Projects in Negotiation Stage

Texas Trade and transportation Corridor – Port Freeport/SH 36A – TEMS provided a study that was undertaken to identify the potential of Port Freeport Texas to become a major container terminal port and the investment case for building a new rail line to avoid the railroad congestion of the City of Houston, and serve the inland markets of Dallas/Ft. Worth and a hinterland that could stretch as far north as Chicago, as far west as Denver, and as far east as Birmingham.

The analysis evaluated the traffic potential for Gulf and East Coast ports of the opening of the Panama Canal using the traffic and revenue models that TEMS developed for the Panama Canal Authority (ACP) and which is in use today by ACP to estimate container, grain, auto, and petro chemical, traffic volumes and revenues. The analysis estimated the market share for Port Freeport.

This analysis was made in the environment of larger ships using the Panama Canal and the expansion and deepening to 65 foot of Port Freeport. The Port Freeport expansion included “On Dock Rail” Facilities and the building of a new rail link 60 miles from Port Freeport to Rosenberg where the new line would connect to the UP, BNSF, and KCS railroads and would bypass the city of Houston.

The analysis estimated the size of the hinterland of Port Freeport and prepared forecasts for traffic from Port Freeport to the hinterland 2020 to 2050. The analysis estimated the costs for developing the Port and its infrastructure and then provided a financial and economic analysis using USDOT Tiger Grant Cost Benefit methodology. The analysis also evaluated the operating and capital cost benefits to the freight railroads of using the new rail connection at a cost per mile of 29 percent of the Alameda Corridor in Los Angeles. Estimated cost of project: $2.5 – $3.0 Billion Dollars.

This project would be similar to the Mobile Trade and Transport Corridor. The project would provide Texas with a Gulf port (Port Freeport) with 50 feet of water capable of taking the large ships that will use the recently expanded Panama Canal. Port Freeport would serve the Dallas-Fort Worth market, which is the third largest Logistics Center in the US after Los Angeles and New York/New Jersey. The project would combine port improvements of Freeport with a new 65-mile greenfield route from the port to give more direct access to both BNSF and UP routes to the Dallas–Fort Worth market. TEMS has completed the Investment Grade, feasibility and Business Planning studies for the corridor. It was found that the project would produce an 8-10 percent return on investment, and provide substantial economic benefits including generating 20-30,000 new jobs in the corridor.

The Master Trust Indenture through Global Infrastructure Finance & Development Authority, Inc. a nonprofit related to the Company with HSRF Statutory Trust, acting as trustee, relating to, HSR Freight Line Inc. and HSR Passenger Services Inc. affiliate entities of the Company, relating to projects for Port Freeport and Brazoria Fort Bend Rail District, through revenue bonds can offer to raise $4,000,000,000 through Global Infrastructure Finance & Development Authority, Inc. direct issuer of revenue bonds. The Company will act as super general contractor as horizontal and vertical site improvements developer for HSR Freight Line Inc. and HSR Passenger Services Inc. for Port Freeport and Brazoria Fort Bend Rail District projects.

Minnesota Department of Transportation: Tri-State II High-Speed Rail Feasibility Study -Phase I and II, TEMS completed a study that assessed the growing need for high-speed rail service in the Tri-State Corridor. TEMS provided policymakers with information needed to make optimal route/technology decisions, including demand forecasts, economic/engineering/freight analyses, financial and institutional arrangements, and a realistic timetable for successful implementation. To this end, TEMS evaluated the potential for various high-speed rail options in the Chicago-Milwaukee-Minneapolis/St. Paul corridor. The study considered incremental improvements from one speed threshold to another for five- to fifteen-year planning and implementation.

Services Provided: Demand forecasting, economic and engineering analysis

The Master Trust Indenture through Global Infrastructure Finance & Development Authority, Inc. a nonprofit related to the Company with HSRF Statutory Trust, acting as trustee, relating to, HSR Freight Line Inc. and HSR Passenger Services Inc. affiliate entities of the Company, relating to projects for Michigan Coast-to-Coast Passenger Rail, through revenue bonds can offer to raise $4,000,000,000 through Global Infrastructure Finance & Development Authority, Inc. direct issuer of revenue bonds. The Company will act as super general contractor as horizontal and vertical site improvements developer for HSR Freight Line Inc. and HSR Passenger Services Inc. for Michigan Coast-to-Coast Passenger Rail projects.