Service Development Program by pzs15406

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									                                     Attachment TOM 3


             Service Development Program


                           FLORIDA HIGH SPEED RAIL
                                    Tampa-Orlando-Miami




                             U.S. Department of Transportation
                             Federal Railroad Administration


                             Florida Department of Transportation



                                           In Cooperation with:
                                 Federal Highway Administration
                              United States Army Corps of Engineers
                       Hillsborough, Orange, Osceola, Polk Counties, Florida




                                                October 2009




 

Florida High-Speed Rail System – Service Development Program                   1
October 2009
Table of Contents 

I.      INTRODUCTION ...................................................................................................................................... 3
II.     PURPOSE & NEED FOR HIGH SPEED RAIL IN FLORIDA ................................................................ 4
III.    ENVIRONMENTAL PROCESS................................................................................................................ 7
IV.     PROPOSED SERVICE DEVELOPMENT ................................................................................................ 9
V.      IMPLEMENTATION SCHEDULES AND PROCUREMENT METHODOLOGY .............................. 12
VI.     RIDERSHIP AND REVENUE FORECASTS ......................................................................................... 13
VII.    OPERATIONS.......................................................................................................................................... 17
VIII.   PROPOSED STATIONS AND INTERMODAL LINKS ........................................................................ 21
IX.     TRANSPORTATION BENEFITS ........................................................................................................... 25
X.      FINANCIAL PLAN.................................................................................................................................. 31
XI.     MANAGEMENT PLAN AND ORGANIZATION ................................................................................. 33




Florida High-Speed Rail System – Service Development Program                                                                                                2
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        SERVICE DEVELOPMENT PROGRAM – FLORIDA HIGH SPEED RAIL
                                               OCTOBER 2009


 I.    INTRODUCTION
This SERVICE DEVELOPMENT PROGRAM (SDP) is submitted in conjunction with the State of Florida’s
Track 2 Application for the Florida High Speed Rail Program Tampa-Orlando-Miami. Much of the information
contained in this SDP can be found in other parts of the Track 2 Application, either in forms or attachments.
The SDP serves as an over-arching document intended to capture the overall intent and vision of the program.

Vision of the Program

As is documented in multiple locations throughout this application, Florida has been planning for HSR for
decades. The most recent initiative by the Florida High Speed Rail Authority in 2001-2005 resulted in the
development of a Vision Plan for High Speed Rail in the State. This SDP focuses on the anchor legs of the
system from Tampa to Orlando and then from Orlando to Miami. The ultimate Vision will be statewide service,
and so we include as our first exhibit this previously adopted (2001) plan.




                                                                                       Figure I-1




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II.    PURPOSE & NEED FOR HIGH SPEED RAIL IN FLORIDA
HSR service for Tampa-Orlando-Miami has been contemplated and planned for decades. It will offer an
alternative to the prevelant automobile mode of travel and to regional air travel in this corridor. HSR is an
attractive alternative on this corridor for the following reasons: ideal distances between major metro areas; very
high tourist volume, many of whom travel by this mode at home; flat terrain that makes the system more
affordable to build than in other locations around the US; limited room for additional highway expansion and
significant growth projected; potential evacuation from hurricanes; growing population that will need transport
alternatives; a growing elderly population for whom train travel is a safe and attractive alternative;
environmental benefits through congestion reduction and clean energy; substantial economic development
benefits that result in job creation from the introduction of HSR technology and service; and related job creation
and economic development opportunities that include transit oriented developments (TOD) at the stations, and
connectivity with key centers along the corridor in the entertainment, academic, medical, biotech and other
industries. The service to be established will provide new commuting opportunities that are more time-
competitive than the automobile mode. Future growth on the corridor also will result in increased pressure on
the major international airports in Orlando and Miami to lean more towards higher capacity and longer hauls
than regional air service provides.

The potential for high-speed rail to address a portion of the transportation needs of the State of Florida has a
long history. An amendment to the Constitution of the State of Florida was passed in November 2000 that
mandated the construction of a high-speed rail system in the state. The purpose of Article 10, Section 19 of the
Constitution of the State of Florida was, “to reduce traffic congestion and provide alternatives to the traveling
public.”

The Florida State Legislature, through the Florida High Speed Rail Authority Act, created the Florida High
Speed Rail Authority (FHSRA) in June 2001. The organization was charged with the responsibility for
planning, administering, and implementing a high-speed rail system in Florida. The act also mandated that the
initial segment of the system be developed and operated between St. Petersburg, Tampa, and Orlando areas with
future service to the Miami area.

High-speed rail is also supported legislatively at the national level. Federal and congressional transportation
initiatives have advanced high-speed rail in the past year. In April 2009 the FRA developed the Vision for
High-Speed Rail in America, which outlines the strategies for advancing high-speed rail throughout the country
including the Tampa-Orlando-Miami Corridor. The strategic goals from the vision are:
     • Ensure safe and efficient transportation choices
     • Build a foundation for economic competitiveness
     • Promote energy efficiency and environmental quality
     • Support interconnected livable communities

There are four key pieces of legislation that have been passed by congress to establish intercity passenger rail:
   • The FY 2008 Appropriation Act, which established a new State grant program
   • The Rail Safety Improvement Act of 2008 (RSIA)
   • The Passenger Rail Investment and Improvement Act of 2008 (PRIIA)
   • The American Recovery and Reinvestment Act of 2009 (ARRA)


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The largest funding mechanism from this legislation is the unprecedented $8 billion provided in ARRA for
high-speed rail development. The current administration views this funding as a jump start to implementing
high-speed rail at the national level. It is anticipated that the new transportation funding bill will include a high-
speed rail funding mechanism for states to continue their efforts and ultimately construct and operate intercity
high-speed rail. This is the most significant support of high-speed rail that has been implemented at the federal
level.

