Indiana Report October 6, 2016

Hoosier State Long-term agreements through June 30, 2017 Iowa Pacific Holdings (IPH): Equipment, onboard amenities, marketing Amtrak: Operating crews, ticketing, host railroads relationships 4 weekly trips, Indianapolis - Chicago INDOT’s cost is capped at $3M per year Local communities contributing $246K in FY16 & $352K in FY17 https://www.hoosierstatetrain.com A few years ago, federal support for short distance trains ended and states were required to pay Amtrak to continue service. At the time, the Hoosier State was suffering from poor on-time performance and low ridership, so we decided to try something new. We took advantage of a service alternative allowed under federal law, to use a third party service provider, in addition to Amtrak. Indiana is the first state to exercise this option for a third party-provider. Our goal is to preserve the service, enhance on-board amenities, and improve on-time performance. In FY15, we selected IPH as the third party provider, and they supply the locomotives, cars and on board services (food, drinks and WiFi), as well as marketing. Amtrak provides the train and engine crews, reservations and ticketing, and manages the relationships with the host railroads. Online communities of Crawfordsville, Lafayette, West Lafayette, Tippecanoe County, and Rensselaer are contributing – a great success! INDOT has a full-time contract manager on staff and has contracted with a mechanical inspector. Amtrak’s Cardinal provides service three days on the route. We’ve requested operating funds for the next biennium and are hoping for a dedicated funding source.

Hoosier State Results Successes Challenges August 2015 August 2016 % change Trend Prior YTD Current YTD Revenues $59,597 $86,981 46% $661,237 $882,567 33% Ridership* 2,120 2,648 25% 28,040 27,060 -3% On-time Performance 47% 86% 39% 65% 83% 18% *Even though ridership was down overall from one year ago, from May 2016 to August 2016, ridership has increased 11%. Successes Improved on-time performance Highest rated route on Amtrak’s system Innovative, first-in-nation business model Challenges Ridership Relationships with vendors Equipment & maintenance Capital investment needs Regulatory environment Successes Challenges --Amtrak operations staff and financial staff can be difficult to work with. Situation improved when Jim Brezinski came on board. --IPH equipment and maintenance is a challenge due to the age of the cars and the set-up at McCurdy, the layover location (brand new location, not fully supplied yet). Sub-contractor management has been an issue as well. --Capital investment is needed for additional trains, faster trains, and better departure and arrival times, but getting capital funding remains a challenge. --States as Railroads issue has not been put to rest yet, and changing requirements will always be something we have to watch for.

Hoosier State Studies Purdue University research RFP for Track Consultant Purdue University conducted an on-board survey of riders in 2015 and will be repeating that effort in a couple of weeks. The survey results will be used to illustrate the importance of passenger rail for the communities along the route, as well as other areas. The 2015 survey found that 40% of Hoosier State riders were from a town or county other than those along the route. This year’s research will also look at the “last mile” problem, and how to improve access for those getting to stations. This survey complements the work that MIPRC recently completed, showing that Intercity passenger rail is a critical resource for Midwestern College Students. More than 19,000 students and staff from 9 Midwest states participated in the survey: 25% have taken train to and from school, 2/3 say passenger rail is an important resource to attend school, and more than 50% say they would be more likely to take the train if more frequent service was available. For more information visit www.miprc.org. INDOT is also going to be hiring a consultant for both technical and analytical expertise. We need a consultant who can foster and maintain positive working relationships with the host and operating railroads as their partnership is required for service enhancements. The consultant should have the technical expertise to analyze output from the host railroads’ route alignment model. Our hope is that the selected consultant will provide engineering analysis of infrastructure improvements from the host railroad and recommend an order of implementation that results in service expansion and balances the goals of neutral impact on freight railroad traffic and effective use of limited state resources. We would also like two studies from 2013 to be updated to reflect the current passenger rail environment. The consultant will also analyze data from Indianapolis to Chicago and evaluate traffic flows to verify the need for additional siding capacity.

Indiana Gateway Project is nearing completion Freight and passenger benefits Exemplary project management Part of the nationwide high-speed rail initiative The project will improve one of the most congested rail line corridors in the nation by increasing capacity and train movement for both passenger and freight trains. It will improve Amtrak passenger rail service between Chicago and several routes that terminate in Michigan, Boston, New York and Washington, D.C. FRA HSIPR Grant (100% federal funds) – Consists of 8 separate construction projects to provide temporary jobs, track & signal improvements to allow train dispatchers additional options to improve train traffic fluidity in NWI. There are 7 Norfolk Southern Subprojects and 1 Amtrak Subproject (1 NS complete, 5 NS Under Construction & 1 NS in Final Design review; 1 Amtrak in Construction). The subproject on the Amtrak Michigan line included a new passing siding to enable meeting trains to pass each other. This subproject was estimated at $ 4.5 million. Located in Porter, Ind., near Chesterton, Ind., Porter Interlocking is where the Norfolk Southern Chicago Line, the Amtrak Michigan Line, the CSX Grand Rapids Sub and the CSX Porter Branch intersect. The Michigan Line and the Grand Rapids Sub head towards Michigan.  

Other Projects and Activities Chicago – Ft. Wayne, IN – Columbus, OH corridor Chicago – Detroit/Pontiac corridor South Shore West Lake Corridor extension East Chicago station improvements 2017 State Rail Plan, Freight Plan Chicago to Ft Wayne to Columbus recently applied for an Intercity Passenger Rail Corridor Investment Plan grant for a Tier I Environmental Impact Statement and Service Development Plan, but was not awarded a grant. Local Partners are looking for future opportunities to advance this rail corridor, including conducting a Tier I study with federal funding and hoping for FRA-support. Chicago to Detroit: The purpose of the program is to improve intercity mobility by providing an improved passenger rail service that would be a competitive transportation alternative to automobile, bus and air service between Chicago and Detroit/Pontiac, Mich. The program will provide sufficient information for the FRA to potentially support future decisions to fund and implement a major investment in the passenger rail corridor. The Michigan Department of Transportation (MDOT) is the lead, in partnership with INDOT and the Illinois Department of Transportation (IDOT), and in association with the Federal Railroad Administration (FRA). As Tim mentioned, final EIS and ROD, and the Service Development Plan are underway and expected in early 2017. South Shore Commuter rail extension project will extend the South Shore between Dyer and Hammond, IN (9 miles of track) eventually connecting with Metra, offering new transit service between Dyer and Chicago. NICTD is receiving $6M a year in state funds for the West Lake Corridor extension and recently was awarded $2.7M FRA grant to add two platform access points at the East Chicago Train Station in East Chicago and to reconstruct turnouts that will allow trains to approach speeds of 40mph, up from 10mph. Updating both Rail and Freight Plans for release in 2017. 6