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Transportation The Almighty Buck United States Technology

California Bullet Train Costs Soar To $77.3 Billion, Will Take 5 Years Longer To Complete 269

The California High-Speed Rail Authority announced today that the cost of connecting Los Angeles to San Francisco would total $77.3 billion, an increase of $13 billion from estimates two years ago, and could potentially rise as high as $98.1 billion. They also said the earliest trains could operate on a partial system between San Jose and the farming town of Wasco would be 2029, five years later than the previous projection. Los Angeles Times reports: The disclosures are contained in a 114-page business plan that was issued in draft form by the rail authority and will be finalized this summer in a submission to the Legislature. The rail authority has wrestled with a more than $40-billion funding gap, which would increase sharply under the new cost estimates. The biggest immediate driver of the cost increase has been in the Central Valley, where the rail authority is building 119 miles of track between Wasco and Merced. The authority disclosed in early February that the cost of that work would jump to $10.6 billion from an original estimate of about $6 billion. Roy Hill, one of the senior consultants advising the state, told the rail authority board, "The worst-case scenario has happened." In its 2014 business plan, the rail authority optimistically projected that it could begin carrying passengers in just seven years. But the warning signs of uncontrolled cost growth had already started mounting then, even though until this year the rail authority has vehemently denied that it was facing a problem. The project began having trouble buying property for the route almost immediately after it issued its first construction contract in 2013.
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California Bullet Train Costs Soar To $77.3 Billion, Will Take 5 Years Longer To Complete

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  • by JoshuaZ ( 1134087 ) on Friday March 09, 2018 @09:05PM (#56236673) Homepage
    This appears to be part of a general trend, transit costs in the US have been massively subject to "cost disease" https://en.wikipedia.org/wiki/Baumol's_cost_disease [wikipedia.org]. However, the effect is much more pronounced for mass transit in the US than in Europe or elsewhere http://trrjournalonline.trb.org/doi/abs/10.3141/2541-01?journalCode=trr [trb.org]. While there are some arguments that how the US treats trains has advantages over Europe http://ti.org/antiplanner/?p=11847 [ti.org], the cost difference in new ones is gigantic. In this particular case, it is combining very badly with other issues, including the insanely high prices of land in California.
    • Any business relying on government deals is shady: construction, waste management, software programming.

      Everyone knows that once you locked a government contract, you can lay back and count money.

    • The 'cost disease' starts with very over-optimistic cost estimates that are used by politicians to justify the projects. Then they issue construction contracts that don't hold any one company accountable for the overall cost (largely because no company would sign such a contract because they know the estimates are low). Of course, once the project gets to a certain point where there is no turning back, the bad news seems to start coming.

      I'd like to see politicians promise to quit if the such a project go
      • I'd go one further, I'd like to see the authorizing body (city council, state legislators) held personally liable for costs over 15%. But that is not going to happen either.

    • The main issue is inflation. When this was originally proposed about 20 years ago, the “cost” was about $10B. Inflation in California is about 5% annually, so take ~50 years of inflation, and you are magically at $100B. The original cost was likely half of the real cost at the time, so this is what you get... $1Million/mile for the track was a reasonable cost at the time, double it for land, double the total again for cars and stations.

      But, the real problem is land acquisition. They should have

  • by Tony Isaac ( 1301187 ) on Friday March 09, 2018 @09:06PM (#56236687) Homepage

    The official web site [texascentral.com] of the proposed Texas bullet train, from Houston to Dallas, says that the Texas project will cost "over 12 billion" and start construction in 2019. Like the California project, the Texas project has been plagued by delays and cost increases. I wonder who succeed first, or at all.

    • by PrimaryConsult ( 1546585 ) on Friday March 09, 2018 @10:32PM (#56237001)

      Texas Central is confident they will transport the first true high speed passengers in the country, despite not having yet turned a shovel. If they can manage to reach construction, I think they will win because the route is easier (mostly flat open land), 100% new build (versus sharing with existing passenger/freight RoW), and less encumbered by regulations (e.g. FRA crash safety standards can be relaxed as it does not connect to the national freight network).

