Every rail new build or revision seems to always underestimate the problems getting new ROW and various permits. That streaches out all timelines greatly.
This is why the only project I’m watching and am interested in is Texas Central/Japanese Bullet Train.
PNWRMNM Not to worry, this is a great investment. Private money is going to rush in and bail the state out! If you believe in Santa Claus.
Not to worry, this is a great investment. Private money is going to rush in and bail the state out!
If you believe in Santa Claus.
I read the Governor promised that no less than $40 Billion of the cost would be covered by private investors. For what kind of returns on that massive capital investment? California has to offer something to a private company besides a meager share in ticket revenue. Nobody is going to spend that kind of money otherwise.
Look at Brightline. They have a share in a lot of the RE development on top of whatever they sell on tickets they still have to go to the Junk Bond market to obtain financing because nobody is going to spend $2-3 Billion on a first time risk investment with no real prototype. It is very high risk. $2-3 Billion is nowhere near $40 Billion but $2-3 Billion is a possibility when FEC has already spent $1 Billion and it can possibly show results from that investment. $40 Billion in private funds before any part starts up and no real template for results or returns. It's complete fantasy.
............And with exactly that kind of project management and cost forecasting, this state wants and thinks it can run independently......he-he-he. Not likely. It was too ambitious of a project for the state to take on by itself with little in the way of Federal Guarantees. Now they are faced with some very hard choices.
Story linked @ http://www.latimes.com/local/california/la-me-bullet-train-cost-increase-20180309-story.html
Looks like the 'California Dreamin' for their HSR connection between San Francisco, Bakersfield, and Los Angeles, is getting more expensive and slowing down.
FTA:"...The price of the California bullet train project jumped sharply Friday when the state rail authority announced that the cost of connecting Los Angeles to San Francisco would be $77.3 billion and could rise as high as $98.1 billion — an uptick of at least $13 billion from estimates two years ago.
The rail authority also said the earliest trains could operate on a partial system between San Francisco and Bakersfield would be 2029 — four years later than the previous projection. The full system would not begin operating until 2033..."
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