Texas Looks to State for High-Speed Rail Funding Multibillion-Dollar Project Could Fail If Financing Falls Through

By Scott Pendleton, writer of The Christian Science Monitor | The Christian Science Monitor, January 14, 1994 | Go to article overview

Texas Looks to State for High-Speed Rail Funding Multibillion-Dollar Project Could Fail If Financing Falls Through


Scott Pendleton, writer of The Christian Science Monitor, The Christian Science Monitor


AFTER seeing Congress pull the plug on the Superconducting Super Collider, Texas could soon lose another multibillion-dollar project: a proposed 200-mile-an-hour railroad. Only this time, the decision rests with Texans themselves.

Three years ago, Texas awarded a franchise for a high-speed rail system connecting the Houston-Dallas-San Antonio triangle. The franchisee, now called Texas TGV Corporation, promised that the private sector would pay all the costs. But in December, Texas TGV executives announced that they would not be able to meet a year-end deadline to raise $170 million. "We've more or less told {state regulators} there needs to be a restructuring, a relooking at how this project ought to be done," says David Rece, president of Texas TGV in San Antonio. "We're waiting for them to evaluate what their next step is."

Marc Burns, executive director of the Texas High Speed Rail Authority, says attorneys are determining the authority's options. The 11-member board is expected to meet late next month to decide what to do.

At stake is a $6 billion rail system - $8 billion if the cost of financing is counted. Backers say it is an essential component of the intermodal transporation network that will be needed by 2015, when three times as many people as today will be traveling within the three-city triangle. High-speed rail also has potential environmental advantages, requiring less land than a highway and powered by electricity.

The Intermodal Surface Transportation Efficency Act of 1991 set aside money for high-speed rail corridors. Many have been designated: Boston-Washington, New York-Albany-Buffalo, Washington-Richmond-Charlotte, and Miami-Orlando-Tampa on the East Coast; Detroit-Chicago-St. Louis and Milwaukee-Chicago-St. Louis in the Midwest, and San Diego-Los Angeles-Oakland and Portland-Seattle-Vancouver on the West Coast.

"When you lay those black marks out on the map, you see the beginnings of a national intercity high-speed rail system," says Gil Carmichael, who was federal railroad commissioner under President Bush. "And the Texas piece is the premier part of the whole thing."

Mr. Carmichael is now a vice president of Morrison Knudsen Corporation, the Idaho-based construction giant and Texas TGV's largest shareholder. Morrison Knudsen had intended to underwrite the $170 million financing that Texas TGV set out to raise in United States and European financial markets. When it changed its mind, the financing collapsed. "We would have exposed our shareholders to the full potential of having to shut that thing down," Carmichael says. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Texas Looks to State for High-Speed Rail Funding Multibillion-Dollar Project Could Fail If Financing Falls Through
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.