National Railroad Passenger Corporation AMTRAK. Fiscal Years Five Year Plan. May 2013

Transcription

1 National Railroad Passenger Corporation AMTRAK Fiscal Years Five Year Plan May 2013

2 Table of Contents Introduction... 4 Background... 4 PRIIA Sections 209 and Amtrak s Strategic Plan... 5 Overview of Amtrak s Vision for High-Speed Rail... 7 Five Year Capital Plan Summary NEC-Upgrade Programs Infrastructure Investments Structures Communications and Signals Electric Traction Track Life Safety Track Equipment New Jersey High-Speed Rail Improvement Program NEC Station Upgrades Fleet Investment in the NEC-Upgrade Program New Electric Locomotives NEC-Upgrade Program Fleet Overhauls Early Buyout of Fleet Leases Next-Generation High-Speed Rail Programs The Gateway Program High-speed Rail Trainset Acquisition Non-NEC and Support Programs Non-NEC Fleet Acquisitions Fleet Overhauls Stations/ADA Improvements Positive Train Control Marketing and Sales Customer Experience Investments Technology Investments Environmental Remediation Capital Investments Security Capital Investments Other Capital Investments Fleet Strategy FY FY2017 Operating Summary Discussion of Revenue and Ridership Discussion of Operating Expenses Appendix FY2013 FY2017 Summary Metrics FY2013 Budget Statistics by Route FY2014 Request Statistics by Route FY2015 Plan Statistics by Route FY2016 Plan Statistics by Route FY2017 Plan Statistics by Route GAAP Basis Summary Income Statement of 59

3 Tables and Charts Chart 1 Source of Operating Funds FY2013 FY Table 2 Proposed Capital Spending Summary Table 3 Proposed Capital Spending on NEC-Upgrade Programs Table 4 Proposed NEC-Upgrade Program Fleet Overhaul Capital Plan Table 5 Early Buyout and End of Lease Options Table 6 Proposed Capital Spending on NextGen HSR Programs Table 7 Proposed Capital Spending Non-NEC and Support Programs Table 8 Proposed Fleet Overhaul Capital Plan Table 9 Proposed Customer Experience Management Program Table 10 Proposed Technology Capital Program Table 11 Proposed Environmental Remediation Capital Plan Table 12 Proposed Security Capital Plan Table 13 Proposed Other Capital Plans Table 14 Rolling Stock Availability by Fleet Table 15 - Projected Profit and Loss Statement Chart 16 Ridership Trends Chart 17 Ticket, Food and Beverage Revenue Trends Table 18 Operating Expenses by Category Chart 19 Salaries, Wages, Taxes and Benefits Chart 20 Diesel Fuel Chart 21 Fuel, Power and Utilities of 59

4 Introduction Background The National Railroad Passenger Corporation Amtrak is incorporated under the District of Columbia Business Corporation Act (D.C. Code section et seq.) in accordance with the provisions of the Rail Passenger Service Act of 1970 (P.L ). Under the provisions of the Passenger Rail Investment and Improvement Act of 2008 (P.L ; 49 U.S.C. Section 24301), Amtrak s Board of Directors was reorganized and expanded to nine members. The company is operated and managed as a for-profit corporation providing intercity rail passenger transportation as its principal business. Congress created Amtrak in 1970 to take over, and independently operate, the nation s intercity rail passenger services. Prior to this, America s private freight companies ran passenger rail as required by federal law. Those companies reported that they had operated their passenger rail services without profit for a decade or more. With this in mind, when Amtrak began service on May 1, 1971, more than half of the rail passenger routes then operated by freight railroad companies were eliminated. During FY2012 Amtrak carried a record 31.2 million passengers on as many as 307 daily intercity trains and approximately 21,000 route miles serving 513 communities in 46 states, the District of Columbia and 3 Canadian provinces. Approximately 900,000 people also commuted every weekday on Amtrak infrastructure or on Amtrak-operated commuter trains around the country under contracts with 15 states and 4 regional commuter authorities. Amtrak collected a record $1.97 billion in ticket revenue in FY2012. When revenues from other sources such as real estate contracts and services for other railroads were included, Amtrak covered 88% of its operating costs. During the FY2013-FY2017 period, the company expects to fund 89% of its operating need from revenue sources other than Federal appropriations, as shown in Chart 1. This share will increase as costs shift onto state partners in compliance with the requirement in Passenger Rail Investment and Improvement Act of 2008 (PRIIA) to standardize the methodologies for the allocating operating and capital costs. However, for the foreseeable future the company will require both operating support and capital support funding, and the Federal government will be the principal source for both. Chart 1 Source of Operating Funds FY2013 FY2017 Reimbursable 4% Commuter 3% Other Revenue 8% Federal Funds 11% Passenger Related 74% 4 of 59

5 PRIIA Sections 209 and 212 Section 209 of PRIIA called on Amtrak to work in collaboration with its State partners to develop and implement a uniform cost-sharing formula for routes of less than 750 miles outside the Boston- Washington, DC Northeast Corridor (NEC). Currently, different States are paying widely different amounts to support corridor services. In the fall of 2010, affected States formed a State Working Group (SWG) of five States and agencies to work with Amtrak to develop the methodology. Together Amtrak and the SWG developed a policy that was approved by the Amtrak Board of Directors in August 2011 and ratified by 18 of 19 affected States as called for in the legislation. Because not all States concurred with the policy, the issue was referred to the Surface Transportation Board (STB), which in March 2012 issued a decision approving the Amtrak-SWG policy. Today, Amtrak and its State partners are working toward implementing the Section 209 policy for the October 2013 transition date. Section 212 of PRIIA included language that required the establishment of a Northeast Corridor Infrastructure and Operations Advisory Commission (the Commission) who, among other things, will develop a standardized formula for determining and allocating costs, revenues and compensation for commuter rail transportation in the NEC. Section 212 requires that the Commission s formula ensure that there is no cross subsidization of commuter, intercity or freight rail transportation and that each service is assigned the costs incurred only for the benefit of that service and a proportionate share, based upon factors that reasonable reflect relative use, of cost incurred for the common benefit of more than 1 service. The US DOT, Amtrak, northeastern states and commuter agencies have assigned personnel to participate in various sub committees currently working on the development of the new formula required under PRIIA Section 212. When completed, the cost allocation methodology will extend to both operating and capital costs incurred in the NEC. It is anticipated that the new proportional costing formula would take effect sometime in FY2015. Amtrak s Strategic Plan During FY2011 Amtrak set forth strategic goals for FY FY2015 as highlighted in the vision statement below. The complete Strategic Plan is available on Amtrak s Strategic Plan is designed to be a living document that is updated periodically. A refreshed Strategic Plan that will update and extend the vision beyond FY2015 is under development and is expect to be delivered in early FY of 59

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7 Overview of Amtrak s Vision for High-Speed Rail In 2009 the Obama administration outlined its vision for a national High Speed Rail (HSR) network connecting the country and major population centers by providing comprehensive safe, reliable, affordable, and rapid transit options. HSR has existed since 1964 with the opening of a HSR line between Tokyo and Osaka, Japan for the 1964 Olympics. Japan now has some 1,500 miles of HSR with trains that travel up to 185 miles per hour. The first European HSR opened in 1978 between Rome and Florence and today many European countries have train service at 150 miles per hour and higher. More recently, China has invested heavily in HSR with service up to 217 miles per hour. China now invests more in HSR construction than the rest of the world combined, and countries such as Morocco and Brazil have begun HSR programs. By comparison, the United States defines high-speed as 110 MPH or higher. Amtrak s Acela is currently the country s only world-ranking HSR service, but achieves 150 MPH only along stretches of the Northeast Corridor in Massachusetts and Rhode Island. Speeds are slower on the rest of the route due to the limitations of the track and power infrastructure, which reduces the average Washington, DC to New York speed to between 80 and 85 MPH. Achieving the vision for high-speed rail established by the administration will require Federal commitments of time and resources analogous to the commitments made to high-speed rail in other parts of the world. Amtrak is positioned to lead America into a leadership position in the high-speed rail age, and the next five years will mark the beginning of a decades-long investment in infrastructure that will culminate in true high-speed rail along the entire Washington, DC to Boston corridor. Amtrak s plans call for a phased approach to the improvement of existing infrastructure, construction of new high-speed infrastructure, and acquisition of a nextgeneration (NextGen) high-speed fleet that will deliver, by 2040, a fully integrated HSR system with speeds up to 220 miles per hour, making possible to travel from Washington, DC to New York in 94 minutes by 2030, and from New York to Boston in 94 minutes by The 457-mile Northeast Corridor, stretching from Washington, DC to Boston and serving Amtrak, commuter and freight trains, traverses eight states and the District of Columbia. Carrying over 2,000 daily trains, the Northeast Corridor is among the nation s most congested rail corridors and one of the highest volume rail corridors in the world. Service reliability, on-time performance, and opportunities for expansion have been negatively impacted by a lack of capacity along many stretches, especially where Amtrak s operations overlap with intensive commuter and freight traffic. In May 2010, Amtrak released the Northeast Corridor Infrastructure Master Plan (NEC Master Plan). The plan resulted in a precedent-setting regional collaboration among the twelve Northeast states and District of Columbia, Amtrak, the Federal Railroad Administration, eight commuter and three freight railroads. The development of the NEC Master Plan led to a realization that NEC travel capacity requirements by 2030 and beyond could not be met by improvements to the existing corridor alone. As a result, in September 2010, Amtrak released A Vision for High-Speed Rail in the Northeast Corridor, which presented the bold concept of a new 423-mile dedicated two-track high-speed rail alignment from Washington, DC to Boston to increase corridor capacity, improve service reliability and reduce travel times for all rail users. In July 2012 Amtrak integrated the two 2010 plans into a single service and investment program called the NEC Capital Investment Program. This update, summarized in The Amtrak Vision for the Northeast Corridor: 2012 Update Report, describes the current stage of conceptual development and planning for the future of the NEC rail network. It details actions taken by Amtrak and other stakeholders since the release of the two major NEC planning reports in 2010 and also highlights the key findings of Amtrak s recently completed NEC business and financial plan. The NEC Capital Investment Program consists of two parts: 7 of 59

8 NEC Upgrade Program (NEC-UP): projects completed between 2015 and 2030 that will achieve a state of good repair on the Corridor, upgrade capacity-constrained segments, and allow for a top speed of 160 mph for HSR. NEC Next Generation High-Speed Rail: projects completed between 2025 and 2040 that utilize both new and existing alignments, built upon the foundation of the NEC-Upgrade Program, that allow for a top speed of 220 mph. The NEC Capital Investment Program calls for a $151 billion investment (in constant 2011 dollars) in a cohesive service and investment program over the coming decades to improve and expand the NEC, and affirms the Amtrak commitment to implementing critically needed near-term NEC Master Plan projects while advancing the long-term development of a 220 mph NextGen HSR network through incremental Stair-Step improvements to its current high-speed rail service. Amtrak received feedback from states, commuter rail agencies and other NEC users and stakeholders, and in response and collaboration has made several revisions to its NEC plans since 2010, including: announcement of the Gateway Program to increase track, bridge, station and tunnel capacity from Newark, N.J., to New York Penn Station; a revised alignment of the proposed NextGen HSR route to travel through Providence, R.I., rather than via Woonsocket; and changes to various proposed stations. The Amtrak Vision for the Northeast Corridor: 2012 Update Report (Update Report) provides input to a new NEC environmental analysis and planning process led by the Federal Railroad Administration (FRA). This process, known as NEC Future FRA Passenger Rail Corridor Investment Plan (PRCIP), will develop a new long-term service plan and related environmental analysis to guide an NEC investment plan for the next 30 years. The PRCIP is a critical step in defining and realizing future improvements to the NEC and will provide necessary information to support future FRA investment decisions. It is comprised of two components: a Service Development Plan that articulates the overall scope and approach for future intercity passenger rail service along the NEC and a National Environmental Policy Act (NEPA) Tier 1 Programmatic Environmental Impact assessment that addresses the broad environmental impacts for the entire Corridor along the route of proposed service. This is expected to be completed in The 2012 Update Report also discusses key findings from the recently completed NEC Business and Financial Plan (B&F Plan) to guide Amtrak on how to potentially fund and finance its integrated vision for the NEC. Scientifically, the B&F Plan finds greater than anticipated ridership demand for, and associated revenue from, the planned Amtrak services levels supported by the NEC Capital Investment Program, forecasting a 25 percent increase in ridership and revenue over 2010 projections. However, the B&F Plan also finds that the schedule and large annual capital expenditures in the peak period of planned construction should be modified to strengthen opportunities for public and private sector funding, to take into account resource constraints and to ensure effective management and delivery of the Program. To advance the Program, the B&F Plan concludes that Amtrak should pursue a phased approach and strategically advance specific elements that have the most significant impacts on improved reliability, increased capacity and reduced trip-time as quickly as funding allows, while deferring remaining elements to subsequent phases. This approach will help Amtrak achieve early successes that strengthen revenue and financial performance and create additional capital funding to support other program elements. For example, the proposed Amtrak Gateway Program to improve travel to and through New York City via new tunnels under the Hudson River and the expansion of the Moynihan Station and Penn Station terminal complex is essential to the entire NEC network. Its completion will deliver many key benefits for intercity and commuter rail service and set the stage for future NextGen HSR expansion. The B&F Plan also recommends that a combination of funding, policy decisions and cooperation from federal, state, and local governments, NEC users, regional partners, the private sector and Amtrak are necessary to advance a program of this size and of such regional and national significance. Further, public sector leadership and funding is essential during the early years. While the B&F Plan finds that current Federal, state, and local transportation investment programs are insufficient to support the 8 of 59

9 Program presently, strategies are available to generate funding, including enhanced access fees paid by NEC users to support state of good repair other improvement projects to the existing corridor that provide the greatest benefits to their services. The forecasted success of Corridor improvements in the NEC Capital Investment Program over the next 30 years would be measured by detailed assessments of conditions in five milestone years. The results provide a snapshot of how service, ridership, operating costs and revenues would change over time. The first three milestone years 2017, 2020 and 2025 match the service improvements that result from completion of various infrastructure investments. The last two milestone years 2030 and 2040 are tied to the completion dates for major segments of the high-speed network and the phased start of NextGen HSR services. The following provides a summary of the proposed milestone years, as well as the infrastructure and service improvements, that are a part of the Stair-Step strategy: 2016/2017 (Stair-Step 1) Acquire new high-speed trainsets to permit additional frequency on the corridor for Acela Express services. Improve and enlarge high-speed maintenance and layover facilities to support high-speed fleet expansion (Stair-Step 2) Complete infrastructure improvements to provide additional NEC capacity and enable doubling of Acela Express frequencies between Washington, DC and New York (Stair-Steps 3 & 4) Increase tunnel/terminal capacity and expand infrastructure between Newark, NJ and an enlarged Moynihan/Penn Station complex as a core component of the Gateway Program. Improve HSR trip-times through section improvements, acquire new additional high-speed trainsets to permit tripling of high-speed frequencies in peak periods between New York and Washington, and hourly high-speed service between New York and Boston (Stair-Step 5) Complete NEC NextGen HSR infrastructure (new track, stations and systems) between New York and Washington and begin operation on the NextGen dedicated HSR alignments (Stair-Step 6) Complete NEC NextGen HSR track infrastructure between New York and Boston. The improvements envisioned entail long-term projects that require long-term funding commitments, which must be started immediately. The FY2013 FY2017 period will see the commencement of elements of all six stair-steps, in order to complete the entire program by Elements of the NEC- Upgrade Program will involve traditional Amtrak investments in infrastructure and fleet state of good repair, while investments in programs such as Gateway and new fleet acquisitions kick off the Next Generation HSR portion of the vision. Amtrak s business activities over the next five years will coalesce around the following objectives: Pursuing infrastructure and fleet improvements under the NEC-Upgrade Program Pursuing infrastructure and fleet improvements under NEC NextGen HSR Advancing compliance with the Americans with Disabilities Act Realigning Amtrak s organizational structure to better manage its different lines of business Continuing to deliver safe, efficient, on-time passenger rail services without significantly growing dependence on Federal operating support 9 of 59

10 Five Year Capital Plan Summary Amtrak s five-year capital program proposals total $ billion as summarized in Table 2. The majority of this program is dedicated to infrastructure improvements, the acquisition of rolling stock including exercising buyout options on leased equipment, overhauling existing rolling stock, and technology investments. The capital plan is for 79% of available funding to come from Federal appropriations, with the balance being funded by a variety of special Federal grants, financing under the Railroad Rehabilitation and Improvement Financing (RRIF) program, and from state and local entities. The capital program is presented in the following sections based on the strategic business activity that each program supports. Table 2 Proposed Capital Spending Summary Capital Plan by Asset Type $ millions FY2013 FY2014 FY2015 FY2016 FY2017 Total Track and Other Infrastructure $628 $1,421 $1,385 $1,067 $1,330 $5,830 Rolling Stock Acquistions ,981 Rolling Stock Overhauls and Engineering ,463 Technology Programs Customer Experience Programs Security Programs Environmental Remediation Other Total Capital Plan $1,295 $2,513 $2,248 $1,820 $2,149 $10,024 Capital Plan by Funding Source $ millions FY2013 FY2014 FY2015 FY2016 FY2017 Total Federal General Capital $703 $2,032 $1,793 $1,511 $1,867 $7,906 Sandy Capital Relief Appropriation NY-NJ High Speed Rail Grant Railroad Rehabilitation & Improvement Financing DOT Early Buy Out Grant Internal Amtrak Funds Department of Homeland Security State, Local, and Other Funds Total Capital Plan $1,295 $2,513 $2,248 $1,820 $2,149 $10, of 59

