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Tracks to

Tomorrow

A renaissance for railAlstoms vision for the future

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Proposed North AmericanHigh Speed Rail Corridors

1 California Corridor:Sacramento, Bay Area, Los Angeles, San Diego

2 Chicago Hub Network:Minneapolis, Milwaukee, Chicago, St. Louis, KansasCity, Detroit, Toledo, Cleveland, Columbus, Cincinnati,Indianapolis, Louisville

3 Empire Corridor:Buffalo, Syracuse, Rochester, Utica, Albany, New York City

4 Florida Corridor:Tampa, Orlando, Miami

5 Gulf Coast Corridor:Houston, New Orleans, Mobile, Meridian, Birmingham,Atlanta

6 Keystone Corridor:Pittsburgh, Harrisburg, Philadelphia

7 Northeast Corridor:Boston, Providence, New Haven, New York City,Newark, Trenton, Philadelphia, Wilmington, Baltimore,Washington, D.C.

8 Northern New England Corridor:Montreal, Boston, Portland/Auburn

9 Pacific Northwest Corridor:Vancouver, Seattle, Portland, Eugene

10 Southeast Corridor:Jacksonville, Savannah, Columbia, Raleigh,Macon, Atlanta, Greenville, Charlotte, Richmond,Hampton Roads, Washington, D.C.

11 Texas T-Bone and Brazos Express Corridor:San Antonio, Austin, Waco, Fort Worth-Dallas,Killeen-Temple, Bryan-College Station, Houston

Source: U.S. Department of Transportation

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National Geographic Custom Publishing631-757-8300

Editorial Services Directed by ..................Wendy Murphy

Art and Design Services Directed by ......Bruce McGowin

Project Direction by ....................................Bret Barasch

102008 OPI

ALSTOM Transportation Inc.353 Lexington Avenue, Suite 1100New York, NY 10016Tel. (212) 557-7262

www.transport.alstom.com

ALSTOM 2008. ALSTOM, the ALSTOM logo and any alternative versions thereof are trademarks and service marks of ALSTOM. Theother names mentioned, registered or not, are the property of their respective companies. The technical and other data contained in thesedocuments is provided for information only. ALSTOM reserves the right to revise or change this data at any time without further notice.

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2008 | TRACKS TO TOMORROW | 3

President of the American Public Transportation Association

A message from William Millar

rom early roads and canals,

through the growth of railroads

and electric street railways,

through the automobile age, and the

jet age, transportation systems have

always been at the center of American

progress. And that progress helped

America become the most prosperous

society in history.

But the transportation system today

does not provide nearly the mobility

options that America will need to face

the challenges of the future. While over the last

30 years the number of urban rail systems has

grown significantly, America continues to have a

relatively small supply of superior urban transport

and high-speed rail services that provide efficient

mobility for its communities and keep Americas

economic centers attractive, productive and

connected. With a new era of economic,environmental and transportation policy on

the horizon, we know that new innovations in

transportation are needed once again to propel

the economy forward and shape the nation.

Current trends all point to a robust future for

urban transport and high-speed rail. With 3-4

million new residents added each year, the United

States has one of the highest growth rates in the

industrial world. As has been the case throughout

American history, population growth followseconomic opportunity. This has led to continuing

growth in North Americas top metropolitan

areas. Economically, these metropolitan regions

have become the engines of American prosperity.

The geography of these areas will make transit and

the optimum use of high-capacity rail corridors

a necessity for accommodating growth and

addressing mobility needs on a mega-region scale.

The need for such a national

transportation strategy is a clarion

call to public officials at all levels

and to Americas business leadership.

The need to connect Americas

economic centers through fast, efficient

and sustainable networks has created

the necessity of a high-speed rail

system, comparable to the national

commitment to create the interstate

highway network. In this framework,

rail should become the preferred option

for trips of 500 miles or fewer, with links to airports

for longer distance trips and for international travel.

Revitalization and transformation of Americas

transportation system will require a bold,

comprehensive and aggressive national strategy.

It will require all partners federal, state,

local and private to sharpen their policy

perspectives and financial commitments. It will

require a broad coalition of advocacy partners

including business, labor, community leaders,

environmental champions, and leaders from

within the transportation industry itself to

commit themselves to accomplish this vision.

Economic conditions are right for a new era of

growth for urban transport and high-speed rail.

Just as transportation policy over the last half

century focused on building a system of interstate

roads to connect the nation, so should the vision

for the next 50 years focus on travel options which

connect people and enable prosperity in Americas

bustling economic growth centers.

I commend Alstom for its vision and leadership,

and look forward to our working together in a

mutual quest for better transportation service

and the economic vitality it will spawn.

F

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4 | ALSTOM | 2008

The Locomotion

Evolution: SpurringGrowth and Service

xperts say that fuel efficiency offers thegreatest and most immediate potentialfor reducing CO2 emissions from the

transportation sector over the next three decades.According to data from the Department of EnergysOak Ridge National Laboratory, existing U.S.passenger rail is 17 percent more efficient thanair travel and 21 percent more efficient than autotravel. Today, transportation policy places too muchemphasis on those modes of transportation that are

the least fuel efficient which means highercarbon emissions and a greater dependence onforeign oil. A strong transportation system dependson various modes of transportation, a balance notreflected in current American transportation policy.

