Category: Personal/Admin

High-Speed Rail Costs and Presentation

We have a database of high-speed rail construction costs up.

Separately, because of Noah Smith’s opinions about high-speed rail, today there is going to be an event featuring me and him in which we are going to discuss the issue in an American context, alongside a presentation of the database and what lessons can be drawn from it. You can register here; it’s at 13:00 Eastern US Time, or 19:00 Berlin time.

A few notes regarding our database, because I’m being asked on Twitter, and also because it’s relevant for our research:

This is a well-studied topic

Literature on comparative HSR costs already exists, and some of our internal cost references are to studies on the subject. This is not like subway costs, where the biggest databases I know of prior to ours are a Flyvbjerg paper and a Spanish analysis each with a number of items in the teens. This should not in a way be surprising: the costs and impact of megaprojects are analyzed more than those of smaller projects, and subways are megaprojects of greater size than surface transit or street reconstruction but HSR is of yet greater size. Thus, subways are significant enough that we have been able to find largely complete costs from trade and mass media and government reports, which task is far harder for bus lanes or bike lanes, whereas with HSR, not only is it possible to find complete costs, but also there is extensive public debate and analysis.

I believe our contribution to the discussion, then, is not the database itself, but two new points:

  • Contrary to the World Bank report on the subject (see here, starting printed page 39), China does not build HSR especially cheaply. Our findings are not too different from the World Bank’s for lines built up to the publication of the report measured in yuan per km, but we adjust for PPP and therefore the cost in dollars per km is higher, and, moreover, the more recent lines appear to be more expensive. In fact, Chinese costs are higher than European ones. The reason is that China builds its HSR almost entirely on viaduct, whereas in Europe, viaducts are rare, and segments that are not in tunnel are built at-grade or on earthworks.
  • There is positive correlation between a country’s HSR costs per km, net of tunnels, and its subway construction costs. This is not perfect correlation, but one can see Britain, the Netherlands, and Taiwan perform poorly in both areas. France and Germany are in the middle. Spain is very cheap. The exceptions are notable: Italy has cheap subways and expensive HSR, which Paolo Beria, author of one of our source papers, attributes to overbuilding and overdesign, with extensive tunnels and freight-friendly grades.

We only include under-construction or open lines

This contrasts with lines that are only in early design and may not yet have a cost – for example, Frankfurt-Mannheim will only publish its cost estimate next year, in a parliamentary budget setting in order to decide whether to proceed (for which the answer is certainly yes, as the benefits to the network are intensive). This also contrasts with canceled and indefinitely postponed lines, such as California High-Speed Rail and the Portuguese lines killed during the Great Recession’s austerity. Canceled lines are upward-biased: the state is likelier to cancel or choose not to build a line if it is more expensive than the average, as we can readily see with California, and therefore we do not wish to compare built with unbuilt lines.

The above analysis is equally true of our subway construction costs database – if a line is canceled, it is purged, even if design or even physical construction began. Gateway for example is under active design and engineering and is therefore included, even if they are still seeking funding, but if it is canceled it will be purged (but if it is rebooted, as I hope, then the sunk cost will be included, as with the Green Line Extension in Boston).

The difference is that our HSR cost database is more historic. It is close to complete for France, Germany, Italy, Spain, Belgium, and Korea, and complete for single-line Taiwan and the Netherlands and for the UK. This is because it’s just easier to find historic data for HSR than for subways, where I wish I could get a complete historic series for big cities with big systems like Paris, Madrid, and Berlin, but can’t even find 1970s-80s costs for any of them. Conversely, ongoing projects make it surprisingly difficult at times to find tunnel and viaduct percentages, and the escape path of going on Google Earth and OpenStreetMaps and measuring is not available.

What is included?

As far as possible, costs are for civil infrastructure, systems, stations, and overheads, but not rolling stock or financing charges. Austria’s Koralmbahn has two sets of numbers, differing by a factor of 2, with one source claiming that it is about whether financing is included. It is my belief that, owing to the high profitability of HSR if cost of capital is ignored, it is best to think in terms of returns on investment and not try to incorporate debt or finance charges into the actual cost.

The importance of avoiding viaducts and tunnels

The Asian tendency to build on viaduct where the line is not in tunnel leads to high costs. Likewise, the use of shallow grades and low superelevation for mixed lines or even for some dedicated lines (the Shinkansen, without any track sharing, hews to 1.5% grads) raises construction costs.

Netting out tunnels is still useful when trying to figure out itemized costs and cost control that is not about what to build, for example about labor or procurement. It is also useful when comparing lines in the mountainous terrain of Austria, Japan, Korea, and Switzerland to the easier North European Plain. But at some point, it is necessary to treat the tunnel percentage as endogenous to the planning system. The viaduct percentage, moreover, is absolutely endogenous.

France in this context does well by keeping lines at grade as much as possible. The only country with less tunneling than France is Morocco, which builds its urban and high-speed trains as if it were France, and, thanks to France’s extensive presence in the Maghreb, French contractors are intimately familiar with the local situation and build cheaply. France and Germany have similar unit costs, but Germany tunnels a lot more, less because of the terrain and more because of either politics (that is, the Erfurt detour for Berlin-Munich, forcing the line to go through thicker mountains) or a misguided attempt at building mixed lines in the 1980s and 90s.

The United States’ high projected budgets for proposed lines that never go anywhere thanks to their extreme costs come from overbuilding more than high unit prices. For example, in Baltimore, a two-track tunnel project designed for exclusive electric passenger train usage turned into a four-track tunnel with enough room for double-stacked freight with mechanical ventilation for diesel locomotives. The scope creep raised the projected budget from $750 million in the late 2000s to $4 billion in the mid-2010s.

