Tracks to Tom or row

A renaissance for rail Alstom’s vision for the future Proposed North American High Speed Rail Corridors

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1 California Corridor: 7 : Sacramento, Bay Area, Los Angeles, San Diego Boston, Providence, New Haven, , 2 Hub Network: Newark, Trenton, , Wilmington, Baltimore, Minneapolis, , Chicago, St. Louis, Kansas Washington, D.C. City, , Toledo, , Columbus, , 8 Northern New England Corridor: , Louisville Montreal, Boston, Portland/Auburn 3 : 9 Pacific Northwest Corridor: Buffalo, Syracuse, Rochester, Utica, Albany, New York City Vancouver, Seattle, Portland, Eugene 4 Florida Corridor: 10 Southeast Corridor: Tampa, Orlando, Miami Jacksonville, Savannah, Columbia, Raleigh, 5 Gulf Coast Corridor: Macon, Atlanta, Greenville, Charlotte, Richmond, Houston, New Orleans, Mobile, Meridian, Birmingham, Hampton Roads, Washington, D.C. Atlanta 11 Texas T-Bone and Brazos Express Corridor: 6 : San Antonio, Austin, Waco, Fort Worth-Dallas, , Harrisburg, Philadelphia Killeen-Temple, Bryan-College Station, Houston Source: U.S. Department of Transportation

ALSTOM Transportation Inc. National Geographic Custom Publishing 353 Lexington Avenue, Suite 1100 631-757-8300 New York, NY 10016 Editorial Services Directed by ...... Wendy Murphy Tel. (212) 557-7262 Art and Design Services Directed by ...... Bruce McGowin www.transport.alstom.com Project Direction by ...... Bret Barasch © ALSTOM 2008. ALSTOM, the ALSTOM logo and any alternative versions thereof are trademarks and service marks of ALSTOM. The other names mentioned, registered or not, are the property of their respective companies. The technical and other data contained in these documents is provided for information only. ALSTOM reserves the right to revise or change this data at any time without further notice. 102008 OPI President of the American Public Transportation Association A message from William Millar

rom early roads and canals, The need for such a national through the growth of railroads transportation strategy is a clarion F and electric street railways, call to public officials at all levels through the automobile age, and the and to America’s business leadership. jet age, transportation systems have The need to connect America’s always been at the center of American economic centers through fast, efficient progress. And that progress helped and sustainable networks has created America become the most prosperous the necessity of a high-speed rail society in history. system, comparable to the national But the transportation system today commitment to create the interstate does not provide nearly the mobility highway network. In this framework, options that America will need to face rail should become the preferred option the challenges of the future. While over the last for trips of 500 miles or fewer, with links to airports 30 years the number of urban rail systems has for longer distance trips and for international travel. grown significantly, America continues to have a Revitalization and transformation of America’s relatively small supply of superior urban transport transportation system will require a bold, and high-speed rail services that provide efficient comprehensive and aggressive national strategy. mobility for its communities and keep America’s It will require all partners — federal, state, economic centers attractive, productive and local and private — to sharpen their policy connected. With a new era of economic, perspectives and financial commitments. It will environmental and transportation policy on require a broad coalition of advocacy partners the horizon, we know that new innovations in including business, labor, community leaders, transportation are needed once again to propel environmental champions, and leaders from the economy forward and shape the nation. within the transportation industry itself to Current trends all point to a robust future for commit themselves to accomplish this vision. urban transport and high-speed rail. With 3-4 Economic conditions are right for a new era of million new residents added each year, the United growth for urban transport and high-speed rail. States has one of the highest growth rates in the Just as transportation policy over the last half industrial world. As has been the case throughout century focused on building a system of interstate American history, population growth follows roads to connect the nation, so should the vision economic opportunity. This has led to continuing for the next 50 years focus on travel options which growth in North America’s top metropolitan connect people and enable prosperity in America’s areas. Economically, these metropolitan regions bustling economic growth centers. have become the engines of American prosperity. The geography of these areas will make transit and I commend Alstom for its vision and leadership, the optimum use of high-capacity rail corridors and look forward to our working together in a a necessity for accommodating growth and mutual quest for better transportation service addressing mobility needs on a mega-region scale. and the economic vitality it will spawn.

2008 | TRACKS TO TOMORROW | 3 The Locomotion Evolution: Spurring Growth and Service Seven out of every 10 barrels of oil consumed in the United States are used for transportation, and highways account for 72 percent of that large share.