11 NEC-Upgrade Programs The NEC-Upgrade Program lays the foundation for Amtrak s future new high-speed services. Central to this foundation is returning the existing infrastructure to a state of good repair, so that it can accommodate higher speeds. Amtrak s $5.8 billion of deferred improvements to major assets that are their beyond designed life is well documented. Other than a one-time infusion of $1.3 billion of funding from the American Recovery and Reinvestment Act of 2009 (ARRA), recent funding has only allowed Amtrak to prevent the backlog from growing; there has been inadequate funding to replace major assets, such as tunnels and bridges, that are beyond their designed life. This has resulted in choke points, rough track beds, and outdated signals, bridges, and electric traction infrastructure that continue to limit speeds within the NEC. Funding the replacement of the aged infrastructure in order to resolve these issues is a critical step toward a high-speed future. For FY2013 FY2017 Amtrak is seeking $3.3 billion of federal funding ($4.9 billion in total funding) to reduce the maintenance backlog, improve stations within the NEC, purchase seventy new electric locomotives (this procurement is in progress), exercise lease buyouts of Acelas and electric locomotives, and maintain the existing fleet operating within the NEC. Table 3 Proposed Capital Spending on NEC-Upgrade Programs $ millions Federal Capital FY2013 FY2014 FY2015 FY2016 FY Year Annual Track and Infrastructure Renewal $276 $648 $335 $280 $268 $1,806 NEC Stations Improvements Early Buyout of Fleet Leases - NEC Fleet Overhauls Total NEC-UP $402 $932 $701 $613 $652 $3,300 Other Funding 1 FY2013 FY2014 FY2015 FY2016 FY Year Annual Track and Infrastructure Renewal $162 $211 $123 $130 $201 $827 New Jersey High-Speed Improvement Program New Electric Locomotives Fleet Overhauls Total NEC-UP $347 $367 $351 $283 $256 $1,605 Total Investment FY2013 FY2014 FY2015 FY2016 FY Year Annual Track and Infrastructure Renewal $438 $859 $458 $410 $469 $2,633 New Jersey High-Speed Improvement Program NEC Stations Improvements Early Buyout of Fleet Leases - NEC New Electric Locomotives Fleet Overhauls Total NEC-UP $748 $1,299 $1,052 $897 $908 $4,905 1 Sources include grants from State, Local, and Commuter entities; special Federal grants; and RRIF loan financing Infrastructure Investments While 70% of Amtrak s train-miles run on the rail infrastructure of private freight railroads, Amtrak controls and is directly responsible for the condition and reliability of 363 miles of the 457 mile Northeast Corridor between Boston, New York, and Washington. This route hosts the most intense and complex passenger train operations on the North American continent. Additionally, Amtrak owns the Harrisburg and Springfield lines that connect with it; the 11-mile Empire Connection linking Penn Station with 11 of 59

12 Spuyten Duyvil on the Albany Line; a number of stations and yard facilities in major urban hubs, and 97 miles of the Michigan Line serving the Chicago to Detroit corridor. The cost of managing, maintaining, and improving these assets is substantial. Amtrak estimates that the State of Good Repair (SOGR) backlog alone on Amtrak-owned/operated NEC infrastructure is about $5.8 billion in FY2011 dollars. On top of this, the incremental investment needed to renew these existing infrastructure assets once SOGR has been achieved is estimated to be at least $380 million per year. It is important to note that Amtrak reprioritizes SOGR spending when necessary to allow it to address safety and operability issues as they arise. A backlog of SOGR should not, therefore, be understood as an accumulation of disintegrating or unsafe structures; it is rather a list of projects that have passed the end of their designed life but may continue to carry traffic safely, albeit at times with the additional burden of increased maintenance or impacts on reliability and performance. The infrastructure backlog includes: More than 200 bridges, most dating to the turn of the last century; Baltimore s B&P Tunnels, built in 1873; Many rail interlockings (junctions and crossovers) that are functionally obsolete; and Electric traction systems relying on 1930s-era components. Amtrak estimates that even with adequate funding, resources and equipment, it will take a minimum of 15 years to resolve the backlog while still maintaining a reliable level of rail service a requirement that complicates the maintenance and construction work considerably. Failure to adequately invest in this work on an annual basis will increase the exposure to costs and performance impacts stemming from the use of out-of-sogr assets and merely push the completion date out further and raise the costs and impacts of the capital work, as the backlog increases and Amtrak is forced to reprioritize to address new and pressing problems. The most recent projections indicate that Amtrak s infrastructure assets will require an average of $760 million per year to achieve its 15 year state of good repair plan (SOGR) $380 million per year for the normalized replacement of assets and $380 million per year to address the SOGR backlog. In addition to state of good repair needs, the Northeast Corridor is operating at or near capacity on many segments. Some 2,200 trains operate on the corridor on a daily basis, including Amtrak, commuter and freight, and traffic is expected to increase by approximately 50% by 2030 and more than double by 2050, being driven in part by increasingly congested highway and air networks. With the Northeast Corridor Vision Update report that was issued in July 2012 serving as a base, Amtrak is currently working closely with the Northeast Corridor Infrastructure and Operations Advisory Commission, Northeast states and other commuter and freight railroads to identify, in addition to SOGR needs, high priority capacity improvements that are essential to move forward in the next five years to accommodate increasing demand for improved and expanded rail services in the heavily congested Northeast Corridor. Structures Bridges, Culverts and Tunnels Movable Bridges funding to bring Amtrak's movable bridges to a state of good repair. Some of the bridges will be brought to a state of good repair through selective component replacement while others require complete replacement of movable structure, mechanical and electrical systems. Fixed bridges upgrade repair under-grade rail bridges and to convert open deck bridges to ballast deck for improved train performance. Tunnels bring tunnels to a state of good repair. This will be accomplished primarily through component replacement or through complete replacement of the tunnel under extreme circumstances. 12 of 59

13 Major Bridge Special Projects address major bridges currently not in a state of good repair for improved train performance, eliminating slow orders that Amtrak must impose when bridge components fail and disrupt the train traffic. Continuous maintenance costs due to temporary repairs will also be avoided. Facility, Station and Other Maintenance of Equipment Facilities upgrades to equipment maintenance facilities such as HVAC replacement, roof replacement, electrical upgrades, and lighting improvements. Maintenance of Way Base various upgrades to maintenance of way facilities such as HVAC replacement, roof replacement, electrical upgrades, and lighting improvements. Station Upgrades upgrades to stations to include HVAC, roofing, lighting, and other interior improvements. Transportation Department Facilities renewal of interlocking control towers such as the K tower and Dock interlocking tower. Sunnyside Yard New Mechanical Facility plan and begin construction on a new consolidated Mechanical, Engineering, and Transportation maintenance facility and warehouse at Sunnyside Yard outside of New York Penn Station. The program is pending completion of the Sunnyside Yard master plan. Communications and Signals Signal Systems Automatic Block Signal (ABS) bring ABS assets to a state of good repair. ABS component failures have been identified as a major contributor to train delay. Upgrading of outdated components will result in increased reliability, improved on-time performance and railroad safety. Advanced Civil Speed Enforcement System (ACSES) ACSES is the Positive Train Control (PTC) system used on the NEC. This program includes upgrades to Central Instrument House (CIH), radio transmission equipment, and wayside interface units. For interoperability with freight carriers operating on the NEC, Amtrak will install an Interoperable Electronics Train Management System (I-ETMS) overlay that will allow freight trains and some commuter trains to operate on the NEC without ACSES equipment. See the Positive Train Control section of this document for additional detail. Interlocking Communications & Signals upgrade signal systems at interlockings to eliminate equipment failures and reduce maintenance costs. This program involves conversion of air switch machines to electric machines, automation of manual towers and replacement of obsolete interlocking signal system components. Crossings upgrade highway crossing detection devices for more reliable operation of warning systems and enhance grade crossing system safety while reducing maintenance costs. Centralized Traffic Control (CETC) replace centralized traffic control equipment in CETC locations with modern server-based systems. The three existing locations do not have backup capability. Server-based systems will allow for simplified back up in case of a disaster. Communications Systems - the renewal and replacement of radio assets to bring Amtrak in compliance with Federal Communications Commission requirements. Work performed under this program includes the renewal of battery back-up systems at radio locations and the replacement of analog radio equipment with digital narrowband equipment. 13 of 59

14 Electric Traction Overhead Catenary and Transmission Systems Catenary the replacement and renewal of catenary wire, insulators and hardware currently not in a state of good repair. Elements of this program include not only replacement of components that are beyond their useful life, but also the replacement of wire that is beyond the allowable wear percentages. Catenary Pole many of the catenary poles are over 90 years old and are beyond their designed service life. Replacement of the poles will provide physical support to the power transmission and catenary systems. Transmission the replacement of traction power transmission cable and associated hardware. Much of the existing cable has been in service for over 70 years and has far exceeded its useful life. Substations and Frequency Converters - improvements made to the electric traction and substations along the Northeast Corridor. Some examples of work performed under this program are: replacement of rotary traction power frequency converters, replacement or renewal of existing power machine, and renewal of substation components such as power transformers, circuit breakers and control cables. The reliable operation of these assets is critical to on-time performance. Track Track Replacement Track Ballast perform work that will bring the ballast assets to a state of good repair. Examples of work performed under the program are replacement through spot undercutting and shoulder cleaning where total replacements are not needed. Track Drainage renew and replace track drainage assets currently not in a state of good repair. If not corrected, poor drainage will result in slow orders and higher maintenance costs associated with the accelerated degradation of track geometry. Track Rail Replacement replacement of rail that is currently not in a state of good repair. There is roughly 1,600 miles of main line track that is 40 to 50 years old. Amtrak replaces an average of 35 miles of rail per year. Useful service life of rail has been exceeded once horizontal or vertical wear limits, internal defect rates, or surface conditions are approaching safety limits. This program will help to reduce maintenance costs and slow orders. Crosstie / Timber replace crosstie and track timber along the NEC which will reduce train delays, track geometry degradation, FRA track defects, and switch failures. Track Laying System (TLS) utilization of TLS for the complete replacement of wood tie track with concrete cross ties including replacement of concrete ties that have been found to be defective. This replacement program will reduce maintenance costs and potential slow orders, and provide for an increase in on-time performance. Track Turnouts replacement of standard wood turnouts and associated components not currently in a state of good repair. Associated components include frogs, switch points, and wood and concrete switch timbers and other track turnout material. Track Geometry surfacing, realignment and re-profiling of track surface as required to meet FRA Track Safety Standards, maintain ride quality standards and extend the life of track components. Interlocking Renewal - total renewal of the existing track structure within interlocking limits with new advanced technology; updates include repair or replacement of turnouts, concrete switch ties, moveable point frogs, and switches. These interlocking renewal projects will move the railroad towards a state of good repair by eliminating failures and reducing maintenance costs. 14 of 59

15 Life Safety This program will provide emergency access/egress in the New York City area tunnels and provide proper ventilation for removing smoke from the affected areas. The system will provide responding local Fire Department with access to the fire suppression system within the tunnels and provide Amtrak passengers with a better opportunity to survive a catastrophic event in the New York Tunnels and Penn Station. Track Equipment The program will replace existing track equipment at the end of its useful service life. This will increase efficiency, utility and production capacity of the equipment by taking advantage of technological advances within the industry. New Jersey High-Speed Rail Improvement Program Upgrade and improve the catenary, power, track and signal systems on the NEC primarily between New Brunswick, NJ and Trenton, NJ, and to improve the western approach tracks in Penn Station New York in order to facilitate increased speeds and improved reliability for all users and eventual higher levels of service. The program will also support the goals of increased service capacity, helping Amtrak to meet near-term rising demand for high-speed service on the NEC by operating additional trains in the 2018 to 2023 timeframe and beyond. NEC Station Upgrades o Washington Union Terminal: Washington Union Terminal Master Plan detailed phasing and planning work in support of implementation of Master Plan Washington Union Terminal Master Plan Phase I begins construction at the Washington Union Terminal (WUT) to advance improvements critical to mitigating congestion at WUT, resulting in reduced delays, improved on-time service, expanded services, and improved regional mobility and accessibility. REA Building purchase of REA building and accompanying air rights to support operational functions currently handled within existing station facility that must be relocated to support Master Plan implementation. Crew Base Relocation relocation of crew base and support facilities for Amtrak Transportation and/or Mechanical forces from west side of station to permit new track and platform construction. WUT Substation Replacement - three year project to replace existing traction power substation which is in severe disrepair. Alternately, requested funding amount would also support a more short term rehabilitation of the existing substation to prolong its useful life. The rehabilitation option would be selected if a full replacement were not feasible due to required property acquisitions and third party agreements to support replacement not being resolved. o Baltimore Penn Station Planning Studies funds the SOGR study which will perform a full evaluation of the station s current condition and will provide recommended improvements. In addition, Amtrak will fund the Master Plan to create a long-term vision for integrating Amtrak s future transportation and infrastructure requirements with commercial development. o Philadelphia 30 th Street Station Planning Initiatives funds the Amtrak Transportation Master Plan as well as Amtrak provided technical, planning, Engineering Department, and other 15 of 59

16 administrative support for the 30 th Street Precinct Joint Master Plan being funded by Drexel University. o Newark (NJ) Penn Station design for platform access and vertical circulation improvements. o New York Penn Station design for wayfinding signage and preliminary design for interim corridor widening within the station. In addition funds the design and fabrication of exterior street level signage. Fleet Investment in the NEC-Upgrade Program The fleet investment for the NEC-Upgrade Program over the next five years consists of the acquisition of seventy new electric locomotives (in process), continuing to overhaul the existing fleets to maintain safe and reliable equipment and exercising early buyout options for leased electric locomotives and Acela trainsets. The acquisition of the next generation of high-speed rail equipment, which begins in this five year period, will supplement and perhaps replace the current Acela equipment. This acquisition is discussed in more detail in the Next Generation High-Speed Rail Programs section of this document. New Electric Locomotives The seventy new electric locomotives have been ordered from Siemens and Amtrak expects to begin taking delivery during the summer of 2013 with revenue service beginning in the first quarter of FY2014. All units are expected to be received by the end of The new locomotives will allow Amtrak to retire the existing electric locomotive fleet and standardize the fleet to include only the new Siemens units and the HSR power cars. This purchase is being funded by a Railroad Rehabilitation and Improvement Financing (RRIF) loan and will be repaid by Amtrak out of farebox receipts. The FY2013-FY2017 plan estimates $359 million of payments to Siemens, and loan repayments of $119 million. NEC-Upgrade Program Fleet Overhauls Locomotive Overhauls Amtrak locomotive programs will involve the various levels of overhaul for electric locomotives (AEM-7 DC, AEM-7 AC, and HHP-8) and modifications required by Federal agencies including the Transportation Safety Administration (TSA), Environmental Protection Agency (EPA) and Federal Railroad Administration (FRA). This program enables Amtrak to bring the locomotive fleet to a state of good repair, increase locomotive reliability and availability, extend the useful life of the locomotive, comply with applicable Federal rules and regulations, and mitigate future expenses associated with an aging fleet. Acela Overhauls Continuation of the multi-year Acela Overhaul Program addressing the system overhaul needs of the Acela train sets. Overhaul requirements are identified by major system condition assessments, fatigue life calculations, and reliability data trends. Amfleet Overhauls Funding for the various levels of overhauls that range from mandatory maintenance to complete equipment overhauls, reconfigurations and conversions of equipment, and modifications required by statutes including the Americans with Disabilities Act (ADA) and modifications required by the Federal Railroad Administration (FRA). All car configurations including passenger coach, diner, café/club, lounge, and cab cars are included. Amfleet II equipment, which operates both on and outside of the NEC, is included in the NEC-UP overhaul totals. These passenger car programs will enable Amtrak to maintain equipment in a state of good repair, to return the assets to current Amtrak standards, improve reliability and availability of equipment, enhance overall customer experience, comply with applicable Federal regulations and mitigate equipment failures which result in customer discomfort and inconvenience. 16 of 59

17 Fleet Engineering Projects include design, specification, engineering and blueprinting of future improvements to existing rolling stock, design of new rolling stock, and deployment of Positive Train Control technology upgrades on the locomotive fleets. Mandatory Revisions Required modifications to existing fleet resulting from changes in regulations. These revisions vary annually. Table 4 Proposed NEC-Upgrade Program Fleet Overhaul Capital Plan $ millions Fleet Overhauls - Federal Capital Other Funds Fleet Overhauls - Total Funding FY2013 FY2014 FY2015 FY2016 FY Years FY2013 FY2013 FY2014 FY2015 FY2016 FY Years Acela $44 $91 $61 $47 $0 $243 $44 $91 $61 $47 $0 $243 Amfleet Locomotives Total Overhauls $118 $173 $173 $125 $78 $667 $118 $173 $173 $125 $78 $667 Fleet Engineering Mandatory Revisions Fleet General $6 $33 $34 $13 $11 $97 $2 $8 $33 $34 $13 $11 $99 Total NEC-UP Fleet $124 $206 $207 $138 $89 $764 $2 $126 $206 $207 $138 $89 $766 Early Buyout of Fleet Leases Special U.S. Treasury funding was made available through Section 205 of PRIIA from FY2011- FY2013 and funded approximately $420 million of buyouts of leased Amtrak rolling stock. The program will end in FY2013. By exercising those buyout options, future debt service obligations were reduced by $582 million, saving the taxpayer about $162 million. In FY FY2017 Amtrak does not have access to this separate funding, but has $521.6 million of buyout options available, of which $191.3million is for NEC equipment. Exercising the FY FY2017 options would reduce future payment obligations, saving the taxpayers about another $150 million in debt service costs during the five year period. Funding to exercise these options will be requested in the five year period. The buyout options available to Amtrak are showing in the following table. The options for NEC equipment are shown in blue type. 17 of 59

18 Table 5 Early Buyout and End of Lease Options Early Buyout Equipment Purchase Options $ millions EBO Date FY2013 FY2014 FY2015 FY2016 FY C Trust 96A-C for 7 of 98 GE P-42 DC Single Mode Diesel Locomotives 1-Oct-12 $ F Trust 97A for 25 of 98 GE P-42 DC Single Mode Diesel Locomotives 1-Oct D Trust 96A-D for 19 of 98 GE P-42 DC Single Mode Diesel Locomotives 1-Jul C Trust 94B-B for 7 Superliners 1-Jan B Trust 2000 SD-A (2nd closing) for 10 Surfliners 19-Jun H Trust 94D-A for 5 Superliners 29-Jun I_1 Trust 94D-B for 2 Superliners 28-Sep A Trust 2000-L-A (1st closing) for 12 GE P42-DC Locomotives 2-Jan D Trust 2001-L-B (1st closing) for 8 GE P42-DC Locomotives 2-Jan E Trust 2001-L-B (2nd closing) for 16 GE P42-DC Locomotives 2-Jan B_1 Trust 2000-L-A (2nd closing) for 16 GE P42-DC Locomotives 2-Jan C Trust 2001-L-A (1st closing) for 31 GE P42-DC Locomotives 2-Jul C Trust 2000 SD-A (3rd closing) for 10 Surfliners 26-Mar A_1 Trust 2000 SD-A (1st closing) for 19 Surfliners 28-Mar J Trust 94D-C for 3 Superliners 22-Dec K Trust 94D-D for 2 Superliners 22-Dec A Trust 98B-A for 2 EMD F59PHI Diesel Locomotives 11-Aug B Trust 98B-B for 19 F-59 Locomotives 17-Nov I Trust EDC-3 (9th Closing) for 1 HS Trainset 24-Sep C Trust EDC-3 (3rd closing) for1 HHP Locomotive and 1 HS Trainset 28-May F Trust EDC-3 (6th closing) for 1 HHP Locomotive and 1 HS Trainset 29-May G Trust EDC-3 (7th closing) for 1 HHP Locomotive and 1 HS Trainset 18-Jun H Trust EDC-3 (8th closing) for 1 High-Speed Trainset 18-Jun D Trust EDC-3 (4th closing) for 1 HHP Locomotive and 1 HS Trainset 21-Jun A Trust EDC-3 (1st closing) for 1 HHP Locomotive and 1 HS Trainset 14-Aug E Trust EDC-3 (5th closing) for 1 HS Trainset 22-Aug B Trust EDC-3 (2nd closing) for 1 HHP Locomotive 7-Sep Total Early Buyout Equipment Purchase Options $109.9 $196.5 $10.3 $35.8 $138.3 End-of-Lease Equipment Purchase Options EOL Date FY2013 FY2014 FY2015 FY2016 FY A 4 Rebuilt AEM-7 Locomotives -- Trust 99-A (1st closing) 18-Oct B 6 Rebuilt AEM-7 Locomotives -- Trust 99-A (1st closing) 10-Apr C 6 Rebuilt AEM-7 Locomotives -- Trust 99A (3rd closing) 25-Sep D 5 Rebuilt AEM-7 Locomotives -- Trust 99A (4th closing) 12-Feb Total End-of-Lease Equipment Purchase Options $0.0 $0.0 $0.0 $23.5 $7.3 Grand Total EBO and EOL Equipment Purchase Options $109.9 $196.5 $10.3 $59.3 $145.6 Note: Blue type indicates buyout option is for NEC fleet. Black type indicates Total EBO/EOL Options for non-nec fleet buyouts (black type) $330.3 buyout option is for non-nec fleet. Total EBO/EOL Options for NEC fleet buyouts (red type) $191.3 Grand Total Five Year EBO/EOL Options Total $ of 59