Transportation Travel Demand
The Florida economy is fueled by tourism and has a long history of attracting diverse populations. To continue
to attract visitors and residents, the state’s transportation system needs to be safe, efficient and environmentally
sensitive. Based on 2008 population estimates from the U.S. Bureau of the Census, Florida is the fourth most
populous state in the country with a population of over 18 million. By 2030 the population is estimated to be
over 28.6 million, making Florida the third most populous state at that time.

Approximately 84 million people visited Florida in 2008 according to Visit Florida. Almost half of those
visitors travelled to Florida via automobile. This increases the demand on the state’s highway system
demonstrating the need for intercity passenger travel for visitors to the state. Sales tax revenue generated from
tourism is estimated at approximately $3.9 billion in 2008, resulting in over one million people being directly
employed by the tourism industry.

Not only are visitors to the state reliant on an efficient transportation system that offers alternatives to the
automobile, but Florida residents are seeking alternatives as well. Florida has more residents age 65 and older
than any other state in the country. Many of these residents become more dependent on public transportation as
they age. Approximately 17 percent of the population is age 65 or older and the percentage is expected to
increase to 27 percent by 2030. The top destinations for visitors were identified as amusement parks and
beaches. Connecting Tampa, Orlando and Miami provides visitors with access to the top tourist destinations in
the state.

The demand for transportation options in Florida are increasing not only based on the current condition of the
transportation network but based on the continued growth in tourism, expected increases in population and the
need to provide services for aging populations.

Limited Roadway Capacity
The growing population and tourism anticipated in Florida place heavy demands on the existing transportation
network that is already congested and unable to meet the current transportation demand. FDOT Policy and
Procedures 525-030-255 state that accommodating other modes of transportation within the existing right-of-
way must be considered before expanding roadways on the Florida Intrastate Highway System (FIHS) beyond
ten lanes. The corridors being explored for high-speed rail service all follow existing major transportation
corridors:
    • Interstate 4
    • Interstate 95
    • Florida’s Turnpike

All three routes currently operate at a deficient level of service (LOS) meaning that they experience congestion
regularly and delay travelers using the roadways. Although not all of the routes have been expanded to ten
lanes, the ability to add capacity is somewhat limited by area conditions, including built urban environments,

Florida High-Speed Rail System – Service Development Program                                                        5
October 2009
environmentally sensitive resources and local opposition to widening. The inclusion of an alternative mode in
existing transportation corridors may improve the person throughput in the corridor and improve the LOS.

Previous Efforts to Advance High Speed Rail in Florida
The previous paragraphs document the logic and advantages for a High Speed Rail system in Florida.
Obviously, none of these have yet resulted in implementation. Why is this time different? The best way to
address this question is to examine what happened with the most recent efforts. The Florida High Speed Rail
Authority’s mission came closest to construction, having both an FEIS and a selected DBOM&F vendor. This
initiative failed for “political” reasons. The previous initiative, the Florida Overland eXpress, also failed due to
“political” reasons. The real reason behind the political controversy has really been concerns about funding. In
other parts of the world that have initiated HSR service, there has always been public funding and assistance to
construct the infrastructure. Previous efforts in Florida (and elsewhere in the US) have never had that. That is
what makes this time different. By providing a funding mechanism for the infrastructure, High Speed Rail in
Florida becomes extremely attractive. Ridership projections (and related revenue) have consistently been strong
in this corridor, and continues to be in 2009. That is why this time around, there is no political controversy, and
this effort is supported in a bi-partisan way. Florida has always envisioned a partnership with the private sector,
and the potential infusion of funding for infrastructure from the federal government will create a very
competitive environment to be part of this first HSR Express system in the United States.




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III.   ENVIRONMENTAL PROCESS
The NEPA process is in effect for the Florida High Speed Rail system. This too has a long history, with the
most recent efforts being the completion of an FEIS for the Orlando-Tampa project, and the progression of an
EIS on the Orlando-Miami segment. As part of this ARRA process, FDOT has initiated the following efforts for
each of the Program segments:

Tampa-Orlando Corridor
In 2005, and FEIS was signed by the FRA Administrator for this Corridor. Due to the passage of time, this
document required updating as part of the ARRA program. The Florida Department of Transportation re-
initiated that process in early 2009, and as a result is submitting a Draft of the FEIS with this Track 2
Application. FDOT is requesting a Record of Decision from FRA for this Corridor to begin construction in
conjunction with the approval of this Track 2 Application.

Orlando-Miami Corridor
For the Florida Overland eXpress project in the mid to late 1990’s, the State was advancing an EIS for this
corridor when the project was stopped. The routes being examined at that time were one primarily along/within
Florida’s Turnpike and one on/within I-95. The Florida High Speed Rail Authority performed a planning and
feasibility study in 2002 that also concluded that these two routes offered the best promise for a HSR corridor.
The Interim Guidelines for the ARRA program, and the desire to initiate a HSR Express system on this corridor
validate the decision to focus on these two alternatives as the basis for the NEPA process. FDOT has requested
funding to perform the NEPA/PE work on this corridor in a Track 1B application submitted on August 24,
2009. If approved, FDOT plans to move forward with a PD&E project that will meet this intent in two years.
FDOT has begun the procurement for a consultant to perform this work, and is well positioned to advance this
work if the Track 1B application is accepted.