For this reason, some legislators have suggested

that Americas transportation policy should focus

on more energy efficient modes of transportation

that will help achieve todays challenges. Policy

makers are too focused on highways and have

ignored alternatives including high-speedpassenger rail which may be part of the solution

to addressing other key policy issues.

The most successful implementation of high-speedtrains has been in Europe, where the speciallyengineered tracks required for this technologyhave been rolled out over the past 25 years. Thesesuccesses have been the result of consumer demand,fueled by effective government policies and fundingto support the vision that rail is a vital alternativeto alleviate the gridlock caused by excessive volumeof automobiles and trucks on the highways.

The evolution of rail systemsin Europe and the U.S.In Europe, several factors contributed to the

dominance of passenger rail, including high fuel

prices in comparison to electric power and a

concerted effort to control urban development and

preserve the form and function of historic cities. The

strong national and regional governments in Western

Europe were able to coordinate policies governing

land use and the planning that emphasized rail overhighways. Urban, regional and inter-city passenger

rail has thrived in Europe ever since.

Americans were leaders in the introduction of railsolutions as early as the middle of the 19th century.The first transcontinental railroad was built acrossNorth America in the 1860s, linking the railroadnetwork of the eastern U.S. with California on thePacific coast. The railroad had a large impact on theAmerican transportation system and economy during

the second half of the 19th

century. Even withoutgovernment subsidies, 70,000 additional miles oftrack were laid in the 1880s, linking increasingnumbers of towns and cities. Passenger rail traveltripled between 1896 and 1916, and trains carried95 percent of all intercity transportation through1910.1 Rail travels peak in the U.S. was 1920, withtrains carrying 1.2 billion passengers. In that yearfares were increased by 20 percent, and the decadesaw an almost threefold increase in automobileregistrations. As a result, intercity transportation

by trains had fallen by 18 percent by 1929.

E

Seven out of every 10 barrels of oil consumed inthe United States are used for transportation, andhighways account for 72 percent of that large share.

ALSTOM

TRANSP

ORT/TOMA-C.S

ASSO

1 Itzkoff, Donald M. Off the track: the decline of the intercity passenger train in the United States.Westport, Connecticut: Greenwood Press, 1985

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POLICIES AND TECHNOLOGY

AGV prototype drivercar at Aytr depot.La Rochelle, France.

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The largest passenger rail facility in the U.S. Alstoms Hornell,New York facility is the largest passenger rail car manufacturingsite in the U.S. with 700,000 square feet. It is the only passengerrail car manufacturing site in North America that has its own

climate chamber capable of testing complete passenger railcars. Since 1983 the Hornell facilities have manufactured andrenovated over 6,000 passenger rail cars and locomotives,which is more than any other company in the U.S.

Since Alstom acquired the site in July 1997, it has beentransformed into a world-class rolling stock and equipmentmanufacturing facility and it has the agility and potentialto address growing market needs in the future.

Home to railroad manufacturing since 1851, the Hornellsite builds and remanufactures rapid transit metro cars,commuter and intercity coaches, passenger locomotives,as well as AC propulsion, traction motors, electrical rotating

equipment and other related electrical components.

Customers served include:

California Department of Transportation Chicago Transit Authority CTA Chicago Regional Transportation Authority METRA San Francisco Bay Area Rapid Transit BART Connecticut Department of Transportation Maryland Mass Transit Administration MARC & MTA Massachusetts Bay Transportation Authority MBTA Metro-North Commuter Railroad Metropolitan Atlanta Rapid Transit Authority MARTA New York City Transit NYCT New Jersey Transit NJT Northern Virginia Transportation Commission VRE National Railroad Passenger Corporation Amtrak San Francisco Municipal Railway MUNI Southeastern Pennsylvania Transportation Authority SEPTA Washington Metropolitan Area Transit Authority WMATA

Alstoms assemblyline for R160 cars,Hornell, NY

2008ALSTOM

TRANSPORT/LARRYH

OVISH

6 | ALSTOM | 2008

Long-distance rail transport continued with the

streamliners that criss-crossed the United States

from the 1930s, to 1950s. However, rail passenger

transport stagnated in the U.S., just as Europe and

Japan were pushing forward with new technologies.

One major factor has been a lack of investment in

passenger inter-city rail infrastructure. In the

Northeast Corridor, rail travel is time and price

competitive with air travel, but infrastructure restricts

other routes to highway speeds, putting rail in direct

competition with buses and private automobiles.

Long-distance travel is currently dominated by

airlines, but given continued population growth and

congestion at airports and on highways, there has

been a resurgence of interest in high-speed rail in

the U.S. in recent decades. Several corridors are being

examined for potential high-speed service, either

at the federal or state level. North America offers

various high-density passenger corridors, which are

uniquely suited for the implementation of dedicated

high-speed rail, which has so successfully been

implemented in similar corridors in Europe and Asia.

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TGV duplex trainin service.

Signaling equipmenttesting at Rochester,

NY factory.

ALSTOM

TRANSPORT/J-J.DANGELO

ALSTOM TRANSPORT / J-J.DANGELOALSTOM TRANSPORT / P.GUIGNARD



Engineering InnovationsPolicies, public support and available corridorshowever, are only part of the equation. The other isengineering innovation, which has made high-speedrail technology possible for effectively and efficientlymeeting the worlds transportation needs. Over theyears, major technological innovations have madehigh-speed rail sustainable and highly efficient.These technologies include:

Articulated trains: When cars are permanently orsemi-permanently connected, trains have a fixed

composition of coaches, with consecutive cars restingon shared trucks (chassis). This technique reduces trainweight per length, a key factor for attaining high speedsat lower weight and reduced energy consumption.