19 Next-Generation High-Speed Rail Programs Delivering the next generation of high-speed rail service to the Northeast Corridor over the coming decades will involve construction of dedicated tracks and stations for the length of the corridor. Over the next five years, the focus will be on the commencement of two important cornerstones of the high-speed rail strategy: the Gateway Program, and acquisition of high-speed trainsets. The anticipated capital requirements to begin these two efforts are summarized below. Table 6 Proposed Capital Spending on NextGen HSR Programs $ millions Federal Capital FY2013 FY2014 FY2015 FY2016 FY Year Next Gen HSR Trainsets $1 $200 $47 $203 $322 $772 Gateway Program ,344 Total NextGen HSR $21 $352 $367 $503 $874 $2,117 Other Funding 1 FY2013 FY2014 FY2015 FY2016 FY Year Next Gen HSR Trainsets $1 $0 $0 $0 $0 $1 Gateway Program Total NextGen HSR $15 $91 $91 $19 $19 $235 Total Investment FY2013 FY2014 FY2015 FY2016 FY Year Next Gen HSR Trainsets $2 $200 $47 $203 $322 $774 Gateway Program ,579 Total NextGen HSR $36 $443 $458 $522 $893 $2,352 1 Other funding being sought from appropriations to the DOT under Title X, Chapter 9 of the Disaster Relief Appropriations Act of 2013 The Gateway Program The Gateway Program is a comprehensive program of infrastructure improvements that will improve current assets, increase track, tunnel, bridge and station capacity serving New York City, and allow the eventual doubling of passenger trains into Manhattan. The new tunnels and supporting infrastructure will be designed to comply with updated FEMA flood criteria a level of protection which would have prevented the recent flooding. The Gateway Program will also permit the closing of the existing centuryold tunnels for extended periods so that much-needed repair and improvement work can be done. The current volume of traffic through the tunnels is so dense that long-term closures are impossible because the disruption of the daily traffic into and out of Manhattan would be too great. Today, work is done on one tunnel at a time, during elaborately scheduled 55 hour weekend periods to avoid service disruptions but longer-term closures are needed to support a full program of flood prevention retrofits and other state of good repair improvements to the tunnels. While some improvement work in today s tunnels can be accomplished during these existing outage periods, even the relatively small ongoing Fire and Life Safety program of improvements to the New York tunnels will have taken more than a decade to complete, once it is finished. While the Gateway Program is a long-term project spanning more than a decade, elements of it must begin immediately in order to meet the critical time schedule imposed by the ongoing Hudson Yards 19 of 59

20 development project west of Penn Station. Failure to advance these crucial first elements will permanently preclude new tunnel alignments from connecting into Penn Station, and significantly raise the costs of future track and terminal capacity improvements in Manhattan significantly. The Gateway Program is envisioned as a critical incremental investment to maintain the Northeast Corridor as the nation s premier rail corridor for the next century. As such, the design of the program elements has been carefully crafted to permit anticipated capacity additions in the decades ahead, including the future construction of a new lower-level Penn South concourse for additional capacity; a future extension of selected Penn South station tracks eastward to Manhattan s East Side, Queens and points north; and additional future tunnels under the Hudson River. Planning is also underway to coordinate Gateway Program elements with the recommendations of the on-going Penn Vision Study, which is considering the future of Penn Station upon the opening of Moynihan Station. Gateway s modular design allows the entire terminal complex to expand in a cohesive, integrated manner, transforming Penn Station into one of the greatest railway facilities in the world. Key Components of the Gateway Program New Trans-Hudson River Tunnels Two new trans-hudson River rail tunnels from the Bergen Palisades in New Jersey to Manhattan, New York will directly serve the Penn Station/Moynihan complex. These new tunnels will provide operational benefits for the existing Penn Station and increased capacity for commuter and intercity rail operations including New Jersey Transit and Amtrak s proposed next generation high-speed rail project (NextGen HSR) by providing a connection to a future Penn South concourse discussed below. Preservation of an 800-foot right of way through the Hudson Yards development site in west midtown Manhattan must begin construction in summer 2013 in order to preserve a future right of way alignment for the Gateway tunnels into Penn Station. Amtrak has begun design work for this tunnel segment and is currently in negotiations with the Related Companies and the Long Island Rail Road to progress construction. Amtrak is presently seeking approximately $185 million of supplemental Federal funding in FY2013 for this construction project over the next two years. Expanded Moynihan/Penn Station An expansion of existing New York Penn Station tracks and platforms and the creation of new Penn South concourses with direct connections to the future Moynihan Station. These improvements will support the long-term growth of commuter and intercity passenger rail service at both Penn Station and the historic Farley Post Office Building, which is being transformed into the new Moynihan Station. The expanded Moynihan/Penn Station complex creates a consolidated Amtrak operation on Manhattan s West Side and the high level of service and connectivity required for the growth of Amtrak s Acela and future NextGen high-speed rail services. 20 of 59

21 New Portal Bridges Two new high-level bridges, known as Portal North and South Bridges, will replace the vulnerable 100-year-old moveable Portal Bridge over the Hackensack River between Kearny and Secaucus, New Jersey, doubling Corridor capacity. Final design for this bridge will be completed in FY2013 and an approximately $900 million, 5-year construction program will then be ready to commence. Amtrak s request would advance the first year of construction of this project with the expectation that contributions proportional to the planned commuter usage of this structure and in accordance with the new cost allocation method developed under Section 212 of the Passenger Rail Investment and Improvement Act of 2008, would be available to cover a portion of the additional costs of the project, once such methodology is available. Newark-to-Secaucus Improvements The existing NEC will be greatly improved between Newark and Secaucus, New Jersey. The mainline will be expanded from two to four tracks between Newark and the Bergen Palisades tunnel portals, better connections will be built to link the NEC with the New Jersey Transit Morris and Essex Lines, and various bridges will be upgraded. Timeline and Cost Amtrak projects that the first two phases of the Gateway Program could be completed in approximately 12 years, under a best case scenario, at a preliminary cost estimate of approximately $15 billion (in constant 2011 dollars). If funding is available to begin preliminary engineering and environmental review in FY2013, in coordination with the Federal Railroad Administration s NEC FUTURE Tier 1 PEIS, and construction funds are available to permit tunnel construction in the Hudson Yards development site, it is estimated that the Program could be completed in 2025, with the significant construction period beginning in 2017, assuming unconstrained funding. Further refinement of these costs and schedules will be available upon completion of additional planning and preliminary engineering and design work. Project Phases and Total Cost Estimates: Phase One Newark, NJ to Penn Station, New York, , ~$12.5 Billion: Construct new two-track mainline and Hudson River tunnels from Swift Interlocking to Penn Station and improve existing NEC mainline and tunnel infrastructure. Phase Two Penn Station Expansion and Elizabeth-Newark Improvements, ,~ $2.5 billion: Expand Penn Station to Block 780 to create the upper-level concourse of Penn South and add a 5 th track from Elizabeth to Newark, New Jersey to provide increased capacity to access new Gateway trackage and capacity. Phase Three Penn South Expansion: Expand Penn South through the addition of the lowerlevel concourse and tunnel connections to Gateway Tunnels at 12 th Avenue. New Urgency Connecting to Penn Station through the Hudson Yards The Gateway Program has taken on new urgency in recent months, as engineers have determined the only feasible route to connect the Gateway Tunnel directly to Penn Station will intersect the Hudson Yards development over the Long Island Rail Road s West Side Yards, where Related Companies is breaking ground on a multi-billion dollar, mixed-use commercial and residential development project. Amtrak is working with Related Companies and the Long Island Rail Road, which owns the maintenance yards (which are also impacted by the development project and tunnel) to design and begin construction of an 800-foot structure to secure a right of way for a future Gateway Tunnel through the site, which lies between 11th and 12th Avenues and 31st and 32nd Streets in Manhattan. Amtrak is seeking approximately $185 million in FY2013 to cover the costs of completed design and 21 of 59

22 construction of this project. Design efforts are currently underway and construction will begin in summer 2013, with a planned completion in FY2016. Progress to Date Funding appropriated to date has been primarily directed toward utility relocation in preparation for replacing the 100-year-old Portal Bridge over the Hackensack River between Kearney and Secaucus, New Jersey, Hudson Yards Tunnel right of way preservation design and environmental work, expediting environmental documentation, and resuming planning on a companion Portal South Bridge. In addition, this funding supports planning and design efforts to replace other aging bridges between Newark and the Bergen Palisades, all of which are more than 100 years old. It is also being used to advance new Gateway Program-related passenger facility designs. High-speed Rail Trainset Acquisition Each year Amtrak publishes its updated fleet strategy. The current version was published March 29, 2012 and is available at The March 2012 fleet plan proposed the purchase of 40 new Acela coaches to supplement capacity for the existing Acela trainsets, pending procurement of the next generation of high-speed trainsets. This plan has been discarded. Instead, Amtrak intends to expedite the procurement of new next generation high-speed trainsets. To advance this procurement, Amtrak recently issued a Request for Information (RFI), together with the California High Speed Rail Authority to gather information regarding available high-speed trainsets which could be used both on the Northeast Corridor and the future California High-Speed Rail system. Based on information gathered through this RFI, including information regarding financing and procurement approaches, Amtrak intends to issue a subsequent Request for Proposal (RFP) in September, 2013, for expedited delivery of new equipment for initiation of service in the timeframe. Our FY FY2017 request to begin this procurement and associated improvements to support the new trainsets approaches $800 million. Non-NEC and Support Programs While the efforts within the Northeast Corridor stemming from both the NEC-UP and Next Generation HSR programs will require significant investment, the balance of Amtrak s national infrastructure and train service must also receive appropriate attention and investment. The off-corridor routes often operate with the oldest train equipment that is in need of replacement. The majority of the critical ADA and Positive Train Control compliance efforts over the next five years will occur off-corridor while critical corporate programs that support all of Amtrak must also be funded. The expected capital investment in non-nec and Support Programs over FY2013-FY2017 period is summarized below: 22 of 59

23 Table 7 Proposed Capital Spending Non-NEC and Support Programs $ millions Federal Capital FY2013 FY2014 FY2015 FY2016 FY Year New Fleet Acquistions - non NEC $67 $140 $111 $4 $0 $321 Early Buyout of Fleet Leases - non-nec Car & Locomotive Overhauls - non NEC Subtotal Non-NEC Fleet $173 $462 $288 $169 $142 $1,236 ADA Compliance Positive Train Control Chicago Union Station Improvements Mechanical Facility Improvements Renovations to Philadelphia 30th Street Garage Other Facilities Improvements Technology Investments Customer Experience Projects Environmental Remediation Security Initiatives Other Total Other Investment $281 $749 $725 $394 $341 $2,490 Other Funding 1 FY2013 FY2014 FY2015 FY2016 FY Year New Fleet Acquistions - non NEC $4 $2 $0 $0 $0 $6 Early Buyout of Fleet Leases - non-nec Car & Locomotive Overhauls - non NEC Subtotal Non-NEC Fleet $117 $2 $0 $0 $0 $119 ADA Compliance Positive Train Control Other Facilities Improvements Technology Investments Customer Experience Projects Security Initiatives Other Total Other Investment $230 $22 $13 $7 $7 $278 Total Investment FY2013 FY2014 FY2015 FY2016 FY Year New Fleet Acquistions - non NEC $71 $141 $111 $4 $0 $327 Early Buyout of Fleet Leases - non-nec Car & Locomotive Overhauls - non NEC Subtotal Non-NEC Fleet $290 $464 $288 $169 $142 $1,355 ADA Compliance Positive Train Control Chicago Union Station Improvements Mechanical Facility Improvements Renovations to Philadelphia 30th Street Garage Other Facilities Improvements Technology Investments Customer Experience Projects Environmental Remediation Security Initiatives Other Total Other Investment $510 $771 $738 $401 $348 $2,768 1 Other funding includes a special U.S. Treasury grant for Early Buyouts, DHS funding for security needs, and Amtrak internal funds 23 of 59

24 Non-NEC Fleet Acquisitions Amtrak anticipates that its non-nec equipment acquisition during the FY2013 FY2017 period will consist of: Completing the acquisition of 130 single level long distance passenger cars pursuant to a contract entered into with CAF USA in August Amtrak anticipates the delivery of the first cars for testing by end of calendar year FY with the final unit entering revenue service by the end of calendar The total project cost will be $342.8 million. The FY2013 payment for acquisition of these cars and related spare parts is being requested as part of the Federal capital appropriation request. Acquisition of up to eight low emission switcher locomotives. Amtrak has previously taken delivery of four such switch locomotives 2 funded by a grant by the U.S. Environmental Protection Agency and 2 funded by grants from the Illinois Environmental Protection Agency and Illinois Department of Transportation. In addition to the acquisitions of new equipment outlined above, Amtrak has options for early buyout and end-of-lease buyout of leases on existing rolling stock. From FY2011 through FY2013, special U.S. Treasury funding was made available under PRIIA section 205 that funded approximately $420 million of buyouts of leased Amtrak rolling stock. The program will end in FY2013. By exercising those buyout options, future debt service obligations were reduced by $582 million, saving the taxpayer about $162 million. In FY FY2017 Amtrak does not have access to this separate funding, but has $521.6 million of buyout options available, of which $330.3 million is for non-nec equipment. Exercising all options would reduce future payment obligations, saving the taxpayers about another $150 million in debt service costs during the five year period. Funding to exercise these options will be requested in the five year period. The buyout options available to Amtrak are showing in Table 5. The options for non-nec equipment are shown in black type. Fleet Overhauls Amtrak is also responsible for the condition and reliability of its rolling stock fleet. The fleet is a unique competitive advantage for Amtrak: it provides the basis for daily service and has the capability, if the national network is maintained, to provide surges of capacity in response to changes in demand, such as seasonal traffic or disaster relief needs. While the capacity of lines and terminals cannot be changed in the short term, the fleet provides the vital flexibility that allows Amtrak to develop or improve service on short timelines, and it is therefore a uniquely important asset. Equipment requires continual maintenance and cannot be purchased on the spur of the moment. Its configuration and operating qualities are longterm factors that can exert major influence on revenues and costs. For these reasons, the fleet requires detailed and careful management. Amtrak s planned FY FY2017 Fleet Overhaul program calls for $697 million in funding for the non-nec fleet as shown in the following table. Descriptions of the fleet overhaul programs follow the table. 24 of 59

25 Table 8 Proposed Fleet Overhaul Capital Plan $ millions Fleet Overhauls - Federal Capital Other Funds Fleet Overhauls - Total Funding FY2013 FY2014 FY2015 FY2016 FY Years FY2013 FY2013 FY2014 FY2015 FY2016 FY Years Locomotives - non-nec Superliner Auto Carrier Heritage Horizon Surfliner Talgo Viewliner Total Overhauls non-nec $106 $126 $168 $152 $142 $694 $3 $109 $126 $168 $152 $142 $697 Locomotive Overhauls Amtrak is migrating from a conventional overhaul philosophy to a Life Cycle Progressive Maintenance (LCPM) program for the non-nec diesel locomotives, plus modifications required by Federal agencies including the Transportation Safety Administration (TSA), Environmental Protection Agency (EPA) and Federal Railroad Administration (FRA). This program enables Amtrak to maintain the locomotive fleet to a state of good repair, increase locomotive reliability and availability, extend the useful life of the locomotive, comply with applicable Federal rules and regulations, and mitigate future expenses associated with an aging fleet. Passenger Car Overhauls The passenger car programs fund the various levels of overhauls that range from mandatory maintenance to complete equipment overhauls, reconfigurations and conversions of equipment, and modifications required by statutes including the Americans with Disabilities Act (ADA) and modifications required by the Federal Railroad Administration (FRA). The non-nec programs service the Superliner, Auto Carrier, Viewliner, Talgo, Heritage, Horizon, and Surfliner fleets. All car configurations including passenger coach, diner, café/club, lounge, sleeper, and cab cars are included. These passenger car programs enable Amtrak to maintain equipment in a state of good repair, to return the assets to current Amtrak standards, improve reliability and availability of equipment, enhance overall customer experience, comply with applicable Federal regulations and mitigate equipment failures which result in customer discomfort and inconvenience. Stations/ADA Improvements Stations are the public gateways to the passenger rail transportation system. Unfortunately, many stations are increasingly congested and in a state of disrepair and must be improved and expanded. Amtrak and its partners recently completed a Washington Union Station Master Plan, calling for a major expansion of the facility to accommodate current passenger levels and future growth. Amtrak s FY2014 request includes Phase One funding of the program to begin improving the station concourse and platforms to better accommodate current passengers and lay the groundwork for future growth. In addition, the FY2014 request includes similar station planning efforts at Baltimore and Philadelphia, as well as engineering for facility and passenger flow improvements at both Newark, NJ and New York Penn Stations. The needed improvements include better platform and concourse-level accessibility, street-level signage, pedestrian way-finding and passenger amenities, and other station facility enhancements that have been identified as part of conceptual design studies currently underway at both stations in partnership with Long Island Rail Road and/or New Jersey Transit. Amtrak s Gateway program also includes initial preliminary design work for New York Penn Station expansion (Penn South), which would create six to eight additional platform tracks immediately south of the existing station and expand the pedestrian concourse with robust linkages to the local transit system. Amtrak is also continuing to work closely with its state and local partners, using prior approved grant funding and state and local sources, to advance station improvement projects at Boston South Station, New York (Moynihan Station Phase One) and BWI / Thurgood Marshall Airport Station in Maryland. 25 of 59

