My uncle sent me this article recently. What are your thoughts?
“Private money may be used to build Cotton Belt Corridor rail line”
http://www.dallasnews.com/sharedcontent/dws/dn/yahoolatestnews/stories/040910dnmetrtc.3f70d2e.html
Tyler:
Not being completely familiar with the public transit situation in the METROPLEX ( common designator for the Dallas-FT.Worth area, and all the small communities encompassed in that said area). I would guess that this will be a real political football around there.
Already you have a couple of stake holders in the public transit area, providing heavy and light rail transportation.:
Trinity Rail : http://www.trinityrailwayexpress.org/
DART: http://www.dart.org/
You can look at these links and get your own conclusions, but like most major areas these kinds of operations can become a local sport ( like intermural football). And make no mistake, the people in that area do enjoy all kinds of sports.
Possibly some others will better knowledge of the situation and the area will comment for you.
Tyler,
This sounds like the last gasp of a dying project to me. As I read the article the public entity owns a 60+ mile long former SSW branch. They want to put some kind of transit service on it but do not have the $1Billion they figure it will take to do it.
The public entity wants to find a private investor to put up the $1B, and run the service the way the public agency wants it run. Costs are to be recovered from the fare box and tax increment financing. No transit operation comes close to funding itself out of the fare box. Tax increment funds will take decades to become serious money. The reason that ALL transit operations are government funded is that they are incapable of making money as a transportion service at a fare the public is willing to pay.
A private entity would have the advantage of avoiding Davis-Bacon labor and perhaps avoid the tendancy of public agencies to gold plate the construction aspects of the project. This could save as much as 25-30% of construction costs. The problem is the public agency would likely insist on Davis Bacon labor and its standards of construction. If so, they give up the only sources of capital cost reduction.
Metroplex residents bring a small bag of popcorn because it will be a short show.
Mac