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The Myth of US High Speed Rail
My Blog - Simply Shrug ^ | July 26, 2010 | PugetSoundSoldier

Posted on 07/25/2010 6:38:48 PM PDT by PugetSoundSoldier

There's a big push in some corners of the US transportation industry to "bring high speed rail to America". Visions of relaxed, latte-sipping trips over the nation, no lines for security, low cost trips are certainly heady ideas, but do they bear out? Let's take a critical, cold, calculating look at the reality of the situation.


As many know, I split my time between the US (Seattle, WA area) and Asia (predominantly Shanghai, China). China's been on a high speed rail building frenzy recently, and there are thousands of kilometers of line laid, with thousands more to come. Soon most of the larger Chinese cities in the East will be connected by high speed rail.

Just yesterday I rode one of these new marvels: the high speed rail line from Shanghai Hong Qiao (a behemoth of a transportation hub, consisting of an airport with two, 3400 meter runways, a bus terminal, a rail terminal, and a subway station) to Suzhou, a small town (well, by Chinese standards: only 6 million people) about 130 km away.

Hong Qiao is massive, even by Chinese standards. Not only are there 75 airline gates, but 36 long distance bus slots, 16 rail platforms, eight taxi stands (each capable of handling 800+ taxis at a time) and a full-size subway terminal. Soaring ceilings and highly polished marble and granite floors abound, and there is a good amount of space as befits China's 4th busiest airport/transportation terminal.

What does one of these new trains look like? Sleek and streamlined, as you would expect from a train capable of 300+ kilometers per hour:

These speedsters ride on some pretty specialized and dedicated rail lines, as you would expect:

Heavily bedded, full-length concrete foundations, and track ties every 20 cm. Absolute rigidity and stability is required for a train capable of such high speeds. And they do move right along:

Yes, that's 323 kilometers per hour, a hair over 200 miles per hour. It's no slouch in terms of speed! Fast, clean, relatively spacious transportation. And the ticket price of 41 RMB each way (about $6 USD) is quite cheap, too - nearly as cheap as the old, slower rail lines (which, at 26 RMB are a good discount, but take 50 minutes to cover the same distance we sped across in just 20 minutes).

So why do I say that high speed rail will not work in the US? One word:

Ridership


You see, I rode train G7130, which departed Hong Qiao on Sunday morning at 7:51 AM. And I rode train G7273 back on Sunday evening, which left Suzhou at 7:18 PM. And in each case, EVERY seat was taken, and it was standing-room-only at the ends of the cars.

Sixteen cars per train. Eighty five seats per car. And another 15-20 people standing in the baggage areas of each car. Over 1600 passengers on each train.

And there are 70 such trains a day between Suzhou and Hong Qiao. And every single one is full. Do the math - that is 112,000 riders per day on a single, 20 minute ride. And it's like that 7 days a week (remember, I rode on a Sunday and still had to buy my tickets a day in advance to guarantee a seat).

Close to 800,000 riders a week. Over 40 million a year on a single line. That's 25% more than rode ALL of Amtrak last year. And this is just a single line (not even the busiest - that title is reserved for Beijing to Tianjin, and Guangzhou to Shenzhen).

There are no discounts in China; you pay the full fare, no free tickets. That's $672,000 per day in revenue on that single train.

I talked a bit with with Wang Xiaoyan, the director of G7130 as we sped through the city. In her trademark skirt, black shoes, neatly pressed blouse, buttoned vest, and cap (with the proudly displayed "director" arm band), she provided a few details to this gao da lao wai (big and large foreigner):

China spent 23 billion RMB (about $3.4 billion USD) to deploy this stretch of track. With ridership of 35 million per year, and operating costs of 32 RMB per passenger, China expects to recover its investment in about 10 years, when the tracks need to be reworked (every 8-15 years you need to rebed and replace the tracks, to account for settling and shifting of the line).

In other words, China's doing this not because they have billions of people to move (which they do), but because it will not be an economic drain on the economy. It will cover its own costs, including maintenance.

Additionally, the construction costs are amazingly low - only $45 million per mile. Thanks to the cheap labor costs in China, and the incredibly flat terrain (Hong Qiao is at 3 meters elevation above sea level; Suzhou is at 5 meters - less than 7 feet difference, and it's completely flat between the two locations) China can build the rail for a low cost.

Consider the recent London-to-Edinburgh high speed rail line - $55 billion for 534 kilometers (note: the distance from London to Edinburgh is 331 miles, but the plan requires 1500 miles of line to make that distance a reality; you need to deploy more than just the lineal distance between locations). That's $166 million per mile, about 4 times the cost of that in China. Deploying high speed rail in the US will be much closer to the prices seen in the UK as compared to those in China, especially when you start to factor in the montainous and varied terrain in the US, as compared to most of Eastern China (and as a point of reference, Seattle's recent Link Light Rail had a cost of $179 million per mile, in line with the UK costs of deployment).

Given the plan for a 17,000 mile (27,000 kilometer) network in the US, we would see costs of $2.8 TRILLION to deploy this network (at UK line prices). A massive outlay of cash, orders of magnitude larger than that planned by China for its entire network (which already is the largest in the world, and growing rapidly).

And ridership will be lower, as well. Consider that a single segment of one line inside China eclipses all rail riders in the US. If we assumed that US ridership would increase by a factor of 10 - 300 million riders a year - and that the lines had a 25 year lifespan before being replaced (about twice what is realistic), we'd see that the per-rider capital costs alone would be $376 per trip. And this assumes 0% cost of money (interest free loans/bonds issued). No financing costs, and a 20X factor in the use of the line and we're still at close to $400 per rider per day in subsidies.

