Advanced Transit Private UtilityAnd Northern Virginia

A New Business Model for Urban TransportationA New Business Model for Urban Transportation

Paul HoffmanPaul Hoffman

Booz Allen HamiltonBooz Allen Hamilton

hoffman_paul@bah.com

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Technology Overview – PRT FundamentalsTechnology Overview – PRT FundamentalsTechnology Overview – PRT FundamentalsTechnology 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.

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A New Paradigm –Distributed Demand, Small InfrastructureA New Paradigm –Distributed Demand, Small InfrastructureA New Paradigm –Distributed Demand, Small InfrastructureA 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

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Potential PRT ApplicationsPotential PRT ApplicationsPotential PRT ApplicationsPotential 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

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Small Infrastructure BenefitsSmall Infrastructure BenefitsSmall Infrastructure BenefitsSmall 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

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Moving Forward – PRT as Full Option for Urban TransportationMoving Forward – PRT as Full Option for Urban TransportationMoving Forward – PRT as Full Option for Urban TransportationMoving 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

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Vision for the Future PRT - The Network Utility ModelVision for the Future PRT - The Network Utility ModelVision for the Future PRT - The Network Utility ModelVision 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

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The Transportation Utility VisionThe Transportation Utility VisionThe Transportation Utility VisionThe 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

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The Transportation Utility ModelThe Transportation Utility ModelThe Transportation Utility ModelThe 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

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Public AuthorityPublic AuthorityPublic AuthorityPublic 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

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Transit UtilityTransit UtilityTransit UtilityTransit 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

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Increased Revenue and Value with Private UtilityIncreased Revenue and Value with Private UtilityIncreased Revenue and Value with Private UtilityIncreased 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

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

Dulles Corridor Metro Line

Phase 2 – Route 772 - Wiehle

6 Stations

1.2 Sq Miles walking distance coverage @1/4 mile radius

Dulles Corridor Metro Line

Route 772 - Dulles

3 Stations

0.6 Sq Miles walking distance coverage @1/4 mile radius

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

PRT Network

Dulles – NorthWest

21.5 Additional Miles of Guideway

$645 - $970 Million

PRT Network

Dulles - NorthWest

31 Additional Stations

6.1 Sq Miles walking distance coverage @ ¼ mile radius

Metro Line

Wiehle – Reston- Herndon

3 Stations

0.6 Sq Miles walking distance coverage @1/4 mile radius

PRT Network

Wiehle – Reston- Herndon

9.5 Miles of Guideway

$250 - $300 Million

PRT Network

Wiehle – Reston- Herndon

15 Stations

2.9 Sq Miles walking distance coverage @1/4 mile radius

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

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

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

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MTR Corporation – Hong Kong Transit UtilityMTR Corporation – Hong Kong Transit UtilityMTR Corporation – Hong Kong Transit UtilityMTR 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

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MTR Performance – A Best Case ExampleMTR Performance – A Best Case ExampleMTR Performance – A Best Case ExampleMTR Performance – A Best Case Example

Service Performance ItemPerformance Requirement

Customer Service Pledge

Actual 2006 Performance

Train service delivery 98.50% 99.50% 99.90%

Passenger journeys on time 98.50% 99.50% 99.90%

Train punctuality 98% 99% 99.70%

Train reliability: train car-km per train failure causing delays ≥ 5 minutes N/A

500,000 1,448,915

Ticket reliability: magnetic ticket transactions per ticket failure N/A

8,000 14,705

Add value machine reliability 98.50% 98% 99.40%

Ticket issuing machine reliability 93% 98% 99.60%

Ticket gate reliability 97% 99% 99.80%

Escalator reliability 98% 99% 99.90%

Passenger lift reliability 98.50% 99% 99.90%

Temperature and ventilation

Trains: to maintain a cool, pleasant and comfortable train environment generally at a temperature at or below 26˚C NA 97% 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/A 90% 99.90%

Cleanliness

Train compartment: cleaned daily N/A 98.50% 100.00%

Train body: washed every 2 days N/A 98% 99.90%

Passenger enquiry response time within 7 working days N/A 99% 99.90%

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MTR By the NumbersMTR By the NumbersMTR By the NumbersMTR By the Numbers

Railway Operations2.5 million daily passengers867 million annual passengers1074 rail cars53 stations57 miles of track

Efficient OperationsMTR $4.5/rail-car-mileUS Metro Average $8.2/rail-car-mile

Powerful 2006 FinancialsAverage fare $0.95Total Operating Expense $555 Million

Total Fare Revenue $834 MillionTotal Operating Revenue $1,220 Million

Gross Operating Profit $665 MillionNet Property Profit/Taxes/Depreciation $327 MillionNet Profit $992 Million