xperts say that fuel efficiency offers the The evolution of rail systems greatest and most immediate potential in Europe and the U.S. E for reducing CO 2 emissions from the transportation sector over the next three decades. In Europe, several factors contributed to the According to data from the Department of Energy’s dominance of passenger rail, including high fuel Oak Ridge National Laboratory, existing U.S. prices in comparison to electric power and a passenger rail is 17 percent more efficient than concerted effort to control urban development and air travel and 21 percent more efficient than auto preserve the form and function of historic cities. The travel. Today, transportation policy places too much strong national and regional governments in Western emphasis on those modes of transportation that are Europe were able to coordinate policies governing the least fuel efficient — which means higher land use and the planning that emphasized rail over carbon emissions and a greater dependence on highways. Urban, regional and inter-city passenger foreign oil. A strong transportation system depends rail has thrived in Europe ever since. on various modes of transportation, a balance not Americans were leaders in the introduction of rail reflected in current American transportation policy. solutions as early as the middle of the 19 th century. For this reason, some legislators have suggested The first transcontinental railroad was built across that America’s transportation policy should focus North America in the 1860s, linking the railroad on more energy efficient modes of transportation network of the eastern U.S. with California on the that will help achieve today’s challenges. Policy Pacific coast. The railroad had a large impact on the makers are too focused on highways and have American transportation system and economy during ignored alternatives including high-speed the second half of the 19 th century. Even without passenger rail which may be part of the solution government subsidies, 70,000 additional miles of to addressing other key policy issues. track were laid in the 1880s, linking increasing The most successful implementation of high-speed numbers of towns and cities. Passenger rail travel trains has been in Europe, where the specially tripled between 1896 and 1916, and trains carried engineered tracks required for this technology “95 percent of all transportation through 1 have been rolled out over the past 25 years. These 1910 .” Rail travel’s peak in the U.S. was 1920, with O S

trains carrying 1.2 billion passengers. In that year S A

successes have been the result of consumer demand, S . C

fares were increased by 20 percent, and the decade -

fueled by effective government policies and funding A M

saw an almost threefold increase in automobile O T

to support the vision that rail is a vital alternative / T

registrations. As a result, intercity transportation R to alleviate the gridlock caused by excessive volume O P S

by trains had fallen by 18 percent by 1929. N of automobiles and trucks on the highways. A R 1 Itzkoff, Donald M. Off the track: the decline of the intercity passenger train in the United States. T M O

Westport, Connecticut: Greenwood Press, 1985 T S L 4 | ALSTOM | 2008 A POLICIES AND TECHNOLOGY

AGV prototype driver car at Aytré depot. La Rochelle, France. 2008 | TRACKS TO TOMORROW | 5 Long-distance continued with the Long-distance travel is currently dominated by streamliners that criss-crossed the United States airlines, but given continued population growth and from the 1930s, to 1950s. However, rail passenger congestion at airports and on highways, there has transport stagnated in the U.S., just as Europe and been a resurgence of interest in high-speed rail in Japan were pushing forward with new technologies. the U.S. in recent decades. Several corridors are being One major factor has been a lack of investment in examined for potential high-speed service, either passenger inter-city rail infrastructure. In the at the federal or state level. North America offers Northeast Corridor, rail travel is time and price various high-density passenger corridors, which are competitive with air travel, but infrastructure restricts uniquely suited for the implementation of dedicated other routes to highway speeds, putting rail in direct high-speed rail, which has so successfully been competition with buses and private automobiles. implemented in similar corridors in Europe and Asia. H S I V O H Y R R A L / T R O P S N A R T

Alstom’s assembly M O T S

line for R160 cars, L A

Hornell, NY 8 0 0 2

The largest passenger rail facility in the U.S. — Alstom’s Hornell, Customers served include: New York facility is the largest passenger rail car manufacturing • California Department of Transportation site in the U.S. with 700,000 square feet. It is the only passenger • Chicago Transit Authority – CTA rail car manufacturing site in North America that has its own • Chicago Regional Transportation Authority – METRA climate chamber capable of testing complete passenger rail • San Francisco Bay Area Rapid Transit – BART cars. Since 1983 the Hornell facilities have manufactured and • Connecticut Department of Transportation renovated over 6,000 passenger rail cars and locomotives, • Maryland Mass Transit Administration – MARC & MTA which is more than any other company in the U.S. • Massachusetts Bay Transportation Authority – MBTA Since Alstom acquired the site in July 1997, it has been • Metro-North Commuter Railroad transformed into a world-class rolling stock and equipment • Metropolitan Atlanta Rapid Transit Authority – MARTA manufacturing facility – and it has the agility and potential • New York City Transit – NYCT to address growing market needs in the future. • New Jersey Transit – NJT Home to railroad manufacturing since 1851, the Hornell • Northern Virginia Transportation Commission – VRE site builds and remanufactures rapid transit metro cars, • National Railroad Passenger Corporation – commuter and intercity coaches, passenger locomotives, • San Francisco Municipal Railway – MUNI as well as AC propulsion, traction motors, electrical rotating • Southeastern Transportation Authority – SEPTA equipment and other related electrical components. • Washington Metropolitan Area Transit Authority – WMATA

6 | ALSTOM | 2008 POLICIES AND TECHNOLOGY

World-class signaling capabilities — Alstom Signaling, located in Rochester, NY, today is a leading manufacturer and supplier of such key products as switch machines, solid-state electronic relays, interlocking products, signals, track circuits, and advanced traffic control technology, including automated train supervision. Alstom is positioned at the front line of this global O L

E market with its ATLAS system, originally developed G N A ’ to address the need for unified signaling systems D . J - J

