Dive Brief:
- The California High Speed Rail Authority has adopted a revised plan for its $64 billion bullet train project, which will now exclude Southern California from the first planned segment, the Associated Press reported.
- The system will first join points in Northern California, postponing the costly tunneling necessary for a connection to the south.
- The authority’s changes are widely viewed as a way to make up for a funding shortfall and to achieve at least one operating segment.
Dive Insight:
The rail was initially set to run first from Burbank to Merced, but the authority abandoned that plan to cut costs. Last week, however, rail officials were pressured into re-including Merced as a rail stop for the first segment — at an additional cost of $1 billion — after protests from that community. The authority said that it would look for ways to reduce the added expense.
Authority officials approved the revised plan just in time to submit it to the Legislature by their deadline of May 1. State lawmakers have held several special hearings regarding the projects after a Los Angeles Times investigation brought the project's financial and operational feasibility into question. Of particular concern was a Parsons Brinckerhoff report, which The Times said was withheld by the rail authority. The report found that the first proposed segment from Burbank to Merced would cost $9 billion more than the authority told the legislature during the approval process, but rail officials denied hiding any documents from the legislature.
Most recently, The Times said it found at least $400 million in additional costs, some arising from a 10% to 30% increase in prices since subcontractors and vendors gave their original estimates and some from project delays. Tutor Perini, has already submitted a $51.7 million change order and is pricing out at least two more related to project delays. Analysts told The Times those extras could cost as much as $95 million.
