Capital Projects Overview January 8, 2020 Americas Only Private High - PowerPoint PPT Presentation

Michael Cegelis, EVP, Rail Infrastructure Capital Projects Overview January 8, 2020

America’s Only Private High -Speed Passenger Rail Initiative • Focus on first-class customer experience for Florida residents and visitors • Two systems currently underway • Opportunities to expand nationwide, connecting other strategic city pairs Too close to fly, too far to drive Our Florida System (1) Our California Expansion Jacksonville Reno St. Augustine Sacramento San Francisco Daytona Beach San Jose Orlando Cocoa Las Vegas Melbourne Disney Vero Stuart Barstow Jupiter West Palm Beach Victorville Boca Raton Current Virgin Trains USA Station Union Station Fort Lauderdale Future Virgin Trains USA Station Planned Virgin Trains USA Station Aventura Current Virgin Trains USA Route Planned Virgin Trains USA Route Miami International Miami Orlando Extension Route Airport Future Virgin Trains USA Route PortMiami San Diego 1. We currently operate between Miami and West Palm Beach. We commenced operations from West Palm Beach to Fort Lauderdale in January 2018 and from West Palm Beach to Miami in May 2018. We will be commencing service to Aventura, Boca Raton, and PortMiami in the next 9-12 months. We have commenced construction of the expansion of our Florida passenger rail system to Orlando, and we intend to further expand our rail service to Disney. 2

More Than Just A Ride, It’s a One of a Kind Guest Experience 3

Virgin Trains Florida System 4

Economic Basis for our Florida System Massive travel market with 400 million trips taken annually Corridor adjacent to 70% of 21 million residents state’s 20 million residents 1 − 3 rd largest state in the U.S. and one of the fastest growing 125 million annual visitors 2 − Orlando #1 travel destination in the U.S. Population per sq. mile Home to top 3 largest cruise ports in the world <10 3 10…25 25…50 − PortMiami, Port Everglades, Port Canaveral 50…100 100…250 250…500 500…1,000 1,000…2,500 2,500…5,000 Gateway to Latin America >5,000 4 − 11mm international arrivals into Miami annually 5

Our Current South Florida System Started construction in late 2014, completed late 2017, $4B+ total investment • Commenced operations in January 2018, opened Miami station in May 2018 • Executed a trademark and licensing agreement with Virgin Group and currently rebranding to Virgin Trains USA • Operating hourly service along 67 mile corridor with stops in Miami, Fort Lauderdale and West Palm Beach • Carried more than 1.6 million riders since opening operations State-Of-The-Art Train Sets MiamiCentral Station MiamiCentral Departure Lounge 6

Most Innovative Train in America – Miami Central Station 7

Most Innovative Train in America – Miami Central Station 8

Most Innovative Train in America – Miami Central Station 9

Most Innovative Train in America – Miami Central Station 10

Projects within our Florida System Phase 1 - We currently operate in Florida with stations • in Miami, Ft. Lauderdale and West Palm Beach New Stations are planned for Aventura, Boca Raton, • and Port Miami Orlando PTC implementation is underway in MIA-WPB • Additional track improvements are underway to • Tampa improve freight fluidity Intrusion prevention improvements are also • West Palm Beach Boca Raton underway Fort Lauderdale Current Station Phase 2 - Orlando extension is under construction • Current Route Orlando Extension Route Miami Airport Miami Future Route Phase 3 – Tampa/Disney extension is in active planning • 11

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Tampa Expansion – Preferred Alternative 13

Virgin Trains Florida System Phase 2 – West Palm Beach to Orlando 14

Extending Virgin Trains USA from WPB to Orlando $2.5B investment • 168 miles total • 129 miles in existing rail corridor (Zone 4) • Double track • Bridges replaced • Signal system replaced • 155 grade crossings reconstructed • 35 miles from Cocoa Curve to Orlando Airport (Zone 3) • 4 miles through GOAA main corridor (Zone 2) • VMF and Orlando Station Tenant Improvements (Zone 1) • 62 acre site • 138,000 SF building • 6 miles of track • Orlando Airport Station tenant fitout • 15

Extending Virgin Trains USA from WPB to Orlando (cont.) • 55 structures • 48 bridges • 3 trenches • 4 underpasses • 1.4M SF of walls • 6M CY of embankment • 225m lbs. steel • 155 grade crossings • 106 pcs special track 16

Orlando Extension Project Delivery Model • VT leads the 40 person PM Team • HNTB support • Design Engineering • TY Lin/Pennino Group for VMF • HNTB for rail alignment from Orlando to Cocoa • TranSystems for rail alignment from Cocoa to IR/St. Lucie County Line • AECOM for St. Lucie/IR County Line to WPB • Bergmann for fixed bridges in N-S • TranSystems for Loxahatchee movable bridge rehabilitation design • Rolling Stock • Siemens 17