The routes examined, and in the case of Tampa-Orlando, the preferred alternative, are shown in Figure III-1
below:




Florida High-Speed Rail System – Service Development Program                                                  7
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Figure III-1




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IV.    PROPOSED SERVICE DEVELOPMENT
Component Corridor Program and Project Applications
The FDOT has carefully evaluated all the factors that are pertinent in the development of the Tampa-Orlando-
Miami HSR service. ALL work performed under all these proposed Projects will be in strict accordance with
FRA and other federal, state and local regulations.

The Service Development Program calls for initial and sequential development of two major corridors: Tampoa
to Orlando, then Orlando to Miami. In order to advance these in an effective manner wihtin the timeframe
provided in the Track 2 ARRA program, FDOT has devised a Development Program that includes a total of
seven projects, which are shown in Figure IV-1 below:

             Figure IV-1




TECHNOLOGY: Assumptions used to develop required infromation in this Track 2 Application are based on
state-of-the-art steel-wheel on rail electric technology. FDOT is committed to allowing open competition for
technology that can meet or exceed the performance, standards compliance, implementation schedule, and
financing results shown herein. Based on our current technology assumption, a total of 5 trainsets are to be
utilized for the service between Orlando and Tampa, and a total of 20-25 when Miami extension is added. The
seating capacity of each trainset is 250 people. The maximum operating speed capability is 300kph/186mph.
The optimal consist would be trainsets that employ articulated configurations, distributive power technology
and are equipped with regenerative braking systems. Energy savings come from maximized use of regenerative
electrodynamic braking. Distributive power trainsets that employ a distributed traction system architecture also
improves trainset reliability because each motor axle is powered by an individual power inverter. A typical 7-

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October 2009
car trainset may be equipped with 6 independent traction units enabling the train to generate massive,
unparalleled power of 22.6 kW/ton efficiently and cost effectively.

Our proposed Service Development Program is described below.

TAMPA-ORL CORRIDOR
PROJECT 1: Final Design and Construction of the Civil components of the Tampa-Orlando route. This project
will consist of a design-build procurement(s) of the following elements of the Tampa-Orlando route: site
clearing/earthwork; utilities relocation; structures, walls and bridges, including a major viaduct in the Orlando
area; platforms and core structures for stations; and maintenance site clearing. This Track 2 application will also
include a request for funding the acquisition of the small percentage of right-of-way in this 88 mile corridor that
is not publicly owned as part of this PROJECT 1. Finally, this PROJECT 1 will include funding for professional
services required to assist with management and oversight of the Corridor Program, as well as performance of
necessary additional ridership work.

The Environmental Impact Statement for this corridor has been updated and is included as part of this
application. The completion of the EIS document positions the Tampa-Orlando Corridor to receive a Record of
Decision from the FRA possibly by the time this Track 2 application is approved by the end of 2009. This
would allow the advancement and issuance of an RFP to perform the D-B work. FDOT has a long and
successful history of performing large D-B projects. Florida Statutes allow large D-B projects to proceed if the
vast amount of right-of-way in the project is publicly owned with proper restriction on working in remaining
areas until acquisitions are complete. The work in PROJECT 1 is of the type and scale that many Florida
contractors perform on a regular basis, and will come at a time when the construction industry and the State can
benefit from the thousands of jobs that will be created. The start of PROJECT 1 construction in 2010 can serve
as the “poster-child” of the Vision for HSR in America.

PROJECT 2: This will be a Public-Private-Partnership contract that will include design and installation of Core
System components, and a long term concession with a private partner for O&M of the Tampa-Orlando
Corridor. This Track 2 application includes a request for funding the Public components of this contract:
signals, communications and safety systems; electrification / traction power; station build-out and related
facilities; track, ties/ballast, fastening systems; train-sets (rolling stock); and, maintenance equipment for trains.
The O&M costs are NOT included in the Track 2 request. Private sector interest in participating in a PPP for
HSR in Florida has been demonstrated for decades. The reasons why each of the previous efforts has fallen
short are well documented. Importantly, there has NEVER been a more attractive environment for the private
sector to invest in such a system. First, there is substantial political support and good will for the project led by
Governor Crist, multiple elected officials and others. Second, there has never been a substantial public
investment in the infrastructure components of a HSR system such as is offered at the federal level now. A third
component that has and will continue to attract private sector interest in this program is the business opportunity
presented by the substantial ridership expected on the system. FDOT has performed an update of a previous
investment grade ridership study for the Tampa-Orlando corridor, the details of which are included in this Track
2 application. The results of this ridership update continue to demonstrate strong revenue potential. PROJECT 2
will be structured as a PPP long-term concession agreement, requesting that the private sector cover the cost of
operating and maintaining the system in exchange for ridership and ancillary revenues on terms that are
beneficial to the public while allowing a reasonable profit to the private sector. FDOT has excellent recent
experience in executing PPP contracts, the most notable example being the $1 billion-plus I-595 PPP in
Broward County earlier this year. PROJECT 2 is anticipated to begin in late 2012.


Florida High-Speed Rail System – Service Development Program                                                      10
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PROJECT 3: PE/NEPA for the Orlando-Miami route. This Track 1B Application was submitted on August 24,
2009 for completion of the PD&E work on this route. The acceptance of this application and performance of
this work is a key component of the overall SDP and has specific impact on the Tampa-Orlando corridor. While
the primary purpose for this work is to advance seamlessly from the implementation of the Tampa-Orlando
Corridor to the Orlando-Miami Corridor, the results of the PD&E work and related ridership studies will
quantify important upside opportunities for the private entities that will be proposing on PROJECT 2. The
details of this PROJECT 3 are included in the Track 1B application and are not included here for brevity.