This does not include operating costs, either. Three Hundred Seventy Six dollars PER TRIP. Each of those 300 million trips each year, with a $376 subsidy tacked on.

When you run the numbers, it becomes painfully obvious why high speed rail should be shunned in the US - it simply does not make sense. We have too few people spread over too large an area, with too high of a deployment cost to make this anywhere near a reasonable approach to transportation in the US. It may make sense for a select few tiny lines (the famed NE corridor, for example), but as a realistic national network? The numbers just don't add up.


TOPICS: Business/Economy; Travel
KEYWORDS: costs; fantasy; peakoil; rail
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1 posted on 07/25/2010 6:38:49 PM PDT by PugetSoundSoldier
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To: PugetSoundSoldier; All

Good post..


2 posted on 07/25/2010 6:42:21 PM PDT by KevinDavis (The meek shall inherit the Earth... the rest of us will take the stars!)
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To: PugetSoundSoldier

But, but . . . building high-speed rail will result in jobs!


3 posted on 07/25/2010 6:43:19 PM PDT by 1rudeboy
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To: PugetSoundSoldier

You are going to upset the pro-train people (ok, person) on this forum.


4 posted on 07/25/2010 6:43:59 PM PDT by Grunthor (My coffee creamer is fat free because I am not.)
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To: PugetSoundSoldier

I’ve always thought of high speed rails as tax payer money black holes.


5 posted on 07/25/2010 6:44:18 PM PDT by Ancient Drive (DRINK COFFEE! - Do Stupid Things Faster with More Energy!)
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To: 1rudeboy; All

It will bring cushy jobs for brain dead slobs..


6 posted on 07/25/2010 6:44:43 PM PDT by KevinDavis (The meek shall inherit the Earth... the rest of us will take the stars!)
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To: Willie Green

ROFL


7 posted on 07/25/2010 6:45:17 PM PDT by Extremely Extreme Extremist (Mexico is the U.S. version of Hamas)
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To: PugetSoundSoldier
I don't know why everybody has to be in such a hurry all the time.


8 posted on 07/25/2010 6:45:25 PM PDT by kbennkc (For those who have fought for it freedom has a flavor the protected will never know .F Trp 8th Cav)
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To: PugetSoundSoldier

They’ve wanted to start a commuter service between Ann Arbor and Detroit for a while now. Even on existing track they can’t fund a demonstration of the service. The best they can promise is a cost of around $70 per rider for what is a 35 to 40 minute drive in traffic. On existing rail it will be anything but high speed and a person can drive the distance faster and do so without needing a shuttle from the train station.

I myself seldom go more than 30 miles from home and prefer to drive when I do.


9 posted on 07/25/2010 6:45:44 PM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: PugetSoundSoldier
When you run the numbers, it becomes painfully obvious why high speed rail should be shunned in the US - it simply does not make sense.

Especially when you're talking retro-fit. The real estate costs are brutal.

10 posted on 07/25/2010 6:45:46 PM PDT by rockrr (Everything is different now...)
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To: PugetSoundSoldier

Don’t worry. We just need massive gas tax increases to cover the cost of unprofitable rail lines! :)


11 posted on 07/25/2010 6:47:03 PM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: PugetSoundSoldier

Very interesting.


12 posted on 07/25/2010 6:47:48 PM PDT by skr (May God confound the enemy)
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To: PugetSoundSoldier

Bump


13 posted on 07/25/2010 6:47:59 PM PDT by dr_who
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To: PugetSoundSoldier

They are starting construction on a high speed rail line between Tampa and Orlando. The group building the train stated the ticket prices will be $30/ seat one way.

The train will stop at Disney and not go into Orlando proper.

A round trip ticket from Tampa to Disney will cost $240 and take just as long as driving.


14 posted on 07/25/2010 6:49:12 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: PugetSoundSoldier; Irisshlass; informavoracious; larose; RJR_fan; Prospero; ...

Willie Green, Al Gore and Nancy Pelosi are all saddened by this factual post.


15 posted on 07/25/2010 6:49:50 PM PDT by narses ( 'Prefer nothing to the love of Christ.')
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To: PugetSoundSoldier

Here’s the problem in the USA: we already have a form of low-cost high-speed transportation—it’s called Southwest Airlines and JetBlue Airways. Since Southwest and JetBlue fly to airports closer to destinations (for example, Southwest uses Midway Airport in Chicago and Love Field in Dallas, both much closer to city centers), the so-called advantage of high-speed rail of downtown to downtown is quite low.


16 posted on 07/25/2010 6:50:30 PM PDT by RayChuang88 (FairTax: America's economic cure)
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To: 1rudeboy

“But, but . . . building high-speed rail will result in jobs!”

UNION JOBS!


17 posted on 07/25/2010 6:54:12 PM PDT by nmh (Intelligent people recognize Intelligent Design (God).)
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To: PugetSoundSoldier

Round trip ticket for a family of four, that should be.


18 posted on 07/25/2010 6:54:16 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: PugetSoundSoldier
I take a bus to my university for class and I hate every minute of it. The reason I do this is that parking is expensive and if you aren't lucky to get a stop in a parking structure you risk getting your car broken into.

The only time I would take a train would be as a novelty as driving in the long run is always cheaper.

19 posted on 07/25/2010 6:54:55 PM PDT by LukeL (Yasser Arafat: "I'd kill for a Nobel Peace Prize")
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To: Ancient Drive

“I’ve always thought of high speed rails as tax payer money black holes.”

In the U.S. UNIONS will see to it that, that happens.


20 posted on 07/25/2010 6:55:23 PM PDT by nmh (Intelligent people recognize Intelligent Design (God).)
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