      And by not taking government subsidy, they were able to come up with the route of "least resistance" versus routes that involve deviating to serve every local politician's one horse town. Stations are pretty expensive, and by only having one intermediate one they save on cost, time, and legal wrangling.

    • I wonder who succeed first, or at all.

      Well, the folks who "win", will be the employees of the project who succeed in dragging out their project the longest. If they pad the project out correctly . . . they can make it last until their planned retirement, and never need to look for another train construction job again.

      If they finish on time . . . they will need to go out and look for a new job in a few years.

      Now, which option do you think they will choose . . . ?

      Anyway, when rail construction in the western got stuck in the late 1800's, they

    • It seems the Houston station is not going to be in the centre but instead [texascentral.com] outside I610 [openstreetmap.org]. That seems non-ideal. Perhaps they thought it would be too expensive to have station in the centre? Quote:

      Houston’s passenger station will be located in northwest Houston just outside 610 between Interstate 10/290. This area was recognized by the FRA as the location with the right combination of minimal environmental and community impact. This route allows the train to follow existing rights of way, while providing

      • by mvdwege ( 243851 )

        planned transit improvements.

        That seems to be the operative sentence. If they manage to extend the local network in time it would be a fine idea.

        Of course, rail planners everywhere seem to think only in terms of their prestige project and not about local connectivity, so I'm afraid that it will turn out to be another station to nowhere.

        (As an example, the Netherlands insisted on a High Speed rail link going all the way to Amsterdam, for reasons of 'international prestige', instead of terminating at Rotterd

        • There not only Amsterdamers who want to travel somewhere there are plenty of people that want to travel to Amsterdam, too.
          And for them a train stopping in the center of the city is convenient.

  • Hard to believe (Score:4, Insightful)

    by AlanObject ( 3603453 ) on Friday March 09, 2018 @09:09PM (#56236697)

    $78B? OMG. That is like almost 8% of the cost of the Iraq war.

    No way we could ever fund something that big.

    • Re:Hard to believe (Score:5, Interesting)

      by Spy Handler ( 822350 ) on Friday March 09, 2018 @09:31PM (#56236775) Homepage Journal

      Iraq war was funded by the US govt. It was a national effort. This train is a state project.

      Secondly, just because you wasted a lot of money on a big worthless project in the past, doesn't make it okay to keep on wasting money on further worthless projects. And yes I do agree that Iraq was a clusterfuck and that US should GTFO of the middle east completely.

      I'm hoping Elon will put this matter to rest with his Boring company. By that I mean, the Senate Launch System, which at $1 billion+ per launch is a wasteful pork barrel project designed only to line the pockets of former Shuttle defense contractors. But with the successful launch of the Falcon Heavy (which currently costs less than 1/10th of the SLS but eventually with reusability will probably reach 1/100th the cost of the SLS) not even the most pork-doling corrupt senator will be able to justify the SLS's existence.

      Anyways I'm hoping Boring company will do to worthless pork barrel trains what SpaceX has done to worthless pork barrel rockets.

      • Re:Hard to believe (Score:4, Insightful)

        by burtosis ( 1124179 ) on Saturday March 10, 2018 @01:35AM (#56237593)
        The government has been misplacing a trillion dollars per year for 20 years. It's now sitting upwards of 21 thousand billion, or as I like to say 1/50th of a quadrillion dollars [forbes.com] At this point any tax paying citizen should have zero respect for how tax money is spent and demand reform.
        • Didn't we just get tax reform? Lower taxes for all. That will solve the problem. Oh and fire 20 weather forecasters to cut costs.

      • by Uberbah ( 647458 )

        Iraq war was funded by the US govt. It was a national effort. This train is a state project.

        Interstate highway system is a national effort. No reason a high-speed rail network should not be.