/ throughout Europe. This network of links between T R

O ground and trains can adapt to any situation and P S N

A every type of train. Alstom Signaling offers customers

TGV duplex train R T

in service. M not only a wide product range but also a unique O T S

L ability to integrate its products into entire signaling A systems – including non-Alstom products. As a proud descendant of its U.S. predecessor, General Engineering Innovations Railway Signaling, the century-old leader in signaling Policies, public support and available corridors equipment in the U.S., Alstom Signaling has delivered however, are only part of the equation. The other is safe, proven products for more than a century with more engineering innovation, which has made high-speed than 2,400 patents registered to date. Key customers rail technology possible for effectively and efficiently include all major Class I Railroads and passenger systems meeting the world’s transportation needs. Over the including Amtrak, New York’s MTA, and the Washington Metropolitan Area Transit Authority. years, major technological innovations have made high-speed rail sustainable and highly efficient. These technologies include: Articulated trains: When cars are permanently or semi-permanently connected, trains have a fixed composition of coaches, with consecutive cars resting on shared trucks (chassis). This technique reduces train weight per length, a key factor for attaining high speeds at lower weight and reduced energy consumption. A lower center of gravity: Development of high- speed trains with a lower center of gravity which makes them more stable than with traditional rail technologies, especially when traveling at high speeds. A reduced numbers of trucks: Many of the innovations of high-speed trains are in the design and placement of trucks — two or more pairs of wheels, their axles and a connecting frame that supports the cars. Conventional train carriages have two trucks per coach, one towards each end. In Alstom high-speed trains, cars are attached to one another semi permanently, with the front end of one car and Signaling equipment the back end of the next car resting on a common testing at Rochester, truck, reducing the number of trucks, thereby NY factory. reducing weight, noise and energy consumption. Moreover, increased distance between axles in the ALSTOM TRANSPORT / J-J.D’ANGELOALSTOM TRANSPORT / P.GUIGNARD trucks reduces instability and improves train ride comfort at very high speeds.

2008 | TRACKS TO TOMORROW | 7 Advanced signaling systems: The signaling of high-speed lines requires a different approach from conventional railways. The speed of the trains is high enough that the engineer/driver cannot reliably S

N read signals placed at trackside, especially in adverse I D R A

J weather conditions. High-speed train systems rely S E D .

D exclusively on cab signaling, a system by which / T R

O signaling information is transmitted electronically. P S N

A These signals are picked up through antennas placed

Alstom’s suburban video R T

surveillance passenger M under the train and then processed by computers and O T

information system. S L

A displayed to the engineer or driver in the cab. Security and Passenger Information — Alstom Transport Tilting capabilities: Because a train and its Montreal is home to the company’s Worldwide Center passengers are subjected to centrifugal forces when of Excellence for Security and Passenger Information the train passes horizontal curves, trains with the Systems — a leader in integrated train information and “infotainment” systems, including sound and capability to tilt the carbody inward in track curves video technologies. reduce the lateral acceleration perceived by passengers. Alstom Montreal offers totally integrated and flexible In other words, the tilt inward reduces the centrifugal IP-based systems that can be tailored to a wide range force felt by the passengers, allowing the train to pass of public transportation operations. Its systems are curves at enhanced speed and maintain ride comfort. also designed to be upgradeable with evolving passenger security and comfort needs, and can be installed globally The duplex passenger platform: On many new on both Alstom and non-Alstom rolling stock. duplex (double deck) carriages in high-speed trains, A key differentiator for Montreal is its strong team of passengers can choose to travel in quiet “zen” zones creative minds — from engineers to software architects — or “zap” areas where business can be conducted who use a forward-looking product vision to integrate and the mood is more social. Conference areas are some of the most innovative and cost-effective information available for business travelers, and parents with technologies. As a Worldwide Center of Excellence, Montreal benefits from Alstom’s complete understanding children will be able to play tabletop games or of the whole rail environment — from building trains to rent DVDs. Passengers also have more room to signaling systems and from control centers to infrastructure. walk around, talk on their mobile phones, and enjoy more legroom, making train trips not just a means to an end but an end in themselves. From soup to nuts — Alstom provides turnkey solutions Alstom has become the global leader in rail and products and services for all types of systems — transportation and power technology with a presence from very high-speed and intercity rail to urban tram services. Such turnkey solutions include integrated in some 70 countries. A full-service company, systems optimized to meet requirements for rolling stock, Alstom provides rolling stock for high-speed rail and information technologies, infrastructure and maintenance, commuter transport, signaling systems, maintenance, as well as electrification and power supply. Support and custom-designed turnkey operations. All these services include project management, customer training offerings ensure that Alstom is well-positioned to and technical consultancy. aid the rebirth of surface transportation in the U.S. In the case of high-speed rail, safe uninterrupted travel at speeds of up to 225 mph requires excellent compatibility between the infrastructure and the rolling stock. Alstom’s An enviable safety record turnkey solution for high-speed rail includes complete Along with the many technological advances, system design, construction, commissioning, operating high-speed rail continues to be one of the safest and maintaining transport infrastructure and rolling stock. forms of transportation: In urban areas, which are demanding clean-running alternatives to car transportation, Alstom helps cities • Alstom has sold more than 650 TGV trains, which define the best transport solution to accommodate traffic have carried nearly 1.5 billion passengers over more needs while offering the best operating flexibility. than a billion miles — all in complete safety.

