Is high-speed rail dead in California?

Fact: High-speed rail is creating jobs and stimulating California's economy, but that's only part of the story. There are currently over 30 active construction sites spanning 119 miles from north of Fresno to north of Bakersfield, and the 3,700 foot Cedar Viaduct was completed this summer.



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The rail authority said the goal is to have the section between Bakersfield and Merced operational between 2030 and 2033. CNBC visited California's Central Valley, where construction is underway, to find out what it will take to complete the nation's largest infrastructure project. Watch the video for the full story.

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California's plan is to build an electric train that will connect Los Angeles with the Central Valley and then San Francisco in two hours and 40 minutes. But 15 years later, there is not a single mile of track laid, and executives involved say there isn't enough money to finish the project.

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This chart displays the Breakeven Analysis on Phase 1 of the high-speed rail system assuming the horizon year of 2040, showing a 99.4 percent probability that Phase 1 would be profitable between $0 to $5.7 billion and a 0.6 percent chance of deficit between $220 million and 0.

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High-speed rail is creating jobs and stimulating California's economy, but that's only part of the story. There are currently over 30 active construction sites spanning 119 miles from north of Fresno to north of Bakersfield, and the 3,700 foot Cedar Viaduct was completed this summer.

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– In the strongest show of a continued partnership, the California High-Speed Rail Authority (Authority) announced today receiving nearly $202 million from the U.S. Department of Transportation to expand construction of high-speed rail by completing six grade separations.

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A story of US transportation Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail. This trend has continued, and not the least because highways require continuous maintenance, while the US's growing population demands more lanes and roads to relieve congestion.

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The plan to build a high-speed train that will connect Las Vegas with Southern California took another important step this month. The massive transportation project by Brightline could begin as soon as this year, with an estimated completion plotted for around 2027.

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Infrastructure: we built it first. The US built its rail systems a long time ago. Updating it is incredibly expensive because old systems were not designed to be easily upgraded to newer technologies. No one knew what those newer technologies would even be.

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In 2008 when voters approved the bond measure for the train, the cost to connect the 500-mile span would be around $33 billion. Today, the whole 500-mile system would cost a grand total of $128 billion. That price tag has left state officials scratching their heads to bridge that $100 billion funding gap.

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In mid-2026, commence station construction, with completion estimated to be in mid-2028. In mid-2028, first trainset expected to be delivered. In mid-2028, original 119-mile (192 km) segment to be completed. In mid-2029, full IOS 172-mile (277 km) segment to be completed.

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Americans really want high-speed rail. According to a new survey from the American Public Transportation Association, 62 percent of the 24,711 adults surveyed said they would probably or definitely use high-speed rail if it were an option. 11 percent said that they would definitely or probably not use the service.

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The Authority has begun work to extend the 119 miles under construction to 171 miles of future electrified high-speed rail from Merced to Bakersfield.

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The all-electric train will connect a station in Apple Valley, east of the city of LA, to Las Vegas along Interstate 15. The 218-mile trip will take about 85 minutes on a train that will have a cruising speed of 200 miles per hour.

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The Great Depression of the 1930s forced some railroad companies into bankruptcy, creating hundreds of miles of disowned and subsequently abandoned railway properties; other railroad companies found incentive to merge or reorganize, during which excess or redundant rights-of-way were abandoned.

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China: Surpassing the Rest of the World Due to generous funding from the Chinese government, high-speed rail in China has developed rapidly over the past 15 years. China began planning for its current high-speed rail system in the early 1990s, modeling it after Japan's Shinkansen system.

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The Acela is the Fastest Train in the USA The fastest train in North America is the Acela which hits 150 mph in Connecticut and Rhode Island. Amtrak is upgrading track in New Jersey for 160 mph.

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Inflation and higher construction costs have contributed to the high price tag. The project has spent $9.8 billion so far, according to Brian Kelly, CEO of the California High-Speed Rail Authority. We knew we've had a funding gap ever since the project started, Kelly said.

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With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%.

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It'll be 100% electrified. It will use renewable power. It will literally be, not an embellishment, the greenest train in the world. Given that no major high-speed railway is fully powered by renewables currently, that may be true if the $12 billion Brightline West project opens on schedule by 2028.

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