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NEW CONTRACT FOR HUDSON-BERGEN LIGHT RAIL YIELDS SAVINGS FOR NJ TRANSIT

September 22, 2005

NEWARK, NJ –
The NJ TRANSIT Board of Directors today approved a contract amendment with the operator of the Hudson-Bergen Light Rail (HBLR) system, 21st Century Rail Corporation of Lyndhurst, NJ, extending the operating and maintenance portion of the contract by five years and yielding immediate cost savings for NJ TRANSIT when compared to the original contract terms.

"We are aggressively managing the HBLR operation to ensure every possible business efficiency is achieved," said Rich Sarles, NJ TRANSIT Assistant Executive Director of Capital Programs. "With the benefit of five years of experience, we know where to find cost savings without compromising service quality."

Under the new agreement, 21st Century will operate and maintain the HBLR system through April of 2020—a five year extension that will include extending the service to Tonnelle Avenue Station this winter. The new contract also reflects changes in HBLR security—now provided by NJ TRANSIT Police—and utilities, which are now purchased directly by NJ TRANSIT to achieve greater cost savings.

The estimated cumulative effect of these contract changes will reduce operations and maintenance payments by about $5 million annually to $35 million per year once the new segment opens to Tonnelle Avenue.

NJ TRANSIT is the nation's largest statewide public transportation system providing more than 800,000 daily trips on 240 bus routes, three light rail lines and 11 commuter rail lines. It is the third largest transit system in the country with 162 rail stations, 52 light rail stations and more than 17,000 bus stops linking major points in New Jersey, New York and Philadelphia.