Wealth Finance

The U.S. appears to be getting more serious about high-speed passenger train travel, like the bullet trains used in Japan and Europe.

Last week the U.S. Department of Transportation (DOT) announced that up to $25 million has been made available for research proposals to “foster rapid development of high-speed and intercity passenger rail service technologies in the United States.” The Federal Railroad Administration has opened the solicitation to all sources, which will remain open through September 2012.

In announcing this latest funding, DOT Secretary Raymond LaHood said this initiative would create good jobs, reinvigorate the nation’s manufacturing base, and reduce America’s dependence on fossil fuels. He stated, “President Obama’s bold vision for high-speed rail is a game-changer for transportation in the United States.”

Back in January President Obama and Vice President Biden announced a major federal investment of $8 billion to develop the nation’s first high-speed intercity passenger rail service program. These funds, which were awarded to states across the country, derived from the American Recovery and Reinvestment Act. At the time President Obama stated: “That investment is how we can break ground across the country, putting people to work building high-speed rail lines, because there’s no reason why Europe or China should have the fastest trains when we can build them right here in America.”

Currently high-speed passenger rail service is offered in the Northeast by Amtrak’s Acela Express, which operates to and from 16 destinations between Boston and Washington, D.C. Although Acela is capable of operating at speeds up to 150 m.p.h., that service operates at much lower speeds in many sections.

Among the key high-speed rail initiatives earmarked for funding is a project in Florida, with $1.25 billion budgeted to develop a new rail corridor between Tampa and Orlando served by trains operating at up to 168 miles per hour. Another proposal focuses on California, with up to $2.25 billion for a rail connection between Los Angeles and San Francisco; it would include trains running up to 220 miles per hour at points in between.

Click here for further information on these projects. Details on specific high-speed rail projects are broken down for the following areas:

    * Florida
    * California
    * Chicago-St. Louis-Kansas City
    * Madison-Milwaukee–Chicago
    * Charlotte-Raleigh-Richmond-Washington, D.C.
    * Eugene-Portland-Seattle
    * Detroit-Chicago
    * Ohio
    * Northeast

While concerns over the environment have led to renewed interest in rail travel, there also is growing evidence that trains can be more cost-efficient than other modes of travel for many U.S. consumers. Last month the American Public Transportation Association asserted the average commuter could save $9,343 annually ($779 per month) by riding public transport, based on average gas prices and parking fees. The highest savings nationwide are in New York City, where the average commuter would save $13,901.—William J. McGee

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