California high-speed rail could cost almost $100B

By Freddie Pierce
California has had its share of financial problems. The news yesterday probably didnt help ease the minds in Sacramento. A business plan for California...

California has had its share of financial problems. The news yesterday probably didn’t help ease the minds in Sacramento.

A business plan for California’s high-speed rail network could cost almost $100 billion in inflation-adjusted spending over its anticipated 20-year construction period, according to the Associated Press. Preliminary reports indicate the earliest service would begin in 2033.

The proposed rail line would connect Anaheim and San Francisco, and estimates pegged the cost at $98.5 billion. Voters approved $43 billion in funding back in 2008; in non-adjusted 2010 figures, that amount is now $65.4 billion as costs have risen significantly.

“The good news is they’re at least coming up with a real number; the bad news is that’s a pretty scary number,” Sen. Joe Simitian, D-Palo Alto, told the AP.

The business plan is expected to be released on Tuesday during a news conference at the California State Railroad Museum in Sacramento. Among the controversial issues included in the proposal is that construction would begin in the sparsely populated Central Valley.

SEE OTHER TOP STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK

Third quarter freight rail review

Thailand flooding supply chain breakdown

November’s issue of Supply Chain Digital has launched!

Opponents of that plan want to start construction in more populated areas, in case funding should run out before the rail line is completed. That way, the state won’t have spent taxpayers’ money on a so-called “train to nowhere.”

Starting in the Central Valley may be the only feasible option, however, as the federal government will fund $3.5 billion of the project if it starts in the middle of the state by October of next year. Such a tight timeframe won’t allow engineering proposals or environmental reviews to be completed in time in any other location.

Share

Featured Articles

PwC Examines Digital Trends in Operations for 2024

PwC’s Digital Trends in Operations Survey for 2024 demonstrates a significant proportion of firms are struggling to achieve their desired outcomes

P&SC LIVE New York 2024 Virutal - SAVE THE DATE

Don’t miss out on your chance to attend Procurement & Supply Chain LIVE New York in 2024 Virtually, 5-6 June

Charities & NGOs Submit to The Global P&SC Awards for FREE

The Global Procurement & Supply Chain Awards hosted at P&SC LIVE London Sept 2024 welcomes charities and NGOs to submit for FREE

Procurement & Supply Chain LIVE: 2024 Dates to Remember

Digital Supply Chain

Gartner Unveils Top Supply Chain Technology Trends for 2024

Technology

What the Latest CSDDD Milestone Means for Supply Chains

Sustainability