Why is building high speed rail so expensive?

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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Finally, the cost of HSR is outrageous. Current estimates for California's HSR system come in at $80 billion for 520 miles, or $154 million per mile. Amtrak estimates that it would cost $500 million per mile to turn its Northeast Corridor route into a true high-speed system.

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However, building infrastructure in the U.S., especially subways, is very expensive. This CNBC report shows that building subways in the U.S. is more expensive than in most countries because of high labor costs, overbuilt tracks and stations, and onerous regulations.

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However, it seems that the aggressive campaign to reap the lucrative economic dividends of HSR has increased the state-run operator's total liabilities, which as of the end of 2021 reached 5.91 trillion yuan ($882 billion), or roughly 5% of China's GDP, reported Asia Nikkei.

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High-Speed Rail Is Too Expensive Building the 48,000-mile Interstate Highway System cost about $500 billion (in today's dollars). Paid for entirely out of user fees, it carries about 25 percent of all passenger travel and 15 percent of all freight in the United States.

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FUNDING IN BRIEF Funding for California high-speed rail has come from the legislative appropriation of state special funds and from federal competitive grants. No funding comes from traditional state sources, such as the gas taxes or general fund dollars.

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It Won't Help and May Hurt the Economy. Studies have found that high-?speed trains can generate new economic development near the stations where the trains stop. However, the same studies show that economic development slows in communities not served by such trains.

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HSR is electrically powered and can run 100% on clean, safe renewable energy. One high speed train powered by the wind can carry more passengers than 9 oil-burning, carbon-spewing airplanes!

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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%. When considering route strategy, HSR's market share versus other modes must be well understood.

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With one possible exception, no high-speed rail system in this country could pay for itself, and the claimed external benefits - cleaner air, energy saved, eased pressure on airports - are nonexistent.

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High-speed rail lines are proposed for California, Nevada, Texas, Georgia and the Pacific Northwest, and already under construction in California's Central Valley.

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France increases cost of train fares The rail network announced a decision to raise prices last November because of the increase in energy costs. Christophe Fanichet, CEO of SNCF Voyageurs, said the company was “facing additional costs of 13 per cent in 2023.”

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In France and Belgium, for the same domestic or European journey, train travel is on average 2.6 times more expensive than air travel. In the 16 countries studied, rail was on average 2 times more expensive.

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HSR reduces traffic congestion and gaseous waste emissions, as well as environmental pollution, by replacing traditional transportation (Anderson, 2014). According to the study of Chen et al. (2016), HSR has a significant and positive effect on environmental degradation.

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In 2021, Beijing-Shanghai High-speed Railway Co., Ltd. earned a total net profit of 4.8 billion yuan, an increase of more than 49 percent from the previous year. Established in Beijing in 2007, it is the only railroad company in China that introduces social cash investors and Sino-foreign cooperative operations.

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High-speed rail (HSR) provides social and economic benefits to cities by facilitating the rapid movement of people and goods. Regarding HSR profitability, the state-owned China Railway Corporation (CRC) has reported an annual operating loss of about 30 billion yuan for the past two consecutive years.

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