A lower center of gravity: Development of high-speed trains with a lower center of gravity whichmakes them more stable than with traditional railtechnologies, especially when traveling at high speeds.

A reduced numbers of trucks: Many of theinnovations of high-speed trains are in the design

and placement of trucks two or more pairs ofwheels, their axles and a connecting frame thatsupports the cars. Conventional train carriages havetwo trucks per coach, one towards each end. In Alstomhigh-speed trains, cars are attached to one anothersemi permanently, with the front end of one car andthe back end of the next car resting on a commontruck, reducing the number of trucks, therebyreducing weight, noise and energy consumption.

Moreover, increased distance between axles in the

trucks reduces instability and improves train ridecomfort at very high speeds.

World-class signaling capabilities Alstom Signaling,

located in Rochester, NY, today is a leading manufacturer

and supplier of such key products as switch machines,

solid-state electronic relays, interlocking products,

signals, track circuits, and advanced traffic control

technology, including automated train supervision.Alstom is positioned at the front line of this global

market with its ATLAS system, originally developed

to address the need for unified signaling systems

throughout Europe. This network of links between

ground and trains can adapt to any situation and

every type of train. Alstom Signaling offers customers

not only a wide product range but also a unique

ability to integrate its products into entire signaling

systems including non-Alstom products.

As a proud descendant of its U.S. predecessor, General

Railway Signaling, the century-old leader in signaling

equipment in the U.S., Alstom Signaling has delivered

safe, proven products for more than a century with more

than 2,400 patents registered to date. Key customers

include all major Class I Railroads and passenger systems

including Amtrak, New Yorks MTA, and the Washington

Metropolitan Area Transit Authority.

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8 | ALSTOM | 2008

Advanced signaling systems: The signaling of

high-speed lines requires a different approach from

conventional railways. The speed of the trains is

high enough that the engineer/driver cannot reliably

read signals placed at trackside, especially in adverse

weather conditions. High-speed train systems rely

exclusively on cab signaling, a system by which

signaling information is transmitted electronically.

These signals are picked up through antennas placed

under the train and then processed by computers and

displayed to the engineer or driver in the cab.

Tilting capabilities: Because a train and its

passengers are subjected to centrifugal forces when

the train passes horizontal curves, trains with the

capability to tilt the carbody inward in track curves

reduce the lateral acceleration perceived by passengers.In other words, the tilt inward reduces the centrifugal

force felt by the passengers, allowing the train to pass

curves at enhanced speed and maintain ride comfort.

The duplex passenger platform: On many new

duplex (double deck) carriages in high-speed trains,

passengers can choose to travel in quiet zen zones

or zap areas where business can be conducted

and the mood is more social. Conference areas are

available for business travelers, and parents with

children will be able to play tabletop games orrent DVDs. Passengers also have more room to

walk around, talk on their mobile phones, and

enjoy more legroom, making train trips not just

a means to an end but an end in themselves.

Alstom has become the global leader in rail

transportation and power technology with a presence

in some 70 countries. A full-service company,

Alstom provides rolling stock for high-speed rail and

commuter transport, signaling systems, maintenance,

and custom-designed turnkey operations. All theseofferings ensure that Alstom is well-positioned to

aid the rebirth of surface transportation in the U.S.

An enviable safety recordAlong with the many technological advances,

high-speed rail continues to be one of the safest

forms of transportation:

Alstom has sold more than 650 TGV trains, which

have carried nearly 1.5 billion passengers over more

than a billion miles all in complete safety.

ALSTOM

TRANSPORT/D.D

ES

JARDINS

Alstoms suburban videosurveillance passenger

information system.

Security and Passenger Information Alstom TransportMontreal is home to the companys Worldwide Centerof Excellence for Security and Passenger InformationSystems a leader in integrated train informationand infotainment systems, including sound and

video technologies.Alstom Montreal offers totally integrated and flexibleIP-based systems that can be tailored to a wide rangeof public transportation operations. Its systems arealso designed to be upgradeable with evolving passengersecurity and comfort needs, and can be installed globallyon both Alstom and non-Alstom rolling stock.

A key differentiator for Montreal is its strong team ofcreative minds from engineers to software architects who use a forward-looking product vision to integratesome of the most innovative and cost-effective informationtechnologies. As a Worldwide Center of Excellence,

Montreal benefits from Alstoms complete understandingof the whole rail environment from building trains tosignaling systems and from control centers to infrastructure.

From soup to nuts Alstom provides turnkey solutionsand products and services for all types of systems from very high-speed and intercity rail to urban tramservices. Such turnkey solutions include integratedsystems optimized to meet requirements for rolling stock,information technologies, infrastructure and maintenance,as well as electrification and power supply. Support

services include project management, customer trainingand technical consultancy.

In the case of high-speed rail, safe uninterrupted travel atspeeds of up to 225 mph requires excellent compatibilitybetween the infrastructure and the rolling stock. Alstomsturnkey solution for high-speed rail includes completesystem design, construction, commissioning, operatingand maintaining transport infrastructure and rolling stock.

