1. Public Private Partnerships in Rail Ohio Rail Development Commission

3. Why Are Public Private Partnerships So Popular? Because it is TOO EXPENSIVE to do anything on your own anymore.

4. Challenges Different mindset between partners Different mindset between partners Private negotiation – Results or Bottom Line Driven “Fair is what the market will bear?” Private negotiation – Results or Bottom Line Driven “Fair is what the market will bear?” Public negotiation – Data / Process Driven “What negotiation?” Public negotiation – Data / Process Driven “What negotiation?” The trick is to find where the funding gaps are then quantify the public benefit. The trick is to find where the funding gaps are then quantify the public benefit.

5. Challenges Because the result is negotiated, no one gets their way. Opens both sides to criticism. Because the result is negotiated, no one gets their way. Opens both sides to criticism. Public Sector: Giving Away the Farm Public Sector: Giving Away the Farm Private Sector:You didn’t get the best deal. Private Sector:You didn’t get the best deal. BOTH SIDES MUST GET BEYOND THEIR TRADITIONAL THINKING TO MAKE IT WORK BOTH SIDES MUST GET BEYOND THEIR TRADITIONAL THINKING TO MAKE IT WORK

6. Benefits If Done Properly HUGE Wins for all If Done Properly HUGE Wins for all For the Public: For the Public: Effectively Leverages Scarce Public FundsEffectively Leverages Scarce Public Funds Brings use of public funds and the existing market forces in line.Brings use of public funds and the existing market forces in line. Brings private sector expertise to the table.Brings private sector expertise to the table. On the private side: On the private side: Necessary projects get done “faster, bigger, better”Necessary projects get done “faster, bigger, better” Opportunity to look at “Long Term”Opportunity to look at “Long Term”

7. Benefits For ORDC: 15 Projects in play for fiscal year 2008. Preliminary estimates: Approximately $2.3-million of support from ORDC. For ORDC: 15 Projects in play for fiscal year 2008. Preliminary estimates: Approximately $2.3-million of support from ORDC. We estimate this kind of essential transportation investment will: We estimate this kind of essential transportation investment will: Leverage approximately $70.4-million of additional investment of private sector dollars in Ohio’s rail infrastructureLeverage approximately $70.4-million of additional investment of private sector dollars in Ohio’s rail infrastructure Create 673 new jobsCreate 673 new jobs Retain 651 existing jobsRetain 651 existing jobs Preserve and rehabilitate 43.5 miles of Ohio rail linesPreserve and rehabilitate 43.5 miles of Ohio rail lines Panhandle Rail Line: Rail line was going to be scrapped in 1992, now over 25,000 carloads Panhandle Rail Line: Rail line was going to be scrapped in 1992, now over 25,000 carloads

8. Conclusions In the end, despite the difficulties, public private partnerships are the ONLY way that serious, large scale infrastructure projects can be addressed. Why do public private partnerships? Because we don’t have any choice.