Saturday, January 28, 2012

CHINA HIGH SPEED RAIL
LESSONS FOR U.S. SYSTEM

China has built the most miles of high speed rail of any nation in the world. They have made some big mistakes along the way, and yesterday's China Daily reported on the changes China is implementing in response.

Most of the lessons learned reinforce the idea that the United States should concentrate its full effort along Amtrak's Northeast Corridor, including here in Maryland and the District.

Paul Amos of the World Bank suggested to the paper that China is wise to now focus on "main corridors (to) generate good revenue streams."

Amtrak's Northeast Corridor is its biggest revenue generator, although longtime transportation reporter Don Phillips has noted that it's not as profitable as is often assumed.

But the Northeast is where the biggest demand is. As China Daily noted, "in the eastern areas of China...the population is dense and the economy dynamic...(Li) Kun said, development of high speed rail in the east should 'continue to be fast tracked.'"

Although China expanded too rapidly, and has taken on debt as a result, it's interesting to note that they spent $586 billion on high speed rail. Why? Because they can afford to.

There are recent indications that the US economy is turning around. We should know by March whether President Obama's stimulus has worked.

My belief is that, had the bulk of the stimulus been spent on highways and rail projects, a more rapid recovery would have occurred.

Amtrak has put forward a sound plan to develop high speed rail in the Northeast Corridor. It would cost about $3.9 billion per year over the next 3 decades. Track and tunnel improvements would be made between here and New York. North of New York City, Amtrak would acquire a new right-of-way to Boston for HSR.

Diverting the majority of HSR funds to this Amtrak project would provide the most job creation benefits, and produce the high speed rail route most likely to turn a profit for the taxpayer.

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