1. Advanced Transit Private Utility And Northern Virginia A New Business Model for Urban Transportation Paul Hoffman Booz Allen Hamilton hoffman_paul@bah.com

2. 2 Technology Overview – PRT Fundamentals Fundamental elements of PRT technology: On-demand, non-stop, origin-to-destination service Small, automated vehicles Small, exclusive use guideways Off-line stations Network of connected guideways Combines elements of automotive, computer, network and transit technologies Uses current state-of-the-art technologies including: Advanced propulsion systems On-board switching and guidance High speed controls and communication Lightweight advanced materials PRT represents a new option for sustainable, effective urban transportation providing higher access and service at a lower cost than current transit options.

3. 3 A New Paradigm –Distributed Demand, Small Infrastructure Conventional Guideway Transit Compact travelers into a few large vehicles Large guideway, large posts Scheduled service, long vehicle headways Higher costs, higher visual impact Personal Rapid Transit Distribute travelers among many small vehicles Small guideway, small posts On-demand service, short vehicle headways Lower costs, lower impact

4. 4 Potential PRT Applications Urbanized Area: Central Business District circulator High density area connector Feeder to existing transit stations/hubs Connector/distributor from satellite parking facilities Potential alternative to LRT, BRT or Monorail development or expansion Urban goods and light freight movement Activity Center/Campus: Circulator within entertainment/tourism district Circulator within/between college or business campuses Airport landside and airside access Feeder to existing transit stations/hubs Connector/distributor from satellite parking facilities

5. 5 Small Infrastructure Benefits Potential installation along: Median or shoulder along commercial arterials or thoroughfares Curb line of major streets Minimizes environmental impact: Quiet operation Low vibration Small visual impact No direct emissions Small stations allow: Installation in building interiors Free standing structures Integrated into new additions Appropriate access: Focused on major attraction points Distributed parking feeders Don’t need last mile residential access to be successful

6. 6 Moving Forward – PRT as Full Option for Urban Transportation Conventional transit guideway systems have difficulty providing urban scale service due to limitations including: Custom designs Limited standards and interoperability Limited scalability Expensive and disruptive implementation Required transfers between line haul segments Service reductions for station additions To achieve the promise of an urban transportation solution, PRT will need to: Avoid custom designs and vendor specific solutions that limit scalability, require transfers, increase complexity Adopt standards and commercial business models that provide increase revenue potential and decreased costs

7. 7 Vision for the Future PRT - The Network Utility Model PRT has the opportunity to develop a new business model with the potential to SCALE beyond the limited access of fixed guideway transit The model is founded on the success of other commercial network businesses such as: Telephone Internet Cell Phones Cable These network industries are founded on several fundamental principles: Open standards Mass production and economies of scale Multiple suppliers and providers Government regulation of public access and right of way Market pricing Open competition Private funding Transit can also follow these network successes if the fundamentals are applied to a common technology

8. 8 The Transportation Utility Vision Recognition of the strengths in the public and private sectors Public Sector Public interest outlook Safety and security Collective funding mechanisms Performance standards Private Sector Innovation and technology development Cost management and efficient operations Mass production and competitive sourcing Real estate development Leveraging of capital Technology standards

9. 9 The Transportation Utility Model Public Authority Authorization and Licensing Regulation and Oversight Performance Standards Taxing Authority Bonding and Funding Transit Utility Design and Construction Operations and Maintenance Bonding and Funding Property Development Industry Manufacturers and Component Suppliers Engineering, Contractors and Consultants Service and Operations Providers Financing and Risk Management

10. 10 Public Authority Public Authority Functions: Sells or grants public access/right-of-way through franchises Develop and oversee performance standards compliance Insure safety, security, equal access Manage fare policy and costs of developer/service provider Manage central operations provider Provide supplemental funding Creation and Operation Multi-jurisdictional representation and authority for a region Generally chartered by the State Taxing and bonding authority Integrated charter with regional land use and transportation planning authorities

11. 11 Transit Utility Private Transit Utilities One or more utilities for a region License to operate transit system from regulator Own and operate the transit network in the franchise area Own the land or acquire air- rights to install guideways in franchise area Private corporation with bonding and multiple funding sources Ownership by potential consortium of local land owners, developers, investors and public entities Build and operate against public standards Interoperability standards with other utilities Franchise #1 Network Franchise #2 Network Contract with manufacturers to build and install guideways, stations, vehicles and systems Contract with central operations provider for system management and control

12. 12 Increased Revenue and Value with Private Utility Increased Real Estate Value Increased floor area ratio (FAR) is allowed if property is served by transit Increased FAR allows higher revenue per property and overall value Increased value due to attractiveness from access to transit Real Estate Value Capture Options Directly captured by Utility through ownership of stations and surrounding areas Captured by consortium of land owners as investors in the Utility Returned to Utility as private investments by consortium Potential real estate taxing district Other Revenue Station Fees from local developers to install stations and off-line guideways as an aid to development Station revenue from advertising and retail services Cargo Services Fare Revenue Right-of-Way Fees Supplemental Public Support