In urban areas, which are demanding clean-runningalternatives to car transportation, Alstom helps citiesdefine the best transport solution to accommodate trafficneeds while offering the best operating flexibility.

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BNSF freight traincarries storagecontainers.

STEPHENST.JOHN/NATIONALGEOGRAPHICIMAGEC

OLLECTION

RICHREID/NATIONALGEOGRAPHICIMAGECOLLECTION

A baby girl on the

Amtrak Surflinerenjoys the view.

Keeping them up and running Alstom Transportsfacility in Chicago/Naperville, IL, conducts

comprehensive Train Life Services (TLS) forthe US & Canada. This facility is a big part of

Alstoms complete range of end-to-end servicesfor both public and private rail network operators,

providing global life-cycle management, including

maintenance, refurbishment, technical assistanceand support, along with documentation management,

spare parts and supply chain management.

Helping customers with enterprise resource planning

that includes condition-based and fragmented

maintenance, inventory, and core management,Alstoms TLS in the U.S. and Canada can meetthe needs of all customers from finding and

installing one part to designing comprehensive

solutions that involve all, or any combination,of the Companys core business offerings.

Clients include BNSF, Amtrak, and Canadian

Pacific Railway Company, among many others.

During the 40-year history of Shinkansen, the

network of high-speed rail lines in Japan, more

than six billion passengers have traveled on the

service, yet there have been no passenger fatalities.

Spanish National Railways Consortia officials

affirmed the safety record of high-speed trains

in a presentation before the California High SpeedRail Authority in June 2008, noting that they

have operated in the same corridors as conventional

freight trains, with no accidents for decades.

Meeting current and future demandsMeanwhile, technological innovations are being

developed to make train travel even faster and more

comfortable, including the upgrade of existing rail

beds and tracks in Europe to meet these demands.

Work is underway on a third generation, ultra-high-

speed AGV or Automotrice Grande Vitesse train,

with top speeds of 225 miles per hour.

The AGV uses less power than its predecessor,

the TGV, and competing products available on

the market, due in part to a design that is 60 tons

lighter and an optimized and enhanced power

regenerating braking solution.

The AGV will be put in regular passenger service

by 2010.

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10 | ALSTOM | 2008

Building Momentum:The Opportunity

he high cost of fuel in Europe was clearly

one factor which motivated this initial

investment. However, traffic congestion

and environmental concerns have always been

additional motivating forces to encourage

investments in rail technology worldwide.

Momentum truly began to build after the first

reliable and convenient rail passenger service was

available. These pilot systems showed early signs

of economic success, and set a high standard for

passenger expectations of service and convenience.

The challenges of maintainingthe status quoToday the United States transportation system,

the largest in the world, is almost entirely

responsible for the nations dependence on

oil as the major source of energy. The U.S.,

In the 1970s, when Europe began to turn toward high-speed and in-city rail as the foundation

of its passenger rail systems, the U.S. and Canada continued to focus on moving people and

goods over highways and increasingly, by air. These different approaches were due to many

factors, from cultural attitudes to economic and geographical considerations. As a result,

while Europe and other regions boast sophisticated high-speed rail networks, the U.S. has a

mere 300 miles of medium-speed rail to date while Canada has yet to initiate its first project.

T

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which has only 4.5 percent of the worlds population,

uses 25 percent of the worlds oil. And about 60

percent of the oil used in the U.S. is imported.

In addition to a dangerous dependence on foreign

oil, the U.S. and Canada have suffered other related

consequences, including:

A staggering deterioration of the

transportation infrastructure. More than

one in four American bridges need significantrepairs or are burdened with more traffic than

they were designed to carry, according to the U.S.

Department of Transportation. And a third of

the countrys major roadways are in a substandard

condition a significant factor in a third of the

more than 43,000 traffic deaths each year.

Donald F. Kettl, director of the Fels Institute of

Government at the University of Pennsylvania

observes, Much of America is held together by

Scotch tape, bailing wire and prayers.


OPPORTUNITY AND PROMISE

and Promise

Amtraks Acelaservice is a

promising start forhigh-speed rail in

the U.S.IMAGECOURTESYOFTHENATIONALRAILROADPASSENG

ERCORPORATION-AMTRAK.

And the winner is

Projected travel times between California cities in the year2020 show how high-speed rail would compare to air travel,automobiles and conventional rail.

Auto Air High-Speed Train(Express Times)

City Pairs Total On the Total On the TotalDoor-to- plane Door-to- train Door-to-Door Door Door

Los Angeles 7h 36m 1h 20m 3h 26m 2h 35m 3h 30 mto SanFrancisco

Fresno to 4h 18m 1h 05m 3h 00m 1h 22m 2h 33mLos Angeles

San Diego 2h 41m 0h 48m 2h 46m 1h 13m 2h 16mto Los

Angeles

Burbank to 6h 32m 1h 00m 3h 08m 1h 59m 3h 02mSan Jose

Sacramento 2 h 33m No service 0h 50m 1h 53mto San Jose

h=hours m=minutes Source: California High Speed Rail Authority

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12 | ALSTOM | 2008

The overuse and inadequacy of highway and

airport facilities to accommodate population

growth and increased traffic. According to

the U.S. Department of Transportation, 2007

was the second-worst year for airline delays since

1995, and the prospects for 2008 are likely worse.