PROJECTS 4, 5, and 6: Final Design and Construction of the Civil Packages for Orlando to Miami in three
segments. The scope of work and approach to contracting will be identical to that proposed in PROJECT 1. The
exact limits of each of these contracts and the station locations will be determined through PROJECT 3. The
order of advancement of each of the Projects will also be determined based on the readiness of each to proceed
into construction, with particular sensitivity to the amount of right-of-way that will be required to be acquired
for each. The Orlando-Miami route is similar to the Tampa-Orlando route in that the vast amount of right of
way required, either on the Turnpike route or the I-95 route is publicly owned.

PROJECT 7: Final project required to implement HSR on the Orlando-Tampa-Miami corridor. The scope of
publicly-financed elements is the same as for PROJECT 2. Similar also is the intent to enter a PPP for the O&M
of the system for this route. PROJECT 2 may include a “right of first refusal” for the winner to negotiate a
similar win-win contract for PROJECT 7, so that full compatibility is achieved across the system.




Florida High-Speed Rail System – Service Development Program                                                  11
October 2009
V.     IMPLEMENTATION SCHEDULES AND PROCUREMENT METHODOLOGY

The tables below illustrate the proposed implementation schedules for both corridors, along with the
procurement packages described above.

TAMPA-ORLANDO




ORLANDO-MIAMI




Florida High-Speed Rail System – Service Development Program                                           12
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VI.    RIDERSHIP AND REVENUE FORECASTS
As mentioned previously, both of the Corridors proposed in this HSR Program have consistently shown strong
ridership potential due to the very strong attributes of that are most compelling for this type of service. These
include demographics, projected population growth, flat geogrpahy, huge tourist base and attractive destinations
along the route, and opportunity for massive economic development and prosperity.

Different levels of study have been performed in recent years due to the advancement paths of the individual
corridors. The Tampa-Orlando Corridor underwent an investment grade ridership study in 2002. That study has
been updated for this Track 2 Application, and the resulting tabulations of this update are shown below in
Figure VI-1:

FIGURE VI-1 Tampa Orlando Ridership and Revenue Forecast Tables




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Florida High-Speed Rail System – Service Development Program   14
October 2009
For the Orlando-Miami Corridor, forecast data presented below is an extrapolation from work done as part of
the Florida High Speed Rail Authority’s 2002 Planning Study for Orlando-Miami. Similar to the presentation in
that Study, the tables below are presented as incremental improvements over the Tampa-Orlando service that
will be put into service first. During the performance of the PE/NEPA work that is proposed as part of the Track
1B application, FDOT intends to perform a detailed ridership study that is focused on this Orlando-Miami
corridor. The table below is therefore illustrative of the storn ridership anticipated and is consistent with
previous estimated of the investment grade riderhsip and revneu projections performed for the FOX project.
Figure VI-2 shows the current forecast derived as noted:




Florida High-Speed Rail System – Service Development Program                                                 15
October 2009
FIGURE VI-2 Orlando-Miami Incremental Ridership and Revenue Forecast Tables




Florida High-Speed Rail System – Service Development Program                  16
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VII.    OPERATIONS
 Service and Operating plans have also been devised along with the previous efforts that have been advanced in
 these Corridors. Generally they have concluded that the initial service would include approximately 16 trips a
 day in the Tampa-Orlando market, with a maximum speed of 168 mph and on time performance in the upper 90
 percentiles due to the use of dedicated right of way with no grade crossings. For Orlando-Miami, approximately
 20 trips a day are envisioned, with a maximum operating speed of 186 mph and similarly high on-time
 performance.

 Sample Daily Schedules are shown in Figure VII-1 and sample String line diagrams are shown in Figure VII – 2
 Figure VII-1




 Florida High-Speed Rail System – Service Development Program                                               17
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Florida High-Speed Rail System – Service Development Program   18
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Figure VII-2




Florida High-Speed Rail System – Service Development Program   19
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Florida High-Speed Rail System – Service Development Program   20
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VIII.      PROPOSED STATIONS AND INTERMODAL LINKS
                   o CORRIDOR – TAMPA ORLANDO


        The Tampa-Orlando HSR Express Service will provide an attractive transportation alternative where there
        is no such connection via rail today. This service will allow the over 30 million passengers arriving at OIA
        each year the ability to travel via HSR from the station at the airport to the following locations: the first
        station will be located at the Orange County Convention Center (OCCC) multi-modal center, where visitors
        will be able to access the OCCC, the many hotels and major entertainment areas including SeaWorld and
        Universal theme parks; the next station will be located in the Walt Disney World/Celebration area, and
        provide access for the millions of visitors to the four theme parks and surrounding hotels and amenities;
        next will be a station in Polk County that will serve the City of Lakeland area and surrounding communities
        and destinations such as the future University of South Florida Polytechnic to be located adjacent to I-4;
        and finally the service will end in the downtown area of the City of Tampa at the multi-modal center, within
        walking distance to businesses, residences and other downtown facilities.

