Table Of Contents - Chicago Transit Authority

5.2 PROJECT DELIVERY STRUCTURES
CTA Express Airport Train Service Business Plan
The premium airport train service (Direct or Express) could be delivered via a number of combinations of
public sector and private sector participation. The left column in Table 11 represents a new line of CTA
service where CTA is responsible for all aspects of delivery and operations. Movement from left to right
in the table leads to scenarios where a dividing line is created between the current CTA organization and
the premium airport train service by forming a new operating entity (“Enterprise”) and increasing private
sector involvement.
Pros
Cons
CTA
Development
& Operations
as New Line
• Uses existing
management
structures and
organization.
• No outside
investment.
• Requires new
mindset.
• CTA pays
operating
costs.
• CTA retains
risk.
Table 11: Continuum of Delivery Options
CTA Development
& Operations as
Enterprise
• Promotes focus on
new mission.
• Recruit trained CTA
staff.
• Can be quickly
established.
• No outside
investment.
• CTA responsible for
operating costs.
• Needs flexibility in
collective
bargaining
agreements.
• CTA retains most
risks.
41
Private
Development &
Operations Using
Some CTA Services
• Opportunity for
outside investment.
• Better risk
allocation between
CTA and partner.
• Utilizes CTA O&M
expertise.
• Leverages private
sector expertise in
management of
premium services.
• Potential higher
cost of capital.
Full Private
Development &
Operations
• Outside
investment.
• Full economic
incentives for
performance.
• Suboptimal use
of CTA assets.
• Leverages
private sector
expertise in
management
of premium
services.
• Potential
higher cost of
capital.
• Risk premium
for full transfer
of risks to
partner.