26 The preliminary engineering work at Boston and BWI is intended to provide additional capacity and passenger handling capability at critical terminal locations and chokepoints on the corridor. At Moynihan Station, slated in its Phase Two to become a premier intercity station in midtown Manhattan, Amtrak is working closely with New York State and the Port Authority using prior year TIGER grant funds and local sources to advance Phase One platform and connecting concourse-level improvements. ADA Station Improvements: Amtrak is updating train station platforms, elevators, escalators, and restrooms, and making other improvements to ensure compliance with the requirements of the Americans with Disabilities Act (ADA). Amtrak serves over 500 stations and has at least partial ADA responsibility for some component (i.e., station structure, platform or parking lot) of approximately 380 stations. Amtrak presented an estimate of its needs to the Congress on February 1, 2009, in its report Intercity Rail Stations Served by Amtrak: A Report on Accessibility and Compliance with the Americans with Disabilities Act of This report, which was delivered pursuant to section 219 of the PRIIA, detailed the scope of Amtrak s needs and proposed the level of Federal assistance necessary to attain full compliance. Subsequent updates to this report were issued in August 2011, May 2012, August 2012, and December On September 19, 2011, the U.S. Department of Transportation (DOT) issued a final rule amending its ADA regulations regarding, among other things, level boarding, alternatives to level boarding, and procedures for obtaining approval of FRA and/or FTA in situations where level boarding is not provided. Issuance of this final rule has had a significant impact on Amtrak s program and needs. Amtrak operates a 21,100 mile system, and 20,000 of those miles of track belong to other companies, principally freight railroads. The platforms in these locations are owned primarily by the freight railroads but typically Amtrak has the responsibility to ensure that they are ADA accessible. The DOT has issued subsequent guidance on existing freight operations that expands on the level-boarding obligations and requires a detailed station by station evaluation to determine where level boarding is required. Also, at stations where multiple tracks are available to carry freight, a platform by platform and track by track analysis and subsequent negotiation with the host railroad must be conducted to determine the proper approach. Finally, FRA review and approval is required for platform designs where level-boarding is not provided. The complexity of the challenge and the scale of the system have created a requirement for considerable additional analysis which will result in additional time and likely higher costs than previously estimated. Amtrak s Accessible Stations Development Program (ASDP) includes a complete master schedule for the stations for which Amtrak has some degree of responsibility for accessibility. In FY2012 and FY2013, the ASDP focused primarily on stations that have freight traffic directly adjacent to the platforms and, as a result, were not required to have level boarding. In FY2014 and over the next five years, Amtrak will focus on components of stations that increase passenger mobility and system accessibility. This work will address inaccessible components (other than platforms, assuming the platforms are currently usable by passengers with disabilities) such as: the path of travel to a station and/or platform or the path of travel between accessible elements, and restroom accessibility. This work will progress while we work to address the platform gap that is created when mini-high level boarding platforms are provided at stations that have shared freight traffic. Mini-high platforms must be set back from the centerline of the track at a greater distance to allow freight traffic to pass freely by the platforms, thereby creating a larger gap between our passenger trains and the mini-high platforms. The resulting gap requires a level boarding solution that can be deployed each time a passenger train boards or detrains at the mini-high platforms. For FY2014, Amtrak is requesting $75 million for accessibility improvements which includes the advancement of construction at approximately 45 stations, the progression of design efforts at as many as 75 stations, and the conducting of ADA assessments and property surveys at numerous additional stations. This work will continue to improve station accessibility. 26 of 59

27 Positive Train Control Positive Train Control (PTC) is an information and communication system that improves traditional collision prevention measures and adds an entirely new layer of automated protection by enforcing permanent and temporary speed restrictions. On January 15, 2010 the FRA issued its PTC Rule which, pursuant to the Rail Safety Improvement Act of 2008, requires Class I railroads and each railroad hosting intercity or commuter rail passenger service to have a PTC system installed and operating by December 31, 2015 on their main lines. A main line is defined as having 5 million or more gross tons of railroad traffic per year, or used for regularly scheduled intercity or commuter rail passenger service. The PTC Rule provides for exceptions to PTC requirements, which are subject to FRA approval, on rail lines hosting passenger trains on which freight traffic volumes, and the number of passenger trains operated, do not exceed limits specified in the rule. Continued use of a number of existing PTC systems will be allowed. These systems include: Advanced Civil Speed Enforcement System (ACSES) I & II Incremental Train Control System (ITCS) Burlington Northern Santa Fe (BNSF) Railway system Vital Electronic Train Management System (V-ETMS, or simply ETMS) Amtrak presently uses two of these PTC systems. ACSES was installed on portions of the Northeast Corridor (NEC) in the beginning of 2000 with the startup of Acela services, and ITCS is used on about 60 miles of the 97 mile Michigan Line and on the Chicago-St. Louis line. Amtrak s PTC efforts include installation of ACSES on the remainder of the NEC and its tributary routes and installation of ITCS on the state-owned portion of the Michigan Line. In addition, Amtrak will work with Federal, state, and local authorities and commuter and freight railroads to ensure Amtrak trains are compliant with PTC systems adopted for use by host railroads. Compliance with V-ETMS will be a significant element of the PTC efforts. Amtrak will add V-ETMS to the portions of the NEC where freight or commuter trains equipped with V-ETMS will operate and will coordinate with these railroads to ensure that their rolling stock will be equipped with V-ETMS where not controlled by ACSES. Amtrak will also equip its diesel locomotives with V-ETMS which will operate in V-ETMS territory on host railroads. V-ETMS will be implemented in Chicago Union Terminal and New Orleans Union Passenger Terminal. Amtrak invested $64 million of American Recovery and Reinvestment Act (ARRA) funds to install PTC on Amtrak-owned infrastructure. Further, in February, 2011, Amtrak received a grant in the amount of $12.9 million (limited to 80% of the estimated cost) to obtain seamless interoperability on the NEC by Norfolk Southern, CSX, Conrail, and Connecticut Southern freight trains, and MARC commuter trains equipped with the V-ETMS onboard system, by providing a V-ETMS overlay on the portions of the NEC where these trains will operate. Additional funding to fully comply with PTC requirements is necessary. It is important to note that compliance with PTC requirements on the host railroads outside of the NEC could drive significant costs to Amtrak. Amtrak s contribution to PTC installation and maintenance on host railroad property will be based on the Federal statute governing incremental costs, which are costs incurred by hosts solely as a result of Amtrak s presence. Changes in freight and passenger traffic on Class I host railroad lines could cause changes to PTC requirements. If those incremental costs can be attributed solely to Amtrak s operations on the property, the company could be responsible for significant costs outside of its own infrastructure. 27 of 59

28 Marketing and Sales Customer Experience Investments Amtrak pursues a number of programs designed to grow revenue and ridership by improving the customer s overall travel experience. These programs capitalize on data gathered from market research and analysis to target opportunities for improvement, with the ultimate goals of driving increases to ridership and sales, and improving efficiency. Amtrak s FY FY2017 capital plan for Marketing & Sales Customer Experience programs totals $139.5 million, as shown in the following table: Table 9 Proposed Customer Experience Management Program $ millions Federal Capital FY2013 FY2014 FY2015 FY2016 FY Years Customer Experience Programs $11.0 $21.0 $25.0 $22.0 $79.0 Enhancements & Upgrades to Amtrak.com e-ticketing Initiative Wi-Fi Program Expansion Passenger Information Systems Revenue Management System Forecasting Upgrade Point Of Sale System Quik-Trak Kiosk Hardware Refresh Total $0.0 $42.2 $29.1 $29.0 $22.0 $122.3 Amtrak Internal Funds FY2013 FY2014 FY2015 FY2016 FY Years Customer Experience Programs $0.4 $0.0 $0.0 $0.0 $0.0 $0.4 e-ticketing Initiative Revenue Management System Forecasting Upgrade Point Of Sale System Chase Instant Credit System Upgrade Marketing ecrm Platform Upgrade Human Emulation Technology Total $17.2 $0.0 $0.0 $0.0 $0.0 $17.2 Total Capital FY2013 FY2014 FY2015 FY2016 FY Years Customer Experience Programs $0.4 $11.0 $21.0 $25.0 $22.0 $79.4 Enhancements & Upgrades to Amtrak.com e-ticketing Initiative Wi-Fi Program Expansion Passenger Information Systems Revenue Management System Forecasting Upgrade Point Of Sale System Chase Instant Credit System Upgrade Marketing ecrm Platform Upgrade Human Emulation Technology Quik-Trak Kiosk Hardware Refresh Total $17.2 $42.2 $29.1 $29.0 $22.0 $139.5 Customer Experience Programs - the Customer Experience Programs interact with Amtrak s reservation systems to deliver customer-facing functionality through our distribution channels. In FY FY2017, the Customer Experience Program will modernize the interface to the reservations system which will improve customer service capabilities for call center and station ticket agents; enable access to Fare Family functionality in all distribution channels, thereby allowing customers to select from products and fare choices that best suit their needs; allow all distribution channels to 28 of 59

29 access customer profile information from the reservations system which will provide customers more personalized travel options. Enhancements and Upgrades to Amtrak.com - updates the interaction between Amtrak.com and the reservations system to integrate the new functionality created by the Customer Experience Programs. eticketing - the initial phase of eticketing was launched on July 30, This solution delivers print anywhere capability to approximately 90% of Amtrak customers. Customers now have the ability to purchase and print tickets at home, or to be paperless by using a smartphone application, greatly simplifying the customer ticketing process. Furthermore, conductors and accounting personnel no longer have to use paper tickets to capture revenue, and conductors have access to realtime passenger information and greatly improved passenger manifest lists. The technology also enables on-board conductors to electronically report equipment issues to facilitate proper maintenance. The eticketing solution has proven to be very successful with conductors and customers alike. The FY FY2017 eticketing program will focus on extending the complete eticketing solution to Amtrak s intermodal partners (e.g. bus, airline, etc) as well as adding enhancements for conductors, customers and state partners through the addition of enhanced reporting and accounting controls. Wi-Fi Program Expansion this project builds on that success of Wi-Fi in the NEC by extending the installation of Wi-Fi networks to the remaining trains system-wide, beginning with the long distance fleets. In addition to providing Internet access, the network will serve as a platform for other passenger services (e.g. movies, news, and games) and business services (e.g., on board system communications with Amtrak s corporate network). National Passenger Information Systems (OPIS) this program will extend and build upon current Passenger Information Display System (PIDS) capability and deliver an On-board Passenger Information System (OPIS) which, in addition to providing travel information to passengers, will deliver on-board media and entertainment purchase options such as movies, music and games, creating new passenger revenue opportunities. Revenue Management System (RMS) - a multi-year project that will automatically and accurately forecast demand by city pair and by price point for each of Amtrak s train departures, optimizing ticket revenue. RMS will provide price point inventory authorizations to Arrow, Amtrak s reservation system, and passenger demand forecasting to Capacity Management Systems. The result for Amtrak will be incremental ticket revenues from a more efficiently revenue-managed system. Point of Sale Upgrade - new Point Of Sale technology for food car sales will drive financial performance improvements by aligning business practices with hospitality industry best practices, improving accessibility and reliability of data, increasing employee productivity and job satisfaction, enhancing inventory controls, enabling pricing flexibility and product differentiation and increasing cost recovery based on more sophisticated sales data analysis. Chase Instant Credit System Upgrade The Chase Instant Credit functionality on Amtrak.com is a contractual requirement with Chase Bank, the issuer of the AGR Chase MasterCard. This functionality allows Amtrak.com customers to apply for a Chase credit card while in the booking path and if approved, the new credit card number is used as the method of payment for that reservation. The current functionality is provided via integration in the booking path with a Chase third party supplier. Chase is phasing out the third party and is in-sourcing their functionality. Marketing ecrm Platform Upgrade Due to IBM's product discontinuation Amtrak will not be able to perform and Online ecommerce marketing. This project will complete the software and 29 of 59

30 data integration of the Digital Marketing Center (DMC) platform and the Web Site Personalization (WSP) platform to support targeted and customized messaging to visitors on Amtrak.com. Human Emulation Technology It allows users to ask an automated system to answer questions and provide issue resolution. It engages users through natural language dialog and has intelligence to understand a question and determine the correct answer with a high degree of accuracy. Provides enhanced customer experience via natural language processing, advanced computing, intuitive knowledge bases, and state of the art user interface technology. Assists and guides customers towards resolution of their specific issues in an efficient and engaging manner. Quick Track Kiosks Hardware Refresh Existing Quick Track kiosks, which date from 2004, will be out of PCI compliance in April Refresh of current kiosks will permit Amtrak top replace obsolete hardware. The new Quik-Trak kiosks will use state-of-the-art technology to provide continued high levels of customer service with a full range of transactions such as eticket document issuance, remote agent capabilities, reservations purchase, and support of customers needs to exchange, refund and upgrade reservations and permit checked baggage in the self serve environment. These kiosks will continue to meet requirements for accessibility to passengers with disabilities in compliance with section 508 of the Americans with Disabilities Act ( ADA ) and California state law requirements. Technology Investments Like track infrastructure and rolling stock, information platforms and systems are critical components of Amtrak s service delivery and must be maintained in reliable and efficient working order. However, information technology (IT) systems have a far shorter useful life than infrastructure and rolling stock. Many of Amtrak s existing information systems and infrastructure are outdated, inefficient, lack technical support or upgrades and over time will become more prone to failure. Working with outdated technology places Amtrak at a competitive disadvantage, limits growth potential, and restricts the company s ability to implement operational improvements. Furthermore, the increasing risk of failure of key systems must be addressed in order to ensure the uninterrupted continuity of operations. Amtrak s FY FY2017 capital plan for request for Technology investments calls for $415.4 million. The need for IT capital has been lower in recent years due to the completion of the Strategic Asset Management project and the migration to outsourced data center and network providers that include hardware replacement as part of the operating costs. The current Technology plan is shown in the following table, followed by descriptions of the requests. Table 10 Proposed Technology Capital Program $ millions Federal Capital Internal Funds Total FY2013 FY2014 FY2015 FY2016 FY Years FY2013 FY2013 FY2014 FY2015 FY2016 FY Years Operations Foundation $12.0 $21.0 $64.8 $32.7 $32.7 $163.2 $0.0 $12.0 $21.0 $64.8 $32.7 $32.7 $163.2 Technology SOGR & Cost Optimization Credit Card System Upgrade Amtrak Foundation Network Redesign and Expansion Enterprise Resource Planning Foundation Mechanical Technology Next Generation Reservations System IT Strategic Technology Program Human Capital Management Foundation Mobile Applications (0.0) (0.0) Amtrak.com (0.1) (0.1) Cyber Information Security Other Technology Investments Total Information Technology Projects $15.6 $82.2 $136.0 $73.3 $70.6 $377.6 $37.8 $53.3 $82.2 $136.0 $73.3 $70.6 $ of 59

31 Operations Foundation Program - This is a multi-year program that first looks to build a consolidated framework and roadmap for the Operations department investments. This program will enable enterprise wide process change with fully integrated tools and accurate and accountable data repositories that are fully integrated and able to consolidate important operational data. The program will be implemented in a series of phases that are prioritized by the Operations Steering Committee and stakeholders. Projects will include: the integrated Labor Management System (ilms) which will replace and enhance the existing Labor Management System, a service management system that integrates the timetable, equipment, crew and passengers across the planning time continuum, and the delivery of consolidated detailed reporting and analytical capabilities. Technology State of Good Repair and Cost Optimization - Refreshes and expands the IT infrastructure not provided by the data center and network providers, including desktop applications, personal computers and workstations, and independent servers and storage. Credit Card System Upgrade - Modernizes Amtrak's credit card processing systems in order to comply with payment card industry requirements and reduce Credit Card Interchange costs. Amtrak Foundation Improves train operation efficiency by introducing and integrating mobile devices into work flows; consolidating Enterprise Asset Management to a single system for managing facility assets and warranties on assets and asset components. Network Redesign and Expansion Refreshes and expands network infrastructure to provide a highly secure and dependable network for the enterprise. Enterprise Resource Planning (ERP) Foundation Increases the operating efficiency of the enterprise SAP system by integrating the Logistics Warehouse Management system and adding SAP licenses. It improves management reporting with emphasis on Food & Beverage information aimed at reducing costs and increasing revenue. Mechanical Technology Ongoing investment into the Work Management, Mobile Data Management, and Locomotive Health Monitoring & Analysis applications to improve the ability to schedule and monitor mandatory rolling stock maintenance, reduce manual processes and improve reliability and performance of rolling stock. Next Generation Reservations System - Modernize, streamline and significantly reduce business and technical risks from Amtrak s sales, reservation and ticketing system. The current foundation for Amtrak s sales, ticketing, and operational processes - including customer service and train operations - is over 30 years old and is based on outdated technology. The potential failure of this outdated infrastructure presents a critical business risk that must be addressed. IT Strategic Technology Program - The program is designed to organize and prioritize key strategic initiatives to be developed in the Information Technology area that are assessed as critical to providing world class IT services, assessing and responding correctly and quickly to emerging and evolving technologies, meeting threats to information confidentiality, availability and integrity, and meeting corporate strategic goals and priorities. Human Capital Management (HCM) Foundations Improves communication to employees and automates several HCM processes. Impacted systems and processes include Employee Information Management system enhancements, Employee Communications Portal, e-recruiting Resume Parsing Module, Family Medical Leave Act Administration System, Human Capital e-forms and New Hire Onboard Automation System. 31 of 59

