Las Vegas Railway Express, Inc.
XTRN Security Details
Market Value1........$144,503 a/o Nov 14, 2014
Authorized Shares 500,000,000 a/o Sep 30, 2014
Shares Outstanding 334,480,143 a/o Dec 1, 2014
Float 173,248,891 a/o Nov 18, 2014
6650 Via Austi Parkway
Las Vegas, NV 89119
Returning LUXURY to rail travel for passengers between Southern California and Las Vegas
The X Train
The X Train Las Vegas Railway Express, Inc. is in the business of transporting travelers between Southern California and Las Vegas by traditional conventional rail. We plan to operate a single travel route marketed primarily to the leisure traveler from the Southern California basin enabling us to sell rail travel as a stand-alone operation bundled with hotel rooms and other travel related services. Our unique travel option will offer a diversified product that will set us apart from travel related options of automobile and air.
We have developed a business model that is focused on one of the most sought after travel destinations within the United States by providing a more leisurely option for the over 12,000,000 annual Southern California/Las Vegas visitors who currently travel between the two areas while at the same time extending their " Las Vegas Experience" time while in route.
Our primary goal is profitability. We believe we have developed a unique and differentiated business plan for this market and industry and we plan to execute it. The X Train has an important economic story to convey. Reconnecting passenger train service from Southern California to Las Vegas will add needed incremental revenue to Las Vegas, assist in its growth strategy, and significantly add tax revenue for the current and future developmental projects the city wants to pursue. In the public's mind, Las Vegas is a much bigger city than it really is and the public always wants to know what is happening in Las Vegas. Its global reach extends well beyond the 40 million annual visitors reflected in the facts that travel programs, reality shows, poker tournaments, and celebrity visits are constantly in the news. Because of this exposure, the X Train is an ideal public relations vehicle to bring the public's awareness of passenger train service and Las Vegas back to the forefront.
The Largest Unserviced Passenger Rail Corridor in the United States is Southern California to Las Vegas
There has been no regular passenger rail service between these two demographic areas for 13 years. The two primary reasons why passenger train service has not been offered are; the time and cost advantages of traveling by other means and secondly, the train route itself was not profitable.
We feel we have the answers to the two primary reasons why passenger train service between the two metropolitan areas has not been successful. It is our belief that the time and cost advantages have shrunk significantly to a point where traveling by train is a legitimate option for our targeted customer.
The major connector between Orange County and Las Vegas, Interstate 15 (I-15) is becoming increasingly congested, with motor vehicle travelers experiencing substantial delays during peak travel times (e.g., Friday and Sunday afternoons). Average daily traffic (ADT) on I-15 just south of Las Vegas is calculated to be around 60,000 vehicles; through Primm, ADT is around 39,000. By the year 2020, traffic is projected to increase by more than 100 percent, with the respective ADTs projected to be 126,000 and 78,000. The segment of I-15 between the I-215 interchange in Las Vegas and the state line at Primm is programmed for widening from four to six total lanes. This will lessen peak congestion in the near term, but substantial congestion is expected to recur by 2020 with continuing growth in roadway traffic demand. Documented automobile travel times between California and Las Vegas are increasing as a result of the congestion in the Cajon Pass.
On weekends or during holiday periods when travel between Southern California and Las Vegas is typically higher, the travel time can increase significantly and delays are common. In fact, these delays can cause drive times to increase to well over 6 hours each way. Our discussions with the two host railroads have assured us they can schedule our train service within a five hour time frame which is a very favorable time period compared to the current times for driving.
Over 15 million people travel to Las Vegas from Southern California and not one person can take the train…
The increasing cost of gasoline may lead to a travel mode shift away from the automobile for some trips. As recently as September of 2005, new research indicates that the increasing cost of gasoline may finally have reached a point where it is impacting travel plans. During the spike in fuel prices in 2008, the amount of traffic that crossed the Nevada/California border declined. The continual rise in gasoline prices will continue to put pressure on automobile travel. At $4.00 per gallon, a round trip from LA to Las Vegas by SUV costs $300. As prices rise, travel by rail becomes even more economical.
AAA recently published a report showing Fullerton California averaging $4.40 a gallon. Our introductory price point of $99, (FIRST CLASS F&B INCLUDED) each way is designed to stimulate demand against the cost of driving to and from Las Vegas and is comparable to the costs of driving.
