Housatonic Railroad Company

1. Presented by
The Housatonic Railroad Company

3. 1. MARKET FEASIBILITY ANALYSIS
2. BENEFITS ANALYSIS
3. IMPLEMENTATION PLAN

4. Market Research Study
By
Market Street Research

5.  DETERMINE IF PRIVATE OPERATION OF RAIL
PASSENGER SERVICE BETWEEN NYC, STAMFORD
AND SOUTH NORWALK AND LITCHFIELD AND
BERKSHIRE COUNTIES IS FEASIBLE
 EVALUATE FACTORS THAT WILL DRIVE
RIDERSHIP
 DEVELOP SOUND RIDERSHIP ESTIMATES

6.  HIRED MARKET STREET RESEARCH. SKILLED IN
EVALUATING THE MARKETS IN WHICH WE WILL
COMPETE.
 DEVELOPED EXTENSIVE QUESTIONNAIRE OF 75
QUESTIONS
 CONDUCTED RESEARCH AND ANALYZED
RESULTS

7.  MEDIAN RIDERSHIP – 2 MILLION ONE WAY FARES
PER YEAR
 PRIVATE SECTOR OPERATION WITHOUT PUBLIC
OPERATING IS FEASIBLE
 INITIAL CAPITAL INVESTMENT WILL REQUIRE
PUBLIC/PRIVATE PARTNERSHIP
 STRONGEST DEMAND IN SUMMER BUT VERY
GOOD FALL SPRING AND WINTER AS WELL

8.  PRIMARY USERS:
 COMMUTERS – FROM THE REGION
 VISITORS – TO THE REGION FROM NYC
 SECOND HOMEOWNERS - STRONG IN BOTH
LITCHFIELD COUNTY AND THE BERKSHIRES
 STUDENTS - PARTICULARLY ON WEEKENDS

9.  IMPORTANT AMENITIES
 WI-FI
 FOOD SERVICE
 RESTROOMS
 COMFORTABLE CARS
 BICYCLE
 CAPACITY TO TAKE ON TRAIN
 AVAILABLE AT DESTINATION
 RENTAL CARS/TRANSPORTATION AT DESTINATION

10. BENEFITS ANALYSIS
By
Dr. Stephen Sheppard

11.  Benefits of returning passenger rail to the Berkshires
 Increase in economic activity
 Increase in jobs
 Increase in public sector revenues
 Improved quality of life

12.  Increased household wealth
 From increased employment and property values
 Increased local tourism and travel to popular venues
 Reduce automobile traffic on regional and local roads
 Lower road maintenance costs
 Fewer traffic fatalities and injuries
 Reduced impact on climate change

13. Increases in … Connecticut Massachusetts Combined
Economic output $ 271,495,767 $ 343,970,290 $ 625,074,159
Employment 221 425 610
State and local tax revenues $ 11,353,143 $ 17,510,471 $ 29,452,747
Federal tax revenues $ 22,654,920 $ 27,944,938 $ 55,020,326
Property values $ 202,695,948 $ 101,206,932 $ 309,678,630
Decreases in …
Road maintenance costs $ 481,719 $ 899,157 $ 1,380,869
Costs due to fatal accidents $ 2,644,180 $ 4,560,668 $ 7,204,848
Traffic fatalities (persons) 2.94 5.04 7.98
Global mean temperature 2.2 x 10-7 degrees Celsius

14.  Potential benefits to the region are substantial
 Increased total economic output
 Increased employment
 Increased tourism
 Increased wealth and property values
 Increased revenues for local and state government

15.  Not measured in Sheppard analysis
 Proposed service contains two key ingredients that
foster TOD – In migration of people and influx of new
money to spend in the region
 TOD controlled by towns
 Downeaster offers good examples.

16.  SERVICE WILL GENERATE TWO MILLION ONE WAY
FARES PER YEAR
 SERVICE CAN OPERATE WITHOUT PUBLIC SUBSIDY
 SERVICE WILL GENERATE APPROXIMATELY BILLION
IN NEW ECONOMIC ACTIVITY IN THE REGION OVER
YEARS.
 SERVICE WILL BRING AN AVERAGE OF 610 NEW JOBS
TO THE REGION ( DURING CONSTRUCTION
PERIOD)

17. FUNDING
STRUCTURE
PLANNING PROCESS
CONSTRUCTION

18.  MASSACHUSSETTS
 $113.8 Million committed by Governor Patrick
 Will pr0vide passenger ready tracks between Pittsfield
and CT border.
 Full funding dependent on ability to reach NYC
 CONNECTICUT
 Funding not committed
 Need for comprehensive solution involving both states

19.  Housatonic working on new PP Structure
 Couple strengths of public and private sector.
 Provide for market based incentives to grow business
and control costs
 Assure protection of public investment
 Foster enduring partnership between private operator
and states

20.  Massachusetts
 BRPC station study
 Connecticut
 Extensive planning between New Milford and Danbury
 Continue to work with towns on station locations

21.  Total railroad Construction – 3 years after receipt of
funding
 Equipment
 Used
 Likely to come from region
 Will require upgrade

22. Contact Info:
Colin Pease
Office: 978-371-8046
Email: fcpease@comcast.net