(The Center Square) – The California High Speed Rail Authority announced its new CEO, who will be taking over the $135 billion project to connect downtown San Francisco to downtown Los Angeles with high speed rail.
While the project recently completed a major milestone by securing environmental clearance for the entire 463-mile SF-LA route, the initial 171 mile operational segment in the sparsely populated Central Valley between Bakersfield and Merced will cost $30-$33 billion to be operational in the now 2030-2033 timeframe. CAHSR admits to being short approximately $8 billion — even after $4.2 billion from Proposition 1A in 2022, and another $3.3 billion federal grant in 2023 — and says its strategy is to “secure $8 billion in new federal grants over the next five years.”
Given that the state just closed a $47 billion budget shortfall through funding shifts and spending cuts and delays, more state funding does not seem to be an option for the system, which was approved by voters in 2008 with a $10 billion bond and a 2020 completion date.
Projected ridership has also declined “due to a decrease in California population projections,” suggesting the system may need to charge more for tickets and/or receive more in subsidies.
Outgoing CEO Brian Kelley is credited with establishing realistic cost and ridership estimates, and securing environmental clearance for the SF-LA route, which included purchasing land, securing rights of way, and getting environmental approvals in one of the most development-unfriendly states in the nation.
In 2022, the New York Times noted SNCF, the French railroad company, at first tried to get a contract with California to assist with the project, but pulled out in 2011, saying “they were leaving for North Africa, which was less politically dysfunctional.” SNCF had Morocco’s bullet train operating in 2018, just seven years later.
New CEO Ian Choudri currently serves as senior vice president at HNTB Corporation, a major American design firm for infrastructure megaprojects such as Levi’s Stadium and Los Angeles International Airport’s Automated People Mover.
The airport’s people mover to move people between terminals is currently 97.6% done and expected to start passenger service in December 2025. Work started in 2018 on the 2.25 mile tram with a service start date of 2023, and now could have an up to $3.3 billion budget if a new $400 million lawsuit settlement is approved for construction delays; an additional $200 million was allocated for lawsuits earlier this year.
California’s high speed rail project is currently under investigation by Congress, as it has an up to $99 billion funding gap for the system.
