1. 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

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

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

11. 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

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

13. THANK YOU!

14. 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