High-speed Ground Transportation: Issues Affecting Development in the United States : Report to the Chairman, Committee on Energy and Commerce, House of Representatives

Front Cover
The General Accounting Office was requested to describe high speed ground transportation (HSGT) technologies, analyze issues related to HSGT financing, and assess HSGT's social benefits, such as congestion relief and potential environmental advantages, as possible criteria for targeting federal funds for HSGT development. This report provides an overview of the objectives and highlights the major points that require consideration in implementing HSGT systems.
 

Selected pages

Common terms and phrases

Popular passages

Page 42 - ... revenues or other cash are available on that date, the project could go into default Furthermore, system start-up delays cause interest to accrue on outstanding debt, further increasing the project's total cost Third, large-scale projects like HSGT systems face a number of political risks, in part because many jurisdictions at different levels of government will be involved in issuing the permits and other clearances needed to build and operate the systems. According to an Amtrak official, improvements...
Page 47 - Focused over time and across investors and creditors, making investment in such a project more feasible. Federal financial and administrative assistance during the initial development and construction phase of HSGT projects could be particularly helpful. As mentioned previously, private investors are reluctant to invest in the high-risk, early stages of a project, but equity investment is generally required before commercial...
Page 1 - Subcommittee on Transportation and Hazardous Materials, House Committee on Energy and Commerce, Washington, DC.
Page 2 - ... systems could allow passenger trains to operate at speeds of up to 150 mph. Such improvements could make rail trip times competitive with those of air or automobile travel in some corridors. Incremental improvements can be built for about $10 million per mile, making them less costly than other HSGT options and more likely to be built in the near term. The Federal Railroad Administration (FRA) is exploring low-cost protection systems at grade crossings and developing a high-speed nonelectric...
Page 31 - ... in Chase, Maryland, in which the Amtrak engineer and 15 passengers died and 174 passengers were injured. Conrail paid about $95 million in out-of-court settlements, according to Conrail officials. Amtrak has stated that it cannot afford to give an unconditional guarantee against liability risks and has requested the Congress and the administration to examine how best to approach the liability issue. According to a senior FRA official, the agency has been working with the Congress to develop alternatives...
Page 46 - Different financing methods could be used at different "risk points" during a project's development period. For example, the Texas TGV Corporation plans to use different financing techniques in various phases of its plan to use TGV technology to link the cities of Dallas, Houston, and San Antonio. The plan includes using initial equity contributions, tax-exempt debt backed by long-term letters of credit, and, after operations and revenues become steady, a public stock offering.17 Such a combination...
Page 28 - ... Furthermore, a system is needed to automatically slow or stop the train if the operator fails to respond properly to a signal. On routes with substantial freight traffic or conventional passenger service, additional track may be needed to allow high-speed passenger trains to pass slower trains. Portions of rights-of-way may need to be fenced to protect pedestrians and prevent vandalism. To provide the enhanced service, new trains will be required. Amtrak officials said their aging coaches cannot...
Page 43 - HSGT planners in obtaining commercial lines of credit or attracting lenders. Equity investments are often needed before commercial lines of credit can be obtained or investment-grade debt can be issued. However, equity investors often demand high rates of return and a relatively quick payback, while lenders generally seek secure investments with guaranteed returns over time. HSGT projects do not meet either of these requirements.
Page 47 - Unes of credit can be obtained for a project. Several analysts suggested that the federal government is the entity best suited to be the principal provider of equity capital during the early phase of an HSGT project. Such early federal investment could facilitate access to commercial unes of credit for a project.
Page 43 - ... obtained or investment-grade debt can be issued. However, equity investors often demand high rates of return and a relatively quick payback, while lenders generally seek secure investments with guaranteed returns over time. HSGT projects do not meet either of these requirements. In light of these risks, members of the financial community familiar with large-scale projects told us that unless the federal government assumes a major role in HSGT development, thereby reducing the perceived investment...

Bibliographic information