California

Executive Summary

French National Railways (hereinafter SNCF) propose to develop, implement and operate
new high speed rail services in the Federal Railroad Administration designated California
High Speed Rail Corridor. Our expression of interest and qualifications is in response the
FRA’s Request for Expressions of Interest dated December 11, 2008.

Implementing High Speed Rail in California through SNCF’s HST 220 concept represents a
new mode of transportation with a wide range of benefits that meet environmental and
sustainable development objectives. In preparing this Expression of Interest, SNCF has
addressed whether its High Speed Rail proposal, which is based on successful and self supporting services in France and around the world, can provide a valuable choice for
travelers in California, be operated without government subsidy or even cover a portion of
construction costs through operations revenues, and fulfill these important environmental
goals.

Proposed HST 220 concept

An attractive, convenient and modally competitive high speed rail service linking the major
population centers of San Francisco to Los Angeles and Anaheim is proposed, consistent with the concept advanced by the California High Speed Rail Authority (CHSRA). Speeds of up to 220 mph are expected to generate a significant number of new trips as well as draw from the air and auto modes. Access to HSR Services for both residents and visitors will be enabled via 16 proposed stations conveniently located close to medium and large city populations, city central business districts and airports to attract residents, providing convenient and cost competitive alternative to driving and air travel.

To reduce both land use and environmental impacts and to ease the process of right-of-way acquisition, the HSR route is to be located along or next to existing transportation
infrastructure. To this end allowances have been made for acquisition of the needed right-of way for dedicated HSR operations. Rolling stock capable of speeds up to 220 mph will be provided. Seating, with capacity for 500 to 550 passengers per 200m-long train unit, comfort and on-board amenities will be consistent with the highest quality standards in place today, using Europe’s Technical Specifications for Interoperability (TSI), modified as needed to conform to all Federal Railroad Administration requirements. Using TSI as a basis offers a service with proven performance in terms of safety, travel times, operations reliability, and efficiencies in service commissioning and start-up as well as long term inspection and maintenance.

Examples of approximate trip times between major city pairs are San Francisco to Los
Angeles – 2 hour 40 minutes, Fresno to Los Angeles – 1 hour 26 minutes, and Merced to San Francisco – 1 hour 35 minutes.

Ridership estimates based on a full complement of services after an initial ramp-up period are 8.5 million trips in the San Francisco to Fresno market (in the year 2020) which would be operated in a first phase, and 55 million trips between San Francisco and Anaheim with the full build out in the year 2030.

Many national and State-level goals will be achieved. HSR is among the most energy
efficient modes of transportation. Greenhouse gas and other vehicle emissions will be
reduced. Preliminary estimates show that HSR will generate 24% of the emissions compared to the same trips made by car or by air. At the same time, currently forecasted roadway and airport congestion will be mitigated, making the implementation of HSR accrue benefits to those modes. Also, these trips will be safer. Up to 4,600 fatalities and 352,000 injuries will be avoided between the years 2020 and 2050.

Stations will catalyze the redevelopment of host communities. Opportunities for economic
development, in terms of over 154,000 new jobs in construction and over 300,000 new jobs in operations and 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 the limited airport and roadway capacity along the corridor, are strong indicators of a successful high speed rail service. Operations planning will be optimized in several ways to cater to the residential, business and visitor market segments, in ways to increase ridership and revenue. The provision of a wide array of amenities and class/price options, along with reliable, on time service, will create market attractiveness and confidence.

A phased approach is proposed, starting with the San Francisco to Fresno/Merced segment, and the extension to Los Angeles and Anaheim. As part of the first phase, proposed to start service in 2018, certain aspects of the High Speed Rail program will be newly introduced to the United States in California (and perhaps in other corridors as well) in the areas of operations, safety and the mixing of services in certain areas such as approaches to existing stations. We will work with FRA and other agencies of jurisdiction in the transition to these new technologies. The full build out is estimated to open in 2024.

Project management approach

The success of implementing High Speed Rail in the California Corridor rests upon the
integrated design, operations, financing, and environmental assessment disciplines
experienced in high speed rail projects. 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 structuring the required up-front capital investment, and to
partner in the environmental clearance providing mitigation in particular against earthquakes, and approval processes. While the particular form of the most suitable organization is subject to detailed technical, financial and legal studies, it is conceived that a Special Purpose Company would operate the HSR service and finance a part of the initial capital costs.

The business case

Capital costs have been roughly estimated at USD 37.6 billion in 2009 dollars. Included
within this amount are USD 10.1 billion for rolling stock and USD 1.9 billion for right-of way
and acquisition. The remainder is in guideway and civil construction (USD 19.9 billion),
systems and maintenance facilities (USD 4.5 billion) and stations (USD 1.2 billion).
Estimates of revenue, annual operating and maintenance costs are that as ridership matures and service is fully established, revenue will exceed O&M costs and will also cover a portion of the capital costs to the extent that public funding will be required for only 70% of the initial capital investment.

In present value discounted at 4%, the benefits of the HST 220 concept would represent in
USD 2009 290%