SNCF-French Railways

New HSR Writings

The HSR section of this website has been made more prominent. Two new pages have been added, along with an overview page. What’s Wrong explains why HSR supporters like TRANSDEF oppose the current HSR project. What to Do offers our suggestions on how to turn the mess caused by the HSRA into something constructive.

Freelance Journalist Picks Up Secret HSR Story

Check out this piece published yesterday on by Stephen Smith, freelance journalist, and then see TRANSDEF’s comments at the end.

What I learned today about SNCF and California HSR
By Stephen Smith, on July 10th, 2012

If you’ve been following me on Twitter, you’ll know that I spent this afternoon on the phone with folks in California, looking into the recent SNCF-CHSRA bombshell. To summarize: SNCF, the highly experienced French national high-speed rail operator, apparently had a plan for California’s HSR network, but was turned off by the highly politicized routing. Namely, they wanted to make a straight shot from LA to San Francisco by running along the flat, government-owned I-5 corridor with spurs out to the eastern Central Valley, whereas the California High Speed Rail Authority (CHSRA) and state politicians wanted the main line to go through every little town in the Central Valley, directly. Now, all of this wouldn’t be a scandal, except for the fact that nobody at SNCF ever mentioned it to the public or the media.

That’s what the LA Times reported, but David Schonbrunn, a pro-HSR, anti-CHSRA activist, says there’s more to the story – SNCF not only advocated I-5, but they actually had private investors lined up! Here’s his letter to the LAT:

Your otherwise excellent story “High-speed rail officials rebuffed proposal from French railway” was far too kind to California High-Speed Rail Authority officials. At the time of its proposal, SNCF had the investment backing to actually build the LA-SF line, in a deal that sheltered the State from the risk of subsidizing an unprofitable project.

The Authority’s 2012 Business Plan covered up this offer, instead insisting that no private capital would be willing to invest until the first high-speed line showed a profit. The $6 billion Central Valley project approved last week by the Legislature thus exposes the State to unlimited operating losses. Worse yet, before that line can be completed, it will need an additional $27 billion from the federal government–quite unlikely in today’s political climate.

I’d sure like to understand the thinking behind the rejection of the French offer.

It’s unfortunate the story didn’t run earlier. It would have informed the Legislature’s debate.


The Empire Strkes Back

The LA Times’ story on the French National Railways, SNCF, presentation has stirred up a hornet’s nest of reaction. CHSRA apologist Robert Cruickshank’s site CAHSR blog carried a scathing condemnation of the LA Times story, along with the exclusive release of CHSRA Board Chair Richard’s letter to the LA Times editor.

In response to the stunning levels of vitriol and bad faith, TRANSDEF posted these comments:

After first responding to the SNCF story with a deer-in-the-headlights "No comment," CHSRA is now in full damage control mode. The sheer number of slurs and easily disprovable allegations in Richard's letter indicates panic over this story. As second fiddle in CHSRA's attack machine, Robert resorts to making stuff up, too.

The vehemence of the combined response says we've struck a nerve. That's a tacit admission that SNCF made a proposal that somehow threatened the status quo.

Consider this one point: If the proposal was even a quarter as bad as alleged here, why would the Authority have clamped such a tight lid of secrecy on it? It just doesn't wash...

Readers of this blog are invited to check out the other side of the story on our website: (Robert could even add it to his blog roll!)

BTW, note that 'the significant controversy over SNCF's role in the Holocaust' arose only after SNCF made its proposal, potentially disrupting the CHSRA's happy family of consultants. Did Bob Blumenfeld suddenly wake up one day, outraged by the injustice? Or was this a commercial counterattack, disguised as the voice of conscience?

SNCF Presentation Revealed!

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.

CHSRA-Apologist Website Dumps on LA Times

Robert Cruickshank, a leading (paid?) apologist for the California High-Speed Rail Authority, wrote a blog post trashing the LA Times SNCF story and its reporter, which generated hundreds of comments, including many suggesting that the I-5 route deserved a closer look. TRANSDEF posted this comment:

Robert’s take-down of the messenger (LAT) misses the point entirely. SNCF presented a proposal in conjunction with a U.S. investment bank that was willing to finance the entire LA-SF line. This was a project that made enough business sense to them–it minimized costs while optimally serving the primary market–that they were willing to accept full ridership risk.

Had the Authority been seriously committed to building its project, it would have conducted a bidding process, hired an international consortium, and would now be using the ARRA funds to build an I-5 alignment.

For reasons that appear contrary to the public interest, The Authority covered up this offer in its 2012 Business Plan, instead insisting that no private capital would be willing to invest until the first high-speed line showed a profit. In other words, the entire plan is based on a lie. It calls for the State to take on the full cost of building a line to LA, without any private money and without a prayer of any additional federal support.

The $6 billion Central Valley project approved last week by the Legislature exposes the State to unlimited operating losses, and worse yet, no way forward to a statewide system. That’s just what a take-the-money-and-run scam would look like.

Go ahead and rant all you want. I can’t see how you can call yourself an HSR advocate if you'd rather have 130 miles of unconnected track in the Central Valley than a working HSR system.

LA Times Uncovers Secret HSR Story

TRANSDEF was the source for an explosive story that ran in the LA Times today on the rejection of an offer two years ago by the French National Railways, SNCF, to build the system between LA and San Francisco. The California High-Speed Rail Authority turned them down flat, but kept the offer secret.

Had the HSRA been operating in the public interest, it would now be under contract with an international HSR operator selected through an open bidding process, and be proceeding towards a fully funded LA-SF buildout (which, incidentally, would probably not have been challenged by the current litigants). Instead, if the project proceeds as planned, Californians will end up with a $6 billion track that can’t be used for HSR, and have no prospects of ever receiving a statewide system.

LA Times Story: High-speed rail officials rebuffed proposal from French railway

In response to today's article, TRANSDEF sent a letter to the Editor.