             The Tampa-Orlando Corridor HSR Express service is proposed to be implemented in partnership with
        the private sector. There is recent precedent that has shown the willingness of the private sector to establish
        service, assume the ridership revenue risk, and pay for operations and maintenance of the system for a
        defined period of time likely to be 30 years. Based on previous proposals, and the performance of
        investment grade ridership studies (updated for this Track 2 Application - see ATTACHMENT TO-3), it is
        anticipated that the service that will result on this Corridor will consist approximately of hourly trains
        connecting the end stations, and more frequent service in the Orlando area from OIA to the stations at the
        OCCC and WDW. Previous proposals anticipated extremely high on-time performance, fleet service based
        on demand, competitive fare prices, and two-three classes of service. Each station location would offer
        opportunities for development and thematic architecture determined in partnership with the private sector.
        The extensive planning that has occurred in the past for HSR service has been largely preserved at the
        station locations, including the ability to accommodate service at OIA that is the result of significant
        investments by the Greater Orlando Aviation Authority. Each station location offers substantial
        connectivity to other modes, as shown in the Intermodal Link chart in Figure VII-2




 Florida High-Speed Rail System – Service Development Program                                                      21
 October 2009
FIGURE VIII-2




Florida High-Speed Rail System – Service Development Program   22
October 2009
               o CORRIDOR – ORLANDO MIAMI


    The implementation of the Orlando-Miami service will connect most of the major population centers of the
    State of Florida. South Florida, including Miami and Fort Lauderdale, is by far the most populous part of
    the State, and both these cities will have stations. The station in Miami will be at the $600 million Miami
    Intermodal Center, for which FDOT has invested heavily to accommodate HSR. The location of the station
    in Ft. Lauderdale will be determined through the NEPA process and be based on the route selection. The
    same holds for a planned station at West Palm Beach. Moving further north, the next station will be in Fort
    Pierce, a location where I-95 and Turnpike converge. These two routes diverge from that point north and
    would therefore serve different station locations as follows: I-95 route will likely have a station at
    Melbourne/Palm Bay, and then one at Cape Canaveral/Cocoa Beach to capture the large tourist and cruise
    industry ridership before veering on to the SR528 corridor which it will follow into the final station at
    Orlando International Airport; the Turnpike route is not likely to have any further stops north of Ft. Pierce,
    and will head directly to OIA.

    Both of these routes will have strong connectivity to existing and planned facilities that will provide
    intermodal connection as shown in Figure VIII-3




Florida High-Speed Rail System – Service Development Program                                                  23
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FIGURE VIII-3




Florida High-Speed Rail System – Service Development Program   24
October 2009
IX.    TRANSPORTATION BENEFITS
       A. ECONOMIC DEVELOPMENT & JOBS CREATION

       TAMPA-ORLANDO
       Injection of capital infrastructure spending into the area of the HSR Orlando-Tampa Corridor will lead
       to direct construction and related professional services jobs, as well as indirect jobs supporting the
       suppliers of materials and equipment. In turn, these direct and indirect jobs support additional jobs
       within the region’s economy (induced impacts), all of which can generate a relatively quick boost to the
       regional economy, contributing to economic improvement and recovery. Following the initial
       construction/capital investment activity, there will be ongoing operations and maintenance expenditures
       for the initially constructed facilities, equipment, and associated services. Operations and maintenance
       contracts will include the hiring of employees and purchasing of supplies and services, which can be
       measured in terms of economic impacts. Direct expenditures for operations and maintenance of the
       facilities and systems represent direct economic benefits, and give rise to indirect and induced benefits
       for the estimation of the total impacts. The following table presents the employment impacts related to
       the different stages of the Orlando-Tampa HSR Corridor development in the corridor counties. The
       construction (including design engineering) impacts of the four-year construction period are estimated to
       amount to about 23,000 combined direct, and about 48,800 combined total jobs. Please note that the
       operations-related jobs of about 600 direct and 1,100 total continue throughout the operating horizon.
       These impact are only expenditure (on design/engineering, construction, and operations) based, and do
       not include other impact types such as those related to travel efficiency savings or additional
       development in the corridor that would also be expected to occur.

                             Employment (in job-years)
                             2011 2012 2013 2014            2015
       Orl. - Tampa (4 County Corridor)
               Construction
                      Direct 2,100 9,700 9,000 1,000        0
                      Total 4,500 20,400 18,900 2,100       0
               Engineering Services
                      Direct 700    500   0      0          0
                      Total 1,700 1,200 0        0          0
               Operations/Maintenance
                      Direct 0      0     0      0          600
                      Total 0       0     0      0          1,100

                      *notes: total = direct + indirect + induced
       Impacts are specific to the four-county corridor region and are rounded to the nearest 100 job-years


       Concerning Economically Distressed Areas (EDA), the Corridor passes through a small corner of
       Osceola County, where the whole county is classified as an EDA. However, the portion of the Osceola
       Co. that the corridor passes through - Celebration/Disney - is relatively well developed. Nevertheless, it
       can be expected that some of the EDA of the County would benefit from the investment and increased
       economic activity and employment along the corridor.

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       In terms of long-term benefits, this project will reduce congestion and emissions in the corridor
       improving the ability of passenger and freight movement, and improving air quality. According to a
       2002 Technical Report on the benefits of the HSR in the Corridor, the 30-year present value of the
       combined users' benefits (system revenues and consumer surplus) and benefits to the public at large
       (highway congestion and emissions savings) amounts to over $2 billion (in 2000$ terms) and resulting
       in a ratio of benefits to costs of 1.27. According to the same report, thousands of additional jobs would
       be created and sustained (mostly, but not only in the Corridor area) over the project life horizon. With
       these additional jobs, increased household income, and also higher property valuation particularly
       around the stations, will be created. Moreover, according to the 2002 Florida High Speed Rail Economic
       Benefit and Cost Impact Resstudy (by Dr. Tim Lynch, Florida State University Center for Economic
       Forcasting), the general conclusion is that "Benefits from implementing a version of high speed ground
       transportation across the most highly populated urbanized areas of Florida will, over time generate
       benefits that are considerably in excess of system costs." In summary, implementation of the HSR
       service between the metro areas of Orlando and Tampa, will bring upon time savings and relaibility
       improvements associated with it, and it can be expected that increased ridership on the rail system would
       facilitate higher degree of economic interaction among the cities and attractions along the train route,
       leading to potentially higher productivity, efficiency, emission translating into increased competitivness,
       economic activty, employment and other longer-terrm economic benefits.