13. Phase 1 11.6 Miles, 5 Stations 63,000 Daily Trips $2.35 Billion - $37k/Trip FTA Cost Effectiveness Rating: Medium Phase 2 11.5 Miles, 6 Stations 32,000 Additional Daily Trips $2.50 Billion - $78k/Trip FTA Rating: ? Dulles Corridor Metro Line Phase 1 and 2 11 Stations 2.2 Sq Miles walking distance coverage @1/4 mile radius

14. Dulles Corridor Metro Line Phase 2 – Route 772 - Wiehle 6 Stations 1.2 Sq Miles walking distance coverage @1/4 mile radius

15. Dulles Corridor Metro Line Route 772 - Dulles 3 Stations 0.6 Sq Miles walking distance coverage @1/4 mile radius

16. Potential Initial PRT Circulator Dulles Airport 8 Stations 3.5 Miles of Guideway $105 Million @ $35 Million/mile $160 Million @ $50 Million/mile Provides 1.2 Sq Miles walking distance coverage @ 750 ft radius Typical walking distance of ¼ mile or 1320 ft used for transit systems 750 ft walking distance used at airports to reflect travelers with luggage

17. PRT Network Dulles – NorthWest 21.5 Additional Miles of Guideway $645 - $970 Million

18. PRT Network Dulles - NorthWest 31 Additional Stations 6.1 Sq Miles walking distance coverage @ ¼ mile radius

19. Metro Line Wiehle – Reston- Herndon 3 Stations 0.6 Sq Miles walking distance coverage @1/4 mile radius

20. PRT Network Wiehle – Reston- Herndon 9.5 Miles of Guideway $250 - $300 Million

21. PRT Network Wiehle – Reston- Herndon 15 Stations 2.9 Sq Miles walking distance coverage @1/4 mile radius

22. PRT Network Dulles – NorthWest - Route 28 - Wiehle 70 Stations - 46.8 miles of Guideway - $1.6 - $2.3 Billion 13.7 Sq Miles walking distance coverage @ ¼ mile radius Metro Phase 2 11.5 Miles, 6 Stations 1.2 Sq Miles Walking Coverage $2.50 Billion - $78k/Trip

23. PRT Network Dulles – NorthWest - Route 28 - Wiehle – Tysons Corner 90 Stations - 69.5 Miles of Guideway - $2.4 - $3.5 Billion 17.6 Sq Miles walking distance coverage @ ¼ mile radius Metro Phase 1 and 2 22.1 Miles, 11 Stations 2.2 Sq Miles Walking Coverage $4.80 Billion

24. PRT Network Extended Dulles Corridor and Central Fairfax County 120 Stations - 108 Miles of Guideway - $3.8 - $5.4 Billion 23.5 Sq Miles walking distance coverage @ ¼ mile radius

25. 25 MTR Corporation – Hong Kong Transit Utility Operates as a private transportation and development corporation regulated to operate in Hong Kong Competes with other rail and bus transit operators Evolved from a government entity in 2000 Railway Operations One of the most efficient operators in the world Privately funded and publicly regulated 50 year public franchise, 76% public ownership MTR Stations, Property and Development Highly commercial stations with multiple revenue generators Owns and operates residential and retail properties above and adjacent to stations Directly or cooperatively develops property around stations

26. 26 MTR Performance – A Best Case Example Service Performance Item Performance Requirement Customer Service Pledge Actual 2006 Performance Train service delivery98.50%99.50%99.90% Passenger journeys on time98.50%99.50%99.90% Train punctuality98%99%99.70% Train reliability: train car-km per train failure causing delays ≥ 5 minutesN/A 500,000 1,448,915 Ticket reliability: magnetic ticket transactions per ticket failureN/A 8,000 14,705 Add value machine reliability98.50%98%99.40% Ticket issuing machine reliability93%98%99.60% Ticket gate reliability97%99%99.80% Escalator reliability98%99%99.90% Passenger lift reliability98.50%99%99.90% Temperature and ventilation Trains: to maintain a cool, pleasant and comfortable train environment g enerally at a temperature at or below 26˚C NA97%99.90% Stations: to maintain a cool, pleasant and comfortable environment generally at or below 27˚C for platforms and 29˚C for station concourses, except on very hot days N/A90%99.90% Cleanliness Train compartment: cleaned dailyN/A98.50%100.00% Train body: washed every 2 daysN/A98%99.90% Passenger enquiry response time within 7 working daysN/A99%99.90%

27. 27 MTR By the Numbers Railway Operations 2.5 million daily passengers 867 million annual passengers 1074 rail cars 53 stations 57 miles of track Efficient Operations MTR$4.5/rail-car-mile US Metro Average$8.2/rail-car-mile Powerful 2006 Financials Average fare$0.95 Total Operating Expense$555 Million Total Fare Revenue$834 Million Total Operating Revenue$1,220 Million Gross Operating Profit$665 Million Net Property Profit/Taxes/Depreciation$327 Million Net Profit$992 Million