Rail Plan

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EXECUTIVE SUMMARY

French National Railways (hereinafter SNCF) proposes to develop, implement and operate newhigh speed rail services in the Texas High Speed Rail Corridor designated by Federal RailroadAdministration. Our expression of interest and qualifications is in response the FRA Request forExpressions of Interest dated December 11, 2008.SNCF is particularly aware of the issues attached to this project, to the extend it was involved in1987 in the project. Therefore, SNCF fells itself entitled to propose to build in this State a worldclass High Speed Rail service, called HST 220.This concept represents a new mode of transportation with a wide range of benefits that meetenvironmental and sustainable development objectives. In preparing this Expression of Interest,SNCF has addressed whether its High Speed Rail proposal, which is based on successful andself-supporting services in France and around the world, can provide a valuable choice for Texantravelers, be operated without government subsidy and even cover a portion of construction coststhrough operations revenues, and fulfill these important environmental goals.The proposed HS route Fort Worth - Dallas - San Antonio is quasi parallel to the existingcorridor, sharing the existing railway infrastructure facilities in urban approaches, even at lowerspeed. As explained in the text, the investments devoted to HSR would in turn take advantagefrom the rail’s new attractiveness and connectivity synergy with the classic rail network.

The HST 220 concept

Attractive, convenient and modally competitive HSR service is proposed. This service shall link Fort Worth – Dallas – San Antonio, in connection with the existing conventional lines (110 mphtop speed) to Houston.Speeds of up to 220 mph for HSR services are expected to generate a significant number of newtrips as well as draw from the air and auto modes. Access to HSR services for both residents andvisitors will be convenient due to 7 proposed stations conveniently located close to medium andlarge city populations, city central business districts and airports to attract residents, providingconvenient and cost competitive alternative to driving and air travel.This HST 220 concept keeps pace for a further complete Texan HS network ("Triangle" or "T-bone" type) involving Houston, once the pertinence of HS services proven. Meanwhile, theexisting corridors will serve as key feeders.To reduce both land use and environmental impacts and to ease the process of right-of-wayacquisition, the HSR route is to be located at the utmost possible along or next to existingtransportation infrastructures. To this end, allowances have been made to acquire the neededright-of-way for its own dedicated operations. Rolling stock capable of speeds up to 220 mphwill be used. Seating, with 500 to 550 seats per 200m-long train unit, comfort and on-boardamenities will be consistent with the highest quality standards in place today, using for instanceEurope Technical Specifications for Interoperability (TSI), modified as needed to conform toFederal Railroad Administration requirements. Using TSI as a basis offers a service with provenperformance in terms of safety, travel times, operations reliability, and efficiencies in servicecommissioning and start-up as well as long term inspection and maintenance.The maximum speed of trains using the TSI standards allow for operations speeds up to 220 mphat commissioning. Examples of approximate trip times between major city pairs are as Dallas –San Antonio in 1:50.

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Ridership estimates based on a full complement of services after an initial ramp-up period are12.1 millions (in the year 2025).Many national and State-level goals will be achieved. HSR is among the most energy efficientmodes of transportation. Equivalent greenhouse gas and other vehicle emissions will be reduced.Preliminary estimates show that HSR will generate 24% of the emissions compared to thosesame trips made by car or by air. At the same time, currently forecasted roadway and airportcongestion will be mitigated, making the implementation of HSR accrue benefits to those modes.Also, these trips will be safer. Up to 17 fatalities and 1332 injuries will be avoided for 2030, asan example.Stations will catalyze the redevelopment of host communities. Opportunities for economicdevelopment, in terms of over 68,000 jobs in construction and over 145,000 jobs in operationsand maintenance will draw workers from all socio-economic segments.

The length of the alignment, combined with the populations of the cities served as well as thelimited airport and roadway capacity along the corridor, are strong indicators of a successful highspeed rail service. Operations planning will be optimized in several ways to cater to theresidential, business and visitor market segments, in ways to increase ridership and revenue. Theprovision of a wide array of amenities and class/price options, along with reliable, on timeservice will create market attractiveness and confidence.

Project management approach

The success of implementing High Speed Rail in Texas area rests upon the integrated design,operations, financing, and environmental assessment disciplines experienced in high speed railprojects. This is proven through SNCF participation in many successful projects in many parts of the World. In the United States, governmental agency involvement is important for structuringthe required up front capital investment, and to partner in the environmental clearance andapproval processes. While the particular form of the most suitable organization is subject todetailed technical, financial and legal studies, it is conceived that a Special Purpose Companywould operate the HSR service and finance a part of the initial capital costs.

The business case

Capital costs have been estimated at $13.8 billion in $2009. Included within this amount are $1.4billion for rolling stock and $0.8 billion for right-of-way and acquisition. The remainder is inguideway and civil construction ($8.3 billion), systems and maintenance facilities ($2.7 billion)and stations ($0.6 billion). Estimates of revenue, annual operating and maintenance costs aresuch that as ridership matures and service is fully established, revenue will exceed O&M costsand will also cover a portion of the capital costs to the extent that public funding will be requiredfor only 62 % of the initial capital investment.In present value discounted at 4%, the benefits of the HST 220 concept would represent in $2009170 % of the public funds required, and would cover public funding in less than 15 years.