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CONSTRUCTION KNOWLEDGE BLOG

May 14, 2012

A Game of Chicken on the High Speed Rail
Filed under: Industry outlook — Tags: — nedpelger

ENR reports that Transportation Secretary Ray LaHood, acting on behalf of the Obama Administration, has given an ultimatum to California: either vote in June to provide the matching state funding for the high speed rail from Bakersfield to Fresno or lose the $3.3B US federal grant. I struggle when I think of 3,300 million dollars. That’s a lot of scratch…to continue the chicken analogy.

The CA Legislature had planned to vote to authorize the funding, but moved toward more hearings in the summer and delay the decision till August.

“We need the Legislature to make the strongest commitment possible,” LaHood said in an interview. “The way to do that is to include the money for high-speed rail in the budget that is passed in June. August is too late for us.”

Of course the CA legislators respond that they want to follow their plan and not be pushed around. So it will be interesting to see who jumps aside in this game of chicken.

As I understand it, the first high speed rail section from Bakersfield to Fresno will cost about $6B, but the entire project cost from LA to San Francisco will run $68B.

While the construction industry certainly could use some stimulus, it’s amazing to me to see projects like this under consideration. Adding flights seems so much more efficient.

When President Eisenhower dreamed and financed the interstate highway system, that government investment made USA more efficient to do business than anywhere in the world. Why are we now jerking around with high speed rail to make for comfortable commuting (which already has several viable alternatives) and not high speed internet access for the entire country? Or a more bulletproof electrical grid?  Who is driving the dream?

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