There’s a proposed railway project in the works that, if it goes forward, is going to require billions of dollars to undertake. To understand what it is, we need to know about the formation of what’s called the I2U2 forum in 2021. That year, the United States, Israel, the United Arab Emirates, and India set up the forum to have talks about strategic infrastructure projects in the Middle East. We like this because… well, Beijing.
Today, the outgrowth of the forum is a proposed joint infrastructure project connecting the Middle East via railway. From what we understand, reports are that the United States, India, Saudi, and UAE are looking to make the deal at G20. With White House National Security Adviser Jake Sullivan traveling to Saudi Arabia for discussions earlier this year, there’s been a lot of chatter. Let’s pay attention, because it’s a part of something much bigger.
As with many things we’re learning about sustainability, passenger rail seems to be another case where returning to an “old” way of doing things will birth our new way of living. It wasn’t that long ago that passenger rail was one of the most popular ways to travel in a lot of countries. There’s a reason every old postcard you see from the 1920s has trollies crisscrossing, pedestrians scurrying between… that’s how it was done. And so, it seems it shall be again.
Two of the world’s leading rail manufacturers, Siemens and Alstom, are ready… they want a piece of the $66 billion passenger rail funding pie designated within the 2021 Infrastructure Investment and Jobs Act (IIJA). Earmarked for improving the nation’s rail system, these funds will help drive significant demand for new railcars and locomotives, among other related things. The two companies aim to be in a sweet spot to benefit by expanding manufacturing capacity.
Recently, Siemens opened a new rail manufacturing facility in Sacramento, California to produce new Charger trainsets for Amtrak, designed to operate at speeds of up to 220 mph. Why do we need to go so fast, you ask? Well… because part of this rebirth of rail is the green aspect. Pragmatically speaking, climate change is making air and car travel more difficult and costly. Sustainable, fast rail connecting the country is a fix that makes sense.
According to McKinsey & Co., investment in things like high-speed rail, metro, and light rail should increase 4.7% a year at least until 2026. We can expect to see passenger rail projects going up specifically to connect states sustainably, and quickly… and we’re already starting to. This is where those high speeds come in… a company called Brightline wants to build the U.S. it’s first “true” high-speed rail train to connect Las Vegas to Los Angeles.
In fact, it seems that more and more states are figuring out their path to high-speed rail… all the way from California to the Northeast tip of America. These proposed trains would help folks travel to places up to 300 miles apart with just a bag or two instead of a whole fleet of resource-guzzling cars. Along with the $66 billion in funds in the 2021 Infrastructure Investment and Jobs Act (IIJA), there could also be billions available via older loan programs originally created for upgrades to freight lines.
Democratic Washington state congressional delegates are seeking funding for high-speed rail projects, with a letter asking United States Secretary of Transportation Pete Buttigieg to throw his weight behind what’s known as the Cascadia rail project. The proposed project is a high-speed rail route for the Pacific Northwest which could possibly connect Vancouver, British Columbia through Seattle to Portland, Oregon.
If the project moves forward, it could create an economic region that some have called “poised for global competitiveness”. As our geopolitics are undergoing seismic changes, we can see how this route, and this mode of transportation, could be just what we need. Expected to come in at a final cost of about $63 billion, a finished project would see trains zip folks to-and-fro at 250 mph along a 290-mile corridor.
In Texas, where everything is bigger, hotter, and faster… Amtrak wants to get folks from Dallas to Houston in the time it takes to watch a movie. They’ve been looking at Japan’s bullet trains, and their envy has finally gotten the best of them… so Texas is hoping to get some of their own fast trains. For the venture to work, private high-speed train maker Texas Central Partners’ and US passenger railroad Amtrak plan to work together.
To build their dream of a high-speed Dallas-Houston line, the two are looking to get federal grant money. Our stance on this is that high-speed rail is coming, and nothing will stop it. This post-pandemic world is hungry for climate solutions… there’s no denying changes are need, and we can certainly feel the tug toward the technology quite strongly. We hope you’ll see it too, and benefit from it. Come back next week, we’ll have more from the green tech space.