SNCF Presentation Revealed!
07/12/12 Filed in: High-Speed
Rail
Now that the California
High-Speed Rail Authority is doing everything
possible to discredit and bury the story of the
proposal by the French National Railways, SNCF, the
time has come to show the world what all the hubbub
is about. The SNCF Powerpoint addresses what SNCF saw as the
key weakness of the CHSRA project--its insistence
on building the initial system without private
capital and without the direct involvement of a
firm with HSR operating experience. The
presentation suggests CHSRA use the structure of a
Pre-Development Agreement to bring an experienced
operator on board immediately to direct the
project.
With all the slurs flying around now, it is important to note that SNCF was not asking CHSRA to turn the project over to them. They were instead asking that CHSRA establish a Request for Qualifications process, leading to an open Request for Proposals process, which would result in the selection of an operator. They were totally aware that the winning proposer could be another firm.
Note that, despite all the recent talk about the merits and demerits of an I-5 route, the SNCF proposal was not premised on a specific route. It was solely a process to bring in private capital and an experienced operator.
The Authority’s rejection of this seemingly commonsense proposal to reduce the risk to the State of California raises disturbing questions of where CHSRA’s loyalties lay. CHSRA’s 2012 Business Plan insists untruthfully that no private firms would invest in the project until after (1) the State had spent $6 billion on 130 miles of Central Valley track, (2) somehow found $27 billion to connect it to Los Angeles, and then (3) showed an operating profit. By contrast, the SNCF proposal would have brought in the expertise needed for critical design decisions along with private capital willing to assume ridership risk, thereby greatly reducing the State’s exposure.
By rejecting the proposal, keeping it secret, and then mounting an all-hands-on-deck damage control effort to snuff out the story, CHSRA is clearly telling the world that its commitment to its army of consultants outstrips its commitment to the people of California.
With all the slurs flying around now, it is important to note that SNCF was not asking CHSRA to turn the project over to them. They were instead asking that CHSRA establish a Request for Qualifications process, leading to an open Request for Proposals process, which would result in the selection of an operator. They were totally aware that the winning proposer could be another firm.
Note that, despite all the recent talk about the merits and demerits of an I-5 route, the SNCF proposal was not premised on a specific route. It was solely a process to bring in private capital and an experienced operator.
The Authority’s rejection of this seemingly commonsense proposal to reduce the risk to the State of California raises disturbing questions of where CHSRA’s loyalties lay. CHSRA’s 2012 Business Plan insists untruthfully that no private firms would invest in the project until after (1) the State had spent $6 billion on 130 miles of Central Valley track, (2) somehow found $27 billion to connect it to Los Angeles, and then (3) showed an operating profit. By contrast, the SNCF proposal would have brought in the expertise needed for critical design decisions along with private capital willing to assume ridership risk, thereby greatly reducing the State’s exposure.
By rejecting the proposal, keeping it secret, and then mounting an all-hands-on-deck damage control effort to snuff out the story, CHSRA is clearly telling the world that its commitment to its army of consultants outstrips its commitment to the people of California.