Meanwhile, the U.S. population is projected to

be 38 percent higher in 2050 and 95 percent

higher in 2100 than it is today. More than the

customary incremental improvements in transport

infrastructure will be needed to move people

efficiently and maintain the growth of the economy.

The physical and economic isolation in

major parts of the country without public

transportation. According to U.S. Census

data, 46 percent of American households do not

have access to any public transportation. Public

transportation must expand geographically tocapture shifts in population. On a national

scale, those regions experiencing rapid increases

in population must have viable public rail

transportation to serve local travel demands.

A measurable loss of work and fuel

productivity. According to the Texas

Transportation Institutes 2007 Urban Mobility

Report, traffic congestion continues to worsen

in all of the 437 American urban areas, creating

a $78 billion annual drain on the U.S. economy

in the form of 4.2 billion lost hours and 2.9

billion gallons of wasted fuel. These figures are

the equivalent of 105 million weeks of vacation

and 58 fully loaded supertankers.

The 2007 report also points out that congestioncauses the average peak period traveler to spend

an extra 38 hours a year in traffic, consumingan additional 26 gallons of fuel and spendingan additional $710.

The positive consequencesof changeGiven the negative impact of our dependenceon the automobile, truck and airplane to movepeople and goods, the opportunity to move

toward high-speed rail (which also connectswith intra- and in-city transit systems) has never

been more promising. The notable benefits:preserving the environment and stemming global

warming, the potential for improving economicgrowth and productivity, and greater freedomfor individuals and businesses to travel, move

goods and do business unimpeded.

Preserving the environmentAccording to the U.S. Public Research Group,

the U.S. transportation sector alone emits more

CO2 than the entire economy of any othercountry in the world except China.

Aircraft taxiing for take-offat busy US runway.

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A 2006 report entitled High Speed Rail and

Greenhouse Gas Emissions in the U.S., written

jointly by the Center for Clean Air Policy and the

Center for Neighborhood Technology, indicates

the potential for reduced emissions if all proposed

high speed rail systems in the U.S. are built. If, as

the report currently projects for 2025, passengers

take 112 million trips on high-speed rail in the

U.S., traveling more than 25 billion passenger

miles, the total emissions of CO2 would be

reduced by 6 billion pounds a year. This would

be the result of 29 million fewer automobile trips

and nearly 500,000 fewer flights.

Individually, if a solo commuter switches from

a private vehicle to public transportation, he

or she can reduce CO2 emissions by 20 pounds

per day or more than 4,800 pounds in a year.

Environmental advantages are also evident in

freight transport. The U.S. Environmental

Protection Agency estimates that for every ton-mile,

a typical truck emits three times more nitrogen

oxides and particulates than a locomotive. Diverting

freight traffic from truck to rail will lead to vast

environmental improvements.

As the impact of global warming and carbon

emissions becomes clearer, the need for systemicchanges to reduce our carbon footprint becomes

more urgent with each passing year.

Saving time and moneyAs noted earlier, congestion is another growingthreat to the economic well being of the U.S. andCanada. Transportation congestion and bottlenecksdamage air quality, slow commerce, increase energyconsumption and threaten quality of life, causingpeople to waste significant time and money.

The use of high-speed rail would reduce suchcongestion, improve productivity and reduce

fuel waste. In fact, the use of public transportationwould save the U.S. the equivalent of 4.2 billiongallons of gasoline annually or more than11 million gallons of gasoline per day. And,

according to a 2007 report by the energy andenvironmental consulting firm ICF International,households that use public transportation as an

alternative to driving save an average of $6,251

every year.

Uncommon Luxury and Convenience Through acombination of modern technology and adequate spaceand freedom of movement, train travel today is far morerelaxing and comfortable than air or highway transport.

Alstom Transport is the only rail manufacturer to integratedesign capabilities into its organizational structure. In 2005,the Company established the integrated Design & StylingDepartment to oversee design management and planningfor all Alstom Transport passenger rolling stock projects.

The departments cross-functional organization is adaptedto meet the specific needs of rail transport markets,combining creativity, innovation and identity to create

a customized product for each customer.Alstom continuously improves passenger comfort andanticipates future trends, from suspension and airconditioning to acoustic and light comfort. The Companysexpertise includes sensorial design, which considers allsensing using touch, color, sound, smell and light tocreate a feeling of calm and well-being for passengers.

During the design phase, special attention is paid toaccessibility on trains, especially for people with reducedmobility. Increasing access, installing platform-level floors,eliminating gaps between the platform and the trains allpromote ease of access and movement both within and

between carriages.

Car interior design.

ALSTOM

TRANSPORT/P.S

AUTELET

OPPORTUNITY AND PROMISE

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14 | ALSTOM | 2008

Whats more, high-speed trains actually shortenpoint-to-point travel time, particularly between

mid-sized cities separated by less than 500 miles,as compared to airline hub-and-spoke transport.This is good news in light of the significant challengesof an aging air traffic control system.

If the U.S. adopted new rail services that hit speedsof up to 199 miles per hour, the 260 mile train

ride between Chicago and St. Louis would takejust over three hours, down from five-and-a-half hours.Imagine traveling from San Francisco to Los Angeles

in two-and-a-half hours, without having to arriveat an airport two hours early, as suggested, or havingto wait at a baggage claim.

