Intercity Passenger Rail and its Return on Investment The APTA High Speed & Intercity Passenger Rail Committee Seminal ROI Study Presentation to AASHTO SCORT, October 6, 2016 Chicago, Illinois

High Speed & Intercity Passenger Rail Committee of APTA Chair: Anna Barry, Deputy Commissioner, Connecticut DOT Vice Chair: Al Engel, Principal, Al Engel Consulting Sec/Treasurer: Jennifer Bergener, Managing Director, LOSSAN Rail Corridor Officer at Large: David Cameron, Teamsters, Brotherhood of Maintenance of Way Employees Immediate Past Chair: Peter Gertler, Vice President, HDR

Study Sponsors APTA $50,000 APTA Business Member Activity Fund $25,000 Capital Corridor $25,000 HNTB $10,000 Mott McDonald $10,000 WSP/Parsons Brinckerhoff $10,000 Atkins Engineering $10,000 Quandel Consultants $5,000 HDR $5,000 Engel Consulting $1,000

APTA Technical Oversight Committee Charlie Quandel, Quandel Consultants Sharon Greene, HDR Dominic Spaethling, HNTB Ira Hirschman, WSP/Parsons Brinckerhoff Darnell Grisby, American Public Transportation Association

A Seminal Study is Needed to make the Business Case for Investment in HS&IPR Projects A Study that “monetizes” social and economic benefits that accrue to the public “but for” the construction of HS&IPR in terms of return on investment (ROI) A Study that provides indisputable evidence that the investment in HS&IPR yields returns well beyond the investment and any operating subsidies A Study that is independent and unbiased and can receive acceptance by both political persuasions that HS&IPR is needed

Study Goals Develop a consistent approach for quantifying and monetizing the economic impact of HS&IPR projects in terms of return on investment (ROI), Develop a consistent methodology for quantifying and monetizing the public (social) benefits of HS&IPR in terms of ROI, Demonstrate the economic and public benefits and the related overall ROI of selected HS&IPR projects using a consistent methodology, Provide APTA, other trade associations and public agencies with information that can be used to support federal, state, and local funding of HS&IPR projects.

Financial and Economic Benefits Improved safety, Travel time savings, Travel cost savings, Improved business and labor productivity, Reduced energy consumption, Reduced capital, operating and maintenance costs on other transportation systems, Improvements to freight distribution systems, Increased property values Environmental benefits

Employment Impacts Direct employment related to HS&IPR construction Direct employment related to HS&IPR operation In-direct employment impacts on other economic sectors during both construction and operation Discriminate between ‘jobs saved’ and ‘jobs created’ Describe the general character of the jobs created Estimate the expected duration (temporary vs. permanent) Identify the economic sectors that benefit from job growth or experience job loss

Tax Revenue Benefits Federal, state and local tax revenue Tax revenue related to HS&IPR construction Tax revenue related to HS&IPR operation Tax revenue related to indirect impacts during both construction and operation Sales tax and real estate tax revenue

Livability Benefits Accessibility to jobs, healthcare, education and other services Personal mobility especially for the transit dependent Public health Affordable housing Environmental quality

Team Selected to Conduct the APTA Study University of Illinois at Chicago Urban Transportation Center University of Illinois at Urbana-Champaign –Rail Transportation and Engineering Center (RailTEC) Economic Development Research Group

Schedule for ROI Study Commencement of Study: February 2016 Substantial Completion: November 30, 2016 – APTA Rail Forum Completion of Study: February 2017

THANK YOU!

Why a “Return on Investment” Study? Proposals for implementing HS&IPR service have gained momentum in recent years. But estimates of public benefits and economic impacts prepared in support of these proposals may not have captured the full range of economic and public benefits associated with HS&IPR service