8 | ALSTOM | 2008 POLICIES AND TECHNOLOGY N O I T C E L L O C E G A M I C I H P A R G O E G L A N N O I O T I C T E A L N L A baby girl on the / O D I C E

Amtrak Surfliner E R G A enjoys the view. H C M I I R C I H P A R G O E G

• During the 40-year history of , the L A N O I

network of high-speed rail lines in Japan, more T A N /

than six billion passengers have traveled on the N H O J

. BNSF freight train

service, yet there have been no passenger fatalities. T S carries storage N E

H containers.

• Spanish National Railways Consortia officials P E T affirmed the safety record of high-speed trains S in a presentation before the California High Speed Keeping them up and running — Alstom Transport’s Rail Authority in June 2008, noting that they facility in Chicago/Naperville, IL, conducts have operated in the same corridors as conventional comprehensive Train Life Services (TLS) for freight trains, with no accidents for decades. the US & Canada. This facility is a big part of Alstom’s complete range of end-to-end services for both public and private rail network operators, Meeting current and future demands providing global life-cycle management, including Meanwhile, technological innovations are being maintenance, refurbishment, technical assistance developed to make train travel even faster and more and support, along with documentation management, comfortable, including the upgrade of existing rail spare parts and supply chain management. beds and tracks in Europe to meet these demands. Helping customers with enterprise resource planning Work is underway on a third generation, ultra-high- that includes condition-based and fragmented maintenance, inventory, and core management, speed AGV or Automotrice à Grande Vitesse train, Alstom’s TLS in the U.S. and Canada can meet with top speeds of 225 miles per hour. the needs of all customers — from finding and The AGV uses less power than its predecessor, installing one part to designing comprehensive solutions that involve all, or any combination, the TGV, and competing products available on of the Company’s core business offerings. the market, due in part to a design that is 60 tons Clients include BNSF, Amtrak, and Canadian lighter and an optimized and enhanced power Pacific Railway Company, among many others. regenerating braking solution. The AGV will be put in regular passenger service by 2010.

2008 | TRACKS TO TOMORROW | 9 Building Momentum: The Opportunity

In the 1970s, when Europe began to turn toward high-speed and in-city rail as the foundation of its passenger rail systems, the U.S. and Canada continued to focus on moving people and goods over highways and increasingly, by air. These different approaches were due to many factors, from cultural attitudes to economic and geographical considerations. As a result, while Europe and other regions boast sophisticated high-speed rail networks, the U.S. has a mere 300 miles of medium-speed rail to date while Canada has yet to initiate its first project.

he high cost of fuel in Europe was clearly of economic success, and set a high standard for one factor which motivated this initial passenger expectations of service and convenience. T investment. However, traffic congestion and environmental concerns have always been The challenges of maintaining additional motivating forces to encourage the status quo investments in rail technology worldwide. Today the United States transportation system, Momentum truly began to build after the first the largest in the world, is almost entirely reliable and convenient rail passenger service was responsible for the nation’s dependence on available. These pilot systems showed early signs oil as the major source of energy. The U.S.,

10 | ALSTOM | 2008 OPPORTUNITY AND PROMISE and Promise . K A R T M A - N O I T A R O P R O C R E G N E S S A P D A O R L I A R L A N O I T A N E H T F

Amtrak’s O Y service is a S E T

promising start for R U O

high-speed rail in C E

the U.S. G A M I

which has only 4.5 percent of the world’s population, And the winner is… uses 25 percent of the world’s oil. And about 60 Projected travel times between California cities in the year percent of the oil used in the U.S. is imported. 2020 show how high-speed rail would compare to air travel, automobiles and conventional rail. In addition to a dangerous dependence on foreign oil, the U.S. and Canada have suffered other related Auto Air High-Speed Train consequences, including: (Express Times) City Pairs Total On the Total On the Total • A staggering deterioration of the Door-to- plane Door-to- train Door-to- transportation infrastructure. More than Door Door Door one in four American bridges need significant Los Angeles 7h 36m 1h 20m 3h 26m 2h 35m 3h 30 m to San repairs or are burdened with more traffic than Francisco they were designed to carry, according to the U.S. Fresno to 4h 18m 1h 05m 3h 00m 1h 22m 2h 33m Department of Transportation. And a third of Los Angeles the country’s major roadways are in a substandard San Diego 2h 41m 0h 48m 2h 46m 1h 13m 2h 16m condition — a significant factor in a third of the to Los more than 43,000 traffic deaths each year. Angeles Burbank to 6h 32m 1h 00m 3h 08m 1h 59m 3h 02m Donald F. Kettl, director of the Fels Institute of San Jose Government at the University of Pennsylvania Sacramento 2 h 33m No service 0h 50m 1h 53m observes, “Much of America is held together by to San Jose

Scotch tape, bailing wire and prayers.” h=hours m=minutes Source: California High Speed Rail Authority

2008 | TRACKS TO TOMORROW | 11 Aircraft taxiing for take-off at busy US runway.

