Construction Renewal Service

Assumes adequate funding available for all activities

26 Thank you. www.nec.amtrak.com