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Texas Sncf – S Ept 14Th, 2009 SNCF – SEPT 14TH, 2009 TEXAS CONFIDENTIAL AND PROPRIETRY – DO NOT DISCLOSE OUTSIDE GOVERNMENT EXECUTIVE SUMMARY French National Railways (hereinafter SNCF) proposes to develop, implement and operate new high speed rail services in the Texas High Speed Rail Corridor designated by Federal Railroad Administration. Our expression of interest and qualifications is in response the FRA Request for Expressions of Interest dated December 11, 2008. SNCF is particularly aware of the issues attached to this project, to the extend it was involved in 1987 in the project. Therefore, SNCF fells itself entitled to propose to build in this State a world class High Speed Rail service, called HST 220. This concept represents a new mode of transportation with a wide range of benefits that meet environmental and sustainable development objectives. In preparing this Expression of Interest, SNCF has addressed whether its High Speed Rail proposal, which is based on successful and self-supporting services in France and around the world, can provide a valuable choice for Texan travelers, be operated without government subsidy and even cover a portion of construction costs through operations revenues, and fulfill these important environmental goals. The proposed HS route Fort Worth - Dallas - San Antonio is quasi parallel to the existing corridor, sharing the existing railway infrastructure facilities in urban approaches, even at lower speed. As explained in the text, the investments devoted to HSR would in turn take advantage from the rail’s new attractiveness and connectivity synergy with the classic rail network. The HST 220 concept Attractive, convenient and modally competitive HSR service is proposed. This service shall link Fort Worth – Dallas – San Antonio, in connection with the existing conventional lines (110 mph top speed) to Houston. Speeds of up to 220 mph for HSR services are expected to generate a significant number of new trips as well as draw from the air and auto modes. Access to HSR services for both residents and visitors will be convenient due to 7 proposed stations conveniently located close to medium and large city populations, city central business districts and airports to attract residents, providing convenient and cost competitive alternative to driving and air travel. This HST 220 concept keeps pace for a further complete Texan HS network ("Triangle" or "T- bone" type) involving Houston, once the pertinence of HS services proven. Meanwhile, the existing corridors will serve as key feeders. To reduce both land use and environmental impacts and to ease the process of right-of-way acquisition, the HSR route is to be located at the utmost possible along or next to existing transportation infrastructures. To this end, allowances have been made to acquire the needed right-of-way for its own dedicated operations. Rolling stock capable of speeds up to 220 mph will be used. Seating, with 500 to 550 seats per 200m-long train unit, comfort and on-board amenities will be consistent with the highest quality standards in place today, using for instance Europe Technical Specifications for Interoperability (TSI), modified as needed to conform to Federal Railroad Administration requirements. Using TSI as a basis offers a service with proven performance in terms of safety, travel times, operations reliability, and efficiencies in service commissioning and start-up as well as long term inspection and maintenance. The maximum speed of trains using the TSI standards allow for operations speeds up to 220 mph at commissioning. Examples of approximate trip times between major city pairs are as Dallas – San Antonio in 1:50. TEXAS SNCF– SEPT 14TH, 2009 - 1 - Confidential and Proprietary – Do not disclose outside government Ridership estimates based on a full complement of services after an initial ramp-up period are 12.1 millions (in the year 2025). Many national and State-level goals will be achieved. HSR is among the most energy efficient modes of transportation. Equivalent greenhouse gas and other vehicle emissions will be reduced. Preliminary estimates show that HSR will generate 24% of the emissions compared to those same trips made by car or by air. At the same time, currently forecasted roadway and airport congestion will be mitigated, making the implementation of HSR accrue benefits to those modes. Also, these trips will be safer. Up to 17 fatalities and 1332 injuries will be avoided for 2030, as an example. Stations will catalyze the redevelopment of host communities. Opportunities for economic development, in terms of over 68,000 jobs in construction and over 145,000 jobs in operations and maintenance will draw workers from all socio-economic segments. The length of the alignment, combined with the populations of the cities served as well as the limited airport and roadway capacity along the corridor, are strong indicators of a successful high speed rail service. Operations planning will be optimized in several ways to cater to the residential, business and visitor market segments, in ways to increase ridership and revenue. The provision of a wide array of amenities and class/price options, along with reliable, on time service will create market attractiveness and confidence. Project management approach The success of implementing High Speed Rail in Texas area rests upon the integrated design, operations, financing, and environmental assessment disciplines experienced in high speed rail projects. This is proven through SNCF participation in many successful projects in many parts of the World. In the United States, governmental agency involvement is important for structuring the required up front capital investment, and to partner in the environmental clearance and approval processes. While the particular form of the most suitable organization is subject to detailed technical, financial and legal studies, it is conceived that a Special Purpose Company would operate the HSR service and finance a part of the initial capital costs. The business case Capital costs have been estimated at $13.8 billion in $2009. Included within this amount are $1.4 billion for rolling stock and $0.8 billion for right-of-way and acquisition. The remainder is in guideway and civil construction ($8.3 billion), systems and maintenance facilities ($2.7 billion) and stations ($0.6 billion). Estimates of revenue, annual operating and maintenance costs are such that as ridership matures and service is fully established, revenue will exceed O&M costs and will also cover a portion of the capital costs to the extent that public funding will be required for only 62 % of the initial capital investment. In present value discounted at 4%, the benefits of the HST 220 concept would represent in $2009 170 % of the public funds required, and would cover public funding in less than 15 years. TEXAS SNCF– SEPT 14TH, 2009 - 2 - Confidential and Proprietary – Do not disclose outside government TABLE OF CONTENTS 1 POINT OF CONTACT......................................................................................................7 2 NAME(S) AND QUALIFICATIONS OF THE PERSON(S) SUBMITTING THE EXPRESSION OF INTEREST........................................................................................7 3 PROJECT OVERVIEW....................................................................................................8 3.a Background, objectives and philosophy behind the SNCF response.......................8 3.a.1 Background...............................................................................................................8 3.a.2 The FRA-Designated Corridors and SNCF .........................................................8 3.a.3 The philosophy behind the SNCF response........................................................9 3.a.4 Economic requirements ..........................................................................................9 3.a.5 Technical requirements.........................................................................................10 3.a.6 Operation.................................................................................................................10 3.b The Challenges ...............................................................................................................11 3.b.1 Strategy development ...........................................................................................11 3.b.2 Operations...............................................................................................................11 3.b.3 Financial ..................................................................................................................11 3.b.4 Benefits....................................................................................................................12 3.c The Route.........................................................................................................................12 3.d Building an operating plan .............................................................................................13 3.d.1 Train operation scheduling, stopping patterns ..................................................13 3.d.2 Marketing.................................................................................................................14 3.e Environmental approach for high-speed lines ............................................................14 3.f Capital needs assessments...........................................................................................15 3.g Operating and financial
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