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Anthony Pearl Professor, Simon Fraser University
Ways Forward –Where Will $300 Billion in Necessary Capital Investment Come From?
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NARP’s original motto was:“Modern trains for a
more mobile America”
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U.S. has fallen farther behind the world’s passenger rail renaissance
throughout my lifetime
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What if someone had stood up at the Amtrak’s inauguration and insisted
that Uzbekistan would beat the U.S. in launching HSR?
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What if Americans finally wake up to this lag and try to seriously modernize
U.S. trains?
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Taking $300 billion as the capital cost for a modern national passenger railroad, where would the money
come from? Where not to look for the
money.
Where to look for the money.
How to look for the money.
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When I worked for NARP, railroads were the poor relation in the American
transportation system
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Highways and aviation were where the big money was to be found
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Today there’s no money in America’s transportation trust funds,
or any establishedtransportation funding
scheme
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Should the financial strategy for America’s passenger rail renewal
follow Sutton’s Law?
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Idea #1: Help close the trade deficit through targeting foreign investment
in U.S. rail infrastructure
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Chinese played a key role in building the original railroad infrastructure
in the American West
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China is now at work building an inter-continental rail network
to connect Asia to Europe
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Foreign governments have owned U.S. rail infrastructure in the past
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And they own plenty of U.S. real estate assets today
311 South Wacker Drive
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Idea #2: Help U.S. corporations repatriate offshore profits in the form of tax-free rail infrastructure bonds
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Will HSR operations offer less risk than other major capital investment?
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What about capturing some value from rail integrated development?
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Idea #3: Tap into the biggest inter-generational wealth transfer in history
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What will the baby boomer’s legacy amount to?
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What if boomers (and others) got a tax break from investing in rail
infrastructure bonds?
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When it comes to making the case for both public and private investment in rail, evidence of success will be key
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What could success look like?
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When might we reach a tipping point?
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Until we have a winner, the temptation to spread rail passenger redevelopment
efforts too thin must be resisted
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North America’s
rail reinvestment
will arrive some time during the
21st century, and it will generate
growing value