Committed to REGIONAL PRO PERITY

1 Committed to REGIONAL PRO$ PERITY Through TransportationNJ TRANSIT 2017 ANNUAL REPORT table of CONTENTSMESSAGESC hairman s Message ..04 Executive Director s Message ..06 IMPROVING THE CUSTOMER EXPERIENCEC ustomer Communication ..08 Service ..11 Equipment ..12 Facilities ..14 State-of-Good-Repair ..17 Major Projects ..19 Studies ..20 Recovery and Resiliency Projects ..21 Technology ..25 SAFETY AND SECURITY ..26 FINANCIAL PERFORMANCE ..32 812142 2017 NJ TRANSIT Annual ReportCORPORATE ACCOUNTABILITY ..36 Green-Friendly Projects ..39 ON-TIME PERFORMANCEOn-time Performance by Mode ..40 Rail Methodology ..42 Light Rail Methodology ..44 Bus Methodology ..46 BOARD, COMMITTEES & MANAGEMENT TEAMB oard of Directors.

2 48 Advisory Committees ..54 Executive Management Team ..55FY2017 FINANCIAL REPORT ..57 of Contents 3A safe and reliable transportation network remains vital to the economic success of New Jersey and the surrounding region. The theme for this year s NJ TRANSIT annual report Committed to REGIONAL Prosperity Through Transportation reminds us that the effective movement of people and products helps New Jersey residents and businesses thrive, and enables our great state to remain competitive in a global TRANSIT has played a fundamental role in supporting New Jersey s economy for nearly four decades. During that time, the Corporation has successfully rebuilt, modernized and expanded its bus, rail and light rail network, and added a highly successful Access Link paratransit system to support people with disabilities.

3 NJ TRANSIT s success story continued in Fiscal Year 2017. The Corporation received its first shipment of more than 1,100 new cruiser buses during the year, which are being used by private bus carriers to support New Jersey Letter From Transportation Commissioner and Board Chairman RICHARD HAMMER commuter service in partnership with NJ TRANSIT. Nearly 200 more cruiser buses will arrive in the coming year and will be enjoyed by customers on NJ TRANSIT commuter bus routes. Meanwhile, Hudson-Bergen Light Rail and Newark Light Rail customers are finding more seats thanks to the ongoing expansion of existing light rail vehicles. Specifications for the next generation of multilevel railcars are being developed; self-propelled cars that do not need a locomotive.

4 Access Link vehicles also are being upgraded to provide a smoother ride for a growing number of paratransit the safety front, plans are moving ahead to install Positive Train Control on the entire rail system by a federally mandated December 2018 deadline. The Corporation also hired 25 new police recruits who will be out on our system protecting customers and employees at terminals, stations, bus stops and support facilities following completion of their training. We opened a new Emergency Operations Center, a centralized location where the New Jersey Transit Police and many of the agency s businesses lines work together during planned events or incidents. Meanwhile, a new 360-degree camera 4 2017 NJ TRANSIT Annual Reportsystem is being installed on buses to eliminate blind spots for bus operators and enhance pedestrian safety.

5 Fleet-wide installation of the camera system is now TRANSIT also continued to partner with many of the communities it serves, particularly through economic development opportunities. Over the past year, Long Branch and Asbury Park joined the Transit Village program while other communities received transit-oriented development assistance to help their downtowns grow and thrive. This past year, under the leadership of Governor Chris Christie and supported by the State Legislature, New Jersey s Transportation Trust Fund (TTF) was renewed. The eight-year, $16 billion reauthorization provides needed investments in planning, acquisition, engineering, construction, reconstruction, repair and rehabilitation of the state s transportation system.

6 Over the next several years, many projects will move through the planning, development and construction pipeline that will be supported by the TTF and the federal government, including more new buses and railcars, advanced safety systems, new or rehabilitated stations and terminals, state-of-good repair projects and storm-hardening work that will protect our infrastructure from major most important project for our region and the nation is the Gateway Project, which is being advanced through a unique partnership among NJ TRANSIT, Amtrak, the states of New York and New Jersey, the Port Authority of New York & New Jersey and the Department of Transportation. Gateway includes the construction or rehabilitation of track, bridges, electrical systems, and a new two-track Hudson River tunnel between New Jersey and New York.

7 When completed, Gateway will create additional tunnel, track and station capacity in the busiest section of railroad in North America, offering greater levels of service, increased redundancy and added reliability. Ground was broken in October 2017 for the first major Gateway project, a new Portal Bridge over the Hackensack closing, I extend my sincere appreciation to Governor Christie for his unwavering support of NJ TRANSIT. I would also like to thank the State Legislature, the New Jersey Congressional delegation, my fellow Board members, our host communities and the many stakeholders that support our mission. Finally, let me thank Executive Director Steve Santoro for his outstanding leadership, and the entire NJ TRANSIT team for their professionalism, loyalty and dedication to nearly one million customers who ride the system each day.

8 Richard HammerTransportation Commissioner and NJ TRANSIT Board ChairmanMessages 5I was humbled to learn this past year that I would have the honor and privilege to serve as Executive Director of NJ TRANSIT. Prior to that, I served for nearly a decade as the Assistant Executive Director of Capital Planning & Programs. During my tenure at NJ TRANSIT, I have seen and experienced the great work accomplished by the more than 11,000 men and woman who serve our customers each day. Whether it is on the frontlines or in a support role, their dedication and professionalism across all business lines is second to of my first orders of business was to enhance customer communications. We accomplished that on several fronts in Fiscal Year 2017 (FY2017).

9 A new program called One Company, One Voice was launched, streamlining our entire communications process, particularly during service disruptions and major events, to ensure that our customers and frontline employees receive important information in a timely manner. We also implemented a more robust Letter From Executive Director STEVEN SANTORO social media strategy to complement our other communication channels, reaching more of our tech-savvy new communications strategy paid off this past summer during an Amtrak renewal project at Penn Station New York. The work required a significant reduction in service to New York, rerouting of most weekday Morris & Essex Lines trains to Hoboken and a robust alternative service plan.

10 We communicated with customers early and often, and had hundreds of NJ TRANSIT employee ambassadors out on the system before, during and after the service changes were implemented. As a result, we received praise from many customers who did their homework, made educated decisions on their alternatives and found the experience better than Amtrak project was supported by our new Emergency Operations Center (EOC), a centralized location managed by the New Jersey Transit Police Office of Emergency Management (OEM). The EOC, which is equipped with computer terminals, large screen displays, conference rooms and more, is staffed by OEM representatives and multiple 6 2017 NJ TRANSIT Annual ReportLetter From Executive Director STEVEN SANTORONJ TRANSIT business lines to monitor and manage major events or incidents when mobile app received a makeover this past year.