Passenger Rail Update Caroline Decker Todd Stennis Government

Passenger Rail Update Caroline Decker & Todd Stennis Government Affairs and Corporate Communications

Overview • Exciting time for passenger rail: – Almost a decade of growth – Fundamental changes in the way we manage – A different place from where we were in 2005 • Strategy to guide efforts to reach corporate goals: – Safety and Security – Financial Excellence – Customer Focus • Today’s discussion: – Pending federal legislation – Key indicators and initiatives – Challenges and opportunities (OTP) 2

Ten annual ridership records in twelve years Ridership has grown by almost 50% since 1998 3

State-supported services have almost doubled 4

Debt Reduction Amtrak Corporate Debt Total indebtedness is less than half of the 2002 level 5

FY 2016 Federal Appropriations and Reauthorization Appropriations • • FY 2016 THUD (Transportation, Housing and Urban Development) bill pending House: $1. 1 billion / Senate: $1. 4 billion “Continuing resolution” (CR) Scenario Reauthorization • • House – Restructures funding: Instead of operating/capital, would create two accounts National network, NEC – $300 M a year for infrastructure grants to states for rail – Greater RRIF loan accessibility – USDOT to initiate rulemaking to shorten environmental review process for capital projects Senate – A six-year reauthorization bill for surface programs – Included a PTC extension for 3 years – Rail title included in Senate passed surface transportation package 6

Amtrak’s recent appropriations history Taxpayer Relief Act American Recovery and Reinvestment Act FY 2015 and likely 2016 appropriations levels are pretty close to average (over the life of the company) 7

9 Jun House passes THUD approps bill 23 May Congress extends HTF 30 Jul Senate passes transpo bill 31 Jul 3 month HTF extension enacted Issues in Play FY 16 Appropriations Reauth HTF PTC Oct 31– current HTF auth expires Dec Nov Oct Sep Aug Draft and Markup Senate THUD Approps Bill RECESS 4 Mar House passes Amtrak reauth bill Jun 2015 Legislative Timeline Tax Reform? Dec 18 – Proposed HTF extension 8

Long Distance OTP 80% threshold set by PRIIA Sec 213 If this challenge goes unaddressed, costs will rise, revenues will drop, and we will become more dependent on Federal support 9

State-Supported OTP 80% threshold set by PRIIA Sec 213 These trains have not reached the Federally-mandated 80% OTP level since 10 2013

Long Distance Initiatives Revenue Opportunities Efficiency Initiatives • Business Class Growth o Coast Starlight, Auto Train, Single Level trains • Right Sizing o Seasonal approach • Synchronized Quarterly PM o Improved fleet availability • Package Express and Checked Baggage o Leveraging new baggage cars • Excursions o Winter Park ski train • Inventory Reduction o Reduce obsolescence for quicker turns • Chicago Improvements Phase II o Efficiency & productivity • Los Angeles Improvements Phase I o Scheduling & integration • Facility Utilization o Available capacity • Food & Beverage o Silver Star, City of New Orleans, Coast Starlight Efficiency and customer satisfaction are our objectives 11

Intermodal Improvements • Partnerships for investment in intermodal terminals will benefit passengers – Ft. Worth and St. Paul, Lynchburg and others – Birmingham is underway – Trend toward long range/regional transit bus services increases reach and utility • Amtrak has been working to expand intercity bus connections – Thruway connections in Eastern North Carolina have grown for three consecutive years – Interline connections that we have added over the last 2 years have given customers 84 additional destinations 12

Services for Cyclists • Expect carry on service bike service aboard Capitol Limited on September 10 – Added bike racks to a Superliner coach – Charge of $25 to transport bike (reservations required) – Based on requests from cycling community • Also now carrying bikes on Heartland Flyer – Bike racks installed inside a “cab-baggage” car – No charge, but reservations required – This is a pilot/test • Carolinian now accepting bicycles (reservations required) • In the process of modifying coaches for bicycle service on the Vermonter 13

Sustaining Our System • Long distance trains serve many towns in rural areas with few travel options – More than 500 communities – 46 states • Relationships with these communities are extremely important – focus of our field team 14

Long distance trains provide a vital public service • Long distance trains account for: Intercity Bus Coverage State Name % of rural residents served, 2005 % of rural residents served, 2010 Change (%) Alabama 92. 4% 60. 9% -34% Georgia 92. 4% 66. 1% -28% Kansas 71. 8% 52. 6% -26. 7% Kentucky 70. 7% 50. 2% -28. 9% Louisiana 91. 2% 72. 7% -20. 3% Mississippi 93. 8% 62. 8% -33% Missouri 80. 4% 69. 6% -13% Nevada 85. 3% 66. 1% -22. 5% New Mexico 84. 3% 61. 0% -27. 6% North Carolina 95. 0% 72. 9% -23. 3% North Dakota 50. 7% 35. 2% -30. 1% Virginia 89. 2% 68. 0% -23. 8% West Virginia 75. 7% 46. 2% -38. 9% – 41% of passenger-miles – 15% of ridership, but 23% of ticket revenues – 42% of identified passengers with disabilities who use Amtrak • Serve about 40% of America’s rural population • In many places, only remaining scheduled intercity transportation (bus services served 11% fewer Americans in 2011 than 2005) Source: USDOT The average long distance train is almost as full as an Acela 15

Major Systems and Programs • • Customer Experience Program Wi-Fi projects On-Board Information System (OBIS) Passenger Information Display Systems (PIDS) • Advertising and Loyalty Programs These programs are designed to improve the customer experience 16

Ongoing Wi-Fi Projects • Enhanced targeting: – Customize and enhance state partner Wi-Fi landing pages (via the Wi-Fi Landing Page Customization Program). • FY 16 Wi-Fi Technology Refresh/Research – Testing replacement on-board Wi-Fi solution – Evaluating satellite as a potential Wi-Fi platform • On-board Entertainment – Evaluating on-board entertainment solution – Potential for basic and premium content on all routes throughout the national system • Trackside Broadband Wi-Fi Feasibility Program 17

Amtrak. com Redesign The initial concepts for the new Amtrak. com interface present customers with a more compelling and personalized experience 18

19