First Segment for Construction Identified for California High-Speed Train Line

Highest Potential for Ridership, Revenue and Private Sector Financing Cited

SACRAMENTO, Calif.--(BUSINESS WIRE)--Anaheim through the Central Valley to the Bay Area was selected today as the first phase for construction of the statewide high-speed train network, in a decision by the California High-Speed Rail Authority during its monthly meeting.

According to the Authority staffs recommendation, Phase 1 which includes the segments of Anaheim to Los Angeles to Merced and to the San Francisco Bay Area meets the Authoritys stated objectives of connecting the major metropolitan areas of the state while serving its fastest growing region the Central Valley.

The Anaheim to Bay Area segments will now become the backbone of the network. Staff cited it as producing the highest potential ridership and revenue as well as attracting the greatest potential of private sector financing.

Staff also cited the ability to capitalize on improvements already planned and underway in selected cities, such as Anaheim and Palmdale, as well as the opportunity to commission and test the high-speed trains in the Central Valley as important factors in the selection of the Phase 1 segments.

Segments such as San Diego to Los Angeles or Merced to Sacramento were not included as part of Phase 1 due to factors such as uncertain compatibility with local agency objectives or less than required cost/benefit ratio to support the Phase 1 objectives. While placing emphasis on Phase 1, environmental analysis and other planning activities will continue to advance and preserve routes and stations in areas not included in Phase 1.

Each of the segments selected for Phase 1 bring significant benefits to the system as a whole, said Mehdi Morshed, executive director of the California High-Speed Rail Authority.

For example, the Orange County Transportation Authority has committed $7 million over the next two years toward building the high-speed train link between Anaheim and Los Angeles. And the considerable time it will take to construct and manufacture, test and commission the equipment requires that work start as soon as possible between Merced and Bakersfield.

The Authority Board also approved a draft funding strategy and financing plan for Phase 1, as presented by Infrastructure Management Group, Inc., and Lehman Brothers. The plan identifies five categories of funding: public/private partnerships; state support; federal support; local agency partnerships; and potential funding from environmental benefit capture and local corridor cost-sharing.

Contacts

For the California High-Speed Rail Authority
Kris Deutschman, 916-444-8801
Cell: 916-425-7174

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