We feel our business model will tackle the second reason we feel passenger train service has not established a foothold within this highly sought out market: the ability to turn a profit. We are a company with our actual train travel revenue contributing just a portion of our total revenues. A majority of our project's profits will come from revenue generated by sources not directly tied to the operation of The X Train. This income will come from our efforts to "package" our train ticket customers with other amenities associated with traveling to Las Vegas; room reservations, show and entertainment, tours, nightclub/lounge reservations and local transportation. Our strategy is to capture a majority, if not all, of our revenue through our own website. The Las Vegas Convention and Visitor Authority 2008 Southern California and International Visitors Bureau show us the following:
59% of Southern California customers plan their trips less than one month ahead of time
98% decide where to stay BEFORE they leave home
71% decide which show to see BEFORE they leave home
24% use the internet to plan their trip
62% book their hotel accommodations using the internet
84% use the internet to book their transportation
For our corporate travelers, we can arrange to have cars that will cater to their wants and needs. Offered and sold much like stadium luxury boxes, each car can be outfitted to each company's needs, be it for a board meeting or product demonstration.
Our product will be considered "new" and our focus on the amenities associated with this travel experience will differentiate ourselves. No other travel option will afford its customers the experience and comfort of our accommodations which include first class seating and food & beverage both ways. Finally, we feel there is an under-appreciated market of those who choose to smoke, and we will have several cars designated for them. All cars will be outfitted with the "latest and greatest" information technology including power outlets at each seat and WI-FI access throughout our train.
Finally, we plan on focusing our efforts on people's most valuable commodity, time. If you want to spend your time conducting business, you will have the ability to do so with phone and internet access on board. If you want to spend your time reading a book, you will be able to read it in the travel industry's most comfortable accommodation with food and drink delivered to your seat or you can place yourself (and your book) in one of our bar area lounges. If you smoke, we will have a place for you as well ...and it will not be outside the dock door!
So however you wish to spend your time, we will make sure it is treated as the valuable commodity it is.
American municipalities and businesses are facing very difficult times today as we all know. Sadly, most are tackling their bottom line challenges using familiar strategies where their primary efforts are focused on cost cutting and service reductions. The Las Vegas Railway Express team believes these strategies are mistakes. In a time when our country is looking for engagement, competence and a feeling of community with one's place in it, the X Train will differentiate itself by providing people with the aura of better and simpler times when personalized service and long lasting relationships were more than a marketing term. This service focus, along with the value we will present will enable this customer to drive our top line organically in the years ahead.
The X Train Economic Impact
Las Vegas Impact
The Las Vegas Railway Express, Inc.'s economic impact is significant to the Las Vegas community and to those who seek employment in the Las Vegas area.
As noted from the statistical numbers the advent of the X Train, as it is called, will affect employment, construction, tax base and economic diversity in the Las Vegas valley.
The X Train is making a $200 million dollar investment into the Las Vegas community with the construction of the X Train and its subsequent operations. Many areas of employment are affected and unique new jobs created by the development of this enterprise here in Las Vegas.
Direct employment opportunities with the Company include executive and middle management, culinary team, on board service and wait staff, bar management, purchasing, accounting, customer service and reservations management, rail road service technicians, locomotive maintenance specialists, rail car inspectors and stations personnel. We anticipate over 1,000 local jobs in these categories alone.
In addition to the direct employment by the company, the delivery of over 2 million of our customers each year creates a recurring demand for jobs in the gaming, entertainment, hotel and culinary service industry. Our passengers will be booking approximately 3 million room nights per year here via our service.
This in turn yields millions of meals, hundreds of thousands of cab and limo rides, thousands of golf course tee times, spa bookings, helicopter rides, show tickets and countless other entertainment options all due to the X Train arrival.
- $10,000,000 investment in Las Vegas depot construction
Passengers per year via X Train- 2,060,525
Five year direct employment - 1,000 FHE - $78,120,000 payroll
Job retention in Las Vegas community due to X Train commerce - 10,000
$400 million per year local based business revenue
Five year cumulative travel allowance spend in Las Vegas - $18.150,000
Five year cumulative spend on local transportation in Las Vegas - $52,794,056
Five year cumulative gambling drop - $1,628,138,089
And for the local governmental economy of services...
Five year cumulative spend on Las Vegas shopping - $266,694,149
$21,602,226 in sales tax revenue
Five year cumulative food and beverage spend in Las Vegas - $709,123,636
$51,411,464 in sales tax revenue
Five year cumulative rooms booked - 3,611,904 - $361,190,400 (@$100/night)
$43,342,848 in hotel room tax revenue
Five year cumulative food and beverage sales X train - $244,484,200
$17,751,045 in sales tax revenue
Five year cumulative fuel purchase - 4,875,000 gallons (.32)
$1,560,000 fuel tax revenue-(State)
Five year cumulative show spend - $56,895,160
$4,608,508 in sales tax revenue
And we have our green hat on too...
Five year cumulative cars eliminated on I-15 - 4,461,600
Five year cumulative CO2 reduction from cars taken off the I-15 - 1,085,061,120 pounds
So all in all, the X Train is a pretty good deal for Las Vegas and you only have to wait another year for it all to begin. No massive construction projects or billions in Federal funds for us. It's privately financed and runs on existing tracks.
Funny, how Las Vegas was built by the commerce of the railroad. Now 100 years later, a new railroad brings it back. Some things never change.