32 Mobile Applications - Improve performance, availability, and maintainability of Amtrak's deployment and utilization of all categories of mobile device used in eticketing and in conductor mobile device initiatives, including supporting network infrastructure, applications and upgrading platform technology to latest supported version. Amtrak.com - This project intends to deliver an enhanced customer experience and increase sales opportunities by providing accurate and reliable travel information in an interactive and simple interface. Develop a strategic plan for creating and delivering destination and enroute content for major markets. Cyber Information Security Continuation of a multi-year program that enhances and refreshes Amtrak s information security technology. This program ensures compliance with regulatory and legal requirements, improves the ability to ensure the confidentiality, integrity, and availability of Amtrak s critical infrastructure systems, safeguards customer transaction information, and enables quick response to vulnerabilities in the information technology infrastructure. Environmental Remediation Capital Investments Amtrak s request for Environmental Remediation capital is $58.5 million. These clean-up efforts are required by state directive or by agreement. $ millions Table 11 Proposed Environmental Remediation Capital Plan FY2013 FY2014 FY2015 FY2016 FY Years Wilmington Remediation $1.3 $2.3 $2.5 $5.5 $2.0 $13.6 Wilmington Maintenance Facility Stormwater System Upgrade Wilmington West Yard Remediation Wilmington Shop Replace Petroleum Tanks Beech Grove Facility - Wastewater Treatment Upgrades Sunnyside Yard Oil/PCB Remed Asbestos/Lead Paint/Mold Abatement Sunnyside Yard Asbestos Wrap Abatement Los Angeles Wastewater Treatment Upgrade New Brunswick Commuter Yard Remediation Onboard Recycling Receptacles Trenton NJ - Commuter Yard Remediation New Orleans DAF Upgrades New Orleans Fueling Facility Upgrs Prevention Of Groundwater Contamination Sanford FL - Storm Water System Upgrade Sanford FL Wastewater System Upgrade Penn Station Track Remediation Cedar Hill Remedation Oakland Stormwater Treatment System Hialeah FL PAHS Remediation Future Remediation Future Pollultion Prevention Environmental Remediation Projects $4.6 $9.4 $14.2 $18.2 $12.0 $58.5 Wilmington Facility Remediation Amtrak has signed a Voluntary Cleanup Agreement with the Delaware Department of Natural Resources and Environmental Control to remediate PCB and petroleum soil contamination at the Wilmington maintenance facility and initiate erosion control measures. 32 of 59

33 Wilmington Maintenance Facility Stormwater System Upgrade This project is mandatory based on requirements of the City of Wilmington for wastewater discharge. Currently storm water from the Locomotive Yard is conveyed either directly to Outfall 002 or to the Industrial Wastewater pretreatment system. The Yard collection system needs to be reconfigured so that drainage of the yard, yard pits, and containment areas (fueling pad, offloading pad) flow through an oil/water separator and then discharges to Outfall 002. Wilmington West Yard Remediation The Delaware Department of Natural Resources performed an investigation of the Wilmington West Yard as part of a regional study in November Low levels of contaminants were found throughout the site from Mill Creek (southern end) to Beech Street (northern border). Wilmington Shop Replace Petroleum Tanks Two petroleum storage tanks at the Wilmington shops have failed inspection and testing and must be replaced during FY2013. These tanks are very old and of riveted construction, therefore the tanks cannot be repaired. The exact age of these tanks is unknown. These tanks and related system must be removed and replaced to prevent a catastrophic release of petroleum on to the site. Beech Grove Facility Wastewater Treatment System Upgrades - Replaces the existing wastewater treatment system that is 60 years old and which has the potential to contaminate ground water. Sunnyside Yard Oil/PCB Remediation - By order of the New York State Department of Environmental Conservation, Amtrak and New Jersey Transit are involved in a multi-year effort to remove PCB-contaminated soil and clean-up of ground water at New York s Sunnyside Yard. Asbestos, Lead Paint and Mold Abatements - Multi-year initiative to remove or remediate asbestos, mold and lead paint as encountered during construction projects. Sunnyside Yard Asbestos Wrap Abatement - The utility trenches at Sunnyside Yard (between tracks 13/14, 15/16, 17/18, 19/20, 21/22, 23/24, and 25/26), which is where New Jersey Transit trains are platformed, have old steam lines with asbestos wrap on them. The steam lines are no longer in service. Prior to the new water service pipes being installed in these trenches, the old pipes and trenches need to be abated of asbestos. Los Angeles Facility Wastewater Treatment System Upgrades - Covers the potential elimination or reduction in use of 80 year old wastewater treatment ponds at Los Angeles Yards that have considerable potential for non-compliant discharges. This project anticipates design of subsurface storm water diversion features and construction of storm water diversion devices such as containment curbs, canopies or other enclosures. County Yard Environmental Remediation - Commuter yard in New Brunswick, NJ is owned by Amtrak but has never been operated by Amtrak; rather New Jersey Transit operates the facility under an operating agreement for commuter operations. The State of New Jersey has been notified of PCB contamination at the site and directed remediation. As owner Amtrak is responsible for ensuring remediation. On Board Recycling Receptacles - This project, covering installation of permanent recycling containers on Amtrak equipment, is designed to address multiple issues related to trash and recycling on our trains. Amtrak provides 12 million bottles and cans to our customers with minimal recycling available on most trains. In addition, storage capacity for trash and recycling has become an issue as Amtrak has eliminated certain trash stops on some long distance trains. 33 of 59

34 As a result, additional trash must be stored on trains, sometimes beyond the capacity of the builtin trash containers. East Barracks Yard Remediation - Commuter yard in Trenton, NJ is owned by Amtrak but has never been operated by Amtrak; rather New Jersey Transit operates the facility under an operating agreement for commuter operations. The State of New Jersey has been notified of PCB contamination at the site and directed remediation. As owner Amtrak is responsible for ensuring remediation. New Orleans DAF Upgrades - The existing wastewater treatment system (Dissolved Air Flotation) is nearly 30 years old and replacement parts can no longer be obtained. Therefore, the wastewater treatment system must be replaced. New Orleans Fueling Facility Upgrades - This project involves upgrading two areas at the facility with the potential for significant contamination. The areas are the fueling area and the used oil tank, including associated 500 feet of underground line. The fueling area currently has fiberglass pans for containment. These pans are worn and cracked and are often shifted out of place by employees and equipment, leading to leaks and spills onto the ballast. We will also design and construct a concrete secondary containment system with roofing for the fueling area. Prevention of Groundwater Contamination - Amtrak has a number of above and underground storage tanks used mostly for petroleum storage across the country of various sizes and ages. Several have deteriorated or are approaching the end of their useful lives and will need significant upgrade or replacement. This project is for removal and replacement of three deteriorating underground storage tanks. Sanford FL Storm Water System Upgrade - Several sections of the storm water system at Sanford, FL have collapsed and are currently allowing the inflow of groundwater. This creates a higher potential for contamination. This project covers the investigation, design and replacement of deteriorated storm water system at Sanford, FL Facility. Sanford FL Wastewater System Upgrade - The existing oil/water separator is unable to handle and properly treat wastewater being generated in the diesel shop, which has resulted in violations with the City of Sanford. Additionally, wastewater volume is anticipated to double under the SunRail contract. This project would include design and construction of an appropriate and properly sized wastewater treatment system for the facility. Penn Station Track Remediation - Mandatory multi-year project to properly disposing of soil contaminated with Polychlorinated Biphenyls (PCBs) soil during track work. Extensive PCB contamination exists at Penn Station and remediation has occurred annually since Cedar Hill Remediation Maintenance of Way facility in Connecticut has PCB soil contamination soil that must be remediated by direction of the Connecticut Department of Environmental Protection. Oakland Storm water Treatment System - This project covers design and installation of a storm water treatment system capable of preventing a significant diesel or oil release into a storm water discharge system. Tankers fill bulk engine oil aboveground storage tanks adjacent to several storm water inlets. As the Oakland Maintenance Facility is very close to the sensitive ecological, commercial, and recreational uses of the San Francisco Bay, we are recommending additional protections in the form of an in-line oil water separator to prevent spills from reaching the San Francisco Bay. 34 of 59

35 Hialeah FL PAHS Remediation - During construction activities in Hialeah Yard, FL, soil contamination (polyaromatic hydrocarbons) was discovered by the contractor. Amtrak must continue remedial investigations as required by Miami-Dade Department of Regulatory and Economic Resources, delegated authority of the Florida Department of Environmental Protection. This fiscal year the Environmental group will complete the Soils Removal Report, and depending on the results, may be required to perform additional remedial activities. Future Remediation The project serves as a place holder for remediation projects that are not yet identified at the individual site level. Amtrak may become aware of a liability due to visible signs of contamination, environmental audits performed, from property transfer due diligence, or Amtrak may receive notification from the Environmental Protection Agency (EPA) or state regulatory agency stating that Amtrak may be liable for environmental remediation costs (an Administrative Order ). Future Pollution Prevention This project serves as a place holder for pollution prevention projects (pollution control systems, tank upgrades, etc) that are not yet identified at the individual site level. These can be replacements/upgrades of systems that have reached their useful life. Security Capital Investments The majority of security investments are funded by grants from the Department of Homeland Security (DHS). As DHS grants decline it may become increasingly necessary to rely upon normal Federal capital appropriations in order to maintain and improve our security infrastructure and systems. The table below shows the current availability of DHS funds from previous appropriations over the next five years. $ millions Table 12 Proposed Security Capital Plan FY2013 FY2014 FY2015 FY2016 FY Year DHS Funded Security and Hardening Program $37.1 $10.0 $5.5 $0.0 $0.0 $52.6 $0.0 GCAP Funded $0.0 Stryker Evacuation Chair Purchase 2.5 $0.0 $0.0 $2.5 Washington Union Station - CCTV Installation 3.5 $0.0 $0.0 $3.5 Amtrak System - Security Hardening 1.5 $0.0 $0.0 $1.5 Total Police & Security $37.1 $10.0 $13.0 $0.0 $0.0 $ of 59

36 Other Capital Investments Other capital investments are needed primarily for equipment to support station, commissary, and warehouse operations, and to replace vehicles. The table below shows the current projection for these needs over the next five years. $ millions Table 13 Proposed Other Capital Plans Federal Capital FY2013 FY2014 FY2015 FY2016 FY Year Stations Support Equipment $0.3 $17.0 $3.0 $3.0 $23.3 Vehicle Replacement Mat Handling Equipment & Facility Repairs Commissary Support Equipment All Other Capital Projects $0.3 $1.0 $23.2 $10.7 $8.0 $43.1 Other Funding FY2013 FY2014 FY2015 FY2016 FY Year MARC Joint Benefit Projects $3.2 $7.0 $7.0 $7.0 $7.0 $31.2 Mat Handling Equipment & Facility Repairs Equipment Pool Committee Program & Administration Costs OIG Office Improvements - Philadelphia All Other Capital Projects $5.3 $7.0 $7.0 $7.0 $7.0 $33.3 Total Capital FY2013 FY2014 FY2015 FY2016 FY Year MARC Joint Benefit Projects $3.2 $7.0 $7.0 $7.0 $7.0 $31.2 Stations Support Equipment Vehicle Replacement (0.0) Mat Handling Equipment & Facility Repairs Equipment Pool Committee Program & Administration Costs Commissary Support Equipment OIG Office Improvements - Philadelphia All Other Capital Projects $5.6 $8.0 $30.2 $17.7 $15.0 $76.4 Maryland Area Regional Commuter (MARC) - Amtrak will spend contractually obligated funds developed through the joint benefit capital program process for commuter railroads. Stations Support Equipment - Replace a variety of support equipment at stations and facilities. This equipment would include items such as radios, tractors, people movers, baggage floats, selfservice luggage carts, wheelchairs, and wheelchair lifts. By combining orders from several divisions, we can take advantage of volume discounting to purchase more support equipment with less funding. Additionally, we can move in the direction of providing some consistency in the types of support equipment from one facility to the next. Vehicle Replacement - This project addresses the state of good repair of the specialized heavy duty vehicle fleet. The project is for replacement units only and will not increase the size of the fleet. Vehicles included are custom built units with long lead times that cannot be supplied by GSA Fleet Operations. Vehicles included in this request are welding trucks, line trucks with digger derricks, grapple trucks, and refrigerated units. The vehicles recommended were chosen based on a combination of age, mileage, overall condition, and increased maintenance costs. 36 of 59

37 Material Handling Equipment & Facility Repairs - To replace and upgrade material handling equipment at Materials Management warehousing facilities system wide. Equipment being replaced is generally beyond its useful life (8-10 years) and beyond economical repair. In addition to make improvements to Material Management store rooms, warehouses, and rail yards. Improvements include: storage racking system and decking to improve storage capacity. Equipment Pool Committee - The PRIIA Section 305 Next Generation Equipment Pool Committee (NGEC) is directed to design, develop specifications for, and procure standardized next generation corridor equipment. Participants in the NGEC effort include Amtrak, States, and FRA, host railroads, equipment manufacturers and other operators as appropriate. The NGEC will determine the number of different types of equipment required; establish a pool of equipment for use on routes funded by participating states, and subject to agreement, utilize Amtrak provided services to design, maintain and remanufacture equipment. This project (grant) is administered by Amtrak on behalf of the NGEC to perform work activities associated with the Section 305 NGEC scope of work as approved by the NGEC and the grant agreement. Program and Administration Costs - Regional program management and engineering services will be engaged to enable effective management and coordination of the variety of construction projects across the nation. This project is established to account for program management and administrative expenses that cannot be directly attributed to a single defined project. Commissary Support Equipment - Replace a variety of commissary support equipment. This equipment would include items such as dishwashers, pallet jack lifts, emergency power generators and refrigeration compressors. By combining orders we can take advantage of volume discounting to purchase more commissary support equipment with less funding. Additionally, we can move in the direction of providing some consistency in the types of commissary support equipment from one commissary to the next. OIG Office Improvements Philadelphia The offices in Philadelphia needed to be upgraded to meet space requirements and improve storage of documents. 37 of 59

38 Fleet Strategy The following discussion responds to the direction in Consolidated and Further Continuing Appropriations Act, 2013, incorporating direction from the Consolidated and Further Continuing Appropriations Act, 2012, that the Corporation s budget, business plan and 5-Year Financial Plan, be accompanied by a comprehensive fleet plan. Amtrak has prepared comprehensive fleet plans in each of the last three fiscal years. The most recent such plan, Amtrak Fleet Strategy: Building a Sustainable Fleet for the Future of America s Intercity and High Speed Railroad Version 3.1, was published on March 29, 2012 (March 2012 Fleet Strategy) and is available at There have been no significant changes to inventory of Amtrak s rolling stock or plans and time frames for rolling stock maintenance, refurbishment or replacement since the publication of that document, other than that identified below. Therefore Amtrak is resubmitting the March 2012 Fleet Strategy this year by reference, with the explanation and qualifications provided below, as the FY2013 comprehensive fleet plan. Amtrak s management believes that this is the best approach within the time frames available this year, to be responsive to this direction. Amtrak s independent Inspector General has recommended that Amtrak management seek to have Congress suspend any requirements for a FY2013 fleet strategy document, in recognition of the changes in fleet planning underway at Amtrak. Amtrak s New Approach to Fleet Strategy Amtrak is implementing a different approach to fleet planning which is still in its developmental phase. Moreover, there are a number of challenges and uncertainties Amtrak faces today that directly and adversely impact our ability to develop a more meaningful update for the need for long-term fleet investments than that contained in the March 2012 Fleet Strategy. Both the different approach to fleet planning and the challenges and uncertainties are discussed below Amtrak rarely orders new rolling stock and thus there has not been a consistent approach to developing the requirements for such acquisitions. Early versions of Amtrak s strategic fleet planning focused on identifying the cost to recapitalize Amtrak s aging fleet in timely manner based upon assumptions that Amtrak s services would remain essentially unchanged and that ridership would increase uniformly system-wide by a modest annual growth rate. This provided a high-level estimate of the cost of recapitalizing Amtrak s fleet in an orderly manner assuming that the capital needed for such recapitalization would be available on a predictable multi-year basis. Amtrak is transitioning its fleet planning to a more bottom s up approach that focuses on fleet needs articulated by specific business strategies. Amtrak s new approach to fleet strategy is being designed to emphasize the commercial nature of Amtrak s business. The foundation for fleet strategy is articulation of the commercial strategy for the operating business lines that will be based on a strategic evaluation of the markets they serve. The business line general manager will recommend how the service be positioned and designed to maximize net income, while meeting customer expectations. From this will flow proposed operating schedules and the equipment requirements needed to meet these schedules (e.g. number of trains, seats and amenities for each train, performance attributes of trains). The next step is an assessment of Amtrak s current assets, including assets that might need to be repurposed to meet equipment requirements, as well as options and opportunities for supplementing Amtrak s fleet through acquisition of existing or new equipment. This assessment will develop into the business case for the proposed service including costs of various scenarios involving equipment, opportunities for internal synergies, opportunities for external partnerships, opportunities for external financing, and estimates of return on investment, external benefits, and risks. 38 of 59

39 The business case will then flow into Amtrak s resource allocation decision making process where the recommendations for use of Amtrak s resources and future investment will be prioritized against other investment needs. At this point the theory intersects with the reality of Amtrak in that Amtrak does not know from year to year the level of capital resources that will be available to meet those needs. The end result will still be aspirational in many respects, but the link between investment needs to strategic outcomes will be better than in the past. Past fleet plans provided an inventory of Amtrak s entire fleet, including the age and average mileage accumulated by specific equipment types with an indication of when as part of a total recapitalization of the fleet, replacement equipment should be ordered. These plans however did not emphasize the distinctions between where Amtrak had affirmatively made a decision to order equipment in the near-term and where the information was being provided to policy makers as to the rough size of the challenge of recapitalization of the fleet over the long-term. The fleet plan of the future most likely will consider fleet needs in three different time frames and thus provide for a better distinction between short-term actions and long-term plans. The first time frame will be one-year and align with the Corporation s legislative and grant request. It will address the status of equipment acquisitions previously committed to and those specific fleet-related actions for which we will seek financing in the next year or public capital investment in the next Appropriations Act. The second time frame will reflect the five-year mid-term plans of the business lines and align with the Corporation s five-year financial plan. These requests will identify the fleet needs required to implement the five-year plans but not necessarily reflect decisions on the prioritization of the use of capital. It is during this time frame that business cases will be developed that address specific equipment needs and address such options as the use of existing equipment, repurpose/rebuild of existing equipment, and/or acquisition of new equipment. Thus the five-year mid-term plan will be less specific as to the cost and timing. The third time frame will be a longer-term outlook that among other things addresses the aging and additional wear and tear being placed upon our fleet. This will help provide policy makers an opportunity to see the long-term but not immediate financial needs of intercity passenger rail service and help inform decisions such as the development of a reliable, long-term source of capital investment and opportunities to develop domestic manufacturing of rail equipment that is sustainable over the long-term. Challenges and Uncertainties Facing Strategic Fleet Planning The greatest challenge to any strategic planning at Amtrak is that the nature, amount or conditions related to funds available for capital investment are not known with any sense of assurance from year to year. There is no better example than this year. As of March 20, 2013, almost half way through the fiscal year, Amtrak did not yet have a completed capital grant agreement for FY2013. This lack of certainty makes it difficult to commit to long-term projects, even those with very good returns on investment. It drives up costs as Amtrak frequently cannot take advantage of economies of scale or respond to unexpected opportunities. To address this, in Amtrak s FY2014 legislative and grant request, Amtrak has proposed to Congress creation of a predictable multi-year funding program for Amtrak similar to enacted legislation currently in place for highways, transit and aviation. A similar proposal has been made by the Administration in the President s FY2014 budget request. A second significant challenge is the atrophied nature of the domestic passenger rail equipment manufacturing base. The interchange standards of the Association of American Railroads, the promulgation of safety regulations by the Federal Railroad Administration (FRA), and statutory and regulatory requirements addressing Buy America and the Americans with Disabilities Act have effectively precluded equipment manufactured overseas from being used in the U.S. rail market up until this time. While the more robust funding of transit has caused some foreign manufacturers to produce equipment for the commuter rail market in U.S., periodic spikes in orders for that market rather than extended periods of relatively constant orders, and the tendency of many commuter properties to 39 of 59