       ORLANDO-MIAMI

       Injection of capital infrastructure spending, such as the proposed HSR Orlando-Miami Corridor, into the
       study area economy will lead to direct construction and related professional services jobs, as well as
       multiplier effects including indirect jobs supporting the suppliers of materials and equipment, and also
       induced impacts, all of which can generate a relatively quick boost to the regional economy,
       contributing to the recovery. Following the initial construction/capital investment activity, there will be
       ongoing operations and maintenance expenditures for the initially constructed facilities, equipment, and
       associated services. Operations and maintenance contracts will include the hiring of employees and
       purchasing of supplies and services, which can be measured in terms of economic impacts. Direct
       expenditures for operations and maintenance of the facilities and systems represent direct economic
       benefits, and give rise to indirect and induced benefits for the estimation of the total impacts. The
       following table presents the employment impacts related to the different stages of the Orlando-Miami
       HSR Corridor development in the corridor counties. The construction (including design engineering)
       impacts of the construction period are estimated to amount to about 76,630 combined direct job-years.
       Please note that the operations-related 2,500 direct job-years continue throughout the operating horizon.
       These impact are only expenditure (on design/engineering, construction, and operations) based, and do
       not include other impact types such as those related to travel efficiency savings or additional
       development in the corridor that would also be expected to occur.




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       EMPLOYMENT (in job-years)
                     2009 2010 2011 2012 2013 2014 2015 2016 2017
       Construction
              Direct 0        0       0       20,200 20,200 19,400 13,500 3,100 0
              Total 0         0       0       45,100 45,100 43,300 30,000 6,900 0
       Prelim. Engineering Services
              Direct 20       120     90      0       0     0       0      0       0
              Total 60        300 230 0               0     0       0      0       0
       Operations/Maintenance
              Direct 0        0       0       0       0     0       0      0       2,500
              Total 0         0       0       0       0     0       0      0       4,800
              *notes: total = direct + indirect + induced
              Impacts are specific to the eight-county corridor region, and are rounded to the nearest 10 (for
       Prelim. Engineering) or 100 otherwise.

       Regarding Economically Distressed Areas (EDA), this Corridor traverses through two counties - Indian
       River and St. Lucie - that are classified as EDAs. These Economically Distreesed Areas can be expected
       to experience increased economic activity, business oportunities, and job generation from the
       construction and operations phases of the system impelementation, as well as higher degree of
       connectivity and accessibility to centers of economic activity in the state and beyond following the
       implementaiton of the Corridor.

       In terms of long-term benefits, this project will reduce congestion and emissions in the corridor
       improving the ability of passenger and freight movement, and improving air quality. According to the
       2003 Orlando-Maimi Planning Study (p. 8-6) on the benefits of the HSR in the Corridor (please note
       that these values include the St. Petersburg to Orlando segment in addtion to the Orlando-Miami
       Corridor), the 30-year present value of the combined users' benefits (system revenues and consumer
       surplus) and benefits to other modes users (e.g., highway and air congestion and emissions savings)
       amounts to almost $19 billion (in 2002$ terms), which was estimated to be well in excess of total costs,
       resulting in a ratio of benefits to costs of 1.84. Furthermore, according to the 2002 Florida High Speed
       Rail Economic Benefit and Cost Impact Restudy (by Dr. Tim Lynch), the general conclusion is that
       "Benefits from implementing a version of high speed ground transportation across the most highly
       populated urbanized areas of Florida will, over time generate benefits that are considerably in excess of
       system costs." In summary, implementation of the HSR service between Orlando and Miami, will bring
       upon time savings and reliability improvements associated with it, and it can be expected that increased
       ridership on the rail system would facilitate higher degree of economic interaction among the cities and
       attractions along the train route, leading to potentially higher productivity, and efficiency translating into
       increased competitivness, economic activity, employment and other longer-terrm economic benefits to
       both businesses and individuals.

       B. CLEAN ENERGY, EMISSIONS REDUCTION AND LOWER DEPENDENCE ON
          FOREIGN OIL

       TAMPA-ORLANDO
       One of the many benefits of High Speed Rail (HSR) is its efficiency as a transportation mode. This
       almost automatically allows HSR projects to provide significant reductions in fossil fuel use as well as


Florida High-Speed Rail System – Service Development Program                                                     27
October 2009
       the associated reduction in greenhouse gas and other emissions. The Tampa to Orlando corridor is no
       exception. However, there are opportunities that set Florida and the Tampa-Orlando Corridor apart from
       other opportunities from an environmental return on investment perspective. Further, as congestion in
       the corridor increases over time and the potential for renewable power comes on-line as discussed
       below, the quantitative information presented here is likely to prove conservatively low in terms of
       overall environmental benefit.

