Financial Uncertainty Of The California High Speed Rail Authority

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Financial Uncertainty The increases in the costs of raw material and construction activities are threat to the financial stability of the project. It can be seen that a comprehensive financing plan is lacking from the state and the Authority. The proposed bonds would be insufficient for Phase 1 alone putting the rest of the project away from consideration. There is very little clarity on the potential matching funds to be available from federal and local governments. The reliability on private investors for capital funds is questionable approach. The California High Speed Rail Authority has received cautions from the state Senate Transportation and Housing Committee regarding the availability of matching funds for High Speed Rail…show more content…
There can be unpredictably huge investment requirements in certain unforeseen situations. The Authority must also arrange funds for immediate repair and rehabilitation of the system in case of natural disasters. These costs are not sufficiently accounted and the approach of the California High Speed Rail Authority to these future costs is not clear. Travel time concerns. The speed and travel time proposed by the California High Speed Rail Authority are not easy to attain. The international experience proves that it is not possible to achieve these values with the existing technology and meeting the safety standards. If the California High Speed Rail fails to attain its specified objectives, it turns to be less attractive. There will be a threat to the ridership due to increased travel times or delays. It should be noted that the average speed projected by the California High Speed Rail Authority has not been successfully achieved on any of the existing systems till date. The terrain of the selected route is not completely flat to allow constant high speeds. The profile of the rail line demands slowing down of the train at certain locations which would lower the average travel speed. Additionally, the line also passes through urban areas where limitations on speed exist. These two factors must be given more consideration in determining the feasible speed of
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