• The overuse and inadequacy of highway and in the form of 4.2 billion lost hours and 2.9 airport facilities to accommodate population billion gallons of wasted fuel. These figures are growth and increased traffic. According to the equivalent of 105 million weeks of vacation the U.S. Department of Transportation, 2007 and 58 fully loaded supertankers. was the second-worst year for airline delays since The 2007 report also points out that congestion 1995, and the prospects for 2008 are likely worse. causes the average peak period traveler to spend Meanwhile, the U.S. population is projected to an extra 38 hours a year in traffic, consuming be 38 percent higher in 2050 and 95 percent an additional 26 gallons of fuel and spending higher in 2100 than it is today. More than the an additional $710. customary incremental improvements in transport infrastructure will be needed to move people The positive consequences efficiently and maintain the growth of the economy. of change • The physical and economic isolation in Given the negative impact of our dependence major parts of the country without public on the automobile, truck and airplane to move transportation. According to U.S. Census people and goods, the opportunity to move data, 46 percent of American households do not toward high-speed rail (which also connects have access to any public transportation. Public with intra- and in-city transit systems) has never transportation must expand geographically to been more promising. The notable benefits: capture shifts in population. On a national preserving the environment and stemming global scale, those regions experiencing rapid increases warming, the potential for improving economic in population must have viable public rail growth and productivity, and greater freedom transportation to serve local travel demands. for individuals and businesses to travel, move goods and do business unimpeded. • A measurable loss of work and fuel productivity. According to the Texas Preserving the environment Transportation Institute’s 2007 Urban Mobility According to the U.S. Public Research Group, Report, traffic congestion continues to worsen the U.S. transportation sector alone emits more in all of the 437 American urban areas, creating CO 2 than the entire economy of any other a $78 billion annual drain on the U.S. economy country in the world except China.

12 | ALSTOM | 2008 OPPORTUNITY AND PROMISE A 2006 report entitled “High Speed Rail and Greenhouse Gas Emissions in the U.S.,” written jointly by the Center for Clean Air Policy and the Center for Neighborhood Technology, indicates the potential for reduced emissions if all proposed high speed rail systems in the U.S. are built. If, as the report currently projects for 2025, passengers take 112 million trips on high-speed rail in the U.S., traveling more than 25 billion passenger T E L E miles, the total emissions of CO 2 would be T U A S .

reduced by 6 billion pounds a year. This would P / T R

be the result of 29 million fewer automobile trips O P S N

and nearly 500,000 fewer flights. A R T M O

Individually, if a solo commuter switches from T S L a private vehicle to public transportation, he A or she can reduce CO 2 emissions by 20 pounds per day or more than 4,800 pounds in a year. Environmental advantages are also evident in freight transport. The U.S. Environmental Protection Agency estimates that for every ton-mile, a typical truck emits three times more nitrogen oxides and particulates than a locomotive. Diverting freight traffic from truck to rail will lead to vast environmental improvements. Car interior design. As the impact of global warming and carbon emissions becomes clearer, the need for systemic Uncommon Luxury and Convenience — Through a changes to reduce our carbon footprint becomes combination of modern technology and adequate space more urgent with each passing year. and freedom of movement, train travel today is far more relaxing and comfortable than air or highway transport. Saving time and money Alstom Transport is the only rail manufacturer to integrate design capabilities into its organizational structure. In 2005, As noted earlier, congestion is another growing the Company established the integrated Design & Styling threat to the economic well being of the U.S. and Department to oversee design management and planning Canada. Transportation congestion and bottlenecks for all Alstom Transport passenger rolling stock projects. damage air quality, slow commerce, increase energy The department’s cross-functional organization is adapted consumption and threaten quality of life, causing to meet the specific needs of rail transport markets, people to waste significant time and money. combining creativity, innovation and identity to create a customized product for each customer. The use of high-speed rail would reduce such Alstom continuously improves passenger comfort and congestion, improve productivity and reduce anticipates future trends, from suspension and air fuel waste. In fact, the use of public transportation conditioning to acoustic and light comfort. The Company’s would save the U.S. the equivalent of 4.2 billion expertise includes sensorial design, which considers all gallons of gasoline annually or more than sensing using touch, color, sound, smell and light to create a feeling of calm and well-being for passengers. 11 million gallons of gasoline per day. And, according to a 2007 report by the energy and During the design phase, special attention is paid to accessibility on trains, especially for people with reduced environmental consulting firm ICF International, mobility. Increasing access, installing platform-level floors, households that use public transportation as an eliminating gaps between the platform and the trains all alternative to driving save an average of $6,251 promote ease of access and movement both within and every year. between carriages.

2008 | TRACKS TO TOMORROW | 13 What’s more, high-speed trains actually shorten point-to-point travel time, particularly between mid-sized cities separated by less than 500 miles, T E L E

T as compared to airline hub-and-spoke transport. U A S .

