The Future of Amtrak

RailTrends 2012

Joe Boardman President and CEO Amtrak Today’s Agenda

• Past Predictions for Amtrak • Amtrak today • Our plan for Amtrak’s future

2 Past predictions for rail and Amtrak

Robert Taylor “The Department must look ahead to new technologies for moving people – technologies that transcend the conventional steel wheel on steel rail… we have been actively researching the promising tracked air cushion vehicle… Our high-

Dash-a-veyor speed ground people are also looking at the so- called gravity-tube train… “Another system known as the dash-a-veyor could be of considerable use….” –Reginald Whitman, FRA Administrator, 1969 “Young man, I guarantee you, Amtrak will not last five years!” –Louis Menk, President Amtrak’s first day Burlington Northern Railroad 1972 May 1, 1971 3 The prediction that was right

“In some areas, airports and highways are being used to their maximum capacity, yet the number of intercity travelers continues to grow each year. Traffic congestion… on expressways, and takeoff and landing delays at airports have become commonplace, especially in densely- populated urban corridors.” – Commerce Committee Report Rail Passenger Service Act of 1970

4 Total highway congestion is going to get worse

Total Cost of Highway Congestion in America

$ billions 2010 dollars

forecast This is the annual loss to the American economy from things like wasted time, fuel, and costs to businesses. Source: Texas Transportation Institute, 2011 Urban Mobility Report 5 Airports: Top Five For Delayed Arrivals, 2011

BOS #4 28% delayed 59.6 avg min JFK #5 27% delayed 64.8 avg min SFO #2 30% delayed 63.3 avg min EWR #1 LGA #3 34% delayed 29% delayed 66.1 avg min 62.3 avg min

New York and Philadelphia account for nearly half of all national airline delays.

Sources: Air Transportation Association of America; 2010 GAO Report, RITA Bureau of Transportation Statistics, 2011 6 Trends that weren’t predicted in 1970s

NoMa BID • “NoMA” • Fastest growing neighborhood in DC • Adjacent to NEC and Union Station

• Moving back to center cities • Driving less

• Going carless or sharing cars 7 Amtrak trends today: Record ridership…

Amtrak Ridership, FY1998-2012 10 year growth

+69% millions State Supported

+25% Northeast Corridor

Long Distance +31% Total +44% FY12: 31.2 million riders – 9 annual ridership records in last 10 years 8 Reduced operating need for an energy-efficient mode

Amtrak Operating Need Comparative Energy Intensities 2004-present By Mode of Travel FY12 $, millionsFY12$,

Source: U.S. DOT All values are in 2012 dollars

Sources: USDOT, Oak Ridge Nat’l Labs “Transportation Energy Data Book, 31st Ed, 2012”

9 How we achieve the future we want: Amtrak’s Strategic Plan

Goals Strategies Safety and Security Safe-2-Safer Customer Focus Integrate operational functions Mobility and Connectivity Develop human capital Environment and Energy Expand risk management Financial and Organizational Increase access Excellence Invest in systems and technologies Establish business lines 10 State and commuter partners

Partners in State-Supported Services, 2012 WA VT OR NY NNEPRA CCJPA MI WI PA

VA IL CA MO NC OK

TX NEC Spine State Supported • 15 state partners Long Distance • PRIIA Sections 209, 212 • Commuter operations & infrastructure 11 Host railroads

• Our partners on 70% of our train miles • Continue to operate safely and reliably • ARRA/PRIIA-funded capital investments – NECR: Passenger/ freight improvements = higher speeds, 286K cars

12 Industry suppliers

Long distance single level cars under • Amtrak purchased construction, CAF-USA $1.2B in FY2011 • State of good repair needs

Electric locomotive • Next generation for NEC, Siemens equipment • Next generation NEC • New financing solutions Niantic River Bridge, CT - replaced 2012 13 The Amtrak System

Michigan, Illinois: 110 mph

West Coast Chicago corridors hub

Long Distance Network

NEC and extensions Other state- Beech Grove supported national shops trains NEC Spine State Supported Long Distance

14 The Northeast Corridor

• The Region – 2% of America’s land area – 1 of out every 6 Americans – 4 of the of the 10 largest metropolitan areas – $1 of every $5 in GDP Boston – 80% of the population lives within 25 miles of the NEC New York • The Route – 457 miles Philadelphia – 154 daily Amtrak trains – 2,118 daily commuter trains Washington – 40-50 daily freight trains – More than 260 million riders annually

15 Hurricane Sandy Update

To Boston • Sandy hit us hard: – Flooded tunnels – ET system damage Hell Gate Bridge • Basic service recovery very fast New York Penn Station • Complete recovery Sunnyside Yard North River will take weeks Tunnels East River • Key takeaways To Washington Tunnels LIRR and – Recent investments freight lines mitigated damage – Aged infrastructure less resilient

16 Gateway Program Components

Penn Station Newark to Moynihan/Penn Station New York

EXPANSION

17 NEC NextGen HSR Conceptual Service Plan

220mph NYC-DC: 1 hour, 34 mins NYC-BOS: 1 hour, 34 mins

18 Amtrak today – and tomorrow!

19