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RAIL FUNDING traction, private capital must be at- tracted. We need a new approach that will enable private capital to make economic sense out of the HSR propo- sition. And, that game-changer is put- ting an EVA (Economic Value Added) model to work to illustrate the total re- alizable benefi ts that can be obtained from HSR, and not just those derived from the farebox. The basic elements of this model are set out in the graph- ic on page 80. (source: Accenture) THE NEW MODEL A "New Calculus" needs to be cre- ated to recast the economic value proposition more holistically. The numbers in this example are illustra- tive only. But, one can see from the basic numbers in this example that EVA contribution goes from a net loss of $42 per passenger trip to a positive contribution of $173, when these wid- er issues are factored into the econom- ic decision. This calculation puts a dollar value on all of the factors when considering the cost of taking a trav- eler from the car and putting them on the train, not just the sale of the ticket. We need to consider this EVA model approach to help politicians, the pub- lic, and, crucially, private sector inves- tors to get a complete view of HSR. Only then can decision-makers see the fi nal economic impact of HSR. They can then decide if it should be incorpo- rated into plans for a coordinated and linked intermodal strategy that lever- ages limited funds to maximum effect. The key is getting people to look at HSR through a different lens. It can help us better understand if HSR proj- ects can help our economy remain competitive, protect our environment and ease pressure on overloaded, and increasingly outdated, transportation infrastructures. This means going be- yond the restrictive thinking of the past and toward the wider impact of an HSR investment. Many are aware of the transporta- tion challenges in the U.S. and else- where. From infrastructure deteriora- tion to investment requirements, from congestion to rising fuel costs and from growing carbon emissions to lost pro- ductivity, the scale of these challenges should not be underestimated. Brooks Bentz is a partner in Supply Chain Management and North American Rail Practice Lead for Accenture. 1 U.S. Department of Transportation, Press Release: U.S. Transportation Secretary LaHood Launches Historic Expansion of Infrastructure Finance Fund 27 July 2012; 2 2012; 3 U.S. Department of Transportation, Federal Railroad Administration: HSIPR Project Funding; 4 Rail in the Northeast Corridor, September 2010 Reported widely, including Bloomberg BusinessWeek: A $5.2 Billion Bridge to Somewhere, 23 August Amtrak: A Vision for High-Speed 84 < mETRO mAGAZINE SEPTEMBER • OCTOBER 2012 metro-magazine.com