       To determine the changes in fuel use and emissions due to the implementation of High Speed Rail
       (HSR) between Tampa and Orlando, a comparison of energy use with and without a HSR option was
       made. This comparison was made based on data for energy use per passenger mile of travel for various
       travel modes published by the US DOE in the Transportation Energy Data Book: Edition 28-2009.
       Energy is for all modes is based on passenger miles of travel (PMT) and energy use is expressed in
       terms of btu’s. HSR ridership information used is consistent with ridership numbers presented and
       discussed elsewhere in this application. The analysis includes both provisions for trips diverted to HSR
       as well as the impact of induced trips due to greater mobility. It is assumed that all trip diversion will be
       from passenger auto, and that trips occurring by short haul air between these cities are minimal. Induced
       trips are assumed to be 5% of total PMT.

       Change in energy use is calculated as follows:

       (Total PMT (rail) * % diverted(car) * (btu per PMT(rail) – btu per PMT(car)))+ (Total PMT(rail) * % induced *
       (btu per PMT(rail))).

       Btu’s were converted to gallons of fossil fuel and then to carbon emissions based on data from US DOE
       and US EPA. Based on these assumptions, the reduction in Fossil Fuel use is projected to be 580,000
       gallons in the 1st year of operation (2015), 673,000 in the 5th (2020) and 780,000 in the 10th (2025).
       Reductions in CO2 emissions are projected to be 5,100 metric tons in the 1st year of operation, 5,900
       metric tons in the 5th and 6,900 metric tons in the 10th. As discussed, using electricity as the power
       source for locomotives, this information may be a very conservative estimate, particularly with the
       potential for renewal energy discussed below. Even without a “breakthrough” renewable energy source,
       savings are still likely to be understated due to probable advancements in electric power production
       efficiency and emissions.

       Reduction in fuel use also results in reduction of other pollutants. Based on output from the Mobile 6.2
       model and projected changes in travel by mode as described above, in 2015 a reduction in VOC of 45
       metric tons, CO of 650 metric tons and NOX of 58 metric tons can be expected. Reductions in 2020 are
       projected to be 44 metric tons of VOC, 698 metric tons of CO and 51 metric tons of NOX. Reductions in
       2025 are projected to be 41 metric tons of VOC, 746 metric tons of CO and 40 metric tons of NOX.

       As a virtual Greenfield project, the Tampa-Orlando High Speed Rail corridor has the opportunity to take
       advantage of all advances in green methodologies from building design to energy efficient rail
       equipment. This can include Leadership in Environmental Energy Design (LEED) certification for all
       buildings as well as taking advantage of renewable energy sources in both motive power and operations.

       While it is not possible to fully quantify at this time, there is no doubt that Florida is in an ideal position
       to develop clean, renewable sources of energy. Given its “Sunshine State” moniker, the potential for


Florida High-Speed Rail System – Service Development Program                                                       28
October 2009
       photovoltaic (solar) is obvious. This would be most likely to occur through inclusion of solar power
       sources for buildings and equipment needed for corridor operation. Opportunities to harness solar power
       for motive power will also be taken advantage of to the maximum extent possible.

       While solar first comes to mind when thinking of alternative energy in Florida, there are other exciting
       possibilities. This includes wind power as well as the possibility of energy from biomass. Biomass
       energy from unutilized and underutilized waste from Florida’s citrus and other agricultural industries
       may prove viable in the future for power production. As these types of renewable energy sources find
       their way into electrical power production in the state, additional fossil fuel and emission reductions will
       occur.

       A final renewable energy source deserves mention. Researchers at Florida Atlantic University are
       exploring ways to tap the almost unlimited energy resources of the Gulf Stream. With this major ocean
       current passing closer to Florida than any other state, the possibility of water turbine generated power is
       very real. This brings about the possibility of a practical zero emission source for motive and operational
       power for the corridor. Further information on this exciting opportunity can be found at:
       http://www.cnn.com/2009/TECH/07/27/ocean.turbines/.

       There is no doubt that practically any HSR project is likely to bring about substantive reductions in the
       use of fossil fuels and the associated reductions in emissions. However, Florida, and the Tampa to
       Orlando corridor represent a green field opportunity to capture significant reductions in fuel use and
       emissions from the design phase, in construction, and as a routine part of operations. Coupled with the
       exciting opportunities for practical low and possibly zero emission power sources, Florida and the
       Tampa-Orlando HSR corridor have an exceptional ability to provide a substantive return on investment
       from an environmental perspective.


       INCREMENTAL ADDITION TAMPA TO ORLANDO DUE TO ORLANDO-MIAMI SERVICE
       9-30-09

       The availability of service from Orlando to Miami increases in ridership between Tampa and Orlando
       due to those passengers making the Tampa to southeast Florida trip. Change in fuel use and emissions
       were calculated based on this incremental increase in ridership.

       Btu’s were converted to gallons of fossil fuel and then to carbon emissions based on data from US DOE
       and US EPA. Based on these assumptions, the reduction in Fossil Fuel use is projected to be 460,000
       gallons in the 1st year of operation (2018), 525,000 in the 5th (2023) and 597,000 in the 10th (2028).
       Reductions in CO2 emissions are projected to be 4,100 metric tons in the 1st year of operation, 4,600
       metric tons in the 5th and 5,300 metric tons in the 10th. As discussed, using electricity as the power
       source for locomotives, this information may be a very conservative estimate, particularly with the
       potential for renewal energy discussed below. Even without a “breakthrough” renewable energy source,
       savings are still likely to be understated due to probable advancements in electric power production
       efficiency and emissions.