P This is good news in light of the significant challenges / T R

O of an aging air traffic control system. P S N A

Alstom’s V150 train, R If the U.S. adopted new rail services that hit speeds T

which set the world M O

T of up to 199 miles per hour, the 260 mile train S

speed record. L A ride between Chicago and St. Louis would take The world leader in very high speed and just over three hours, down from five-and-a-half hours. high-speed transport — Imagine traveling from San Francisco to Los Angeles #1 in very high speed trains and high speed trains in two-and-a-half hours, without having to arrive #2 in urban transport market, regional trains, signaling, infrastructure equipment and all associated services at an airport two hours early, as suggested, or having Alstom supplies rolling stock, transport infrastructure to wait at a baggage claim. and signaling, maintenance equipment, and global rail Even Amtrak’s Acela line — which runs at speeds up to systems. From the very first TGV* delivered in 1978 to 150 miles per hour and is closer to high-speed rail than the AGV, the fourth generation of very high speed trains, Alstom has developed a world leading position in this any other service operating in the U.S. — has trimmed market sector: 70% of all high-speed trains running above about a half-hour from the usual four-hour trip from 186 mph are manufactured by Alstom. The technological Boston to New York and about 15 minutes from the advance of Alstom allowed the company to achieve the three-hour ride from New York to Washington. world rail speed record at a speed of 574.8 km/h (357.2 mph) on April 3,2007. The company is number two worldwide in urban transport: one in four metro systems Complementing traditional forms and one of three tramways in the world have rolled off of travel Alstom’s production lines. Given the demand for consumer choice in the U.S., *TGV is a trademark of the SNCF the use of high-speed rail systems between major metropolitan areas is not just an alternative to highway travel but a complement to other modes of travel. Global expansion continues — High-speed rail service is expanding in many parts of the world. The length of the With the increasing use of passenger rail service, more high-speed rail network will more than double worldwide and more cars will be taken off roads and highways, in the next 10 years, increasing from about 3,900 mi in and airlines will be less crowded, which will ease traffic 2005 to approximately 9,300 mi by 2015. In Europe, the network will expand from 2,300 mi in 2005 to 5,700 mi congestion and airline delays. This will have a particular by 2015, reflecting the completion and success of major impact on the short haul or “shuttle” airline services projects in France, Italy and Spain. In Asia, during the which are less economical to operate and are most same period, the total length of high-speed lines will impacted by airport congestion. grow from 1,600 to 3,900 mi. The main growth is expected in China and later in India The Hudson Institute’s comprehensive analysis of where new lines are planned. Even an emerging country the U.S. transportation system entitled “2010 and like Vietnam is planning to build a high-speed rail system Beyond: A Vision of America’s Transportation Future,” from Hanoi to Ho Chi Minh City over the next few years, put the opportunity in clear terms: a distance of over 1,000 mi. “Highways, freight rail lines, public transit systems, In the U.S. only one percent of intercity trips are made by rail — 90 percent are by automobile, seven percent airlines, and inland waterways can be integrated into by air, and two percent by bus. a single national transportation system in ways that Nevertheless, high-speed rail planning has gained provide greater safety, economic efficiency, environmental momentum in the U.S. with the success of systems in friendliness, and user-friendly mobility for people and Europe and Asia, and the launch of Amtrak’s Acela lines goods to an extent that we couldn’t even dream about in the Northeast. Eleven federally designated high-speed just a few years ago. This would pave the way for rail corridors in the U.S. are in the planning stages. (See map, inside front cover) transportation to become a smoothly functioning experience whose over-riding goal is to provide superior door-to-door service to the customer.” 14 | ALSTOM | 2008 CHALLENGES TO CHANGE Critical Condition: Challenges to Change N O I T C E L L O C E G A M I C I H P A R G O E G L A

Aerial view of N O I

rush hour traffic T A N /

in San Francisco, I H

California. S A K D E

At the close of the Carmichael Conference on the Coalition told the U.S. House of Representatives’ Future of American Transportation, in January Committee on Small Business that a consensus 2008, attendees from every sector of the industry of analysts believe the industry will have to voiced their concerns in a final conference shrink 20 percent to 22 percent through cuts declaration. The statement said there is a in capacity — a seismic shift already underway. The Coalition identified 150 airports that are “growing crisis in our nation’s transportation at risk of losing commercial air services. infrastructure” and that the crisis can only be reversed by imaginative change backed by “Unless something is done to move toward some sound government policy and investment. kind of fix, we’re going to see every one of our major airlines in bankruptcy,” Crandall said The need is critical recently to the Christian Science Monitor. “If that isn’t enough of a crisis to alert everybody, Former American Airlines CEO Robert Crandall, then I don’t know what it will take,” he added. who spoke at the conference, called on federal and state governments to join in making major capital Leadership needed investments to upgrade the rail system — tracks, equipment, power and signaling — so the country While rejuvenating passenger and freight services can use both air and rail assets more effectively. and infrastructure will be a critical part of the solution, there are no quick or cheap fixes. What These proposals are even more timely in light of is required is a broad vision and leadership at the enormous setbacks in the airline industry due highest levels of federal and state governments, and to the high price of oil. The Business Travel improved coordination among these multiple levels.

