High speed rail debate update
Researchers point to a $190 billion profit miss on the federal government’s high-speed rail study, Marion Lopez reports. From Contractor magazine, August 2013
In light of potential cost savings valued at $40 billion, the ARA has called for the HSR project to be put to market.
Image: Spanish T350 high speed train
Fatty costs and lean profits were, in brief, the cost-benefit analysis’ that came out of the federal government’s $20 million phase 2 high-speed rail (HSR) study in April.
One month later, researchers at Beyond Zero Emissions (BZE) proved the exorbitant $114 billion project price tag was simply a build-up of “fat” – or superfluous technicalities – that, when cut, could reduce construction costs by $40 billion.
Further research into the forecast profits of the project also unearthed the discovery that the government officials and consultants paid to conduct the study – including AECOM and sub-consultants Grimshaw, KPMG, SKM, ACIL Tasman, Booz & Co and Hyder – had underestimated HSR revenue by as much as $190 billion.