       Reduction in fuel use also results in reduction of other pollutants. Based on output from the Mobile 6.2
       model and projected changes in travel by mode as described above, in 2018 a reduction in VOC of 35


Florida High-Speed Rail System – Service Development Program                                                    29
October 2009
       metric tons, CO of 540 metric tons and NOX of 43 metric tons can be expected. Reductions in 2023 are
       projected to be 33 metric tons of VOC, 566 metric tons of CO and 35 metric tons of NOX. Reductions in
       2028 are projected to be 30 metric tons of VOC, 590 metric tons of CO, and 24 metric tons of NOX.


       ORLANDO-MIAMI CORRIDOR

       All of the attributes described above for the Tampa-Orlando corridor apply similarly to the Orlando-
       Miami corridor

       The change in energy use is calculated as follows for the Orlando-Miami corridor:

       Btu’s were converted to gallons of fossil fuel and then to carbon emissions based on data from US DOE
       and US EPA. Based on these assumptions, the reduction in fossil fuel use is projected to be 7.9 million
       gallons in the 1st year of operation (2018), 9.1 million gallons in the 5th (2023) and 10.3 million gallons
       in the 10th (2028). Reductions in CO2 emissions are projected to be 70,200, 80,000, and 90,800 metric
       tons in the 1st, 5th and 10th years respectively. As discussed, using electricity as the power source for
       locomotives, this information may be a very conservative estimate, particularly with the potential for
       renewal energy discussed below. Even without a “breakthrough” renewable energy source, savings are
       still likely to be understated due to probable advancements in electric power production efficiency and
       emissions.

       Reduction in fuel use also results in reduction of other pollutants. Based on output from the Mobile 6.2
       model and projected changes in travel by mode as described above, in 2018 a reduction in VOC of 600
       metric tons, CO of 9,300 metric tons and NOX of 740 metric tons can be expected. Reductions in 2023
       are projected to be 570 metric tons of VOC, 9,800 metric tons of CO and 600 tons of NOX. Reductions
       in 2028 are projected to be 510 metric tons of VOC, 10,200 metric tons of CO and 412 metric tons of
       NOX.




Florida High-Speed Rail System – Service Development Program                                                   30
October 2009
X.     FINANCIAL PLAN
In the period from 2001-2004, Florida went through a very rigorous process to advance the Tampa-Orlando
High Speed Rail project. At that time, the Florida High Speed Rail Authority made great progress in leading the
development of a PD&E/NEPA process that resulted in an FEIS, and also completed the procurement and
selection of a Design-Build-Operate-Maintain and Finance contract for implementation. This background is
very relevant to the financial planning component of this Track 2 Application, as the basic characteristics of this
Corridor (including ridership and revenue projections) have not materially changed. At that time, Florida relied
on the private sector to play a major partnership role on the project, including the assumption of ridership and
revenue risk. As shown elsewhere in this Application, the anticipated financial performance of the ongoing
operation of a HSR system on this corridor is predicted to have a significant annual net positive result. In order
to assure proper back-stopping, FDOT will require private industry to demonstrate financial capacity to provide
this assurance. All of the private sector requirements will be captured in the procurement described in Part B,
Item 10 above.

As far as the capital cost for infrastructure and rolling stock, FDOT is indeed seeking financial support through
this ARRA program. FDOT has made significant investments over the last two decades to preserve the right-of-
way needed to build this HSR system in the median of the interstate. This results in an "in kind" contribution,
worth approximately $600 million, in the form of donated right-of-way primarily in the I-4 median and
alongside I-275 and SR528Beachline. The State of Florida and the Florida Department of Transportation's
Work Program have been decimated by the current recession, that has hit our state particularly hard. This is a
well documented fact. To the extent that this ARRA Program is designed to assist with economic improvement
and stimulus, there is no stronger candidate or need than we have in Florida. The silver lining in this current
economic environment is the availability of workforce and resources to get the work done, and perhaps even
more importantly is that there is a very competitive bidding environment that is resulting in bids coming in
significantly under the Department's estimates.

FDOT is confident that this financial model is appropriate and meets the intent of the Vision of High Speed Rail
in America, and mirrors the infancy of the Interstate program back in the 1950's, which had a very large
infusion of capital from the federal government to make the construction of the system viable. The plan for
Florida would result in a program in which NO subsisidy will be required from the public side for O&M.

Since the Tampa-Orlando plan is more developed, a summary of the financial forecasts is listed below (all in
$2010 thousands):
                                           2015         2020            2025
Ridership Revenue:                         53,026       60,994          71,337
Operating & Maintenance Costs             (50,647)     (54,690)        (59,165)
Capital Asset Renewal Costs               ( 2,000)     ( 3,000)        ( 4,000)

                       Surplus                  379            3,304         8,172

Surpluses for Tampa-Orlando are expected to continue growing into the future, and will receive an incremental
boost when the service to Miami is added.




Florida High-Speed Rail System – Service Development Program                                                    31
October 2009
For the Orlando-Miami corridor, the precedent will have been set in the Tampa-Orlando corridor and will
follow a similar financial model. By having that successful precedent in place, the Orlando-Miami Corridor will
have great momentum behind it and experience in vetting and selecting financial partners.




Florida High-Speed Rail System – Service Development Program                                                32
October 2009
XI.    MANAGEMENT PLAN AND ORGANIZATION
The Florida Department of Transportation has prepared a separate Project Management Plan that is submitted as
a stand-alone document with this Track 2 Application.




Florida High-Speed Rail System – Service Development Program                                              33
October 2009

								
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