[ad_1]
A long-term, untapped long-distance high-speed rail project between southern California and Las Vegas is being acquired by Brightline, a private passenger train operator in Florida.
Brightline announced Tuesday in a press release that it had acquired XpressWest, which has the federal government's permission to develop rail service along a corridor between Victorville, California, and Las Vegas. The company will also purchase 38 acres near the Las Vegas Strip for a resort and mixed-use development, the statement said.
A rendering of the train that the XpressWest company was planning for a rail line from Las Vegas to California. The company, which has not yet built anything, was acquired this week by Brightline. XpressWest
The terms of the transaction, including the purchase price, have not been disclosed.
"Today's announcement is a milestone for our company as we reinvent transportation between these major metropolitan areas," said Patrick Goddard, president of Brightline. "We look forward to working with stakeholders in the region to make this vision a reality."
The project is the first outside Florida for Brightline, which offers trains between Miami, Fort Lauderdale and West Palm Beach. It plans to use $ 921.7 million worth of private activity bonds to extend its services to Orlando.
The Las Vegas project would also be privately funded, but Brightline officials would not say whether they will also seek bail.
Brightline will support the development, construction and operation of XpressWest with the goal of starting construction next year and starting service in 2022.
XpressWest plans include a train line to travel 185 miles along Interstate 15, with trains running 150 miles per hour for 80 minutes from Victorville to Las Vegas, according to project documents.
Victorville is a high desert town of 122,000 people located in a mountain pass from the population centers of southern California. It is 40 miles from San Bernardino and 85 miles from Los Angeles.
The XpressWest project, developed by the private sector, has been underway for over a decade with the first application for a project to federal officials in 2005. The company's executives said they spent more than $ 50 million the project so far.
According to the XpressWest website, since 2011, the company has obtained federal and state approvals for the construction of the project.
But lenders, who include Marnell Companies, the commercial developer of Las Vegas, as the main investor, have had to face difficulties in raising the estimated $ 7 billion in project financing, according to reports from Las Vegas.
In 2015, XpressWest announced a joint venture partnership with China Railway, but dissolved the agreement a year later.
In a July update to the Nevada High Speed Rail Authority, Tony Marnell, CEO of Marnell Companies, wrote that "XpressWest continues to consider funding alternatives" and was in discussion with foreign and domestic investors.
"The XpressWest team has done an incredible job in bringing this project together and we are confident that Brightline will fulfill our mission and promise in the region," said Marnell in Tuesday's press release.
Although the project is fully licensed, Brightline may need to update or modify certain approvals and will work with federal and state authorities to do so, the company said.
Tom Skancke, a transportation strategist and former board member of the Nevada Department of Transportation, said the acquisition of Brightline was good news for proponents of the project.
"They have the balance sheet and they have the vision," he said. "They understand public-private partnerships and I think they know how to work in government building."
Skancke, who has worked in the transportation industry for 30 years in Las Vegas, said the idea of a high-speed train to southern California has been evoked for decades. Various proposals were made, including a Maglev train that would have gone to Anaheim where Disneyland is located.
According to a study by XpressWest, of the 43 million visitors to Las Vegas in 2015, 25% came from southern California and 90% of them.
"The introduction of the high-speed train between Las Vegas and Southern California will bring significant economic and environmental benefits to our state and promote increased tourism," Nevada Governor Brian Sandoval said in the press release. from Brightline.
The project application describes Interstate 15 – the main route to Las Vegas – as a "long, stressful and crowded travel experience". Travelers often face delays of several hours during peak hours, the study noted.
XpressWest was planning to attract a large number of these travelers with trains including seating equipped with television, internet and games, as well as a lounge car serving drinks.
Victorville was chosen because the location allows the best capture point for highway travelers at the lowest cost of infrastructure, according to the project application.
XpressWest has also been working on plans with representatives from San Bernardino County and Los Angeles for a 54-mile rail link between Victorville and Palmdale, in the high desert of northern Los Angeles County. Palmdale is serviced by Metrolink suburban trains to Los Angeles. He is also on the road scheduled for California's high-speed rail project between Los Angeles and San Francisco.
"California has a vision of a modernized, fast, clean and convenient rail system for travelers, and the introduction of the Brightline service linking Southern California to Las Vegas will help us achieve this vision," said Brian Annis. Secretary of the California State Transportation Agency. "Brightline will benefit our economy and our transportation system."
[ad_2]
Source link
