XpressWest, the Las Vegas company planning a high-speed passenger rail line to Southern California, said on June 8, 2016, that it had ended its joint venture with China Railway International. The company said its biggest challenge remained the federal requirement that high-speed trains be made in the USA.
The break
XpressWest said China Railway International had trouble meeting performance deadlines and getting the authority needed to proceed. The joint venture had been formed the previous August.
“Our biggest challenge continues to be the federal government’s requirement that high-speed trains must be manufactured in the United States,” the company said. “As everyone knows, there are no high-speed trains manufactured in the United States.”
Chief executive Tony Marnell, a Las Vegas-area developer, said the company was undeterred.
Background
Under the name DesertXpress, the project appeared close to a $5.5 billion federal loan in 2013 before political opposition and the domestic manufacturing requirement stopped the financing, the Associated Press reported.
The project had approval to cover about 190 miles from Las Vegas to Victorville, California, about 100 miles northeast of Los Angeles, but had not broken ground. Cost estimates topped $7 billion.
Source & credit
Source: Associated Press via The Japan Times: “Vegas firm seeking high-speed LA rail link breaks with China company amid made-in-USA challenge”, June 10, 2016.