40 customize their equipment, have limited the opportunities for Amtrak to benefit from that manufacturing base. Amtrak cannot order one or two additional pieces of passenger equipment at reasonable costs for delivery in reasonable time frames. Instead, Amtrak s experience in acquiring equipment for passenger rail service can best be described as infrequent, episodic and limited to batches frequently separated by decades from the acquisition of equipment for similar purposes. Amtrak has been required to base its equipment orders not just on existing needs but also in anticipation of growth in demand and equipment that might become unserviceable before the end of its commercial life. A third significant challenge is the uncertainty that comes with the upcoming end of the authorizations contained in the Passenger Rail Investment and Improvement Act of 2008 (PRIIA). PRIIA enacted fundamental changes in the roles of Amtrak, the Federal Government and the states as they relate to the provision of intercity passenger rail service. As outlined below, some of these changes materially affect Amtrak s ability to undertake fleet planning for the long-term. The timing and nature of the provisions contained in PRIIA s successor may also have significant but as yet unknown ramifications for Amtrak s fleet planning. As an example, the President s FY2014 budget proposal, which contains the outline of a five-year authorization of investments in intercity passenger rail service, would if enacted significantly accelerate the timing of certain fleet acquisitions outlined in the March 2012 Fleet Strategy. It can be safely assumed that there might be alternative views on reauthorization in the Congress. A fourth significant challenge relates to the fleet strategy for short-distance trains, which account for over 36 percent of our passenger cars and over 40 percent of our locomotives. Under Section 209 of the Passenger Rail Investment and Improvement Act of 2008 (PRIIA), starting in FY2014 states will begin and/or expand their financial support for short-distance trains, defined as those that operate over routes 750 miles in length or less. Included within this financial support will be a capital charge reflecting Amtrak s costs, including capital and maintenance costs of equipment, associated with providing this service. The effect of PRIIA section 209 is to have Amtrak s relationship to the states for short-distance trains take on many of the attributes of a contract operator. Amtrak will run the trains the states compensate us to run. Some short distance services may be terminated. For those that are not, the states will play the major role in the design of the service including determining the equipment that is provided for each of these services. Among the states options are: 1) to compensate Amtrak for the use of Amtrak-owned and maintained equipment; 2) to compensate Amtrak for acquiring equipment for the benefit of a specific service; 3) to compensate Amtrak for operating and maintaining equipment owned by the state; 4) to compensate Amtrak to operate equipment owned and maintained by the state; or 5) various combinations of the above. Adding further to the complexity of addressing this part of fleet strategic planning is that, under past practice, certain types of equipment have been shared between short distance and long distance trains and it is unclear whether and how that will continue in the future. This represents a new environment in which Amtrak must plan its fleet needs. With limited exceptions, primarily California, North Carolina, and Washington, for the previous 40+ years the market for intercity passenger rail equipment was largely defined by Amtrak. Now there are other entities, (albeit with some degree of Amtrak s support) that are taking the lead in defining equipment specifications, ordering equipment, testing prototypes and entering the new equipment into revenue service. On November 20, 2012, California, on behalf of itself, Illinois, Michigan and Missouri, ordered 130 section 305-compliant multi-level coaches for corridor service in California and the Midwest. In the near future, Illinois will initiate procurement on behalf of several states for 125 mph capable diesel locomotives. This changed environment will lessen Amtrak s need to acquire equipment for short distance service. It will also offer Amtrak opportunities to benefit from having the states assume the responsibility for overseeing the design, initial fabrication and prototype testing (and the unexpected costs that frequently accompany such activities) and from the economies of scale that can be realized by placing options on state orders where the equipment being ordered meets Amtrak s needs. 40 of 59

41 No doubt with time Amtrak will be better able to judge how to plan for the states decisions concerning equipment, but the early years of transition will be filled with ambiguity. As an example, for the states participating in the order of multi-level coaches that will replace Amtrak-owned equipment, many questions remain to be answered. When will this equipment be delivered and ready for revenue service; will Amtrak or some other entity maintain the equipment; which states will acquire section 305 locomotives or ask Amtrak to supply the power; will the FRA have funds in the future to assist the states in translating their other equipment desires into reality; and, what becomes of the older single-level coaches freed up by this acquisition? While states obligations under section 209 begin in FY2014, thus far we have heard affirmatively from just two of the 18 Section 209 states that they are committed to continuing the state-supported service after September 30 of this year. Moreover, Amtrak expects that at least the initial state commitments under section 209 will be for time periods of one or two years too brief on which to base a decision to order new equipment. Thus, for the time being, Amtrak s fleet strategy for the State-Supported Service business line will be very much a wait and see how section 209 develops. Timing of the Evolution of Fleet Strategic Planning Amtrak is in the final stages of the reorganization of those functions of the Corporation that will report to the Vice President of Operations. This reorganization includes establishment of three operating business lines Long-Distance Service, Northeast Corridor Operations, and State-Supported Services. These three business lines will be the prime actors in developing recommendations for future fleet needs, supported by Amtrak s existing Mechanical and Transportation departments and the new Operations Research and Customer Service departments. Selections for the Chiefs of these departments are now nearly complete. Amtrak anticipates the initial five-year business plans for these departments will be developed by early FY2014, with the analysis of fleet issues to follow shortly thereafter. It will likely be FY2014 at the earliest and more likely FY2015 before the combination of the standup of this new approach to managing our business and the uncertainty about State-Supported Service equipment needs under PRIIA section 209 can be reflected in a meaningful update to our fleet strategy. In the meantime, the new approach to fleet decision-making is being piloted as part of our efforts, in partnership with the California High-Speed Rail Authority (CHSRA), to explore and possibly procure the next generation high-speed rail trainsets. This equipment would supplement and possibly replace the current Acela trainsets used for premium service on the spine of the NEC while also meeting the requirements for the initial operating segment of the California High-Speed Train. Amtrak at this time is assessing the market needs and opportunities for high-speed service on the current NEC infrastructure which we anticipate will be completed this summer. Amtrak and the CHSRA jointly released a Request for Information to builders of high-speed trainsets in operation overseas, to help inform the partners as to what is available in the market place that can meet the requirements of Amtrak and California and the emerging flexibility of FRA from a safety regulatory perspective. The acquisition would be the first major effort by Amtrak to undertake a significant equipment acquisition with an outside partner and the first major use of performance-based rather than design-based specifications. Working groups are being established to help define what those performance-based specifications will be. A decision as to whether to proceed with this acquisition and, if so, selection of a vendor will likely happen in mid to late Existing Equipment The following table shows the planned units to be active and shopped for maintenance and overhaul activity in Amtrak s mechanical facilities. 41 of 59

42 Table 14 Rolling Stock Availability by Fleet End FY2012 End FY2013 Projected Planned Net Planned Net Active Shop Available Active Shop Available Car Fleet Amfleet I Horizon Surfliner California Cars North Carolina Cars Amfleet II Heritage Baggage Cars Heritage Diner/New Diner Heritage Dome/Parlor Cars Viewliner/LDSL SuperLiner Auto Carrier Cab Cars / NPCU Other Total Car Fleet 1, ,309 1, ,312 Locomotives Electric Locomotives Diesel Locomotives Switchers Locomotives Totals Trainsets Acela (20 Trainsets) - Cars Locomotives Talgo (5 Trainsets) - Cars Locomotives Total Trainsets Grand Total 2, ,838 2, ,831 Planned Availability % 85.0% 84.7% 1 Long Distance Single Level cars to replace Heritage Baggage Cars and Diner Cars and augment Single Level Sleeper fleet (130 car order comprised of 25 diners, 55 baggage cars, 25 bag/dorm cars, and 25 sleepers) 2 Other cars include two service dorm cars, three exhibit cars, two wheel cars, two Maintenance of Way parts cars and one conference car 3 Electric locomotive deliveries begin FY2013 and continue through FY2016. Electric locomotives will not enter revenue service until FY Switchers were not previously included in planned shop counts. Adding has no effect on passenger service. Anticipated Equipment Acquisition Activities, FY2013-FY2017 At this time Amtrak anticipates that its equipment acquisition over the five-year time period covered by the 5-Year Financial Plan will consist of: 42 of 59

43 1) Completing the acquisition of 70 ACS-64 electric locomotives pursuant to a contract entered into with the Mobility Division of Siemens Corporation in September The initial three units of this order are in testing. Amtrak anticipates that the initial unit will enter revenue service by the end of FY2014 with the final unit entering revenue service by January The total cost, including program management, spare parts and facility improvements will be $562.9 million. These locomotives are being funded by a loan agreement under the Railroad Rehabilitation and improvement Financing (RRIF) Program. Amtrak s debt service payments related to this loan will come from net operating revenues from Amtrak s Northeast Corridor operations. 2) Completing the acquisition of 130 single level long distance passenger cars pursuant to a contract entered into with CAF USA in August Amtrak anticipates the delivery of the first cars for testing by end of calendar year 2013 with the final unit entering revenue service by the end of calendar The total project cost will be $342.8 million. The FY2013 payments for acquisition of these cars and related spare parts is being requested as part of the Federal capital appropriation request. 3) Acquisition of up to eight low emission switcher locomotives. Amtrak has previously taken delivery of four such switch locomotives two funded by a grant by the U.S. Environmental Protection Agency and two funded by grants from the Illinois Environmental Protection Agency and Illinois Department of Transportation. 4) Initiating the acquisition of equipment for premium Acela service on the spine of the Northeast Corridor. Other than these four specific acquisitions, Amtrak s current plans are to continue to maintain and refurbish its fleet. Regarding the equipment for the Acela service, the March 2012 Fleet Strategy included a plan to acquire 40 additional coaches to expand the capacity of the existing Acela trainsets. After undertaking further analysis of this option, Amtrak has decided to proceed with the acquisition of next generation high-speed trainsets to supplement and eventually replace equipment used to provide Acela service. This will involve the first application of the Tier III equipment standards recently approved by the engineering task force of FRA s Rail Safety Advisory Committee. The current goal is to issue a request for proposals no later than the end of FY2013, award the contract no later than the end of FY2014, begin testing a prototype in 2016, with the first equipment entering revenue service on the Northeast Corridor during FY2017 or FY2018. Amtrak s FY2014 request includes an estimated cost to begin this procurement and associated improvements to support the new trainsets of $200 million. This would cover program management costs and initial start-up payments to the vendor that are normal for this type of procurements. Important details of this order of equipment have not been finalized, including the total number to be ordered, the expected cost per unit, the timing when the equipment will enter into revenue service, and how the deliveries of equipment will be shared if both Amtrak and CHSRA commit to a joint order. These details will be resolved during the review of proposals which is anticipated to begin in the second quarter of FY2014. The timing, number and cost estimates related to this acquisition in Amtrak s out-year budget estimates therefore will be revised late in FY2014 when better information on cost and delivery schedule is available. Other adjustments to the March 2012 Fleet Strategy The March 2012 Fleet Strategy projected that the acquisition of additional single level cars and diesel locomotives would begin in FY2016 and acquisition of additional bi-level cars would begin in FY2018. Decisions on such acquisitions are being deferred to allow additional time for Amtrak to develop strategies to reflect the challenges to fleet planning. 43 of 59

44 FY FY2017 Operating Summary While significant focus in the FY2013-FY2017 period will be on progress and investments toward a new high-speed future, Amtrak will continue to deliver safe, efficient, on-time passenger rail service that will continue to improve without significantly increasing dependence upon Federal operational support. Amtrak estimates it will need $1,931.5 million in Federal support of Operations during the FY2013- FY2017 five year period. During these years Amtrak expects to cover 89% of operating costs with revenue, while repaying about $119.4 million of RRIF loans from farebox receipts. The table below summarizes the projected five year operating need. Table 15 - Projected Profit and Loss Statement FY2013 FY2014 FY2015 FY2016 FY2017 $ millions Budget Request Plan Plan Plan Ticket Revenue $2,099 $2,125 $2,207 $2,286 $2,366 Food and Beverage Subtotal Passenger Revenue 2,222 2,253 2,338 2,420 2,503 State Supported Train Revenue Other Revenue Total Operating Revenue $2,941 $3,069 $3,166 $3,263 $3,360 Salaries, Wages and Benefits: Salaries Wages & Overtime 1,069 1,100 1,123 1,151 1,180 Employee Benefits Employee Related Salaries, Wages and Benefits 1,976 2,067 2,126 2,192 2,264 Train Operations Fuel, Power, & Utilities Materials Facility, Communication, & Office Advertising and Sales Casualty and Other Claims Total Professional Fees Data Processing Services and Supplies M of W Services Passenger Inconvenience Financial Transfer Credits (from Capital Projects) (129) (134) (134) (134) (134) Other Expenses Total Expenses $3,356 $3,461 $3,569 $3,676 $3,788 Operating Loss (Cash Basis) ($415) ($392) ($403) ($413) ($428) Exclude Repayment of RRIF Loan 1 $19 $29 $34 $37 Federal Appropriation Support $415 $373 $373 $379 $391 This income statement represents the total federal support required for Amtrak operations. This income statement does not represent a Generally Accepted Accounting Principles (GAAP) financial statement. As compared to a GAAP financial statement, this income statement excludes costs for Amtrak's Office of the Inspector General (funded independently), non-capitalizable costs and certain contributions associated with capital projects (funded by capital appropriation), and net interest expense (funded by debt service appropriation), depreciation (non-cash expense), and accruals for estimated future post-retirement employee benefits (non-cash expense). 1 Projected RRIF loan repayments are included in the Financial expense line but subsequently excluded from the Operating Grant Request 44 of 59

45 Riders - millions Discussion of Revenue and Ridership Passenger Revenue Passenger ridership and revenue projections are developed with the assistance of a market research consulting firm. The firm employs a complex model that takes into account numerous factors such as population growth, shifts, and preferences, travel industry competition including the price of gasoline, economic conditions, service schedules, and proposed pricing actions. Amtrak has experienced consistent growth in ticket revenue since 2009 through continued delivery of quality service, proactive revenue growth actions and modest pricing actions. Amtrak is positioned to deliver continued strong ridership with passenger revenue expected to total $11.74 billion in FY FY2017. Chart 16 Ridership Trends FY2012 FY2013 Budget FY2014 Plan FY2015 Plan FY2016 Plan FY2017 Plan NEC State Supported Long Distance Long Distance State Supported NEC 45 of 59

46 Chart 17 Ticket, Food and Beverage Revenue Trends $3,000 $2,500 $2,000 $ millions $1,500 $1,000 $500 $0 FY2012 FY2013 Budget FY2014 Request FY2015 Plan FY2016 Plan FY2017 Plan Food & Beverage $122.0 $123.0 $128.3 $130.8 $133.4 $136.1 Ticket Revenue $1,968.2 $2,099.1 $2,124.7 $2,207.0 $2,286.5 $2,366.5 Ticket Revenue Food & Beverage State Supported Services Amtrak has contractual agreements to provide services to 15 states which are in turn to provide financial support to those trains. Section 209 of PRIIA gave Amtrak the following direction for state-supported services: Within 2 years after the date of enactment of this Act, the Amtrak Board of Directors, in consultation with the Secretary (of US DOT), the governors of each relevant State, and the Mayor of the District of Columbia, or entities representing those officials, shall develop and implement a single, nationwide standardized methodology for establishing and allocating the operating and capital costs among the States and Amtrak associated with trains operated on each of these routes [defined as less than 750 miles] and that ensures, within 5 years after the date of enactment of this Act, equal treatment in the provision of like services of all States and groups of States, and allocates to each route the costs incurred only for the benefit of that route and a proportionate share, based upon factors that reasonably reflect relative use, of costs incurred for the common benefit of more than 1 route. Amtrak s efforts with respect to state supported services extend beyond cost-sharing methodology. In November 2012, through partnership with the New York State Department of Transportation and a longterm lease with CSX, Amtrak took over dispatching and maintenance of approximately 100 miles of the Empire Corridor between Poughkeepsie and Schenectady NY. In addition, Amtrak has agreed to construct approximately $200 million of infrastructure improvements to this corridor. The program is funded through a combination of the American Recovery and Reinvestment Act s (ARRA) High-Speed Intercity Passenger Rail program ( HSIPR ) and state funds, and includes: 46 of 59

47 Albany-Schenectady Double Track - 17 miles of second main track and upgraded signals Albany-Rensselaer station 4th track Schenectady station - new platform Replacement of old signal pole lines - new underground cables between Poughkeepsie and Red Hook (north of Rhinecliff) Upgrading of three at-grade public rail crossings When completed in 2016, the improvements will provide the capacity needed to expand rail service, improve service reliability and decrease trip times along the Empire Corridor. On December 7, 2012 the Michigan Department of Transportation (MDOT) purchased the 135-mile Norfolk Southern (NS) rail line between Kalamazoo, Michigan and Dearborn, Michigan. Today Amtrak uses this line to connect major cities such as Chicago and Detroit through the Wolverine service. The purchased line connects to the Amtrak owned and operated Michigan Line between Kalamazoo and Porter, Indiana. Amtrak has negotiated and signed agreements with MDOT to provide dispatching, maintenance, management, and service outcomes on the MDOT-owned portion of the line for 20 years following completion of approximately $200 million of infrastructure improvements. The purchase and subsequent improvements are funded by the Federal Railroad Administration (FRA) pursuant to the Consolidated Appropriations Act, 2010 (Pub. Law ), the HSIPR program, and by state funds. The infrastructure projects include track improvements to support increasing maximum speeds to 110 mph on portions of the line, and installation of a new signal system and Positive Train Control System on the line. Most agreements between MDOT and NS, MDOT and Amtrak, and Amtrak and NS were completed December 7, 2012, and construction on the infrastructure improvements is planned to begin during Completion of the infrastructure program is anticipated to reduce trip times and delays. The Hudson and Michigan Line agreements are expected to have minimal impact on Amtrak costs as the States will reimburse Amtrak for its expenses. Other Operating Revenue Other operating revenue is budgeted according to the operating agreements and operating expenses needed to deliver those services. Commuter Revenue - In addition to providing train operations to 15 sponsoring states Amtrak also partners with the states or regional transportation authorities in Maryland, Florida, Connecticut, and Washington to provide commuter services with annual revenue projected to be $1.358 billion in FY FY2017. Reimbursable Revenue - Amtrak performs reimbursable project work for a number of state agencies on an as-needed basis. Reimbursable revenue is equally offset by operating expenses to perform the work. Commercial Development - Amtrak earns revenue from its real estate operations by leasing retail space at its stations, operating parking garages and leveraging its land holdings by partnering with builders. Amtrak occasionally benefits from non-recurring revenue from these operations, but these items are generally not predictable and are not budgeted. Other Revenue - Amtrak leverages its ownership of track in the Northeast Corridor by charging other railroads access fees for their passage on the NEC. Other revenue sources include resale of electric propulsion to state commuter agencies, commissions from co-branded credit cards, and revenue from other travel partners. 47 of 59

