AECOM to serve as program manager for the Portal rail extension in San Francisco

Rhea-AI Summary

AECOM (NYSE: ACM) and the Portal Connectors team have been selected by the Transbay Joint Powers Authority (TJPA) to provide program management and construction management services for the Downtown Rail Extension (DTX) project, also known as the Portal, in San Francisco. This 1.3-mile rail extension will connect Caltrain and future California High-Speed Rail service to the Salesforce Transit Center, serving as a key regional rail connection with a projected 90,000 daily riders.

The project involves underground tunneling and station construction, utilizing cut-and-cover and mined tunneling methods. AECOM will be responsible for implementing an operating model to deliver various services, including obtaining FTA funding, finalizing the procurement plan in 2024, and integrating the Portal with existing rail systems. This megaproject is the second phase of the TJPA's $12 billion Transbay Program.

Positive

• Selected for program management of a major infrastructure project
• Project expected to serve 90,000 daily riders
• Part of a larger $12 billion Transbay Program
• Opportunity to showcase AECOM's tunneling and rail project capabilities
• Potential for long-term involvement in regional transit development

Negative

• None.

Insights

Financial Analyst

The selection of AECOM for the Portal rail extension project in San Francisco is a positive development for the company's long-term prospects. This $12 billion megaproject showcases AECOM's ability to secure large-scale, high-value contracts in the infrastructure sector. The project's scope, including tunneling and station construction, aligns well with AECOM's core competencies.

While the immediate financial impact may be , the project's multi-year timeline suggests a steady revenue stream for AECOM. Moreover, successful execution could lead to additional opportunities in the burgeoning U.S. infrastructure market. Investors should note that such large projects often carry risks of cost overruns and delays, which could impact profitability. Overall, this contract win strengthens AECOM's position in the competitive infrastructure consulting industry.

Transportation Infrastructure Expert

The Portal rail extension is a critical infrastructure project with significant implications for San Francisco's transportation network. The extension's projected 90,000 daily riders and connections to 11 Bay Area transit systems underscore its potential to reshape regional mobility patterns. The use of advanced tunneling methods, including cut-and-cover and mined tunneling, highlights the project's technical complexity.

AECOM's involvement in both phases of the Transbay Program demonstrates their deep expertise in multi-modal transit hubs. The integration of Caltrain and future California High-Speed Rail services at the Salesforce Transit Center will create a transportation nexus that could catalyze economic development and reduce traffic congestion. This project aligns with broader trends towards sustainable urban transportation and transit-oriented development.

Urban Planning Analyst

The Portal rail extension represents a transformative urban development for San Francisco. By connecting the Salesforce Transit Center to existing rail networks, it will significantly enhance the city's transit-oriented growth strategy. This project exemplifies the trend of creating multi-modal transportation hubs in urban cores, which can drive economic activity and improve quality of life.

The underground construction approach minimizes surface disruption while maximizing land use efficiency in a dense urban environment. The project's potential to reduce car dependency aligns with sustainability goals, potentially leading to reduced emissions and improved air quality. However, stakeholders should monitor the project's impact on local communities, particularly regarding potential gentrification pressures in areas surrounding new transit nodes. The success of this project could serve as a model for other cities seeking to modernize their transit infrastructure.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM) the world’s trusted infrastructure consulting firm, today announced AECOM and the Portal Connectors team, has been selected by the Transbay Joint Powers Authority (TJPA) to provide program management and construction management services for the Downtown Rail Extension (DTX) project, also known as the Portal. The tunneling and station megaproject will extend Caltrain service from its current terminal at Fourth and King Streets to the Salesforce Transit Center and accommodate future California High-Speed Rail service. Once complete, the extension will serve as a key regional rail connection with a combined average ridership forecast of 90,000 daily riders connecting with 11 Bay area transit systems.

“AECOM has been proud to support the TJPA since the inception of the Transbay Program, and we’re thrilled to help deliver the next phase of this transformative investment,” said Mark Southwell, chief executive of AECOM’s global Transportation business. “Our world class tunneling capabilities and fully integrated service offerings address all aspects of large-scale tunnel projects, making us well positioned to deliver this crucial work that will serve as a lynchpin for the region’s long-term transit needs.”

Portal Connectors, a team led by AECOM, will be responsible for implementing an operating model to successfully deliver an array of program management and project supervision services in support of the Portal. This includes effective execution of key activities such as obtaining FTA funding, finalizing the procurement plan in 2024, activating collaborative delivery models, designing and building the tunnel stations, and integrating The Portal with existing rail systems and operations.

The 1.3-mile rail extension is expected to be constructed principally below grade using cut-and-cover and mined tunneling methods underneath Townsend and Second Streets. The project includes an underground station at Fourth and Townsend Streets along with the Salesforce Transit Center's basement levels, utility relocation, track and systems work.

“Our capabilities across all forms of rail projects, from urban transit to high-speed and regional rail, continue to make us a trusted partner for our global clients seeking integrated rail solutions,” said Drew Jeter, chief executive of AECOM’s Program Management global business line. “We look forward to leveraging these capabilities as we help deliver this multi-modal transit hub, which will support transformative mobility and environmental benefits for the Bay Area and beyond.”

The Portal is the second phase of the TJPA’s $12 billion Transbay Program. The first phase replaced the former Transbay Terminal in downtown San Francisco with the modern, multimodal Salesforce Transit Center.

About AECOM
AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, capital allocation strategy including stock repurchases, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240821049605/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor Contact:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is the Downtown Rail Extension (DTX) project in San Francisco?

The Downtown Rail Extension (DTX) project, also known as the Portal, is a 1.3-mile rail extension in San Francisco that will connect Caltrain and future California High-Speed Rail service to the Salesforce Transit Center. It involves underground tunneling and station construction, aiming to serve 90,000 daily riders.

What role will AECOM (ACM) play in the San Francisco DTX project?

AECOM (ACM) and the Portal Connectors team will provide program management and construction management services for the DTX project. They will be responsible for implementing an operating model, obtaining FTA funding, finalizing the procurement plan, and integrating the Portal with existing rail systems.

How long is the rail extension for the San Francisco DTX project?

The rail extension for the San Francisco DTX project is 1.3 miles long, running underground from the current Caltrain terminal at Fourth and King Streets to the Salesforce Transit Center.

What construction methods will be used for the San Francisco DTX project?

The San Francisco DTX project will primarily use cut-and-cover and mined tunneling methods for construction. The tunnel will run underneath Townsend and Second Streets.

What is the estimated daily ridership for the San Francisco DTX project?

The San Francisco DTX project is expected to serve a combined average ridership of 90,000 daily riders, connecting with 11 Bay area transit systems.