Ultimately, the development of new financing models, rather than procuring a particular technology or expertise, will be the final (and most critical) supporting pillar for the delivery of high speed rail projects in North America. At this particular juncture, the industry urgently needs clarification on new ways of financing, not only because of concerns over long-term Federal or State funding, but also because garnering public support will be essential to secure funding in the first instance. The ‘Financing High Speed Rail Summit’, organized by American Business Conferences, will provide working examples from HSR Corridors where financing is a specific issue, and will closely examine the factors surrounding these. In the State of California, for example, the massive capital costs involved in delivering the necessary level of passenger services will require a long-term investment by both public and private sectors. How would this work? Who would the key players be? What will be essential to ensure its success? By contrast, financing an incremental HSR project, such as those that we are seeing in the Midwest, has very different drivers and concerns.
For The First Time, A Conference That Will Bring Together The Finance And Rail Industries Together To Discuss The Specific Challenges They Will Face in Financing HSR, And The Specific Funding Models That Can Be Used
Uniquely, this 2-Day Summit will provide an objective economic analysis of what makes a good investment in high-speed rail so that different high speed rail corridors can maximize the potential for investment in their own projects. Whether its funded publicly or privately, the investment needs to be a sound one, as whoever commits the funds will need it to be both profitable and sustainable in the end. To provide more clarity, we’ve specifically engaged the whole spectrum of financial institutions, including the PPP financing entities, investment banks, private equity firms and infrastructure investment groups, on the issues relating to HSR to gain their views on what vehicles could be used, including structured debts, investment bonds and other financial instruments.
Public Funding Versus Private Investment
When is comes to the financial models that we may see in use, what will be the contribution of public versus private investment? Should project capital costs be covered by government funds, and operations, private; or will a more complex arrangement be required dividing up the design, build, operate, maintain and own elements? What would the benefits be of a completely publicly financed project compared to a project financed entirely with PPP contracts? This conference is looking specifically at how and where HSR funding modes make most the most sense, based on recent actual studies of ridership and revenue forecasting - information that is essential to assess the potential for investment..
International Examples Of HSR Financial Consortia Will Demonstrate The Most Effective Ways of Completing A High Speed Line, On-Time, And In-Budget
How have PPP contracts and other types of financing been used in other parts of the world for high speed rail, and how do these compare to some American Corridors? As with any large-scale infrastructure project that requires financing, the costs for high speed rail projects are probably the most significant part of the project that must be taken into consideration. This Summit is the only one that dissects the project costs for both incremental and new-build HSR projects. Capital costs will be discussed, and detail provided about the relative costs of different speeds, what makes these speeds necessary and, importantly, the economic environmental and social benefits they entail. We are pleased to be highlighting these and other issues through a number of high profile international rail case studies, including the UK, France, Netherlands, Portugal and Germany.
For potential investors, what will the key investment criteria be for the different HSR corridors? The Financing High Speed Rail Summit will help investors make the best choice out of HS projects by providing ridership and revenue forecasts, objective economic analyses of incremental versus new-build high speed rail, and region-specific analyses. The event will also provide insights into how credit markets perceive HSR, what information is available on costs, the timeframe to achieve sustainability, and an objective analysis of investment viability. With PPP playing an important role in many HSR projects, lessons learned and risks involved in the PPP approach will also be shared between the specific private operators and government agencies who need to manage their respective risks in HSR.
A truly practical Summit, this is a must-attend 2 days for any financier, investor, rail company executive or government department charged with making HSR work. Speakers will discuss financial plans in detail, providing practical information for corridors still at the earlier stages of the planning process. Specific alignments and geographical possibilities for making HSR work, considering curvature and trip times will also be covered in this program.
The Summit will provide a timely opportunity for participants to network with the financing community, (including investment banks, private investors and financial advisory firms), rail operators, engineering and construction companies, rolling stock firms, suppliers, State DOTs and federal agencies, as well as providing an important forum to expedite the formation of new regional partnerships.
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