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Two-Month Demonstration Proposal

A White Paper

July, 1994

ESTIMATED COSTS

Capital Items

A summary list of capital items is provided; however, no cost estimates have been provided due to the need for more detailed analysis of exactly what is needed.

Operating Costs

The operating costs and revenue given in the below table are merely for example purposes, and should be considered "ballpark" figures until more details are worked out. These costs do not include the cost of bringing equipment to the Valley.

The operating costs are for the train only; it is assumed cities and the private sector will arrange for bus service.

Operating Costs, Phoenix - Mesa. (15.7 miles one-way)

Per full day of operation:

31.4 miles RT x $19.50 / mile = $612.30 per RT x 15 RT/day = $9,184.50 per day

For Demonstration Period:

$578,623.50 <-- 63 days @ 15 RT/day ($9184.50 per full day of operation)
$ 15,919.80 <-- 2 days @ 13 RT/day
$594,543.30 TOTAL

ESTIMATED REVENUES

Again, these are given for example purposes only. However, given proper planning and public exposure, a 40% to 50% cost recovery of direct operating costs should not be unreasonable.

A two dollar fare is suggested as it is slightly higher than the current express bus fare, while providing a higher level of comfort and service than buses.

2000 riders per day @ $2.00 each = $4,000.00/day

$4,000.00 x 62 days of operation (65 - 3 free days) = $248,000.00 TOTAL



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