Texas Central secures the operator. Financing Next?

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Marybeth Luczak, Editor-in-Chief

The proposed $ 20 billion, 236 mile rail line connecting Dallas (made possible by stations above) and Houston has completed major regulatory processes.

Texas Central, a privately funded high-speed train developer, has signed with Spain’s Renfe as the “first operator” of its proposed 236-mile line connecting Dallas and Houston. Obtaining the financing is the next step, the company announced on July 14.

The movement follows Central TexasThe announcement in June of a final $ 16 billion deal with the Italian company Webuild Group and its US subsidiary Lane Construction Corp. as responsible for the design-build of the high speed rail line (LGV).

Also important: the Federal Railroad Administration (FRA) last fall released the latest Special Applicability Rule (RPA) and Decision File (ROD) which establish federal safety standards for the operation of the project and grant an environmental authorization for the selected route (Build alternative A, below).

Runners will be able to travel between Dallas and Houston on a dedicated right-of-way in less than 90 minuteses, according to Texas Central. The recent FRA decision report gave environmental clearance for the illustrated route.

“Now that these milestones have been reached, the required elements are in place for the business to fully focus on final due diligence and secure ongoing funding,” said Texas Central.

Texas Central said Age of the railway in September 2020 that “[n]Since the RPA and ROD were published, Texas Central has focused on securing funding, followed by the start of physical construction. Central Texas Railroad [the operating subsidiary of Texas Central] has previously secured letters of intent from banks in Japan and Europe, reflecting the financial viability of the project, and is now working on fulfilling formal commitments from these entities, as well as others in the United States.

In an update last month, the company said Age of the railway that this fundraising work continues. “The exact timing of execution will depend on how quickly formal engagements are secured,” Texas Central said, and noted that “[w]We have not applied for any grants, but we are constantly evaluating funding options.

An expected construction start date, Texas Central said, is late 2021 or early 2022.

The proposed $ 20 billion Texas Central HSR system is designed to replicate the Japanese Tokaido Shinkansen operated by Central Japan Railway Co., and to operate at speeds of up to 200 mph. The system is planned to connect Dallas and Houston, with an intermediate station west of Roans Prairie in Grimes County and near Texas A&M University, on a dedicated right-of-way.

Renfe’s role

Spanish national rail operator Renfe, which Texas Central selected in 2018 as a strategic partner, operates 5,000 trains per day on 7,500 miles of track and handled more than 510 million passengers and 17 million tonnes of freight in 2019.

Texas Central said on July 14 that it would now work with Renfe “on the design and development of the business aspects” of the HSR system. Additionally, as an early stage operator, Renfe will “focus on providing key expertise and support to high-level decision makers, leveraging existing capabilities within Texas Central’s integrated organization,” and “Will provide consultancy and advisory services to Texas Central on the final design, execution, construction, testing and commissioning of civil, station and building technologies, installation, basis and operation and maintenance, plans and processes, as well as all business aspects of the HSR system.

Carlos Aguilar, CEO, Texas Central Railroad

“Renfe has an established reputation for excellence in rail operations in Spain and around the world,” said Carlos Aguilar, CEO of Texas Central. “With their decades of expertise, they were more than ready to join our team of leading global experts, laying the groundwork for this new job-creating industry that we are bringing to Texas. “

“Renfe is proud to bring its unique international high-speed experience to this project, as we are the only operator in the world to have participated in the design, development, operation and maintenance of a high-speed train outside his home country, ”President of Renfe Operadora said Isaías Taboas. “The high-speed train offers a safe, fast and environmentally friendly transport option. We are confident that the Texas Central Railroad project is the right fit to become the first true high-speed system in the United States and that it will be a game-changer for the state and the country.

Categories: High Performance, Long Distance, News, Passenger, Regulatory, Safety
Keywords: Latest News, Central Japan Railway Co., Federal Railroad Administration, FRA, Lane Construction, Renfe, Texas Central, Texas Central Railroad, Webuild Group

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