48 Discussion of Operating Expenses Amtrak s FY FY2017 operating expenses are estimated to be $17.85 billion inclusive of RRIF loan repayments. The table below summarizes these expenses by major category. Table 18 Operating Expenses by Category FY2013 FY2014 FY2015 FY2016 FY2017 $ millions Budget Request Plan Plan Plan Salaries $267.4 $285.2 $295.2 $305.6 $316.4 Wages & Overtime 1, , , , ,180.3 Employee Benefits Employee Related Salaries, Wages and Benefits 1, , , , ,263.9 Train Operations Fuel, Power, & Utilities Materials Facility, Communication, & Office Advertising and Sales Casualty and Other Claims Total Amort of Gain On Sale/Leaseback (3.8) (4.1) (4.1) (4.1) (4.1) Professional Fees Data Processing Services and Supplies Environmental and Safety M of W Services Passenger Inconvenience Financial Pcard Transactions Expense Transfers Other Expenses 4.4 (0.1) Transfer Credits (from Capital Projects) (128.9) (133.9) (133.9) (133.9) (133.9) Total Expenses $3,356.3 $3,460.7 $3,568.8 $3,675.5 $3, Projected RRIF loan repayments are included in the Financial expense line but subsequently excluded from the Operating Grant Request Salaries, Wages, Taxes and Employee Benefits Salaries: In FY2012, Amtrak decided to forego performance pay increases to non-agreement employees for one year. By not increasing base wages in FY2012, over a period of five years the company estimates that it saved approximately $50 million in salaries and payroll taxes. A modest pay increase was granted in FY2013 and the five year estimates include a provision for annual merit-based pay increases. Wages: Wage rates for union represented employees are governed by labor agreements. Most of these employees work under five year contracts that began in 2010 and specify periodic wage increases. These agreements follow a consistent industry-standard pattern and rate for wage increases. All agreement employee wages are budgeted using these pattern assumptions. 48 of 59

49 Employee Benefits: Employee benefit costs were calculated using total planned payroll expenses for all business activities. Railroad taxes were planned in accordance with the prevailing tax rates. Planning for benefit costs was assisted by a benefits consultant and was planned in accordance with projected participation in each plan and the projected costs of those plans. Employee health care is an area of considerable financial risk to the company. Amtrak s employee population is considerably older than an average company. Most of Amtrak s health plan members are covered by labor agreements and the company is self-insured; factors that result in less flexibility and less control over health care costs. Amtrak has taken proactive steps to mitigate rising benefits costs. In late FY2011, Amtrak successfully renegotiated its existing pharmacy administration services contract with a prescription benefit provider for agreement-covered employees. The revised contract is estimated to save Amtrak 8.5% of the plan s total projected cost for pharmaceuticals over the three year contract period ( ). In late FY2011 Amtrak also rebid its medical and pharmacy administration services contracts for non-agreement employee plans. The new three year contract with the prescription benefit provider for non-agreement plan pharmacy administration services is estimated to save 9.8% of the plan s total projected cost. These revisions will save Amtrak a total of $12 million over three years. $1,400 Chart 19 Salaries, Wages, Taxes and Benefits $1,200 $1,000 $ millions $800 $600 $400 $200 Salaries Wages & OT Benefits $0 FY2012 FY2013 Budget FY2014 Request FY2015 Plan FY2016 Plan FY2017 Plan Salaries $267.2 $267.4 $285.2 $295.2 $305.6 $316.4 Wages & OT $1,033.3 $1,068.8 $1,100.1 $1,123.4 $1,150.8 $1,180.3 Benefits $608.5 $610.7 $652.0 $677.4 $705.4 $737.0 Fuel, Power and Utilities Train Propulsion: Electricity to power electric locomotives operating in the NEC was budgeted in accordance with projected contractual power costs and projected consumption based on the service schedule. Amtrak negotiates multi-year contracts for bulk electric power to be used for train propulsion. All propulsion power distribution is provided by the Philadelphia Electric Company (PECO) but three companies Exelon, Constellation New Energy, and GDF Suez are utilized as power generation resources. The most recent contracts became effective January 1, 2011 and provide favorable pricing that has limited growth of this major expense for several years. 49 of 59

50 Cost per Gallon Cost per Barrel Consumption of diesel fuel to power off-corridor diesel locomotives was planned in accordance with the service schedule and historical per-mile consumption statistics. Diesel fuel prices per gallon were estimated using the Department of Energy s long term price forecasts and have been indexed to account for geographic price variation due to the sourcing, delivery and transportation options available in each market. The volatility of petroleum markets poses a significant economic risk to Amtrak. Amtrak consumes approximately 66 million gallons of diesel fuel annually, and an unexpected increase of one or two dollars per gallon can have economic consequences. To mitigate this risk, Amtrak routinely purchases fuel hedges on about half of the projected gallon consumption. Typically these hedges could provide up to one dollar per gallon price protection against sudden price increases. Chart 20 Diesel Fuel $4.00 $120 $110 $3.50 $100 $3.00 $90 $2.50 $80 $70 $2.00 $60 $1.50 FY2012 FY2013 Budget FY2014 Request FY2015 Plan FY2016 Plan FY2017 Plan Diesel Cost Per Gallon $3.11 $3.42 $3.51 $3.70 $3.90 $4.12 Cost Per Barrel $96 $99 $104 $109 $115 $120 $50 Utilities: Utility budgets were developed with the assistance of an energy management consultant who also audits and pays our utility bills, and maintains an extensive database of Amtrak s usage history and price agreements that facilitates accurate planning. The company is engaged in several energy conservation efforts that are containing or reducing utility expenses. 50 of 59

51 Chart 21 Fuel, Power and Utilities $300 $250 $200 $ millions $150 $100 $50 Diesel Propulsion Power Utilities $0 FY2012 FY2013 Budget FY2014 Request FY2015 Plan FY2016 Plan FY2017 Plan Diesel $210.2 $227.3 $227.4 $240.1 $253.5 $267.8 Propulsion Power $103.2 $103.8 $106.0 $108.4 $110.1 $111.3 Utilities $41.9 $44.4 $40.3 $41.9 $43.4 $45.0 Train Operations Payments to host railroads for performance incentives and maintenance were planned in accordance with prevailing contracts and projected route performance. Costs for on-board food service were planned in accordance with concessionaire agreements and projected food & beverage on-board sales. Materials Materials consumed in the maintenance of track infrastructure and train equipment were budgeted by the Engineering and Mechanical departments according to the work production plans in each department, including materials used in reimbursable work. Facility, Office, Communication Rent, Common Area Maintenance, and other occupancy costs were budgeted by the Real Estate department to reflect current lease agreements. Advertising and Sales These costs include credit card commissions as well as the costs associated with advertising media and production, the Amtrak Guest Rewards loyalty program, timetable and railway guides, and third party sales channels such as travel agent sales system commissions and connections. Professional Services Requirements for external legal services, consultants, and contracted professional services are planned by individual departments. Data Processing Services and Supplies The costs for contracted providers to operate Amtrak s data centers, networks, and communications infrastructure were planned in accordance with existing contracts and projected usage. 51 of 59

52 Casualty Claims Estimates for casualty claims including employee Federal Employers Liability Act (FELA) and passenger liability were developed with assistance from actuarial consultants. Operating Expenses Paid by Capital Projects Overhead and management attributable to capital projects are allocated to the projects with an offsetting reduction to operating expense. These offsetting reductions to operating expenses, commonly known as transfer credits, were calculated using capital project plans and current transfer credit rates. Transfer credits are applied only to Amtrak workforce labor utilized on a capital project, and materials that are procured, warehoused, and distributed by Amtrak facilities. The migration of capital investment away from workforce projects and into outsourced investments such as the purchase of rolling stock poses the potential reduction to transfer credits, and therefore an increase to operating support requirement. All Other All other operating expenses are developed at the department level based upon known and/or planned contractual commitments and other operational impact. 52 of 59

53 Appendix FY2013 FY2017 Summary Metrics FY2013 FY2014 FY2015 FY2016 FY2017 Budget Request Plan Plan Plan KPIs RASM - Core Revenue per Seat Mile (a) $0.191 $0.199 $0.205 $0.212 $0.219 CASM - Core Expenses per Seat Mile (b) $0.217 $0.224 $0.231 $0.238 $0.245 Core (NTS) Cost Recovery Ratio (c) 87.9% 88.7% 89.0% 89.3% 89.4% Ridership (000's) 31,853 32,498 32,870 33,360 33,860 Passenger Miles per total core employee (000's) (d) On-Time Performance (Endpoint) 85.0% 85.0% 85.0% 85.0% 85.0% Customer Satisfaction Index 85 n/a n/a n/a n/a Host Railroad Performance (e) Other Indicators Seat Miles (000's) 12,789,009 12,904,290 12,904,290 12,904,290 12,904,290 Passenger Miles (000's) 6,916,447 7,044,534 7,128,000 7,225,000 7,324,000 Train Miles (000's) 37,409 37,695 37,695 37,695 37,695 Average Load Factor 54.1% 54.6% 55.2% 56.0% 56.8% Core diesel gallons per train mile (f) Seat Miles per total core employee (000's) (g) Customer Injuries n/a n/a n/a n/a n/a Equipment - % of Units in Service: Locomotive Fleet 85.3% 84.1% 84.2% 84.7% 85.0% Passenger Fleet 89.0% 89.1% 89.2% 89.4% 89.6% Unadjusted Ticket Revenue ($000's) $2,149,090 $2,176,477 $2,258,718 $2,338,213 $2,418,213 Average Ticket Yield $ $ $ $ $ Average Ticket Price $67.47 $66.97 $68.72 $70.09 $71.42 Core Revenue per Train Mile (h) $71.30 $75.46 $77.90 $80.28 $82.68 Core Expenses per Train Mile (i) $82.87 $85.18 $87.92 $90.61 $93.44 Adjusted Operating Ratio (j) Average cost per gallon of diesel (k) $3.21 $3.51 $3.70 $3.91 $4.12 Notes: (a) This is calculated as NTS Total Revenue divided by Available Seat Miles to be consistent with the KPI's. (b) This is calculated as NTS Total Expense less Depreciation and non-cash OPEB's divided by Available Seat Miles. (c) This is calculated as RASM divided by CASM. (d) Average monthly Passenger Miles divided by year-end headcount. (e) Average monthly minutes of delay per ten thousand Train Miles. (f) This is calculated as Total Diesel Gallons excluding those used for commuter services. (g) Average monthly Seat Miles divided by year-end headcount. (h) This is calculated as Total Core Revenue divided by Total Train Miles. (i) This is calculated as Total Core Expense less Depreciation and non-cash OPEB's divided by Total Train Miles. (j) This YTD measure is calculated as Total Operating Expenses (excluding Depreciation, OIG, OPEB's and PRJ) by Total Operating Revenue (excluding state capital payments). (k) This excludes net Fuel Hedge. 53 of 59

54 FY2013 Budget Statistics by Route Allocation of Avg. PM per Avg. SM per $ millions except Contr./(Loss) Federally Funded per Rider Contr./(Loss) Core employee Core employee Ridership Revenue Expense Capital Projects (2) per Rider (000's) (3) (000's) (3) Acela 3,421,814 $549.2 $296.5 $137.8 $ Regional 8,115,337 $596.9 $450.2 $194.9 $ NEC Special Trains 11,265 $7.4 $2.5 $2.3 $ NEC Spine 11,548,416 $1,153.5 $749.3 $335.0 $ Ethan Allen Express 55,900 $5.0 $6.0 $0.6 ($17.49) Vermonter 88,262 $8.4 $11.1 $3.5 ($30.73) Maple Leaf 419,288 $27.3 $31.2 $6.1 ($9.22) The Downeaster 565,153 $14.5 $15.2 $2.5 ($1.26) New Haven - Springfield 400,477 $13.0 $23.6 $1.8 ($26.39) Keystone Service 1,476,484 $48.4 $47.5 $11.7 $ Empire Service 1,069,229 $46.2 $71.4 $10.3 ($23.54) Chicago-St.Louis 686,942 $28.8 $37.4 $4.2 ($12.59) Hiawathas 815,941 $25.2 $25.6 $2.7 ($0.54) Wolverines 528,060 $21.0 $38.6 $4.2 ($33.25) Illini 345,567 $17.9 $20.7 $2.8 ($8.33) Illinois Zephyr 232,643 $16.1 $17.9 $2.2 ($7.55) Heartland Flyer 84,313 $5.5 $8.5 $1.2 ($35.36) Pacific Surfliner 2,715,266 $89.7 $110.4 $10.6 ($7.64) Cascades 815,250 $62.0 $69.0 $6.7 ($8.59) Capitols 1,709,450 $61.2 $71.5 $4.3 ($6.04) San Joaquins 1,210,442 $74.7 $87.5 $5.6 ($10.59) Adirondack 134,756 $11.0 $13.7 $1.5 ($19.90) Blue Water 186,143 $12.4 $14.8 $1.4 ($12.80) Washington-Lynchburg 184,175 $12.4 $8.6 $1.2 $ Washington-Newport News 579,089 $30.9 $33.0 $4.2 ($3.53) Washington - Norfolk 125,442 $9.4 $8.1 $1.4 $ Hoosier State 37,335 $0.9 $7.4 $0.6 ($174.45) Kansas City-St.Louis 198,661 $14.4 $16.2 $2.0 ($8.98) Pennsylvanian 219,462 $10.9 $15.8 $6.5 ($22.25) Pere Marquette 107,738 $6.1 $7.0 $1.2 ($8.54) Carolinian 319,503 $23.8 $21.7 $4.8 $ Piedmont 173,219 $6.9 $8.1 $0.9 ($6.48) Non NEC Special Trains 30,333 $3.4 $2.4 $0.5 $ State Supported Routes 15,514,523 $707.4 $849.8 $107.1 ($9.18) Silver Star 415,316 $39.2 $85.8 $16.6 ($112.23) Cardinal 114,135 $8.8 $25.7 $4.1 ($147.33) Silver Meteor 379,544 $44.1 $83.6 $17.0 ($104.06) Empire Builder 538,577 $74.1 $128.2 $24.8 ($100.37) Capitol Limited 228,100 $24.3 $47.0 $9.3 ($99.66) California Zephyr 391,545 $56.6 $122.9 $24.0 ($169.13) Southwest Chief 358,681 $50.8 $114.5 $21.6 ($177.61) City of New Orleans 257,763 $23.4 $44.7 $9.2 ($82.87) Texas Eagle 339,273 $30.7 $60.2 $12.4 ($87.01) Sunset Limited 103,105 $14.1 $55.0 $9.4 ($396.31) Coast Starlight 480,884 $48.9 $101.9 $14.8 ($110.21) Lake Shore Limited 401,175 $37.0 $73.1 $12.4 ($89.96) Palmetto 214,422 $20.1 $32.6 $9.6 ($58.51) Crescent 298,082 $35.4 $80.8 $11.1 ($152.10) Auto Train 269,082 $76.7 $125.2 $9.9 ($179.93) Long Distance Routes 4,789,684 $584.4 $1,181.1 $206.1 ($124.59) National Train Service 31,852,623 $2,445.2 $2,780.3 $648.2 ($10.52) Non-Allocated Capital (4) $55.1 Total Capital $703.3 (1) Budget route results are projected based on APT historical ratios. Expenses exclude depreciation, accruals for post-retirement benefits, non-capitalizable project costs, and interest expense. (2) This represents the allocation of Federally Funded Capital Projects to Routes. (3) Employee data is not aggregated by route in Amtrak's Financial Systems. The data presented here is based on an allocation of Core employees based on total costs of each route. PM equals Passenger Miles and SM equals Seat Miles. (4) Non-Allocated Capital category includes environmental remediation and commercial projects related to stations. 54 of 59

55 FY2014 Request Statistics by Route Allocation of Avg. PM per Avg. SM per $ millions except Contr./(Loss) Federally Funded per Rider Contr./(Loss) Core employee Core employee Ridership Revenue Expense Capital Projects (2) per Rider (000's) (3) (000's) (3) Acela 3,496,520 $571.4 $325.0 $389.4 $ Regional 8,267,714 $587.7 $479.3 $552.9 $ NEC Special Trains 11,375 $5.3 $2.3 $6.7 $ NEC Spine 11,775,609 $1,164.4 $806.6 $949.0 $ Ethan Allen Express 57,469 $6.7 $5.4 $1.3 $ Vermonter 92,380 $14.2 $11.3 $10.0 $ Maple Leaf 431,770 $31.2 $29.5 $14.0 $ The Downeaster 580,230 $13.2 $15.7 $6.4 ($4.26) New Haven - Springfield 409,838 $19.7 $24.8 $4.6 ($12.30) Keystone Service 1,506,958 $48.6 $49.6 $20.3 ($0.69) Empire Service 1,112,670 $63.2 $66.2 $23.4 ($2.67) Chicago-St.Louis 685,429 $39.8 $41.2 $10.4 ($2.06) Hiawathas 824,101 $24.0 $28.1 $6.5 ($5.06) Wolverines 533,143 $36.6 $40.3 $10.1 ($6.91) Illini 342,573 $24.4 $22.5 $6.9 $ Illinois Zephyr 230,490 $17.2 $18.3 $5.4 ($4.60) Heartland Flyer 85,374 $8.3 $9.6 $2.5 ($15.41) Pacific Surfliner 2,778,755 $98.2 $122.5 $20.9 ($8.75) Cascades 859,885 $58.9 $72.8 $14.1 ($16.17) Capitols 1,738,959 $66.5 $76.1 $14.0 ($5.54) San Joaquins 1,240,601 $76.3 $90.0 $15.1 ($11.04) Adirondack 138,931 $12.5 $13.6 $3.2 ($8.02) Blue Water 188,010 $12.7 $16.1 $3.5 ($17.76) Washington-Lynchburg 189,691 $13.0 $8.4 $2.6 $ New York-Newport News 579,107 $35.4 $33.2 $9.5 $ Washington - Norfolk 152,873 $12.0 $11.1 $3.2 $ Hoosier State 37,709 $4.4 $4.9 $1.3 ($11.61) Kansas City-St.Louis 201,642 $14.3 $16.7 $5.4 ($11.79) Pennsylvanian 222,872 $16.7 $16.4 $15.0 $ Pere Marquette 108,815 $6.4 $6.3 $2.3 $ Carolinian 328,386 $24.8 $21.4 $13.8 $ Piedmont 178,936 $6.5 $7.5 $3.1 ($5.41) Non NEC Special Trains 30,633 $2.7 $2.2 $1.1 $ State Supported Routes 15,868,230 $808.5 $881.6 $249.9 ($4.60) Silver Star 430,434 $40.0 $87.4 $38.9 ($109.96) Cardinal 119,985 $9.2 $26.6 $8.4 ($145.51) Silver Meteor 385,720 $44.8 $83.7 $38.5 ($101.05) Empire Builder 538,355 $77.0 $136.3 $50.2 ($110.03) Capitol Limited 228,348 $23.4 $48.7 $17.8 ($110.56) California Zephyr 400,954 $57.7 $129.1 $48.6 ($178.21) Southwest Chief 358,962 $51.3 $120.5 $44.6 ($192.69) City of New Orleans 257,638 $23.4 $45.6 $18.4 ($86.10) Texas Eagle 343,158 $30.7 $65.7 $25.5 ($101.96) Sunset Limited 104,349 $13.9 $57.3 $18.5 ($416.33) Coast Starlight 487,242 $47.9 $105.3 $28.8 ($117.84) Lake Shore Limited 402,998 $36.4 $69.6 $24.4 ($82.21) Palmetto 218,709 $19.5 $30.6 $24.6 ($50.75) Crescent 303,207 $36.8 $79.6 $23.4 ($141.35) Auto Train 274,070 $79.4 $115.3 $21.1 ($131.00) Long Distance Routes 4,854,129 $591.5 $1,201.4 $431.6 ($125.64) National Train Service 32,497,968 $2,564.4 $2,889.5 $1,630.4 ($10.00) Non-Allocated Capital (4) $418.7 Total Capital $2,049.1 (1) Budget route results are projected based on APT historical ratios. Expenses exclude depreciation, accruals for post-retirement benefits, non-capitalizable project costs, and interest expense. (2) This represents the allocation of Federally Funded Capital Projects to Routes. (3) Employee data is not aggregated by route in Amtrak's Financial Systems. The data presented here is based on an allocation of Core employees based on total costs of each route. PM equals Passenger Miles and SM equals Seat Miles. (4) Non-Allocated Capital category includes environmental remediation and commercial projects related to stations. 55 of 59

