Unexpected changes in Indiana and the Hoosier State

November 9, 2014

Corridor Capital LLC learned Saturday evening, November 8, 2014 through a news story in the Lafayette, Indiana Journal & Courier that “negotiations have ended with Corridor Capital” for the reinvention and operation of the Hoosier State to have begun February 1, 2015.

On June 24, 2014, Corridor Capital’s proposal for the operations, marketing and management, as well as providing rolling stock and locomotives for the Hoosier State was accepted by the Indiana Department of Transportation when Corridor Capital was named the preferred vendor.  Since June, Corridor has had modern, Amtrak certified equipment ready for retrofit and deployment to the Hoosier State.  At all times since receiving the award in a competitive bid procurement, Corridor has been ready, willing and able to meet all deadlines for successful re-introduction of the Hoosier State.

Immediately, at the direction of, and on behalf of Indiana DOT, Corridor Capital began mobilizing personnel and resources to make it possible for an October 1, 2014 start-up, as directed by the INDOT Request for Proposal. In July and August, Corridor Capital agreed to a number of changes in the parameters of the project moving the start-up date to February 1, 2015, all at the request of INDOT, and submitted a letter of intent to be signed by INDOT in August, which was never signed. There have been no changes or negotiations requested since then by INDOT.

Because there are strict, no-exceptions requirements by the Federal Railroad Administration as to filing dates for a number of critical documents, plans and federal approvals for new train services, Corridor Capital, with full knowledge of INDOT, continued to provide personnel and resources to meet the demands of the FRA filing schedule. As late as this week, on Wednesday through Friday, Corridor Capital had personnel on the ground in Indiana working on the requirements of an FRA train emergency service contingency plan, which must be submitted to the FRA no later than 60 days prior to the commencement of a new service.

As of this date, neither INDOT nor any other agency with jurisdiction over the privatization of the Hoosier State has faulted Corridor Capital’s performance either in public statements or in private communications with Corridor.  Corridor has complied with all applicable state and federal regulations, has met all the terms and specifications set forth by INDOT in its bid document and its award, and has met all state and federal deadlines governing the service startup.  The reason for INDOT’s suspension of the award remains a mystery.

Corridor Capital is working to determine why the Indiana Department of Transportation has made a sudden and unexplained change both in its preferred vendor status for the Hoosier State project and with its ongoing business relationship with Corridor Capital.  When more information is available, it will be released to the news media and public.

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