A Tale of Two Tracks

Currently the largest infrastructure project is both in limbo and at full-speed ahead. The Cal Rail Authority’s has a long term plan to run 500 miles from San Francisco to San Jose before turning to the valley and south to Los Angeles. The fast train is expected to take 2 ½ hour and be well under one hundred dollars, maybe under fifty. They will need a lot of riders to cover the current 64 Billion price tag and ongoing operation costs. The target is limited service from San Francisco to Bakersfield will launch in 2025. The world will have crowned two world cup champions by then. That is not far away. That will entail a lot of digging between San Francisco and San Jose. That is expensive real estate within two major California municipalities. Money: Money from Washington is critical for Jerry Brown’s dream project which can’t be funded alone by state and private financing. The government in Sacramento is at polar odds with the White House. The House Majority Leader Kevin McCarthy of Bakersfield, sent a letter this since the inauguration to The Department of Transportation, requesting a halt Fed funds and grants for the electrification of Caltrain’s Bay Area corridor. This upgrade is essential for the high speed rail. Right now Fresno is booming with construction. Hwy 99 is being diverted to accommodate the rail line. Bridges are being built, homes relocated, roads changed, thousands of acres of land has been bought. Dirt is flying everywhere and Fresno is benefiting. This project has been going on since 2015, but lawsuits and land acquisitions have set things back. Wait until they get to a major city. California approved this dream in 2008, and costs have almost doubled since then. When has the government done anything under budget? It the project runs out of money and the federal government withdraws then the rail must be handed over to Amtrak. Could this be the most expensive Amtrak upgrade? Will California seek funds from abroad? If that funding comes from China then they may require China steel and Chinese trains. This is not like building the transcontinental railroad in the 1800’s with undeveloped land making the “Big Four” the richest in the west. At some point the steam will come to a head.

Cal High-Speed Rail Authority Hosts Official Groundbreaking Ceremony January 6, 2015

FRESNO Cal High-Speed Rail Authority yesterday and Governor Brown joined hundreds of supporters broke t ground on the nation’s first high-speed rail system. In addition to the support of federal, state and local dignitaries, there was strong backing from Central Valley and California-based construction crews, small businesses, and local students who were eager to highlight how high-speed rail is positively affecting California today and will continue to into the future. This construction faze is set for the next five years in the Central Valley. There was a tour of nearby construction activity, which is being done by local and statewide businesses. They also note in their press release finalization of project designs, ongoing right-of-way purchases, and workforce training. This will be a 29 mile stretch of land from Ave 17 in Madera County to East American Ave in Fresno County. The construction will include 12 grade separations, two viaducts, a tunnel, and a bridge over the San Joaquin River. It will be undertaken by California-based Tutor Perini Zachry/Parsons (TPZP) who will be designing and building this first phase of the project. Many at the ceremony were talking about the electric train taking cars off the road and renewable energy, and it potential low cost of $90 from SF to LA in the time it takes a plane to do the same. It will take some time to complete the SF to LA leg for sure. It will likely cost more than $90 once it is accomplished if it is ever accomplished. Authorities say they need to speed up the eminent domain process, since only 100 of the 500 land parcels needed for the rails and stations have been purchased. Californians approved a nearly $10 billion bond for the train in 2008, and in 2012 the Obama administration dedicated $3.3 billion in stimulus funds. Part of the greenhouse gas fees to be collected under the state's cap-and-trade program also will go to the train. There is a lot of capital both political and economic invested in this plan. We will keep you abreast of its progress.