Amtrak System Overview and Update

1. AmtrakSystem Overview and Update Stephen Gardner Vice President, Policy and Development SCORT 2011 Annual Meeting, Charlotte, NC September 2011 Piedmont crossing Catawba River near Spencer, NC

2. The Amtrak System Cascades Chicago Hub Long distance routes connect major hubs and corridor services California corridors Northeast Corridor (NEC)

3. State corridors – nearly half of Amtrak’s ridership NEC – over half of Amtrak ticket revenue, majority of capital funding Long distance – fewer riders, longer trips, majority of Federal operating support All business lines rely on Shared Costs – stations, mechanical, systems Amtrak at a Glance – Ridership and Revenue Ridership, July YTD Ticket Revenue, July YTD

4. On track for 30 million riders in FY11 • FY08: Economic peak; low unemployment; high gas prices • FY11: Slower economy; higher unemployment; lower gas prices • Hurricane Irene, Midwest floods, Pacific Northwest mudslides have lowered summer ridership and revenue Millions Forecast

5. Ridership, revenue gains across all segments Continued Growth in Ridership & Revenue Ridership, FY11 vs. FY10 July YTD (10 mos) Ticket Revenue, FY11 vs. FY10 July YTD (10 mos) +7.1% +2.0% +9.9% +6.9% +9.8% +5.5%

6. State Corridor Ridership & Revenue Highlights * Reflects introduction of additional Piedmont frequency

7. Operating Costs • On NEC and State Corridors, operating costs holding to prior year levels despite rider and revenue growth • On Long Distance trains, facing increased costs Direct and Shared Costs, FY11 vs. FY10 May YTD (8 months) (millions) 8 months of cost data currently available due to transition to new accounting system

8. FY10 Operating Results • Federal support for both Long Distance and State Supported operating expense FY10 Financial Performance of Routes – Final Audited 1. Excludes interest, depreciation, and OPEB’s. Ties to audited data available on Amtrak website.

9. $698.0M in FY10 capital spending Majority of capital spending on NEC, with remainder on shared assets used by multiple services FY10 Capital Spending FY10 Capital Spending - Millions Systems (timekeeping, dispatching), station improvements Finance, Procurement, Real Estate eTicketing, call centers, QuikTrak, eCommerce, WiFi, Yield Management Bridges/Culvert/Tunnels, Stations, Signals, Catenary, Track, Interlockings, ADA, Life Safety SAM program, hardware, IT security, Equipment overhauls, Mechanical facilities

10. Customer satisfaction on State-Supported trains is high and in many cases improving Always opportunities for improvement (Commercial Partner Satisfaction Program) Customer Satisfaction (CSI) Selected CSI Measures for State Corridor Trains - % Very Satisfied FY11 vs. FY10 July YTD (10 mos)

11. Gains in NEC, flat for other State Corridors, declines in Long Distance On-Time Performance (OTP) Endpoint On Time Performance, FY11 vs. FY10 July YTD (10 months)

12. 2012 Funding & Budget • FY11 Continuing Resolution provided $1.474 billion for Amtrak • $562m operating (roughly equal to FY10) • $649m capital ($89m cut from FY10) • $263m debt service (roughly equal to FY10) • Amtrak requested $2.2 billion in FY12 • $616m operating (PRIIA-authorized) • $1.325b capital (PRIIA-authorized plus $50m for NEC Gateway) • $271m debt service (PRIIA authorized $290m) • End of ARRA funding means a larger reduction in capital than apparent • House Transportation, Housing, and Urban Development Subcommittee • Operating -- $227m (Cannot be used for operating costs of State-supported routes) • Capital -- $627.954m • Debt service -- $271m (not to exceed) • Senate markup not yet scheduled • Appropriators must live within FY12 caps on discretionary spending, or face sequestration • “Super Committee” process could further reduce FY12 spending • But sequestration from failure of process to result in $1.2T in savings will not occur until FY13