56 FY2015 Plan Statistics by Route Allocation of Avg. PM per Avg. SM per $ millions except Contr./(Loss) Federally Funded Contr./(Loss) Core employee Core employee per Rider Ridership Revenue Expense Capital Projects (2) per Rider (000's) (3) (000's) (3) Acela 3,638,224 $591.1 $334.8 $293.9 $ Regional 8,416,951 $607.6 $494.2 $451.1 $ NEC Special Trains 14,201 $5.4 $2.3 $5.4 $ NEC Spine 12,069,376 $1,204.1 $831.3 $750.3 $ Ethan Allen Express 55,036 $6.8 $5.5 $1.0 $ Vermonter 84,883 $14.5 $11.6 $7.7 $ Maple Leaf 412,327 $32.2 $30.4 $8.2 $ The Downeaster 576,711 $13.5 $16.2 $4.1 ($4.56) New Haven - Springfield 398,037 $20.2 $25.5 $2.7 ($13.29) Keystone Service 1,468,238 $49.9 $51.1 $9.4 ($0.80) Empire Service 1,097,706 $65.0 $68.2 $14.7 ($2.90) Chicago-St.Louis 742,543 $41.3 $42.5 $5.5 ($1.70) Hiawathas 868,641 $25.2 $29.0 $3.6 ($4.39) Wolverines 528,224 $38.0 $41.5 $5.3 ($6.54) Illini 331,345 $25.5 $23.3 $3.7 $ Illinois Zephyr 236,125 $17.6 $18.9 $2.9 ($5.55) Heartland Flyer 91,861 $8.4 $9.9 $2.0 ($16.05) Pacific Surfliner 2,765,218 $100.7 $126.3 $21.4 ($9.25) Cascades 888,739 $60.4 $75.1 $12.2 ($16.60) Capitols 1,838,095 $67.9 $78.6 $6.3 ($5.80) San Joaquins 1,204,504 $78.1 $93.0 $12.1 ($12.35) Adirondack 134,414 $12.8 $14.0 $2.0 ($9.18) Blue Water 196,162 $13.0 $16.6 $1.8 ($18.09) Washington-Lynchburg 191,622 $13.4 $8.7 $1.9 $ New York-Newport News 506,799 $37.6 $34.2 $6.7 $ Washington - Norfolk 168,933 $12.7 $11.4 $2.2 $ Hoosier State 37,907 $4.5 $5.0 $0.7 ($13.87) Kansas City-St.Louis 200,507 $14.6 $17.2 $2.6 ($13.07) Pennsylvanian 215,853 $17.1 $16.9 $10.0 $ Pere Marquette 113,377 $6.5 $6.5 $1.9 $ Carolinian 327,580 $25.4 $22.1 $10.5 $ Piedmont 166,156 $6.5 $7.7 $1.2 ($7.23) Non NEC Special Trains 33,128 $2.8 $2.2 $0.8 $ State Supported Routes 15,880,671 $832.2 $909.0 $165.0 ($4.83) Silver Star 440,813 $41.6 $90.1 $26.4 ($109.85) Cardinal 118,184 $9.6 $27.4 $4.7 ($150.90) Silver Meteor 387,540 $47.8 $86.3 $26.7 ($99.27) Empire Builder 564,851 $79.7 $140.5 $40.0 ($107.77) Capitol Limited 234,393 $24.2 $50.2 $15.0 ($110.75) California Zephyr 409,407 $59.7 $133.2 $38.3 ($179.66) Southwest Chief 371,330 $53.1 $124.4 $33.8 ($191.99) City of New Orleans 265,146 $24.2 $47.1 $14.9 ($86.02) Texas Eagle 345,646 $31.8 $67.8 $20.0 ($104.22) Sunset Limited 106,945 $14.4 $59.1 $16.0 ($418.36) Coast Starlight 468,675 $49.6 $108.6 $27.6 ($126.03) Lake Shore Limited 411,573 $38.4 $71.7 $13.5 ($80.98) Palmetto 207,360 $20.1 $31.5 $17.9 ($54.89) Crescent 316,017 $39.1 $82.1 $14.1 ($136.08) Auto Train 272,074 $82.2 $118.9 $22.1 ($134.96) Long Distance Routes 4,919,953 $615.6 $1,239.0 $331.1 ($126.72) National Train Service 32,870,000 $2,651.8 $2,979.3 $1,246.4 ($9.96) Non-Allocated Capital (4) $495.1 Total Capital $1,741.5 (1) Budget route results are projected based on APT historical ratios. Expenses exclude depreciation, accruals for post-retirement benefits, non-capitalizable project costs, and interest expense. (2) This represents the allocation of Federally Funded Capital Projects to Routes. (3) Employee data is not aggregated by route in Amtrak's Financial Systems. The data presented here is based on an allocation of Core employees based on total costs of each route. PM equals Passenger Miles and SM equals Seat Miles. (4) Non-Allocated Capital category includes environmental remediation and commercial projects related to stations. 56 of 59

57 FY2016 Plan Statistics by Route Allocation of Avg. PM per Avg. SM per $ millions except Contr./(Loss) Federally Funded Contr./(Loss) Core employee Core employee per Rider Ridership Revenue Expense Capital Projects (2) per Rider (000's) (3) (000's) (3) Acela 3,692,460 $611.4 $343.9 $302.1 $ Regional 8,542,424 $628.1 $508.3 $475.5 $ NEC Special Trains 14,413 $5.4 $2.4 $5.8 $ NEC Spine 12,249,296 $1,245.0 $854.6 $783.4 $ Ethan Allen Express 55,856 $7.0 $5.7 $0.8 $ Vermonter 86,149 $14.8 $12.0 $8.1 $ Maple Leaf 418,474 $33.2 $31.3 $7.0 $ The Downeaster 585,308 $13.9 $16.6 $3.5 ($4.72) New Haven - Springfield 403,971 $20.8 $26.3 $2.5 ($13.64) Keystone Service 1,490,126 $51.3 $52.6 $7.9 ($0.85) Empire Service 1,114,070 $66.8 $70.1 $12.4 ($2.99) Chicago-St.Louis 753,613 $42.2 $43.8 $4.9 ($2.12) Hiawathas 881,590 $25.9 $29.9 $3.2 ($4.51) Wolverines 536,098 $39.0 $42.7 $4.8 ($6.97) Illini 336,285 $26.1 $23.9 $3.3 $ Illinois Zephyr 239,645 $17.9 $19.4 $2.6 ($6.46) Heartland Flyer 93,231 $8.5 $10.2 $1.9 ($17.43) Pacific Surfliner 2,806,440 $103.4 $130.0 $20.1 ($9.51) Cascades 901,987 $61.9 $77.4 $10.6 ($17.22) Capitols 1,865,496 $69.4 $81.0 $6.1 ($6.22) San Joaquins 1,222,460 $80.0 $96.0 $11.9 ($13.08) Adirondack 136,418 $13.1 $14.4 $1.7 ($9.79) Blue Water 199,086 $13.3 $17.0 $1.6 ($18.78) Washington-Lynchburg 194,478 $13.8 $8.9 $1.6 $ New York-Newport News 514,354 $39.1 $35.2 $5.7 $ Washington - Norfolk 171,451 $13.2 $11.7 $1.9 $ Hoosier State 38,472 $4.6 $5.2 $0.6 ($15.88) Kansas City-St.Louis 203,496 $14.8 $17.7 $2.3 ($13.99) Pennsylvanian 219,071 $17.5 $17.4 $10.4 $ Pere Marquette 115,067 $6.7 $6.7 $1.7 $ Carolinian 332,463 $26.2 $22.7 $10.7 $ Piedmont 168,633 $6.6 $7.9 $1.2 ($7.53) Non NEC Special Trains 33,622 $2.9 $2.3 $0.7 $ State Supported Routes 16,117,408 $853.5 $935.9 $151.7 ($5.12) Silver Star 447,385 $43.3 $92.7 $18.6 ($110.52) Cardinal 119,946 $9.9 $28.2 $1.9 ($152.95) Silver Meteor 393,317 $49.9 $88.8 $19.4 ($98.94) Empire Builder 573,271 $82.4 $144.7 $23.7 ($108.65) Capitol Limited 237,887 $25.1 $51.7 $10.0 ($111.91) California Zephyr 415,511 $61.7 $137.2 $23.2 ($181.69) Southwest Chief 376,866 $54.9 $128.1 $20.3 ($194.36) City of New Orleans 269,098 $25.1 $48.5 $9.0 ($86.90) Texas Eagle 350,798 $32.8 $69.8 $11.6 ($105.40) Sunset Limited 108,539 $14.9 $60.9 $10.5 ($424.06) Coast Starlight 475,662 $51.3 $111.9 $19.1 ($127.44) Lake Shore Limited 417,709 $40.3 $73.8 $6.8 ($80.06) Palmetto 210,451 $20.8 $32.4 $14.1 ($55.24) Crescent 320,728 $41.0 $84.6 $6.2 ($136.01) Auto Train 276,129 $85.2 $122.5 $11.3 ($135.33) Long Distance Routes 4,993,296 $638.5 $1,275.9 $205.7 ($127.65) National Train Service 33,360,000 $2,736.9 $3,066.4 $1,140.8 ($9.88) Non-Allocated Capital (4) $364.0 Total Capital $1,504.8 (1) Budget route results are projected based on APT historical ratios. Expenses exclude depreciation, accruals for post-retirement benefits, non-capitalizable project costs, and interest expense. (2) This represents the allocation of Federally Funded Capital Projects to Routes. (3) Employee data is not aggregated by route in Amtrak's Financial Systems. The data presented here is based on an allocation of Core employees based on total costs of each route. PM equals Passenger Miles and SM equals Seat Miles. (4) Non-Allocated Capital category includes environmental remediation and commercial projects related to stations. 57 of 59

58 FY2017 Plan Statistics by Route Allocation of Avg. PM per Avg. SM per $ millions except Contr./(Loss) Federally Funded per Rider Contr./(Loss) Core employee Core employee Ridership Revenue Expense Capital Projects (2) per Rider (000's) (3) (000's) (3) Acela 3,747,803 $632.5 $353.3 $281.7 $ Regional 8,670,458 $649.4 $523.1 $518.9 $ NEC Special Trains 14,629 $5.5 $2.5 $6.3 $ NEC Spine 12,432,889 $1,287.4 $878.9 $806.8 $ Ethan Allen Express 56,693 $7.1 $5.8 $0.8 $ Vermonter 87,440 $15.1 $12.3 $8.8 $ Maple Leaf 424,746 $34.2 $32.2 $6.8 $ The Downeaster 594,081 $14.2 $17.2 $3.4 ($4.90) New Haven - Springfield 410,025 $21.3 $27.0 $2.4 ($14.05) Keystone Service 1,512,460 $52.7 $54.1 $7.8 ($0.92) Empire Service 1,130,768 $68.7 $72.2 $12.0 ($3.12) Chicago-St.Louis 764,908 $43.1 $45.1 $4.8 ($2.57) Hiawathas 894,804 $26.7 $30.8 $3.1 ($4.66) Wolverines 544,134 $39.9 $44.0 $4.7 ($7.46) Illini 341,325 $26.6 $24.7 $3.2 $ Illinois Zephyr 243,237 $18.2 $20.0 $2.5 ($7.42) Heartland Flyer 94,628 $8.7 $10.5 $1.8 ($18.88) Pacific Surfliner 2,848,503 $106.1 $134.0 $13.3 ($9.81) Cascades 915,506 $63.4 $79.8 $6.7 ($17.89) Capitols 1,893,456 $70.9 $83.5 $6.0 ($6.68) San Joaquins 1,240,782 $81.9 $99.0 $6.2 ($13.84) Adirondack 138,462 $13.4 $14.9 $1.7 ($10.45) Blue Water 202,070 $13.6 $17.6 $1.6 ($19.53) Washington-Lynchburg 197,393 $14.3 $9.2 $1.6 $ New York-Newport News 522,063 $40.2 $36.2 $5.5 $ Washington - Norfolk 174,021 $13.6 $12.1 $1.8 $ Hoosier State 39,048 $4.6 $5.3 $0.6 ($18.02) Kansas City-St.Louis 206,546 $15.1 $18.2 $2.2 ($14.96) Pennsylvanian 222,354 $17.9 $17.9 $11.3 $ Pere Marquette 116,791 $6.8 $6.9 $1.6 ($0.22) Carolinian 337,446 $27.0 $23.4 $11.5 $ Piedmont 171,160 $6.8 $8.1 $1.2 ($7.88) Non NEC Special Trains 34,126 $2.9 $2.4 $0.7 $ State Supported Routes 16,358,976 $875.0 $964.4 $135.6 ($5.46) Silver Star 454,090 $44.7 $95.5 $19.5 ($111.88) Cardinal 121,743 $10.2 $29.1 $1.8 ($155.18) Silver Meteor 399,212 $51.5 $91.5 $20.4 ($100.09) Empire Builder 581,863 $85.2 $149.0 $22.0 ($109.64) Capitol Limited 241,453 $25.9 $53.3 $9.5 ($113.20) California Zephyr 421,738 $63.8 $141.4 $21.7 ($183.89) Southwest Chief 382,514 $56.8 $132.1 $19.0 ($196.90) City of New Orleans 273,131 $25.9 $49.9 $8.3 ($87.89) Texas Eagle 356,056 $34.0 $72.0 $10.7 ($106.69) Sunset Limited 110,166 $15.4 $62.8 $10.0 ($430.22) Coast Starlight 482,791 $53.0 $115.3 $14.1 ($128.99) Lake Shore Limited 423,969 $41.6 $75.9 $6.4 ($80.92) Palmetto 213,605 $21.5 $33.4 $15.1 ($55.68) Crescent 325,535 $42.3 $87.2 $5.9 ($137.83) Auto Train 280,268 $88.2 $126.3 $11.0 ($135.86) Long Distance Routes 5,068,135 $660.2 $1,314.6 $195.5 ($129.13) National Train Service 33,860,000 $2,822.6 $3,158.0 $1,137.9 ($9.90) Non-Allocated Capital (4) $728.7 Total Capital $1,866.6 (1) Budget route results are projected based on APT historical ratios. Expenses exclude depreciation, accruals for post-retirement benefits, non-capitalizable project costs, and interest expense. (2) This represents the allocation of Federally Funded Capital Projects to Routes. (3) Employee data is not aggregated by route in Amtrak's Financial Systems. The data presented here is based on an allocation of Core employees based on total costs of each route. PM equals Passenger Miles and SM equals Seat Miles. (4) Non-Allocated Capital category includes environmental remediation and commercial projects related to stations. 58 of 59

59 GAAP Basis Summary Income Statement FY2013 FY2014 FY2015 FY2016 FY2017 $ millions Budget Request Plan Plan Plan Ticket Revenue $2,099 $2,125 $2,207 $2,286 $2,366 Food and Beverage Subtotal Passenger Revenue $2,222 $2,253 $2,338 $2,420 $2,503 State Supported Train Revenue $195 $287 $289 $292 $295 Commuter Reimbursable Commercial Development Other Transportation Freight Access Fees and Other Subtotal Other Revenue $524 $529 $539 $551 $563 Total Operating Revenue $2,941 $3,069 $3,166 $3,263 $3,360 Salaries, Wages and Benefits: Salaries Wages & Overtime 1,069 1,100 1,123 1,151 1,180 Employee Benefits Employee Related Subtotal Salaries, Wages and Benefits $1,976 $2,067 $2,126 $2,192 $2,264 Train Operations Fuel, Power, & Utilities Materials Facility, Communication, & Office Advertising and Sales Casualty and Other Claims Total Amort of Gain On Sale/Leaseback (4) (4) (4) (4) (4) Professional Fees Data Processing Services and Supplies Environmental and Safety Maintenance of Way Services Passenger Inconvenience Financial Other Expenses 4 (0) Transfer Credits (from Capital Projects) (129) (134) (134) (134) (134) Total Expenses $3,356 $3,461 $3,569 $3,676 $3,788 Operating Loss - Cash Basis ($415) ($392) ($403) ($413) ($428) Adjustments to GAAP P&L Post-Employment Benefits (OPEB) Net Accrual Office of the Inspector General Expenses Depreciation Non-capitalizable Project Expenses Interest Expense, Net Repayment of RRIF Loan (19.1) (29.1) (34.1) (37.1) Federal & State Capital Payments (Revenue) (35.6) (32.5) (32.5) (32.5) (32.5) Total GAAP Exclusions from Operating Loss $866.4 $869.0 $865.0 $863.6 $864.7 GAAP Net Operating Loss ($1,281.4) ($1,261.2) ($1,267.5) ($1,276.6) ($1,293.0) 59 of 59