        Secondly, just because you wasted a lot of money on a big worthless project in the past, doesn't make it okay to keep on wasting money on further worthless projects.

        If the interstate highway system had started five years ago, it would also be a "big worthless project" and completing it would involve an astronomical sum.

      • You do realize that State we are talking about has a larger GDP than almost all other countries?
  • by Bruce Perens ( 3872 ) <bruce@perens.com> on Friday March 09, 2018 @09:09PM (#56236701) Homepage Journal

    I've been to a lot of different countries, and it's always ironic how much better their mass transit is than in the U.S. I have rarely had to rent a car or even take a taxi to get anywhere I want to go - outside of the U.S. And it's very rare for me to have to take a bus in another country. Train go everywhere, except in the country I live in.

    Given the insane amounts we spend on airports and aircraft, and roads, there just isn't any justification for not having the good trains they have in other countries. Consider little Switzerland, and its incredible transit systems. Take the train from London to Paris. Nothing you would see in the U.S.

    So-called "smart roads" (which aren't going to work except for those leased vehicles with locked-down hoods) and autonomous vehicles might work for urban transit eventually. For inter-city routes they are still molasses-slow and inefficient.

    And I am not really sanguine about the hyperloop. The safety issues make my mind boggle, and companies are having trouble even getting a model to go fast in one.

    • I can take an airplane from San Jose to Burbank for $121 and even with security, it takes about 2 hours I can drive to Shafter (about halfway) in about 2.5 hours and cost about $23. Why do I need a train that takes twice as long and is *certain* to cause $300-400, not to mention bankrupting the state in the process? Who gives a crap what happens in Europe, why does *this* train and the astonishing and ever-growing cost make sense?

      • You are not counting the real cost of your vehicle, which is probably about $8,500 per year before you drive a mile. You can find more accurate figures here [slashdot.org].
        • Use this URL. [aaa.com] For some reason Slashdot's mobile HTML is not presenting a preview button.
      • I can take an airplane from San Jose to Burbank for $121 and even with security, it takes about 2 hours

        I haven't been to San Jose's airport, but if you were to leave from LAX you'd have to get to their airport two hours before takeoff to make it to your gate in time. That's not counting LA's crazy traffic, where it takes an hour to drive ten miles.

        why does *this* train and the astonishing and ever-growing cost make sense?

        It will greatly reduce traffic, decongest airports, reduce pollution, provide economic opportunities for the underprivileged, and projects like this are a boon to the economy.

      • Why should the train ticket be such expensive?
        I had expected a price around $50, perhaps $60.

        For EUR75 I ride from my town to Paris, 450km, 2:30h, city center to city center.

        • Probably because LA to SF is 600+ km and CA ($90-100 million/mile) is spending way more per mile of track than France ($3-4 million/mile) did.

          For reference, a current Amtrak one-way train takes 11 hours and costs anywhere from $65-$215 depending on class of service. Taking the bus is less time (9h) and money ($30), although presumably not as nice. Current prediction is $86 for subsidized single "low-cost" high-speed ticket (3h) on the new line, but that may still increase.

          Cheapest (one tank of gas) and fast

    • by Solandri ( 704621 ) on Saturday March 10, 2018 @04:16AM (#56237927)
      Agreed we need good trains. But regular railway track through rural areas costs about $1.5 to $3 million per mile [compassinternational.net].

      This stretch of track is going to cost $10.6 billion / 119 miles = $89 million per mile.

