California Rail Case Study

650 Words3 Pages
California High Speed Rail Anil Hirani Concordia University Austin Texas Dr. Catalina Zarate April 5, 2015 Introduction and Highlights High speed rail (HSR) was generally defined as trains capable of travelling at least 150 mph. The origin of high speed rail in California started in early 1980s, a 130-mile bullet train project between Los Angeles and San Diego was put forward as assembly bill. Financing difficulties ultimately led the American High Speed Rail Corporation’s (AHSRC) abandonment of the project in 1984. California high speed rail authority has studied possible route alignment for the 800 mile system serving Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County and…show more content…
For example, the total estimate for the total estimate for the full system (phase 1 and 2) had in fact more than doubled from $ 25 billion (1999) to $ 50-55 billion (2009). The forecast distinguished two types of market, one for interregional or long-distance trips typically of over 200 miles, and a second for intraregional or commuting trips of less than 100 miles. According to Charles River Association in 2020 the full CHSRA system would capture 32 million interregional train trips. The total ridership would thus just exceed 42 million trips annually, based on a two-tier fare system designed to discriminate between business and non-business travelers, with train tickets priced competitively at 50 % of the comparable airfare for each class. The revised business plan issued in 2009 used the same CSI methodology but tested slightly higher fares. That plan estimated that train fares set at 83 % of airfare would generate the greatest operating profit. At 83 % it can attract just over 40 million annual passengers whereas at 50 % it would attract 54 million. Actions were required in the field of financial funds and revenue of the California high speed rail were financial needs can be fulfilled by allowing the private rail companies to enter
Open Document