The California high speed rail project was supposed to be one of the so called shovel ready projects for rail funding way back in the year 2009. Turned out to be a “bit premature”. In short, false.
But at long last actual railway line construction is about to start five years later. — but only on less than 2% of the total system budget scope and way out almost in the middle of the proposed LA – SF network market. 29 miles of the required 800 route miles for the total 2-city connection.
Could be a decade or more before the line might eventually connect the two urban areas as a continuous no change of train service. Or longer!
The complete story is by Bloomberg, http://bloom.bg/1csMyiZ
Actually, this contractor has a lead role of only about $1 billion and not the full budget total of an expected $65+ billion. This company has the initial right to build the first 29 miles (47 kilometers) of the 800-mile rail line… Not much profit so far.
Work so far hasn’t generated much money for the Sylmar, California-based contractor…
Once work starts in June, the company expects “substantial cash flow,” the company says. Not much in private and non federal funding either so far California voters approved $10 billion in bonds to finance part of the project way back in the year 2008.
Governor Brown claims that the remainder of the more than $55 billion would come from private investors.
Maybe. Maybe not.
Returns on invested capital from passenger trains are, for the record, pretty meager.
Won’t put my retirement funds into this project. How about you? Ready to invest?
Might be a good time for some due diligence studies before making the jump into those bonds. As for the first ride on a through high speed train set between LA and Chicago?
At age 71, probably not in my life time.