Even Amtraks Acela line which runs at speeds up to

150 miles per hour and is closer to high-speed rail thanany other service operating in the U.S. has trimmed

about a half-hour from the usual four-hour trip fromBoston to New York and about 15 minutes from thethree-hour ride from New York to Washington.

Complementing traditional formsof travelGiven the demand for consumer choice in the U.S.,the use of high-speed rail systems between major

metropolitan areas is not just an alternative to highwaytravel but a complement to other modes of travel.

With the increasing use of passenger rail service, more

and more cars will be taken off roads and highways,and airlines will be less crowded, which will ease trafficcongestion and airline delays. This will have a particular

impact on the short haul or shuttle airline serviceswhich are less economical to operate and are mostimpacted by airport congestion.

The Hudson Institutes comprehensive analysis of

the U.S. transportation system entitled 2010 andBeyond: A Vision of Americas Transportation Future,

put the opportunity in clear terms:

Highways, freight rail lines, public transit systems,

airlines, and inland waterways can be integrated into

a single national transportation system in ways that

provide greater safety, economic efficiency, environmental

friendliness, and user-friendly mobility for people and

goods to an extent that we couldnt even dream about

just a few years ago. This would pave the way for

transportation to become a smoothly functioningexperience whose over-riding goal is to provide

superior door-to-door service to the customer.

The world leader in very high speed andhigh-speed transport #1 in very high speed trains and high speed trains

#2 in urban transport market, regional trains, signaling,infrastructure equipment and all associated services

Alstom supplies rolling stock, transport infrastructureand signaling, maintenance equipment, and global railsystems. From the very first TGV* delivered in 1978 to

the AGV, the fourth generation of very high speed trains,Alstom has developed a world leading position in thismarket sector: 70% of all high-speed trains running above186 mph are manufactured by Alstom. The technologicaladvance of Alstom allowed the company to achieve theworld rail speed record at a speed of 574.8 km/h (357.2mph) on April 3,2007. The company is number twoworldwide in urban transport: one in four metro systemsand one of three tramways in the world have rolled offAlstoms production lines.

*TGV is a trademark of the SNCF

Global expansion continues High-speed rail service isexpanding in many parts of the world. The length of thehigh-speed rail network will more than double worldwidein the next 10 years, increasing from about 3,900 mi in2005 to approximately 9,300 mi by 2015. In Europe, thenetwork will expand from 2,300 mi in 2005 to 5,700 miby 2015, reflecting the completion and success of majorprojects in France, Italy and Spain. In Asia, during thesame period, the total length of high-speed lines willgrow from 1,600 to 3,900 mi.

The main growth is expected in China and later in India

where new lines are planned. Even an emerging countrylike Vietnam is planning to build a high-speed rail systemfrom Hanoi to Ho Chi Minh City over the next few years,a distance of over 1,000 mi.

In the U.S. only one percent of intercity trips are madeby rail 90 percent are by automobile, seven percentby air, and two percent by bus.

Nevertheless, high-speed rail planning has gainedmomentum in the U.S. with the success of systems inEurope and Asia, and the launch of Amtraks Acela linesin the Northeast. Eleven federally designated high-speedrail corridors in the U.S. are in the planning stages.

(See map, inside front cover)

ALSTOM

TRANSP

ORT/P.S

AUTELET

Alstoms V150 train,which set the worldspeed record.

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CHALLENGES TO CHANGE

Critical Condition:Challenges to Change

At the close of the Carmichael Conference on the

Future of American Transportation, in January

2008, attendees from every sector of the industry

voiced their concerns in a final conference

declaration. The statement said there is a

growing crisis in our nations transportation

infrastructure and that the crisis can only be

reversed by imaginative change backed by

sound government policy and investment.

The need is criticalFormer American Airlines CEO Robert Crandall,who spoke at the conference, called on federal and

state governments to join in making major capitalinvestments to upgrade the rail system tracks,equipment, power and signaling so the country

can use both air and rail assets more effectively.

These proposals are even more timely in light of

enormous setbacks in the airline industry due

to the high price of oil. The Business Travel

Coalition told the U.S. House of RepresentativesCommittee on Small Business that a consensusof analysts believe the industry will have to

shrink 20 percent to 22 percent through cutsin capacity a seismic shift already underway.The Coalition identified 150 airports that areat risk of losing commercial air services.

Unless something is done to move toward some

kind of fix, were going to see every one of ourmajor airlines in bankruptcy, Crandall saidrecently to the Christian Science Monitor.If that isnt enough of a crisis to alert everybody,

then I dont know what it will take, he added.

Leadership neededWhile rejuvenating passenger and freight services

and infrastructure will be a critical part of thesolution, there are no quick or cheap fixes. Whatis required is a broad vision and leadership at thehighest levels of federal and state governments, and

improved coordination among these multiple levels.

Aerial view ofrush hour traffic

in San Francisco,California.

EDKASHI/NATIONALGEOGRAPHICIMAGECOLLECTION

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16 | ALSTOM | 2008

An assessment of the opportunities and an analysisof best practices in other countries and other

fields could foster coordination and increasethe likelihood that appropriate high-speed railsystems are built. The participation of decisionmakers at all levels will also be an instrumental

part of the changing dynamics.

