economic benefits and funding...
TRANSCRIPT
THE GATEWAY PROGRAMECONOMIC BENEFITS AND FUNDING PARTNERSHIPS
Washington, DC – June 7, 2018
Presented By:
Marie Corrado – Amtrak, Senior Director, Gateway Program
Gateway -The Most Urgent Infrastructure Program in America
• Busiest section of NEC is between Penn Station New York & Newark, NJ (450 trains, 200k trips/day) constrained by two-track bottleneck
• North River Tunnel, Portal Bridge & other infrastructure dates to early 1900’s
• PSNY regularly operates at capacity (1,300 train movements daily on 21 tracks)
• Capacity constraints + aging infrastructure = risk to 10% of U.S. GDP
• Superstorm Sandy accelerated degradation of these assets
The Gateway Program: Economic Benefits and Funding Partnerships 2
Gateway Program Overview Map
Gateway Program Benefits Far Exceed Costs
• A benefit cost analysis found the benefits of the Gateway Program greatly exceed its costs even under the most conservative discount rate assumptions.
• Gateway compares favorably to other major infrastructure projects across America and internationally.
Gateway Program (2025-2058)
7% Discount Rate 3% Discount Rate
Benefit Cost Ratio 2.16 3.87
Project BCA Ratio / Range
Gateway Program 2.16 – 3.87
London’s CrossrailProject
2.59 – 3.64
California High Speed Rail
2.23 – 2.35
The Gateway Program: Economic Benefits and Funding Partnerships
Source: The Economic Benefits of Investment in the Gateway Program. 2016. https://nec.amtrak.com/resource/gateway-program-economic-benefits-report/
4
Benefits Included in Benefit Cost Analysis
Reduced Travel Time
Reduced Travel Cost
Emissions Reductions
SafetyAvoidance of lost productivity from
foregone trips
Reduced highway congestion
Travel reliability (rail)
Reduced in-vehicle crowding (rail)
Disruption avoidance (during
tunnel rehab)
The Gateway Program: Economic Benefits and Funding Partnerships 5
Job CreationMunicipal and
State tax Revenues
Property Values
Personal income
Induced office space
development
Other wider economic benefits
Benefits Not Included in Benefit Cost Analysis
The Gateway Program: Economic Benefits and Funding Partnerships 6
Rendering of the replacement bridge – “Portal North” –a high-level fixed span bridge
Existing Portal Bridge in open position
Portal North Bridge Project
• Existing swing bridge nicknamed Achilles heel of NEC
• New bridge design complete, ROD and permit on hand
• Early works construction contract awarded in August 2017
• Single construction contract for full build of the bridge in the pipeline for award early 2019
• New network tied arch bridge scheduled for completion in 2025/26
• Financial plan pending approval
7The Gateway Program: Economic Benefits and Funding Partnerships
Urgency: Portal Bridge Failures
Portal Bridge Service Disruption - Friday, March 16, 2018 Impact
• NJ TRANSIT and Amtrak• 112 cancelled trains
• 34 delayed trains
• ~66,000 passengers directly affected
• Affected Customers:• NJ TRANSIT customers traveling throughout the system
• Amtrak customers traveling on:
• Acela Express, Northeast Regional, and Keystone Services
• Trains to North Carolina, Georgia, and Chicago (with stops in cities such as Charleston, SC, Fayetteville, NC, Indianapolis and Cincinnati) also affected.
The Gateway Program: Economic Benefits and Funding Partnerships 8
Hudson Tunnel Project
• Construction of new two-track Hudson River tunnel connecting to Penn Station NY in order to rehabilitate existing two-track North River Tunnel while preserving NJ TRANSIT and Amtrak services without interruption.
• 30 Percent Design and Engineering complete. • Awaiting Federal Agency review and USDOT sign-off
on Record of Decision. • Local financial commitment secured. • Resubmission of Federal CIG Application pending.
9The Gateway Program: Economic Benefits and Funding Partnerships
Urgency: Superstorm Sandy Impacts
• 2012 Superstorm Sandy forced ~4-day closure of the NEC:
– Inundated substations
– Inundated East River and Hudson River Tunnel
• Precipitated damage to internal components
• Reconstruction requires closure of each tube for ~1.5 years to complete renewal work
• Rehabilitation of the North River Tunnel can only begin after new tunnel is completed
10The Gateway Program: Economic Benefits and Funding Partnerships
Gateway Program Development Corporation
• Incorporated November 2016 in State of New Jersey as nonprofit corporation
• Will effectuate planning, funding/financing, construction and delivery of the Gateway Program
• Trustees representing Amtrak, State of New Jersey, State of New York.
• Interim staff from partner agencies, CEO search in progress
• Opening office in Newark, NJ in June 2018
The Gateway Program: Economic Benefits and Funding Partnerships 11
12
Financial Submissions to USDOT
• The Gateway Program Partners are seeking federal grants and federal loans repaid by local cashflows
Hudson Tunnel Project
Portal North Bridge Project
Submission Type Month/Year StatusFTA Grants Sept./Dec.
2017• FTA rating did not account for the December ‘17 submittal• Follow-up information in development
Local/ USDOT RRIF Loan Documentation in development based on FTA Grant Submittal
Submission Type Month/Year StatusFTA Grants Sept. 2016 • FTA “Medium-High” Rating
FTA Grants Sept./Dec. 2017
• FTA rating did not account for the December ‘17 submittal• Follow-up information submitted & in development
Local/USDOT TIFIA Loan Sept. 2017 • USDOT BAB Feedback received March 2018• Follow-up information in development
The Gateway Program: Economic Benefits and Funding Partnerships
Taking Action to Expedite and Advance Phase 1 Projects
• Delays to both Phase 1 projects can cause cost escalations that are costly to everybody – therefore GDC and its partners are taking action to expedite construction of Phase 1
– New Hudson Tunnel: $1.2 million/day (starting mid-2019)– New Portal North Bridge: $150,000/day (starting mid-2018)
• Critical Early Work and Funding:– Portal North Bridge Early Work: Utility Relocation & Site Access– Hudson Yards Concrete Casing – Section 3: LIRR ESB Utility Relocation– $31.5 M committed by PANYNJ to match Amtrak’s contributions for engineering, design, and
program management services
• Continuing to Leverage Private Sector Industry Feedback– Continuing industry engagement with new RFI for private sector feedback in summer 2018.
The Gateway Program: Economic Benefits and Funding Partnerships 13
Hudson Yards Concrete CasingRight of Way Preservation
Section 2Construction Complete
$50 m Sandy Relief$5.5 m – NJ TRANSIT
$5.5 m LIRR$5.5 M Amtrak
Section 3$25m for Early Work
(Amtrak/Port Authority)Fully permitted & designed
Add’l funding needed
Section 1Construction Complete$185m – Sandy Relief
14The Gateway Program: Economic Benefits and Funding Partnerships
Hudson Yards Concrete CasingConnection to Penn Station New York
15The Gateway Program: Economic Benefits and Funding Partnerships
Thank You!