Brightline’s Vegas-to-LA project praised by Transportation secretary
Brightline West’s Las Vegas-to-Southern California high-speed rail project was lauded Thursday by Transportation Secretary Sean Duffy, while the newly appointed official slammed the California Central Valley high-speed rail project.
During a Thursday morning news conference in Union Station in downtown Los Angeles, Duffy announced that he has called for a review of the California High-Speed Rail Authority to determine whether billions of dollars in federal funding for the San Francisco-to-Los Angeles project should remain committed.
‘Appears to be on budget, on time’
Despite Duffy’s doubts about the Central Valley rail line, he had high praise for Brightline West’s planned $12 billion, 218-mile, high-speed rail project between Las Vegas and Rancho Cucamonga, California.
“The project from L.A. to Las Vegas, it appears that project is going well,” Duffy said Thursday. “High-speed rail that again connects two big cities, takes people off the road and out of the air and moves them more quickly. It appears to be on budget, on time. Those are the projects that I think taxpayers are willing to invest in.”
Brightline’s project was awarded a $3 billion grant last year by the Federal Railroad Administration. The remaining $9 billion of the project’s anticipated costs will be covered by a mix of private equity contributions and debt taken on by Brightline West.
Brightline West also has $5.5 billion in private activity bonding authority to raise funding for the project. Private activity bonds are a debt instrument that allows private entities to benefit from tax-exempt municipal bonds.
On Thursday, Brightline West priced bonds it is selling to raise $2.5 billion for the project. The offering includes two bond sales, $1.85 billion in private activity bonds from California and $625 million from Nevada.
Criticism of California High-Speed Rail Authority
A news release issued Thursday by the U.S. Department of Transportation on the California High-Speed Rail Authority review notes the entire L.A.-to-San Francisco project was planned to cost $33 billion and be completed by 2020.
The release stated just a portion of the line between Merced and Bakersfield, California, would cost more than the original project budget and that the delayed project’s latest estimated cost is closer to $106 billion.
“For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” Duffy said in a statement. “President Trump is right that this project is in dire need of an investigation. That is why I am directing my staff to review and determine whether the CHSRA has followed through on the commitments it made to receive billions of dollars in federal funding. If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.”
Four stations planned
Earlier this month, the Nevada Department of Transportation said it expects construction on Brightline West to begin in the coming months. Once work begins, the project is expected to take four years to complete.
The project will be built in nine segments, with each one a separate contract. Work is scheduled to occur across multiple segments concurrently to reduce construction time. Thirty-four miles of rail will be built in Nevada. The system will run in the Interstate 15 right-of-way.
Four stations are planned for the project, including one in Southern Nevada on Las Vegas Boulevard between Blue Diamond and Warm Springs roads. Another station is planned for Rancho Cucamonga, where riders can transfer onto California’s Metrolink rail line, which will allow riders to travel between downtown L.A.
A ride between Las Vegas and Rancho Cucamonga is expected to take about two hours. A one-way ride is estimated to cost $119 for a standard-class ticket and $133 for a premium-cabin ticket.
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on X.