The conversation can begin with identifying the

greatest need and how it can be met most effectively.Several metropolitan corridors are ripe for high-speedrail transportation today, not only because of the

demand for transportation, but also because thedistances between the cities make high-speedrail a more attractive travel option than air orautomobile. These systems can also connect to

in-city trams and underground trains, and newly

developed hybrid systems, which run at low speedsin town but then convert at the town line intofaster moving transports, saving passengers the

time and inconvenience of switching trains.

According to the 2006 report, High Speed Rail

and Gas Emissions in the U.S., prepared jointly bythe Center for Clean Air Policy and the Center forNeighborhood Technology, high-speed rail in the

U.S. is defined as being time-competitive with airor automobile travel at distances of 100-500 miles.

While these corridors represent a large potentialmarket for high-speed rail, the market is largelyuntapped. Only one percent of U.S. intercity tripsare made by rail 90 percent are by automobile,

seven percent by air, and two percent by bus.

Nevertheless, high-speed rail planning has gained

momentum in the U.S. with the success of systemsin Europe and Asia, and the launch of AmtraksAcela lines in the Northeast. Most of the 11federally designated high-speed rail corridors in

the U.S., however, are still in the planning stages.

Regulatory and spending issuesAny major shift in transportation investment and

policy must also be accompanied by changes in

federal and state regulations that address safety

and other concerns, and promote progress.

Currently, for instance, rolling stock in the U.S.

is required to be constructed with steel (rather

than lighter aluminum or composite materials).

As a result, train weight is relatively higher than

that of European rail cars. But heavier trains are

slower trains, so if high-speed rail is to become a

reality in the U.S., safety regulations must be

updated to account for new high-strength materials

and engineering technologies used to create lighter

yet safer trains.

Meanwhile, the lions share of public transportation

funding, though inadequate, is directed toward

highway construction and maintenance. The

spending focus must shift to give the most

promising high-speed rail technologies the chance

to succeed in these vital transportation corridors.

Public versus private funding?

Determining the appropriate amount of fundingto build high-speed and in-city rail raises the

critical issue of who ultimately provides the large

investment dollars required. The majority of

railroads in the U.S. have historically been owned

privately, which is a very different approach than

the government-sponsored systems found in other

parts of the world.

Given the penchant for private ownership in the

U.S. but the lack of incentives and long-term

vision to spur adequate investments the answer

may be some kind of public-private hybrid.

A public-private consortium was able to successfully

overcome a number of obstacles to create the

London Channel Tunnel Rail Link (CTRL), the

United Kingdoms first high-speed line, which

runs 68 miles from London to the Channel Tunnel.

The journey from London to both Brussels and

Paris is now completed entirely on high-speed lines

at top commercial speeds of 186 miles per hour.

The construction and operations consortium

included London and Continental Railways (LCR),

National Express Group, British Airways, and the

French and Belgian national railways.

CTRL was built over a period of almost 10 years,

on time and within budget. The new line, opened

in two phases, has reduced the London Paris

high-speed trip (provided by international operator

Eurostar) by 40 minutes, fundamentally altering

competition with air travel.

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Reducing greenhouse gases According to projections

for 2025, passengers could take 112 million trips on

high-speed rail in the U.S., traveling more than 25 billion

passenger miles. As a result, total emissions of CO2 would

be reduced by 6 billion pounds a year, due to 29 million

fewer automobile trips and nearly 500,000 fewer flights.If a solo commuter switches from a private vehicle to

public transportation, he or she can reduce CO2 emissions

by 20 pounds per day or more than 4,800 pounds in a

year. In freight transport, the U.S. EPA estimates that for

every ton-mile, a typical truck emits three times more

nitrogen oxides and particulates than a locomotive.

Meanwhile, Alstom is doing its part by integrating

environmental concerns in the design of its trains.

For example, Alstom has reduced the volume and

energy consumption of its trains by 10-15% by using

lightweight composite materials and improving the

efficiency of various systems and architecture. The

Company is also improving the recyclability of its

trains by choosing reusable materials like steel,

aluminum and copper as it conducts research into

the use of biomaterials derived from renewable sources.

With the inclusion of several new stations, the project

also helped to regenerate several areas east of London

and, though not anticipated, contributed to Londons

successful bid for the 2012 Olympics by providing

high-speed connectivity from the Olympic park to

central London (in seven minutes) and to Paris and

the European continent.

To support these ventures, companies like Alstom

provide turnkey solutions and products, including

comprehensive, integrated systems designed to meet

specific requirements for rolling stock, information

systems, infrastructure and maintenance, as well as

electrification and power supply.

A new beginningExamples of public-private hybrid systems maybe formulating in places like California, where

proposals are on the table to fund high-speed railand related improvements.

To help offset the high price tag of such investments

during a time of belt tightening, the U.S. House

of Representatives recently passed The Passenger

Rail Investment and Improvement Act of 2008

(HR 6003). If passed by the Senate and made law,

the bill would provide $14.4 billion over five years

to match state costs.

Meanwhile, the potential for private investment

is promising. According to a May 15, 2008 article

in The Fresno Bee, the main reason is that the

high-speed system pencils out as a money-maker,

as has been the case in other nations that are far

ahead of the United States in this area. Projections

of annual revenue for the (California) system by

2030 range from $2.6 billion to $3.9 billion.

Thats a pretty large and attractive pie. And with

high gas prices, degraded air quality and increasing

congestion at airports and on highways, the

article concludes, high-speed rail just makes too

much sense for Californians.

