passenger rail economics

8/8/2019 Passenger Rail Economics

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Passenger Rail Economics: Evaluatingthe Financial Feasibility of Passenger

Rail and Transit-Oriented Development

Southern High-Speed Rail Commission

New Orleans, LA

July 15, 2010 John Robert Smith, PresidentReconnecting America


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Creating a national marketplace forTOD, working with cities, transitagencies, developers, investors +communities

Improving practice through

technical assistance, research +policy reform

On-line Clearinghouse of TOD +Transit Best Practices

Reconnecting AmericaRemaking the Mission of Transit for Communities and the Environment

A new coalition of business, housing,environment, development, labor,

health, ageing and transportation

interests

Campaign Focus on the Next Federal

Transportation Bill Transportation investments that are

economically sound, respond to

markets and improve the lives of

people


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Federal Policy is Starting to Align

HUD/DOT/EPA

Partnership

$140 million for planning

grants in FY2010 budget More potentially in 2011

Budget

New investment

demands performanceand accountability


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SAFETEA-LU expired Sept 30, 2009

HIRE Act extended authorization until December 31, 2010

House bill STAA passed T&I subcommittee in June 09

Senate EPW recently held hearings; rural perspective will be

important in the Senate

Sen. Reid has indicated a willingness to bring bill to floor this year

Kerry-Lieberman American Power Act provides $6.25 B for clean

transportation

1/3 to HTF for green projects

1/3 to CLEAN-TEA

1/3 to TIGER program

The State of Play on Capitol Hill


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6

0

80

100

120

140

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Transit Ridership (1995 = 100)

Amtrak Ridership (1995 = 100)

All forms of transit use rising


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Transit is in a Building Boom

$250B in transit planned nationally

$9.5B spent by FTA in last 6 years

$8 billion already for High Speed Rail


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Historically, New

Orleans Street

Railways

Operated amajor system

224 miles ofservice byNew OrleansPublic ServiceInc.

668

passengercars

1924


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The density is still there to support expanded fixed guideway

servicehigher than most recent new starts regions


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Mirror ImagesNet Residential Density Varies from 0-30.2 HH

per Residential Acre; Vehicle Miles Traveled per HH per Year

Varies from 4700 to 29000


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Housing costs only average 28% of AMI for HHs earning AMI; H+T

costs average 52% of AMI for HHs earning AMI


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Even worse for HHs earning 80% of AMI

H-Costs jump from average 28% to 35%

H+T Costs jump from average 52% to 63% of AMI, and


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Gas outlays went from a low of $330 per HH/year with an

average of $1090 and high of $1992, to a new low of $1100, new

average of $3090 and a new high of $5600


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Creating Livable Communities throughStation Area Development


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Using location to advantage


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Using location to advantage


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Play To Your Strengths

Saving city core, working outward Began with transportation hub

Historic restoration

Quality, mixed income housing


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What works really works

Good community planning works on all levels

Transportation options vital to rural areas

Steal the best ideas of others


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Making the impossible POSSIBLE

Several Meridian projects faced

challengesboth internally and externally

Lack of confidence

Lack of infrastructure

Lack of creative financing

Lack of partnerships


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CONSTRUCTION COST

$5,792,000 Low Bid

+ 868,800 15% Construction

inspection, Contingency, Testing (FHWA & MDOT)6,660,000

- 90,603 Difference in Construction Inspection (FHWA)

and Existing Contract

$6,570,197 Total Project Cost

MDOT FUNDING

$2,544,960 ISTEA Enhancement Grant (MDOT)

971,040 Supplemental Grant (MDOT)

640,571 STIP Grant Transfer290,281 STP-93

+ 700,000 Supplemental Grant (MDOT)

$5,146,852 Federal/State Contribution

LOCAL FUNDING

$1,014,000 Balance COPS (5-31-96)

- 53,795 Committed Non-Construction Expense

960,205

+ 431,000 AMTRAK

$1,391,205 Total Local for Construction

$6,570,197 Project Cost

- 5,146,852 Federal/State Contribution

$1,423,345 Total Local Needed

$1,423,345 Total Local Needed

- 1,391,205 Total Local for Construction

$ 32,140 Unfunded

Funding Union Station Development


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Union Station

A Multi-Modal Transportation Center


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Union Station

Annually, Union Station hosts 250 events and300,000 passengers


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Union Station Spurred private development of $135 million

in surrounding area


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MSU Riley Center


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Full Potential Possible MSU Riley Center is state-of-the-art performing

and conference facility


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Full Potential Possible

Retail, restaurants, residential and commercialspace revitalized in area


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Hope VI Village

$17.3 million in HUD HOPE VI grants fordevelopment of low to middle income duplex

and single-family housing


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Contact Us!

Flickr user: tallkev

John Robert Smith

[email protected]


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