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NJ TRANSIT BOARD APPROVES NEW YORK - ATLANTIC CITY EXPRESS RAIL SERVICE
Supports Southern Jersey economic development, tourism markets
June 19, 2006
Contact: Dan Stessel 973-491-7078
NEWARK, NJ - In a move that expands the reach of the state's tourism market, the NJ TRANSIT Board of Directors today approved a special three-year demonstration rail service between New York Penn Station and Atlantic City, under contract with the Casino Reinvestment Development Authority (CRDA) and Atlantic City Express Service, LLC (ACES), a partnership of Atlantic City hotels.
Under the agreement, CRDA and ACES will work with NJ TRANSIT to operate 18 express trains on weekends (Friday afternoon through Sunday night) between New York Penn Station and the Atlantic City Rail Terminal. The trains will provide customers with a one-seat ride between New York and Atlantic City, with one or more stops in New Jersey, based on market demand. The service is expected to provide roundtrip transportation for approximately 1,100 people or 2,200 trips, each weekend.
"Express train service from New York City to Atlantic City extends the reach of this popular destination, making it easier for visitors from around the state, around the country and around the world to access this resort area," said Governor Jon S. Corzine. "This private-public sector effort is an innovative way to open up new markets for one of New Jersey's top tourist destinations."
As part of the agreement with ACES, NJ TRANSIT will purchase eight additional multi-level rail cars for the service and lease four diesel locomotives from Amtrak.
The terms also include full reimbursement for all capital equipment and operating costs by ACES and CRDA. ACES will work with NJ TRANSIT on schedule design, pricing, stopping patterns, reservations, on board services and marketing promotions.
"Through this partnership with the private sector, NJ TRANSIT is delivering on our commitment to serve as an economic engine in Southern New Jersey," said State Transportation Commissioner and Board Chairman Kris Kolluri. "This service will connect the powerful New York -New Jersey markets in a new way with Atlantic City."
"This agreement provides travelers with a one-seat ride to Atlantic City in about 2 hours that is convenient, comfortable and is unaffected by traffic congestion, " said Executive Director George D. Warrington. "I applaud the Casino Reinvestment Development Authority, Borgata, Caesar's and Harrah's for their leadership and Amtrak for their cooperation in making this special service possible," he added
"The CRDA serves as a catalyst for economic development. The casino industry has and continues to be a great economic engine for the entire State. Our role in this project allows the industry to tap a new and promising market. If successful, the new line will produce more jobs, more revenue and more economic benefit for New Jersey," said Casino Reinvestment Development Authority Executive Director Tom Carver.
"The Express Rail Service will provide quick and easy access to Atlantic City to both New Yorkers and visitors to the Big Apple. The approval and implementation of this project is yet another form of validation that Atlantic City is truly becoming a destination market," said Auggie Cipollini, Senior Vice President of Administration at Borgata.
"The new train service will provide Harrah's and Caesars an opportunity to further expand our New York area customer market by offering a sleek new way of high speed travel," said John Payne, President of Harrah's Atlantic City Operations. Harrah's owns and operates Harrah's Atlantic City and Caesars Atlantic City.
Service is expected to begin in late 2007.
About NJ TRANSIT
NJ TRANSIT is the nation's largest statewide public transportation system providing more than 827,000 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, 55 light rail stations and more than 18,000 bus stops linking major points in New Jersey, New York and Philadelphia.
Borgata is a joint venture of Boyd Gaming Corporation (NYSE:BYD) and MGM MIRAGE (NYSE-MGM). Located at Renaissance Pointe in Atlantic City, it features 2,000 guest rooms and suites, 125,000 square feet of gaming, 145 gaming tables, 3,600 slot machines, 11 destination restaurants, 11 retail boutiques, a 54,000 square foot spa and 70,000 square feet of event space.