Financial derailment: California's high-speed train exceeds $100 billion deficit.
Anglo-Saxon railway projects definitely have a knack for becoming bottomless financial pits and potential fiascos. After the British HS2 fiasco, the Californian dream of California High-Speed Rail which must connect Los Angeles to San Francisco in less than three hours thanks to a TGV seems to be moving further away, with an abysmal deficit which exceeds the 100 billion dollars and delays that span decades.
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Initially estimated at $35 billion (33.5 billion euros) for the first segment linking Bakersfield to Merced, the total cost of the project to extend the line to San Francisco could reach nearly 135 billion dollars (129 billion euros). This astronomical sum exceeds initial forecasts by $100 billion (€96 billion), highlighting the colossal financial challenges facing the project.
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Construction progress and discouraging projections
To date, only 191.5 km of the line are under constructionconcentrated in the Central Valley from Madera to Shafter. Although the environmental review to expand to Merced and Bakersfield has been validated, full funding for this phase is still not secured. The forecasts for the commissioning of this central section have been pushed back between 2030 and 2033, well beyond the initial expectations of the population.
Uncertain funding and fluctuating federal support
The project's ability to secure the necessary funds remains a major uncertainty. Funding is based on a combination of state and federal budgets as well as the California cap-and-trade systemscheduled to expire in 2030. Although the Biden administration recently provided more than $3 billion (2.88 billion euros) to help build the Central Valley line, there remains a deficit of 7 billion dollars (6.71 billion euros) to complete this single part of the project.
A long-term vision questioned
The high-speed rail peer review group suggested that the state Legislature commission an “independent review of the economic and financial justification for the project” before re-engaging in the first phase. This recommendation highlights growing doubts about the economic viability of high-speed railtaking into account current and future challenges.
A mixed community impact
Despite local economic benefits, notably the creation of more than 12,000 jobs in the Central Valley, the rest of the state sees few immediate benefits. Construction has also disrupted local communities, with road closures and uncertainty for businesses regarding future travel.
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This article takes an in-depth look at the challenges and progress of California's high-speed rail project, highlighting skyrocketing costs, continued delays, and uncertain financing. While the project's future remains uncertain, decision-makers must carefully evaluate the next steps for this promising but problematic transportation system.
Source : https://www.latimes.com/california/story/2024-03-21/high-speed-rail
