Contracting Commuter Rail Services, Volume 2: Commuter Rail System Profiles (2018)

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75 The Port Authority Trans-Hudson Corporation (PATH) operates a heavy- rail system in the New York and New Jersey region. PATH is an operating subsidiary of the Port Authority of New York and New Jersey (Port Authority of NY & NJ), which was created to oversee infrastructure in this region. In addition to the PATH rail transit system, the Port Authority of NY & NJ builds, operates, and maintains America’s busiest airport system, marine terminals and ports, six tunnels and bridges between New York and New Jersey, the Port Authority Bus Terminal in Manhattan, and the World Trade Center (WTC). The PATH rail system connects northern New Jersey and lower and midtown Manhattan. PATH currently has a fleet of 350 railcars. PATH operates over approximately 14 miles with 13 stations. PATH has four bidirectional service lines: • Newark–WTC • Journal Square–33rd Street • Hoboken–WTC • Hoboken–33rd Street The Newark–WTC Line operates Monday through Sunday at all times. The Journal Square–33rd Street Line operates Monday to Friday during daytime and evening hours. The Journal Square–33rd Street Line operates via Hoboken during overnight hours, Monday to Friday and on Saturday, Sunday, and major holidays at all times. The Hoboken–WTC and the Hoboken–33rd Street Lines operate Monday to Friday during daytime and evening hours (no service on Saturday, Sunday, and major holidays). GOVERNANCE PATH Port Authority Trans-Hudson Corporation Port Authority of New York and New Jersey New York City–New Jersey HISTORY 1909 1910 1911 1954 1962 1967 1971 2001 2003 2012 2015 H&M experimental service began from Hoboken to Hudson Terminal. H&M began to serve from Exchange Place to Grove Street and extended service from 23rd Street to 33rd Street. H&M service connected the Hudson Terminal and Newark. H&M fi led a bankruptcy petition. The Port Authority of NY & NJ agreed to purchase H&M services and maintain the services through a subsidiary, PATH, in return for the rights to build the WTC on the Hudson Terminal property owned by H&M. PATH assumed control of the trackage owned by the Pennsylvania Railroad (PRR) and began modernizing the system. PATH’s original WTC Station opened, and the Hudson and Manhattan Railroad’s (H&M’s) Hudson Terminal was closed permanently. The terrorist attacks of September 11 resulted in extensive damage to the PATH system. The Exchange Place Station and a temporary WTC Station opened. The Port Authority of NY & NJ continued modernizing PATH, which includes an automatic train control system, a new Harrison Station, and a permanent WTC Station. The new PATH WTC Transportation Hub opened. The Hudson Tunnel Railroad was incorporated and began construction of the fi rst tunnel under the Hudson River. H&M was chartered. H&M and PRR agreed on joint service operation to Newark. H&M experimental service began between Hoboken and 23rd Street. 1873 1902 1906 1908 New York and New Jersey created the Port Authority of NY & NJ in 1921, the first bi-state agency between the two states, with approval from the U.S. Congress. The authority’s board of commissioners consists of six members appointed by the governor of each state. The governors reserve the right to veto the actions of their state’s commissioners.

76 Contracting Commuter Rail Services, Volume 2: Commuter Rail System Profiles Revenues to fund PATH operations in 2016 were from the farebox (44%), bridge/tunnel revenues (53%), and federal assistance (3%). Revenues for capital expenses were from bridge/tunnel revenues (56%) and federal assistance (44%). PATH is subject to oversight as a commuter railroad by the Federal Railroad Administration for safety of rail operations. All PATH employees are subject to the Railroad Retirement Tax Act and the Railroad Unemployment Insurance Act, as are other railroads that operate commuter rail. As demonstrated by the events of 9/11 in 2001 and Hurricane Sandy in 2012, PATH has the capacity for service recovery when disasters occur. PATH capital programs are funded through cross subsidies from other PATH operations. Given its extensive construction and management experience from building and operating three major commercial airports and some of the nation’s busiest toll facilities, the Port Authority of NY & NJ has demonstrated capabilities to manage capital programs. Compliance with Federal Transit Administration (FTA) regulations is the responsibility of the agency directly. PATH reports fi nancial, operational, and safety data to the FTA National Transit Database (NTD). PATH is unlike the other commuter rail operations in the Northeast in that its predecessor railroad was not part of the Penn Central/Conrail transactions in the early 1970s (although it was insolvent at the time of transfer). Furthermore, PATH operations are a small part of a multimodal transportation operation. PATH is operated exclusively with in-house resources and is not contracted. The Port Authority of NY & NJ is fi nancially self-sustaining and must raise the monies necessary to operate its facilities and provide services to the public through tolls, fares, rentals, and other user charges. Funds needed for capital improvements, construction, and acquisition of facilities are raised on the basis of the Port Authority’s own credit rating. The Port Authority cannot pledge the credit of either of the states of New York and New Jersey or any municipality, nor can it levy taxes or assessments. Bylaws adopted by the board for each entity govern the Port Authority of NY & NJ and its subsidiaries (including PATH). Following the bylaws for PATH, members of the board establish the policies of the corporation and review and monitor the procedures and regulations. The board appoints an executive director who is responsible for managing the operation of the agency. CONTRACTED SERVICE FUNDING PERFORMANCE STATISTICS Past Trends 2012–2016 Service Data in RY* 2016 Data source: NTD *Report year: for each report year, NTD collects data refl ecting the reporter’s operation in the same fi scal year. Annual Operating Cost: $415,250,809 Total Directional Route Miles: 29 Passenger Car Revenue Miles: 12,865,445 Unlinked Passenger Trips: 88,329,813 Annual Total Passenger Miles: 370,185,683 Operating Cost per Passenger Car Revenue Mile Operating Cost per Passenger Passenger Trips per Passenger Car Revenue Mile Passenger Miles per Passenger Trip $32.28 $29.97$29.48 $33.48 $31.10 20162015201420132012 $4.70$4.55$4.72$4.68 $3.91 20162015201420132012 6.876.586.25 7.15 7.96 20162015201420132012 4.194.224.214.204.25 20162015201420132012 General Contracted Service Informa on Oversight and Responsibili es

PATH 77 A—Agency; B—Host Railroad (RR); C—Amtrak; D—Independent Contractors (RR or Non-RR) A B C D Train Operations Maintenance of Infrastructure Maintenance of Equipment Specifi cally: Train Dispatching Services Train Operations Maintenance of Equipment Facilities Maintenance Maintenance of Way Provision of Electric Traction Signals and Communication Positive Train Control Maintenance Station Operations and Maintenance Non-revenue Equipment Provision Safety Management Security Services Environmental Services Management/Oversight Services Materials Management Services Risk Management Assessment Customer Service Functions Marketing Communications Ticketing/Sales Revenue Collection Information Technology Systems Accident/Fatality Investigations/Support Supplemental Work (na) Other (na) Contracted Service Matrix The matrix below illustrates the responsibility for major service functions for PATH. Based on the published information available, the agency does not appear to contract any service or function.