News Texas Shinkansen project likely to be axed

[thomas]

A troubled high-speed rail project in Texas, modelled on Japan's Shinkansen system, has suffered another setback as the Trump administration cancelled federal funding.

The U.S. Department of Transportation announced on 14 April that it is revoking a $63.9 million (¥9.1 billion) grant previously awarded under the Biden administration. The department cited the project's escalating cost—now estimated at over $40 billion—as financially unfeasible and too risky for taxpayers.

This move comes five months after a Japanese public-private investment fund withdrew its financial support in November. The project plans to build an approximately 385-kilometre high-speed rail line between Dallas and Houston. Initially due to begin construction in 2017, the initiative has been repeatedly delayed due to operator Texas Central's failure to attract private-sector investment.

The U.S. government decision has further clouded the outlook of the project. Central Japan Railway Co. (JR Tokai), which is offering the Shinkansen technology, said it will closely monitor the situation, including the impact on the project. JR Tokai said it does not expect major losses if the project is scrapped because the company is not providing financial assistance. Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development, an investment fund under the transport ministry, withdrew its financial assistance after reporting 41.7 billion yen in losses in fiscal 2023.

U.S. pullback of grant deals blow to Shinkansen project in Texas | The Asahi Shimbun: Breaking News, Japan News and Analysis

Paywall alert:

Trump administration pulls funding for Texas bullet train with Japan tech

Planned Houston-Dallas line faces uncertain future with estimated cost ballooning

asia.nikkei.com

 

[Petaris]

I feel like the issue with these projects always gets to be the ballooning costs that are, in my opinion, caused by everyone trying to get a piece of the pie. This seems especially true when it comes to things that get Federal funding. Too many greedy contractors and sub-contractors and sub-sub-contractors involved.