Fall 2006 Newsletter

CONTACT:

Kris Deutschman—916.444.8801

New Era for CHSRA

Authority Announces Financial Team

Authority/OCTA to Cooperate on Rail Studies

Next Steps

Benefits of Japanese Trains

Friends of CHSRA

High-Speed Trains:  An Important Element of California’s Future

California’s leaders continue to acknowledge that high-speed trains are an important element of California’s future by approving $14.3 million in funding for the California High-Speed Rail Authority’s (CHSRA/Authority) 2006-07 budget, including $13 million to begin project implementation. 

This investment in California’s transportation future will:

n   Fund the completion of a financial plan;

n   Bring aboard a project management team;

n   Identify and protect critical right-of-way acquisitions;

n   Create a visual simulation of the project to be used for planning purposes, the environmental process and public education; and

n   Move forward detailed project design and engineering, including station locations.

Program Management Team to Lead

New Era for CHSRA

CHSRA has determined the best way to manage the engineering and construction of California’s high-speed train system is a unique hybrid institutional structure that relies on a combination of a core of expert public sector staff with private sector contractors providing the majority of personnel services. 

The Authority has had a limited staff of three full-time and one half-time personnel.  With the announcement of the Parsons Brinckerhoff (PB) Team as the newly-selected Program Management Team, more personnel with technical capabilities and expertise have been dedicated to manage the system’s construction.

The PB Team is well known for its expertise in managing projects of this size and complexity.  CHSRA welcomes PB as its Program Manager that will help usher in the new era of high-speed train travel in California.

Authority Announces Financial Team

Infrastructure Management Group, Inc. (IMG) and Lehman Brothers have been selected by the Authority to prepare a high-speed train financial plan and public-private partnership structuring support for California’s high-speed train project. 

The team is well-qualified, having recently created financial models for transportation projects throughout the country.  The scope of IMG’s work includes:

n   Identifying viable funding sources and ways to optimize the public utility of the high-speed train system.

n   Determining the timing of the design, construction and operational phases for the system.

n   Developing potential funding strategies that result in a project that can be feasibly financed, and developing a financial model capable of evaluating these funding sources in addition to producing a debt repayment schedule.

n   Providing ongoing technical expertise and financial advice to the CHSRA.

Authority and OCTA to Cooperate

on Rail Studies

The CHSRA and the Orange County Transportation Authority (OCTA) have approved a draft Memorandum of Understanding (MOU) to jointly prepare and fund a project-level EIR/EIS for high-speed trains in the LOSSAN rail corridor between Los Angeles and Anaheim.

The MOU calls for OCTA to provide $7 million in local funds over the 2008 and 2009 fiscal years; actively participate in the CHSRA’s environmental process; and support the Authority in seeking additional state funding to complete the Los Angeles—Anaheim EIR/EIS.

The CHSRA will prepare the environmental document, fund the Los Angeles County portion of the process and potentially study high-speed train service between Anaheim and the Ontario Airport.

Next Steps

Looking ahead:  the public is now scheduled to vote on project construction bonds in November of 2008. 

Californians stand to benefit from many traffic and safety benefits within just a few years following passage of the bonds.

Construction of railroad grade separations—train tracks that are separated from cars and other vehicles—are among the most immediate and tangible local benefits Californians will experience.  These grade separations benefit local communities by avoiding accidents and saving lives; providing faster and more reliable commuter rail services; eliminating noise from the whistles and crossing arms of existing train service; improving freight movement on adjacent tracks; and reducing traffic congestion at and near those crossings.  This essential first step will help alleviate traffic and speed the flow of goods across the state.

Prior to the vote of the public, additional state funding will be needed to keep regional environmental and engineering work on schedule in key service areas, and for acquisitions of essential rights-of-way.  

Seminar Profiles Benefits of Japanese

High-Speed Trains on Environment and Redevelopment

A consortium of Japanese high-speed train specialists provided an intriguing look at the direct and indirect benefits of high-speed trains, with a focus on the regional development and vitalization that occurs with a high-speed train system. 

The seminar, held September 7, 2006, in Sacramento, featured a comparison of how the Shinkansen model has led to positive growth and redevelopment around stations and along rail lines, and was contrasted with the same characteristics of those areas proposed for California’s high-speed train system.  The presentation was made by the Japan Railway Construction, Transport and Technology Agency.

Additionally, the Railway Technical Research Institute gave its attention-grabbing findings on the environmental benefits of high-speed trains and how they provide a critical component in combating global warming. 

Friends of High-Speed Rail —

A Profile

State Senator Dean Florez was influential in this year’s budget negotiations to ensure that the proposed statewide high-speed train system stays on course with proper funding.

A former member of the California High-Speed Rail Authority, Senator Florez has been a leading advocate in the Legislature for the construction of the state’s much-needed high-speed train.  He was first elected to the State Assembly in 1998 and served two terms.  He was elected to the Senate in 2002.  He serves the Central Valley region stretching from Bakersfield to Fresno.

Senator Florez, chairing both the Senate Committee on Governmental Organization and the Senate Select Committee on Air Quality, and representing the interests of constituents in the Central Valley, has helped lead the way to find innovative solutions for solving the state’s air quality problems.  He is a leader in the areas of clean air, high-speed rail and government accountability.

To that end, he was instrumental in helping to secure a budget augmentation of $13 million dedicated for high-speed trains for the ’06-’07 budget, and ensure that the public will weigh in on the high-speed rail bond in November of ’08.

“As our state’s population continues to swell and clog our highways, high-speed train travel is just the sort of forward-thinking solution we will need to meet our new transportation challenges.  We in the Legislature must continue to work toward the goal of  making high-speed trains a reality, both as a link for the Valley to the state’s urban centers, and to bring California’s technology up to speed with other nations of our size.”

                                                  —Senator Dean Florez

News About High-Speed Trains

Around the World

Argentina—Construction to link the three main cities of Buenos Aires, Rosario and Cordoba is slated to begin next year.  The $800 million project, with a first phase of 311 miles, will allow speeds between 155 and 186 miles per hour.

China—Timed to open for the 2008 Olympics, 72 miles of a new 186 mph line are being built between the capital, Beijing, and Tianjin.  The trains are based on Siemens’ ICE “Velaro” now operating in Spain.

France—Celebrated the 25th anniversary of TGV recently with completion of its eastern line that crosses the vineyards of Champagne.  About 400,000 people now use the TGV for daily commuting to jobs throughout the country and Europe.

Germany—Expanding its ICE services with new construction of a link from Frankfurt to Mannheim.  This is in addition to expansion plans for the country’s western high-speed train corridor. 

Mexico—Is seeking bids on a $12 billion high-speed train from Mexico City to Guadalajara, the country's second-largest city.  Mexico and Argentina are now in the race to build the Western Hemisphere's first high-speed train system. 

South Africa—Construction of the high-speed train line connecting Johannesburg and the capital, Pretoria, is set to begin. 

South Korea—Announced in late July that it is developing a high-speed line between Taegu and Busan.  Transportation officials noted that South Korea sees high-speed rail as a future growth industry.

Taiwan—In November 2006, six years after construction started, high-speed trains based on the Japanese Shinkansen 700 series will begin commercial runs at 186 mph between seven major stations.  Within several years, 100,000 passengers daily are expected, with operating revenues covering about a quarter of construction costs.