13. Congressional Update • Transportation is on the agenda for September • September 14 Senate Commerce Committee Hearing • FAA authorization expires mid-September • Surface bill expires end of September • Administration’s proposed American Jobs Act • Super Committee and Debt Package

14. Amtrak Partner Customer Commercial Partner Satisfaction Program (CPSP) • The 2010 Partner Satisfaction Survey revealed that Amtrak needs to improve serving partner wants, needs and expectations • Partner Focus Areas • Contracts & service pricing • Operating problems response • Reporting accuracy and timeliness • Communications • Efficient business processes • Technology solutions • Customer / Market research • Partner’s Customer Focus Areas • OTP • Cleanliness • Comfort • Temperature • Service quality • Food & Beverage • Schedule/fares

15. Partner Performance Action Teams Regional Steering Committees Executive Liaison Team Rebuilding the Relationship: Commercial Partner Satisfaction Program Amtrak Executive / Partner Meetings Amtrak Local Team Amtrak Regional Team State and Commuter Partners Amtrak Corporate Team Partner Satisfaction Survey

16. Commercial Partner Satisfaction Program – results so far • Pilot program in place with West Regional Steering Committee  Eliminated the “One Year Rule”  Expedite Position Grading and Classification • Now within 5 business days of request  Reduce Time from Post to Fill • Cascades: Resolved border crossing issues with second train • Capitol Corridor: Restroom odor CSI scores improved +12 points • San Joaquins: Food & beverage improvements +5 to +11 points • Coordinate Engineering at the Division Level for Station Construction and Improvements • Outreach, expanded Station Initiative Team calls, survey created • Improve Locomotive Availability by addressing spare parts inventory and delivery time lag

17. PRIIA Sections – Status Update

18. PRIIA Section 209: State Support • August 31: Amtrak Board of Directors approved the Section 209 policy jointly proposed by Amtrak management and the Section 209 State Working Group (SWG) • September 1: Amtrak Board of Directors mailed letters to States asking for their concurrence on the Section 209 Policy by September 30 • We ask your States for concurrence, and are here to answer questions to help get to concurrence • Thanks to the SWG!

19. Selected Developments Here in the Southern Region • Southeast High Speed Rail Corridor (SEHSR) • North Carolina, Virginia, South Carolina and Georgia • Nearing completion of Tier 2 environmental impact, Petersburg-Raleigh • Georgia • Multiple corridor planning grants • North Carolina • 3rd Piedmont round trip scheduled to start late 2013 • Virginia: Next Stop Norfolk • One-seat ride from Norfolk to Boston • Estimated start date 2013 • DRPT, Amtrak, CSX, NS, City of Norfolk Lynchburg Inaugural Train

20. Strategic Asset Management - SAM • Company-wide, multiyear program to revamp business processes throughout organization, integrate to an enterprise solution (SAP) • Release 1a went live in June 2011 – due to transition, some delays in processing APT and generating invoices Example: Accounting Processes Financial Activities & Functions Example: Inventory Management • Annual Budget Activities • Project Planning Activities • Reporting & Analysis Activities Materials Activities & Functions Example: Purchasing Procurement Activities & Functions Example: Time Processing Human Capital Management Activities & Functions Transportation Mechanical Engineering Example: Securing Materials Example: Cost Capturing Example: Planning Capital Projects against Functional Assets

21. Safety and Regulatory Developments • Positive Train Control (PTC) proposed rule • Late August: Proposed FRA rule extending deadline for determining TIH (toxic inhalation hazard) routes to 2014 • Currently 1,500+ miles of host railroad with passenger only, no TIH • Passenger Hours of Service (HOS) final rule • August: final rule issued restricting HOS for intercity and commuter train employees • Train schedules run through biomathematical model to assess risk of fatigue, establish sufficient rest periods • Type 1: 4AM-8PM shifts-less risk; Type 2: 8PM-4AM shifts-more risk • Too soon to determine effects on Amtrak services • Corridor service mostly Type 1, but shared corridor/LD resources could be Type 2

22. Questions? Crescent crossing the James River at Lynchburg