Indiana Logistics Summit November 14, 2006

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Indiana Logistics SummitNovember 14, 2006
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Indianas Vision

• Transportation is key to Indianas economic
  future
• Indiana can become the global distribution and
  logistics capital

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Facts About Indiana

• 80 of U.S. population within 24 hours drive of
  state
• Indiana has major lake and river ports, rail
  lines and a comprehensive highway network
• FedEx has major international facility poised to
  receive goods from Asia on new jumbo aircraft

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The Need

• Raise income of Hoosiers. Currently make 90
  cents on the dollar compared to workers in other
  states
• Retain best and brightest to stop brain drain
• Backlog of transportation projects

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Gov. Daniels Major Moves Plan

• Status quo cannot continue. Very little will
  happen business as usual. Find innovative
  solutions
• We cannot achieve a top-tier economy without a
  top-tier transportation system
• - Mitch Daniels, Governor State of Indiana

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Highway Program Status Check

• Spring 2005 Analyzed new highway construction
  program
• Identified More projects than
• Announced gap between promised projects and funds
  to pay for construction

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Goal 10-Year Funded Plan

• Introduced program to prioritize projects
• Quadruple new highway construction
• Increase major highway preservation
• Citizens will know
• What projects are planned and when construction
  will start

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Action 10-Year Project Plan

• Draft project plan developed and presented based
  on 13 criteria (safety, mobility, etc.)
• First time Economic potential considered
• Public meeting held across Indiana
• 3,000 citizens attended
• Gave opinions and data about which projects were
  most important in their area

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Action Financing Major Moves

• There are only two types of roads.
• Tax roads Built with gas tax dollars
• Toll roads Built with user fees

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Financing Major Moves

• Need Source
• 5.3 billion Preservation (gas tax)
• 2.5 billion New Construction (gas tax)
• 4.2 billion ???? (tax or toll)
• 12.0 billion highway program (2006-2015)

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Financing Major Moves

• Lease the Indiana Toll Road
• Underperforming asset (losing millions)
• Private operator can leverage value
• Provides money to counties, cities and towns for
  local transportation projects
• Can fund remainder of Major Moves

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Leasing Indiana Toll Road

• Five bidders submitted proposals
• Indiana Finance Authority reviewed
• Winning bid announced in late January 2006 as
  legislature debated Major Moves

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Winning Bid

• 3.85 billion
• Estimated 900 million additional in interest
  over 10 years
• Term 75-year lease
• Company Cintra-Maquarie
• Indiana Toll Road Concession Company, LLC

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