There was more horrid financial news about high-cost rail today as reported by the LA Times here. This should be no surprise as most big government project overrun their estimates; usually by a lot of dough. The Times notes
The estimated cost of building 119 miles of bullet train track in the Central Valley has jumped to $10.6 billion, an increase of $2.8 billion from the current budget and up from about $6 billion originally.
The new estimate was presented Tuesday by Roy Hill, who leads the main consulting firm on the project, WSP (formerly Parson Brinckerhoff). Hill said the cost increases were mainly driven by problems including higher costs for land acquisition, issues in relocating utility systems, the need for safety barriers where the bullet trains would operate near freight lines and demands by stakeholders for the mitigation of myriad issues.
"The worst-case scenario has happened," Hill bluntly told the rail authority's board at its regular monthly meeting.
Some news that was not as widely reported came from someone with his hand reaching for our pockets
The 21 years that it has taken California’s high-speed rail project to move from creation to today’s construction in the Central Valley were largely occupied dealing with political, legal and financial obstacles.
But the head of the German-American consortium that just signed a contract intended as a preamble to a deal to run the railroad said overcoming California’s car culture is the biggest obstacle to high-speed rail’s success.
“On mega-projects all over the world there is a political and financial challenge in there,” said Carsten Puls, president of DB Engineering & Consulting USA, the American arm of Deutsche Bahn, Germany’s rail system and the lead company in the 13-member consortium. “We have the same challenges in Germany on our mega-projects … That’s why they are mega-projects.”
What makes California stand out, he said, is the need “have to have a mind change here from a car-driven society and shifting to more public transportation.” Connectivity with public transportation is weak in the Central Valley although the state’s draft rail plan, now circulating for comment, calls for improvements. With five other passenger railroads including BART and Caltrain scheduled to connect to high-speed rail at Diridon Station within eight years, San Jose will have the highest level of connectivity for the entire system.
Considering the initial operating segment of the project from San Jose to near Bakersfield, Puls sees high-speed rail’s primary utility at the start as a commuter link to and from Silicon Valley, which is supposed to happen in seven years.
As one highly informed observer noted about Mr. Puls' comment: Certainly the statement that HSR initially is going to be a commuter train does not fit criteria incorporated into Prop 1A (but that is certainly not a new issue is it?). Lots of luck getting California to give up on cars!!! Gov. Brown's last day in office cannot come soon enough. All of the press about his fiscal responsibility in his last budget pales in comparison to his fiscal irresponsibility on high-cost rail.


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