2008 | TRACKS TO TOMORROW | 15 An assessment of the opportunities and an analysis As a result, train weight is relatively higher than of best practices in other countries and other that of European rail cars. But heavier trains are fields could foster coordination and increase slower trains, so if high-speed rail is to become a the likelihood that appropriate high-speed rail reality in the U.S., safety regulations must be systems are built. The participation of decision updated to account for new high-strength materials makers at all levels will also be an instrumental and engineering technologies used to create lighter part of the changing dynamics. yet safer trains. The conversation can begin with identifying the Meanwhile, the lion’s share of public transportation greatest need and how it can be met most effectively. funding, though inadequate, is directed toward Several metropolitan corridors are ripe for high-speed highway construction and maintenance. The rail transportation today, not only because of the spending focus must shift to give the most demand for transportation, but also because the promising high-speed rail technologies the chance distances between the cities make high-speed to succeed in these vital transportation corridors. rail a more attractive travel option than air or automobile. These systems can also connect to Public versus private funding? in-city trams and underground trains, and newly Determining the appropriate amount of funding developed hybrid systems, which run at low speeds to build high-speed and in-city rail raises the in town but then convert at the town line into critical issue of who ultimately provides the large faster moving transports, saving passengers the investment dollars required. The majority of time and inconvenience of switching trains. railroads in the U.S. have historically been owned According to the 2006 report, “High Speed Rail privately, which is a very different approach than and Gas Emissions in the U.S.,” prepared jointly by the government-sponsored systems found in other the Center for Clean Air Policy and the Center for parts of the world. Neighborhood Technology, high-speed rail in the Given the penchant for private ownership in the U.S. is defined as being time-competitive with air U.S. — but the lack of incentives and long-term or automobile travel at distances of 100-500 miles. vision to spur adequate investments — the answer While these corridors represent a large potential may be some kind of public-private hybrid. market for high-speed rail, the market is largely A public-private consortium was able to successfully untapped. Only one percent of U.S. intercity trips overcome a number of obstacles to create the are made by rail — 90 percent are by automobile, London Channel Tunnel Rail Link (CTRL), the seven percent by air, and two percent by bus. United Kingdom’s first high-speed line, which Nevertheless, high-speed rail planning has gained runs 68 miles from London to the Channel Tunnel. momentum in the U.S. with the success of systems The journey from London to both Brussels and in Europe and Asia, and the launch of Amtrak’s Paris is now completed entirely on high-speed lines Acela lines in the Northeast. Most of the 11 at top commercial speeds of 186 miles per hour. federally designated high-speed rail corridors in The construction and operations consortium the U.S., however, are still in the planning stages. included London and Continental Railways (LCR), National Express Group, British Airways, and the Regulatory and spending issues French and Belgian national railways. Any major shift in transportation investment and CTRL was built over a period of almost 10 years, policy must also be accompanied by changes in on time and within budget. The new line, opened federal and state regulations that address safety in two phases, has reduced the London — Paris and other concerns, and promote progress. high-speed trip (provided by international operator Currently, for instance, rolling stock in the U.S. Eurostar) by 40 minutes, fundamentally altering is required to be constructed with steel (rather competition with air travel. than lighter aluminum or composite materials).

16 | ALSTOM | 2008 CHALLENGES TO CHANGE With the inclusion of several new stations, the project also helped to regenerate several areas east of London Reducing greenhouse gases — According to projections and, though not anticipated, contributed to London’s for 2025, passengers could take 112 million trips on successful bid for the 2012 Olympics by providing high-speed rail in the U.S., traveling more than 25 billion high-speed connectivity from the Olympic park to passenger miles. As a result, total emissions of CO 2 would central London (in seven minutes) and to Paris and be reduced by 6 billion pounds a year, due to 29 million fewer automobile trips and nearly 500,000 fewer flights. the European continent. If a solo commuter switches from a private vehicle to To support these ventures, companies like Alstom public transportation, he or she can reduce CO 2 emissions provide turnkey solutions and products, including by 20 pounds per day or more than 4,800 pounds in a comprehensive, integrated systems designed to meet year. In freight transport, the U.S. EPA estimates that for specific requirements for rolling stock, information every ton-mile, a typical truck emits three times more systems, infrastructure and maintenance, as well as nitrogen oxides and particulates than a locomotive. electrification and power supply. Meanwhile, Alstom is doing its part by integrating environmental concerns in the design of its trains. For example, Alstom has reduced the volume and A new beginning energy consumption of its trains by 10-15% by using Examples of public-private hybrid systems may lightweight composite materials and improving the be formulating in places like California, where efficiency of various systems and architecture. The proposals are on the table to fund high-speed rail Company is also improving the “recyclability” of its and related improvements. trains by choosing reusable materials like steel, aluminum and copper as it conducts research into To help offset the high price tag of such investments the use of biomaterials derived from renewable sources. during a time of belt tightening, the U.S. House of Representatives recently passed The Passenger Rail Investment and Improvement Act of 2008 (HR 6003). If passed by the Senate and made law, the bill would provide $14.4 billion over five years to match state costs. Meanwhile, the potential for private investment is promising. According to a May 15, 2008 article in The Fresno Bee, the main reason is that “the high-speed system pencils out as a money-maker, as has been the case in other nations that are far United States Intercity Trips ahead of the United States in this area. Projections of annual revenue for the (California) system by 2030 range from $2.6 billion to $3.9 billion. Automobile: 90% That’s a pretty large and attractive pie.” And with high gas prices, degraded air quality and increasing congestion at airports and on highways,” the article concludes, “high-speed rail just makes too much sense for Californians.” Air: 7% Political action As California and other states try to overcome Bus: 2% investment hurdles to implement high-speed rail programs, national and state political action groups Rail: 1%