Political actionAs California and other states try to overcomeinvestment hurdles to implement high-speed railprograms, national and state political action groups

United States Intercity Trips

Automobile: 90%

Bus: 2%

Rail: 1%

Air: 7%

CHALLENGES TO CHANGE

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18 | ALSTOM | 2008

Street car (trams) service, once abandoned, is now a

marvel Alstoms Citadis trams combine standardized

components with customization of interior and exterior

designs to meet each citys requirements for aesthetics,

styling, comfort, train length and accessibility

making each tram a distinct artistic representation

of the city it operates in. And, because these trams

use clean energy and can transport the same number

of people as three buses or 50 cars, Citadis systemsare a viable solution to urban pollution and congestion.

Already in service in 28 cities around the globe, Citadis

trains are sparking a public transportation renaissance.

One city that has been a part of the revolution in

public transportation is the Alsatian city of Strasbourg.

Strasbourg had an established public transport system

dating back to the mid-19th century; by 1894 it

was electrified and had grown to nearly 160 miles

of coverage. But, like similar installations in America,

the system was abandoned 70 years later with the rise

of automobiles and trucks. The service was reintroduced

in 1994, however, as a result of new demands and

changes in city policy, planning and investment. It has

grown to become one of the largest tram networks

anywhere, thanks to Alstoms Citadis trams, which

were added in 2005. This complex system will go

international in 2010 when it is extended to Germany.

continue backing rail reform. From the ArizonaRail Passenger Association to the Wisconsin

Association of Rail Passengers, most states haveadvocacy groups working and lobbying on theground. These organizations include:

Chicago Metropolis 2020 (a business based civicorganization): the shared transit investmentby Chicago area taxpayers will be generously

rewarded by the boost to the regions economy.The investments are for the transit system, but thebenefits are for the entire economy and everyonewho lives here. Investing in transit is too good a

deal for us to pass up. George A. Ranney, Jr.,

President and CEO.

The Texas High Speed Rail and TransportationCorporation (non-profit): Were trying to

generate interest among people in the corridorfor the idea by looking at the people who

opposed it before and trying to get them toaddress their concerns to get them onboard.

Robert Eckels, Chairman.

American Public Transportation Association:Traveling by public transportation uses less

energy and produces less pollution thancomparable travel in private vehicles. To makeprogress in reducing our dependence on foreign

oil and impacting climate change, publictransportation must be part of the solution.

APTA website.

These advocates, as well as the troubling headlineson the economy and environment, are driving themomentum. The official statement issued at theclose of the Carmichael Conference sums up the

call for creative action: The American people needrational choices when it comes to transportation,and those choices must be adequately and

intelligently funded and maintained to make itall work. In particular, an efficient transportationsystem and robust rail, air, coastal/riverine, port,and highway components will sharply reduce

both our dependence on foreign oil, and thehigh price we pay for it. Highly fuel-efficient,environmentally-friendly transportation modes,such as rail, should especially not be overlooked.

few national issues offer a greater opportunityfor imaginative change.

Alstom Citadis arrivingin downtown Bordeaux

station, France.ALSTOM

TRA

NSPORT/TOMA-C.S

ASSO

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am delighted to have been invited

to add my voice to others in calling

for new energy and transportation

policies in the United States. For many

years, including while I had the privilege

of serving as Chief Executive Officer of

American Airlines, I have been concerned

about the absence of long-term

transportation and energy planningin our country. As Joe Klein observed

in his recent and excellent book Politics

Lost, we have been living in a period

during which the very notion of planning,

especially planning for the common good,

seems vaguely socialist.

During these years, our airline system has

crumbled under the weight of government

policies seemingly designed to encourage

destructive competition in pursuit of thelowest possible airfares. Meanwhile,

passenger rail has atrophied and our

highway system has deteriorated.

It has been clear for many years that a

country with less than 5 percent of the

worlds population cannot continue to

consume 25 percent of the world oil

and that if we are to sustain anything

resembling our present standard of living,

we must do things much differently thanwe have in the recent past. Among the

many things we must do is build a viable

rail system, which should displace planes

wherever possible on journeys of less than

500 miles, integrate with our airline

system to facilitate longer journeys, and

free scarce aviation resources to provide

more frequent and convenient long flights.

The myopia of our public

officials, and the absence

of sensible energy and

transportation policies,

has been recently

highlighted by our

Secretary of Transportation.

She has proposed peak

period pricing at U.S.airports, which would

do nothing but add still

another surcharge to

airlines fares which are

already discouraging travel.

Additionally, as miles driven in the United

States have declined in response to higher

gasoline prices and fuel tax receipts intended

to fund highway repair and mass transit

have fallen short of expectations, she hassuggested that the highway fund be

permitted to borrow from the already

inadequate mass transit account.

While we must certainly maintain our

highways, and if necessary should raise

gasoline taxes to do so a step which

would both provide maintenance funding

and further reduce miles driven we

need to spend more, not less, on mass

transit and high-speed rail systems.Simultaneously, we need to mount a broad

based effort to tap every source of alternative

energy wind, solar, nuclear, clean coal

while mounting an equally ambitious effort

to restructure our transportation system to

optimize our use of increasingly scarce

and costly liquid transportation fuel.

A message from Robert Crandall

Final Word

I

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