December 29, 2021
America’s infrastructure is subpar at best. While Congress has recently passed the Bipartisan Infrastructure and Investment Act, even with this additional funding, the United States will continue to have transportation shortfalls. Especially regarding passenger railways, the United States is far behind other developed nations in the G-20. Japan, the United Kingdom, and numerous other countries have developed national high speed rail systems with speeds that reach up to 220 mph.[1] In America, there is only one high speed rail line, the Acela Express, which reaches an average speed of 68 mph.[2] It is clear that the government has failed to properly invest in high speed rail in the United States, which has directly harmed our economy, prevented the creation of thousands of jobs, and ensured that America has remained a car-centric country for eternity.
While the federal government has failed to implement high speed rail systems across the country, numerous states and municipalities have attempted to implement transportation projects of their own. For instance, under the direction of Governor Jerry Brown, the State of California commenced the construction of a high-speed rail line from San Francisco to Los Angeles. Yet, when voters initially approved the bonds to help finance the railway in 2008[3], they were promised a cost of $33 billion and an expected completion date of 2020. Unfortunately, due to mismanagement, COVID-19, and increased costs of construction, the price tag of this project has ballooned to over $100 billion, with an expected completion date now in 2030[4]. The California High Speed Rail Authority’s inability to successfully complete and deliver this monumental project on time and in budget is simply unacceptable, and moreover, a national embarrassment. The people of this country have given the government the opportunity to successfully implement high speed rail, and it has failed. It is now time for another solution.
Private railways have long existed around the world, and they are often found in countries with some of the best high speed rail systems to date. For instance, in the United Kingdom, private railways operate and provide the essential high quality and efficient passenger service that consumers demand, while the government, through Network Rail, ensures the maintenance of the railway and train stations. This public-private agreement, which has spurred the growth of the passenger rail industry in the UK, would be enormously beneficial for the livelihoods of Americans as well. If properly implemented, it could unleash a wave of passenger railway expansion, all fueled by the desire of railway companies to provide increased service to more customers.
Even without this public-private arrangement, private railway companies are already starting to capitalize on the lucrative American market, where there is a critical lack of transportation options. Between destinations where it is too long to drive and too short to fly, Brightline, a private railway company, has begun to establish passenger railway services. In Florida, where the railway is located, the company has established stations in Miami, West Palm Beach, and Fort Lauderdale, and is planning to expand service to the Orlando International Airport, Disney Springs, and Tampa. This private railway, which could have faced substantial political opposition if it had been constructed by the state and funded with taxpayer dollars[5], is providing a service for Floridians that the government was not willing to. After the company’s success in Florida, Brightline is planning to start construction on a new high speed rail line between Los Angeles and Las Vegas. However, Brightline is not the only private company to capitalize on the lucrative American market. Following Brightline’s lead is Texas-Central Railways, who are planning to operate Japanese Shinkansen trains at speeds of over 200 mph on a new high-speed railway between Dallas and Houston.[6] Private high-speed rail is already beginning to take off in the United States, and it is now time for Congress to implement new legislation to further support it.
To ensure the success of private high-speed rail in the United States, Congress should adopt a scheme for high-speed railway lines similar to that of the United Kingdom, where private railway companies are responsible for the maintenance of a high quality and efficient passenger rail service, and the government, through a publicly owned non-profit like Network Rail, is responsible for the physical maintenance of the railway and train stations.
To further aid the expansion of high-speed rail across the US, it is also vital that local and state governments work together with private railway companies by entering into public-private partnerships. These partnerships, which could include providing additional funding for construction through qualified private activity bonds[7], the provision of subsidies, or the passage of legislation that cuts bureaucratic oversight on private railway developments, would all help to increase the scope and speed at which private high-speed railways are built in the United States.
There are numerous advantages to this public-private scheme, compared to solely public-owned high-speed railways. Instead of being subject to bureaucratic inefficiency, private railway companies are less likely to experience significant cost overruns and sizable delays to construction as they are more immune to both excessive bureaucratic oversight and political gamesmanship. Moreover, instead of being supplied with an infinite stream of taxpayer funds, private railways are funded through private investment and are held directly accountable for cost overruns and delays by their shareholders.
However, there may be some who argue that by privatizing high-speed railways in the future, many Americans, especially those from low-income backgrounds, will be unable to participate in this new form of transportation and would thereby be excluded from any potential economic boom that may follow. While it is understandable to worry about potential ticket prices, it is important to fully comprehend the market and economical context which makes private high-speed railways profitable in the first place. High-speed railways are only able to survive because they fill a gap between two pre-existing transportation options: the car and the plane. To attract consumers, high speed railways must be able to be faster than a car, yet less expensive than the price of a plane ticket. Therefore, market competition, the laws of supply and demand, and the pre-existing price barrier of airline ticket prices will ensure that ticket prices are reasonable, and not exorbitant.
Whether you are an environmentalist, an avid train enthusiast, or an angry commuter sick of standstill traffic, the benefits of this scheme would be enormous. Massive incentives for private high speed railway development would spur a transportation revolution in which hundreds of thousands of jobs are created, millions of cars are eliminated from our congested highways, and enormous amounts of greenhouse gas emissions are cut due to the decrease in cars on the road. We have been waiting on the government to invest in high-speed rail for far too long. Where the government has failed, it is up to the private sector to succeed, which is why Americans should support the expansion of private high-speed rail networks and the creation of a state maintained, privately-operated high-speed railway system in the United States.
[1] Environmental and Energy Study Institute (EESI). “Fact Sheet: High Speed Rail Development Worldwide.” EESI. Accessed November 29, 2021. https://www.eesi.org/papers/view/fact-sheet-high-speed-rail-development-worldwide.
[2] “Amtrak ‘Acela Express’ (TRAIN): Top Speed, Route, Overview.” American. Accessed November 29, 2021. https://www.american-rails.com/acela.html.
[3] “California Proposition 1A, High-Speed Rail Bond Measure (2008).” Ballotpedia. Accessed November 29, 2021. https://ballotpedia.org/California_Proposition_1A,_High-Speed_Rail_Bond_Measure_(2008).
[4] Jackson, Kerry. “High Costs & Construction Delays Plague Cali. High Speed Rail.” City Journal, February 25, 2021. https://www.city-journal.org/high-costs-construction-delays-plague-ca-high-speed-rail.
[5] Williams, Timothy. “Florida’s Governor Rejects High-Speed Rail Line, Fearing Cost to Taxpayers.” The New York Times. The New York Times, February 16, 2011. https://www.nytimes.com/2011/02/17/us/17rail.html.
[6] “Learn the Facts.” Texas Central, September 25, 2020. https://www.texascentral.com/facts/.
[7] “ABCs of the BCAS.” ABCs of the BCAs – California Debt Limit Allocation Committee (CDLAC). https://www.treasurer.ca.gov/newsletter/2020/may/abcs-of-the-bcas.html.
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