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40 Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors 3.3 Capital Investment Planning, Costing, and Cost Sharing Almost all proposals for new or expanded passenger service require capital investment in infrastructure along the route, either to improve the quality of the infrastructure, to support the proposed passenger service, or to add needed capacity. The steps in this investment process are first to determine what is needed to support the proposed passenger service, then to estimate the capital cost of the required projects, and finally to determine how these costs will be shared between the freight railroad and the passenger rail agency. The details of a capital project also have significant implications for ongoing maintenance costs. Adding a passing siding means that maintenance cost will increase. Rebuilding deteriorated track structure with new rails, ties, and ballast will reduce ongoing maintenance costs for a period of time. 3.3.1 Right-of-Way Access or Acquisition The different approaches to gaining access to a rail corridor for a new or expanded passenger rail service are discussed in Section 2.4.2. This section discusses methods to place a price on gain- ing access and to estimate the cost of completing corridor upgrades to support the planned pas- senger rail service. The factors to consider in estimating costs and prices are discussed in the following subsections. Amtrak Intercity Service Amtrak's right of access means that it can make use of existing available capacity on a rail cor- ridor at no cost and is only obligated to pay incremental costs for use of a host railroad's tracks. However, in many cases, the existing infrastructure is not adequate for a planned service, either because track condition and signal system capabilities will not support planned train speeds and/or because there is insufficient capacity to accommodate planned passenger and freight oper- ations. The need for additional capacity should be based on objective analyses as described in Section 3.2, to ensure that the corridor is able to accommodate planned and forecast passenger and freight services with planned investment. If necessary, a passenger rail agency will need to negotiate funding for track and signal system improvements and additional line capacity needed for passenger service. The host railroad would be responsible for any investment that it would have needed to accommodate forecast traffic, if the passenger service had not been implemented. The process for estimating capital costs of track and signal system improvements and additions, and shares of cost to be borne by host and tenant are discussed in separate sections. In a few instances, it may be attractive for the passenger rail agency to purchase a rail corridor or part of a rail corridor, usually where freight traffic is very low and there is a willing seller. This approach has not been used in the past--opportunities were few and funds were lacking. However, outside the NEC, Amtrak does operate over portions of several commuter networks, owns a segment of the Chicago to Detroit corridor, and operates a corridor in North Carolina owned by the state. Commuter Service Commuter rail agencies do not have Amtrak's right of access to the rail network and there- fore must expect to incur a cost for access to a rail corridor that is separate from capital expenses for infrastructure improvement and a share of operations and maintenance costs. The different approaches used by passenger rail agencies and their cost implications include: Purchase the Rail Corridor. This option is commonly selected for commuter rail, where the corridor was a low-traffic freight branch line prior to introducing a new service. The value of a corridor as a freight rail business or the value of railroad materials installed in the corridor is gen-