      The U.S. bet on highways in the 1940s and 1950s. While highways are probably a good idea for personal vehicles in a country the size of the U.S., they had the side-effect of subsidizing the trucking industry. The higher tire pressures of trucks cause almost all the damage to our roads and highways, but their fuel taxes only pay for about half of it. So in effect, passenger cars are subsidizing the trucking industry, dropping the economic cost of truck transport below that of rail (where you have to pay for labor to transfer cargo from a ship/truck to the train in the source city, then from the train to a truck in the destination city). That's what we need to fix if we want to spur more railway development in the U.S. Make trucks bear the true cost of the damage they do to our roads, and suddenly rail transport will be more financially attractive.
  • by 110010001000 ( 697113 ) on Friday March 09, 2018 @09:21PM (#56236735) Homepage Journal
    That is half the net worth of Bezos! That is a lot of money, right? He could only buy two.
    • Paper worth is not the same thing as money in the bank. Bezos would love nothing more then to liquidate his assets so he can fund his pet projects but he can only sell about 1Billion worth of his Amazon stock holdings a year without negatively affecting the stock price, at this rate it will take about a century to liquidate his assets and that's assuming that the price of Amazon stock remains stable
  • "The project began having trouble buying property for the route almost immediately after it issued its first construction contract in 2013."
    • by Kohath ( 38547 )

      Why should land owners want to sell? The train is being built for other people, not for them.

  • Theres no way this is better than simply taking an airplane between the cities. The whole thing is a boondoggle. Cancel the whole thing. Probably a racket here, some Democrat giving kickbacks to a contractor. Would be better to subsidise an express bus service for people needing a lower cost option. Florida wanted to build something similar. It was realized it would be a wasteful boondoggle. It was cancelled by Rick Scott, the wisest decision he ever made.

    • Theres no way this is better than simply taking an airplane between the cities.

      Proposition: trains suck.

      Proof: Europe does not exist.

  • by cascadingstylesheet ( 140919 ) on Friday March 09, 2018 @10:16PM (#56236939) Journal
    Just to Slashdottify this, an AI would have learned by now to not try high speed rail in the US ...
  • by dave562 ( 969951 ) on Friday March 09, 2018 @10:19PM (#56236947) Journal

    ..shocked I tell..

    Wait, no I'm not. This thing is the boondoggle of our generation and has been since the beginning.

    If the legislature gave two shits about the citizens of California they would cut their losses and scrap the project. They don't and they won't.

  • Have they figured out how to get from Bakersfield to Los Angeles yet? Last I heard they punted on that decision until sometime after 2022... So we can move people from Fresno to Bakersfield, great! But still no plan to connect to the second largest metropolitan area in the US.
  • Would the riders/economic benefit of such a railway ever support the interest payments on the billions? I'm skeptical on that point.

    How about we invest $80B instead in "virtual presence" and better networking technology, so that people can stay home and their avatars can go to work, and business travel becomes unnecessary and archaic?

    I think California has the wrong vision. Instead of making travel cheap, California should work on developing tech to make travel obsolete.

    --PeterM

  • Did other countries pay comparable money for bullet trains?

    BTW: the price will likely keep going up. Figure around $300B by the time it's finished.

    • by mvdwege ( 243851 )
      The numbers are hard to find, but RFF (the infrastructure partner in the French HIgh Speed network) carries around a magnitude less of that $300B figure in debts incurred in construction.
  • California could buy and distribute 155 million $50 airline tickets.
    • California could buy and distribute 155 million $50 airline tickets.

      And how much would the additional road and airport capacity required to support that additional load cost?

  • The city did an expansion of "Mopac" and the cost/time overrun was crazy. Now the sound walls have a problem. A report just came in that the drainage tunnel the city put in downtown which was 161 million in the end quoted as 26 mil is structurally deficient. The did not put rebar in so buildings over it may collapse. And who can forget the boston big dig. Government has somehow become incompetent to build things on time/budget. Gov needs to start putting teeth into contracts. If you miss on quality/time/pr

  • by jd ( 1658 ) <imipak@yahoGINSBERGo.com minus poet> on Saturday March 10, 2018 @03:08PM (#56239835) Homepage Journal

    You could have a school with a capacity of 100,000 where the average student had a BSc/BA by 18 and 15% had PhDs by then, and teachers and researchers were paid a decent salary, and run it for 40 years on the same money. That includes the cost of building it. The benefit to the economy would be infinitely greater than the train system, which should have been built for far, far less. Maybe set the design of its replacement to the kids.

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