Orlando Extension Project Delivery Model (cont.) • Environmental • Wood • Biotech • Systems & Comm • MIA-WPB: Alstom E-ATC • WPB north: Wabtec I-ETMS • Construction – current active prime contracts (fixed price, evaluated bid with ATC) • Zone 1 VMF site: Hubbard Construction Co. ($8M) • Zone 1 VMF Building: Wharton-Smith Inc. ($55M) • Zone 2 GOAA alignment: The Middlesex Co. ($85M) • Zone 3 GOAA curve-Cocoa curve: Granite Construction Co. ($500M) • Zone 4 rail alignment Cocoa-WPB: HSR Constructors (Herzog, Stacy & Witbeck, Railworks) ($700M) • Zone 4 Loxahatchee Bascule Bridge reconstruction: Scott Bridge Co. ($33M) 18

Orlando Extension Project Delivery Model (cont.) • Railroad Materials are direct purchased ($250M) • Rail (SDI), Ballast (Vulcan), Concrete Ties (Rocla), Special Track (Nortrak) • Transportation (Norfolk Southern, FECR, CSX) • Other direct purchases • Train wash • Wheel truing machine • Drop table • 30 ton overhead crane 19

Orlando Extension Project Delivery Model (cont.) • Land • FECR Easement • FDOT Lease • CFX Easement • GOAA Easement • Direct purchase properties • Mitigation land purchases and credits • Borrow pits 20

Orlando Extension Project Delivery Model (cont.) • Other stakeholders • FRA • USACE • USCG • SFWMD • SJRWMD • Orange County EPD • Counties & cities • FDEP • Florida Fish & Wildlife • OUC 21

Zone 1 Vehicle Maintenance Facility Site Development 22

Zone 1 Vehicle Maintenance Facility Site Development 23

Zone 1 Vehicle Maintenance Facility Rendering 24

Zone 1 Orlando Airport Station Tenant Improvements 25

Zone 1 Orlando Airport Station Tenant Improvements 26

Zone 2 Orlando International Airport Corridor 27

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Zone 3 Orlando Airport-Cocoa 29

Zone 4 Cocoa-WPB (tortoise trapping & relocation) 30

Zone 4 Cocoa-WPB (Loxahatchee fiber bore) 31

Zone 4 Cocoa-WPB (fiber plow) 32

Zone 4 Cocoa-WPB (grade crossing upgrades & replacements) 33

Crane Creek Bridge, Melbourne, FL 34

Zone 4 Cocoa-WPB (rail grading) 35

Owner Supplied Materials 36

Ties manufactured by Rocla in purpose built plant, Ft. Pierce, FL 37

Rail – Steel Dynamics Inc., Ft. Wayne, IN 38

Timber Tie Pre-plating – Gonzalez & Sons, Miami 39

Wired Signal Houses - Alstom 40

Special Track - Nortrak 41

Ballast & Delivery • Ballast • Vulcan Materials • Conrad Yelvington • Rail • FECR • CSX • Car leasing • Wells Fargo • Herzog • GATX • Vulcan 42

Virgin Trains Florida System Future Projects 43

Florida System Future Prime Contracts • Zone 1 Orlando Station Tenant Improvements ($7M) • Freight fluidity – Frontenac Double Track ($8M) • Aventura Station Civil/Track/Wayside systems ($20M) • Boca Raton Station Civil/Track/Wayside systems ($5M) • PortMiami Civil/Track/Wayside systems ($5M) • St. Lucie movable bridge ($15M) • Intrusion protection improvements ($3M) • Tampa extension ($1.5B) 44

Virgin Trains Las Vegas/Southern California System 45

Our First Expansion – Los Angeles to Las Vegas 46

Our Southern California and Las Vegas System Travel from Southern California to Las Vegas in 90 minutes for less than the cost of driving or flying Rights to DesertXpress purchased • Reno Planning, NEPA entitlement, site acquisition work is • Sacramento San Francisco underway San Jose Bakersfield Engineering design by HNTB (California) and Jacobs • Barstow Santa Barbara (Nevada) Palmdale Las Vegas Victorville Ventura Santa Clarita CMGC: Victorville to Vegas Constructors (Skanska • Downtown San Bernardino Barstow L.A. Palmdale Balfour JV w/ Las Vegas Paving) Victorville San Diego Union Station The first leg would travel from Las Vegas to • Victorville, CA Planned Virgin Trains USA Station San Diego Planned Virgin Trains USA Route Future Virgin Trains USA Route Future expansion would take the system into • downtown Los Angeles 47

Thank You 48