4 4
SIGNIFICANT WIND/TREE
DAMAGE KNOCKS OUT
SERVICE ALONG HARLEM
LINE AND NEW HAVEN
LINE and the NEW
CANAAN AND DANBURY
BRANCHES
STORM SURGE IN NJ
AND HARMON YARDS
DAMAGES ROLLING
STOCK
FLOODING KNOCKS OUT
COMMUNICATIONS, SIGNALS,
AND POWER AND FLOODS
STATIONS AND YARDS
UNPRECENDENTED
STORM SURGE
ALONG HUDSON
RIVER SHORELINE
5
8 stations with
major flood
damage – South
Ferry, Whitehall,
148th St, 207th St,
Dyckman, Beach
116th Station, 86th
St Sea Beach,
Stillwell Rockaways
track
washout
Train yards and
bus depot with
significant flood
damage
Staten Island
Railway
maintenance
shop major
flood damage
Numerous other
locations with moderate
flooding and wind
damage including
• Downed trees
• Roof / canopy / sidings
damages
• Communication
systems damages
• Signal system
damages
5
7
Damage was catastrophic across the system
7
LIRR West Side Yard
NYC Transit South Ferry
Metro-North Hudson Line B&T Queens Midtown Tunnel
Metro-North Spuyten Duyvil Station Flooded track and equipment
Destroyed pump control
Shorted electrical equipment
Failed signals
8
0.5 inch opening => open area, A = 0.993 sq. ft. Coefficient C = 0.67 g = 32.2 ft./sec/sec h = 3.0 ft. water head
Q = 9.25 cu. ft./sec = 4,152 gal/min = 249,120 gal/hr.
6 ft.
6 ft.
5 ft. – 11 in.
5 ft. – 11 in.
In 4 hrs.: approximately 1 M gallons would have entered
8
Bu
ildin
g B
ack
Bet
ter
The
MTA
an
d S
up
erst
orm
San
dy
The engineering challenge is formidable: small openings can deliver huge amounts of water under pressure
10
Resiliency Development
• Assess damage
• Repair/Replace determination
• Evaluate shut-down (packaging scenarios)
10 Damaged pump equipment, Hugh L. Carey Tunnel
Work in Greenpoint Tube Corroded Metro-North Switch Machine
11
An unprecedented portfolio of storm recovery and resiliency work is underway for all MTA agencies
• 36 projects in construction, total value of $578m
• 151 projects in planning, design, or procurement
• Over $800m in contracts underway
11
B&T eligible for FEMA; all other agencies eligible for
FTA Emergency Relief
12
On-going work
12
NYCT Montague Tube
LIRR Long Beach Yard
Hugh L. Carey Tunnel
Metro-North Hudson Line
13
Resiliency Approach
13
Protective Measures - keep water out Asset Protection - minimize damage if water enters system Recovery - expedite service restoration
Water exclusion
Water ejection and asset
protection
Recovery and resilient systems/processes
14
Resiliency Concepts
14
Manhole Inserts Sidewalk Vent Cover Deployable Staircase Cover
Trap Bag Barrier Deployable Flood Wall
Water-filled Cofferdam
17
NPCC 2013 Sea Level Rise Projections
Percentiles
90th
75th
25th
10th
2020s 2050s 2080s
21
30
18
8
39
11 13
58
8
10
2
4
New York City Panel on Climate Change, 2013: Climate Risk Information 2013: Observations, Climate Change Projections, and Maps. C. Rosenzweig and W. Solecki (Editors), NPCC2. Prepared for use by the City of New York Special Initiative on Rebuilding and Resiliency, New York, New York.
21
Rebuilding costs a lot, but remember …
• The MTA’s network is a nearly $1 trillion asset
• The current Capital Program—with Sandy projects—represents a reinvestment over five years of less than 4% of the system’s total value, or less than 1% per year of re-investment
• Current funding sources are tapped out, new funding will have to come from non-traditional places.
21
22
MTA Cat Bond: Why & How
• Post-Sandy, MTA’s captive insurance company, First Mutual Transportation Assurance Company (“FMTAC”), received reduced capacity offers from the traditional property reinsurance market coupled with higher pricing in the renewal.
• On June 5, 2013 MTA and FMTAC staff received authorization from the Board to proceed with structuring and marketing of a capital markets-based reinsurance transaction providing storm surge coverage
• GOALS
• Access to additional reinsurance capacity for catastrophic perils
• Developing a stable, long term alternative reinsurance
• Creating competition with traditional reinsurance, thereby providing leverage
• Demonstrating reasonable efforts to obtain property coverage comparable to prior years' coverage levels 22
23
MTA Cat Bond: Why & How
• Area A tidal gauges measure surge closely correlated with surge at MTA assets located in Manhattan and up the Hudson, Harlem and East Rivers
• Area B tidal gauges measure surge closely correlated with surge at MTA assets located near Long Island Sound
• Index Value for Area A is a weighted composite of the readings at three of its gauges; Index Value for Area B is a weighted composite of the readings at two of its gauges
Map of Calculation Locations
Area A
Area B
During a Named Storm, if either the Area A Event Index Value reaches or exceeds 8.5 ft or the Area B Event Index Value reaches or exceeds 15.5 ft, a full principal reduction is triggered and the $200 million collateral moves into the reinsurance loss account. The Base Case annual probability of the transaction triggering is estimated to be 1.67%, or once in 60 years.
23
24
MTA Cat Bond: Very well received
Capital market risk transfer enabled FMTAC to obtain fully secured property reinsurance protection against storm surge without requiring MTA or FMTAC to become a catastrophe bond issuer - FMTAC entered into a reinsurance agreement with MetroCat Re Ltd.
• MetroCat Re inaugural transaction sponsored by FMTAC closed on July 30, 2013: • FMTAC obtained $200 million of fully collateralized storm surge reinsurance protection, locked in for three years
• FMTAC entered into a reinsurance agreement with special purpose reinsurer MetroCat Re Ltd., providing $200 million in fully collateralized storm surge coverage supplementing FMTAC’s $500 million in property coverage obtained from traditional reinsurance markets
• The transaction involved the first capital market cat bond focusing directly on storm surge risk
• Investors reacted favorably to the parametric trigger structure and the pricing was tighter than anticipated, due to high demand for the MetroCat Re bonds
• The resulting cost to FMTAC was substantially lower than that of traditional property reinsurance obtained by FMTAC in April, 2013.
24
26
2.1
16.9
26 ~17 million metric tons of Transit Avoided Carbon has the potential to
generate hundreds of millions of dollars annually
Longer term funding: Carbon Value Capture