2008 | TRACKS TO TOMORROW | 17 continue backing rail reform. From the Arizona Rail Passenger Association to the Wisconsin Association of Rail Passengers, most states have advocacy groups working and lobbying on the ground. These organizations include: • Chicago Metropolis 2020 (a business based civic organization): “… the shared transit investment by Chicago area taxpayers will be generously rewarded by the boost to the region’s economy. The investments are for the transit system, but the benefits are for the entire economy and everyone who lives here. Investing in transit is too good a O S S A

S deal for us to pass up.” George A. Ranney, Jr., . C -

A President and CEO . M O T /

T • The Texas High Speed Rail and Transportation R O P

S Corporation (non-profit): “We’re trying to N A

Alstom Citadis arriving R T generate interest among people in the corridor

in downtown Bordeaux M O T

station, France. S for the idea by looking at the people who L A opposed it before and trying to get them to Street car (trams) service, once abandoned, is now a address their concerns to get them onboard.” marvel — Alstom’s Citadis trams combine standardized Robert Eckels, Chairman. components with customization of interior and exterior • American Public Transportation Association: designs to meet each city’s requirements for aesthetics, styling, comfort, train length and accessibility — “Traveling by public transportation uses less making each tram a distinct artistic representation energy and produces less pollution than of the city it operates in. And, because these trams comparable travel in private vehicles. To make use clean energy and can transport the same number progress in reducing our dependence on foreign of people as three buses or 50 cars, Citadis systems oil and impacting climate change, public are a viable solution to urban pollution and congestion. transportation must be part of the solution.” Already in service in 28 cities around the globe, Citadis APTA website. trains are sparking a public transportation renaissance. One city that has been a part of the revolution in These advocates, as well as the troubling headlines public transportation is the Alsatian city of Strasbourg. on the economy and environment, are driving the Strasbourg had an established public transport system momentum. The official statement issued at the dating back to the mid-19th century; by 1894 it close of the Carmichael Conference sums up the was electrified and had grown to nearly 160 miles call for creative action: “The American people need of coverage. But, like similar installations in America, rational choices when it comes to transportation, the system was abandoned 70 years later with the rise of automobiles and trucks. The service was reintroduced and those choices must be adequately and in 1994, however, as a result of new demands and intelligently funded and maintained to make it changes in city policy, planning and investment. It has all work. In particular, an efficient transportation grown to become one of the largest tram networks system and robust rail, air, coastal/riverine, port, anywhere, thanks to Alstom’s Citadis trams, which and highway components will sharply reduce were added in 2005. This complex system will go both our dependence on foreign oil, and the international in 2010 when it is extended to Germany. high price we pay for it. Highly fuel-efficient, environmentally-friendly transportation modes, such as rail, should especially not be overlooked. …few national issues offer a greater opportunity for imaginative change.”

18 | ALSTOM | 2008 Final Word

A message from Robert Crandall

am delighted to have been invited The myopia of our public to add my voice to others in calling officials, and the absence I for new energy and transportation of sensible energy and policies in the United States. For many transportation policies, years, including while I had the privilege has been recently of serving as Executive Officer of highlighted by our American Airlines, I have been concerned Secretary of Transportation. about the absence of long-term She has proposed “peak transportation and energy planning period pricing” at U.S. in our country. As Joe Klein observed airports, which would in his recent and excellent book “Politics do nothing but add still Lost,” we have been living in a period another surcharge to during which “the very notion of planning, airlines fares which are especially planning for the common good, already discouraging travel. seems vaguely socialist .” Additionally, as miles driven in the United During these years, our airline system has States have declined in response to higher crumbled under the weight of government gasoline prices and fuel tax receipts intended policies seemingly designed to encourage to fund highway repair and mass transit destructive competition in pursuit of the have fallen short of expectations, she has lowest possible airfares. Meanwhile, suggested that the highway fund be passenger rail has atrophied and our permitted to “borrow” from the already highway system has deteriorated. inadequate mass transit account. It has been clear for many years that a While we must certainly maintain our country with less than 5 percent of the highways, and if necessary should raise world’s population cannot continue to gasoline taxes to do so — a step which consume 25 percent of the world oil — would both provide maintenance funding and that if we are to sustain anything and further reduce miles driven — we resembling our present standard of living, need to spend more, not less, on mass we must do things much differently than transit and high-speed rail systems. we have in the recent past. Among the Simultaneously, we need to mount a broad many things we must do is build a viable based effort to tap every source of alternative rail system, which should displace planes energy — wind, solar, nuclear, clean coal — wherever possible on journeys of less than while mounting an equally ambitious effort 500 miles, integrate with our airline to restructure our transportation system to system to facilitate longer journeys, and optimize our use of increasingly scarce — free scarce aviation resources to provide and costly — liquid transportation fuel. more frequent and convenient long flights.

2008 | TRACKS TO TOMORROW | 19