I Gave a Talk About Canadian Construction Costs

There was a conference I got invited to, consisting of three talks, two about state capacity by me and by Tyler Cowen, and one by a Canadian extramural Conservative politician named Ginny Roth (she’s a columnist but her talk was about how Conservatives could use the insights of state capacity to win elections, hence my appellation). It was run by entrepreneurs named Chris and Matt Spoke, doing a series of online meetings trying to introduce fresh ideas to what they hope will be the next crop of Tory leaders; there’s going to be one on housing in the future, and the YIMBY comments I made seemed popular with the crowd.

Here is a link to my slides. They shouldn’t be too surprising given my usual talk on construction costs and what I said before about the growth in Canadian costs. But I made sure to put the increase in costs in Canada all together in two slides, one about Toronto, sourced to Stephen Wickens, and one about the rest of Canada, sourced to both our database and to a comparison of Calgary’s costs through the 2000s with Calgary’s West LRT costs.

The organizers are in Toronto, so I didn’t talk too much about the situation in Vancouver. I said a few sentences about how I can see there was a real increase in costs from a difference between the half-elevated Canada Line and the 87% underground Broadway subway under construction, but I didn’t go into the history of the Canada Line’s cut-and-cover method or the cost estimates from the early 2010s, which had the Broadway subway costing C$250 million/km. I talked more about Toronto, where the increase in costs is larger; Vancouver, even with the cost increases, remains North America’s lowest-construction-cost city, since the other cities have had even bigger increases, including Toronto, Los Angeles, and Seattle.

I want to highlight, as I brought up 1.5 years ago, that while Canada has American (i.e. bad) mainline rail, and Americanizing construction costs, it is YIMBYer than both the US and Europe. I worry it won’t last for long, because the style of Canadian redevelopment is at fairly small radius from an arterial or a subway station and those will eventually run out, forcing upzoning of large swaths of single-family land for the benefit of everyone except the handful of aggrieved homeowners who dominate municipal politics. (There was not enough time to talk about the importance of high-level decisionmaking, that is at the provincial level and not the municipal one.)

Streaming High-Speed Rail Crayoning

People are sharing various maps of the high-speed rail network the US could build if it were interested in alternative transportation, and I promised I’d make one myself. I did this on camera on Twitch a week ago but was not finished, so I streamed it again just now – this is going to be a regular occurrence, always at 18:00 my time every Saturday. There’s a recording, but Twitch is being weird about letting me upload it, so it might make it to YouTube instead.

Here is the map:

A full-size image can be found here. Red lines are high-speed rail. Blue lines are marginal lines: New Haven-Springfield and Milwaukee-Green Bay are good legacy lines that may or may not work as full HSR (the former probably better than the latter), while Nashville-Memphis, the Pacific Northwest system, and Phoenix-Tucson are marginal between no service at all and HSR.

Florida High-Speed Rail

I did the calculations for Atlanta-Florida on camera. I was surprised that it turned out to work out well, even with semi-decent return on investment based on my Metcalfe’s law formulas, around 3%. The rub is that Orlando is pretty big, and even though it is sprawl hell, it is also an unusually strong tourist destination, and the rail line would serve Disney World and Daytona Beach. This makes me more confident in a formula trained on Japanese and European cities with public transit than a connection between two random no-transit medium size cities like Cleveland and Cincinnati.

This itself is an example of Metcalfe’s law in action: the Miami-Orlando-Tampa system by itself only returns 2.2% per the formula, and an extension to Jacksonville 2.6%. I also have more certainty in the figures for the larger system, because the impact of sprawl on mode choice is smaller when distances get longer, because it doesn’t affect the air/rail mode choice as much as the car/rail mode choice.

Even at medium distances, observe that the South Florida urban area is linear, around 20 km wide but more than 100 long, which makes intercity rail service more reasonable. Every county can have a stop, and if the 0.8 exponent in the gravity model formula is applied to counties separately, then the sum rises to 6.1, whereas 7^0.8 = 4.74, which means that this refinement provides a 28% boost to ridership. Orlando is not linear, but its subsidiary metro areas, Lakeside and Daytona Beach, could get stops as well.

Alignment questions

I drew the system in a zoom level 7 on OpenStreetMap, which is too high-altitude to see individual railroads. I tried to approximate existing rail alignments that are worth using, but it’s not perfect, so please do not take the map as any assertion about pixel-level alignment, and even some station decisions can be quibbled with.

However, please do take the map as a definitive assertion about macro-scale alignments. The Northeast Corridor should go via I-95 and not via Hartford. This decision is fairly close and could go either way, though the benefits of HSR in the Northeast are so great that the absolute magnitude of such decisions remains momentous. Elsewhere, the Chicago-Minneapolis line could go along I-94 via Eau Claire or via a more southerly route via Rochester and the Mayo Clinic; I’ve gone back and forth on this, and it’s a second-order question, but I think the Mayo Clinic generates more trips, probably. The Albany-Montreal route could be entirely in the state of New York or take a slight detour through easier terrain in Vermont, which is likely cheaper. Toronto-Ottawa could go via Kingston or Peterborough, but the Peterborough route looks more direct. Chicago-St. Louis is sometimes proposed to detour via Champaign rather than go straight via Bloomington, but the benefit of serving UIUC probably doesn’t justify the extra cost. North Carolina HSR could go via the Triad or direct from Raleigh to Charlotte, but the model says the benefit of serving Greensboro is much greater than that of slightly faster trips coming from bypassing the Triad. Texas is a compromise route extending the under-construction line to Downtown Houston and creating a new leg connecting this system to Austin and San Antonio.

The most contentious questions are in California. HSR there should go via a partially high-speed coastal alignment from San Diego up to Los Angeles, then up the Grapevine and Tejon Pass, then across Altamont Pass and a Dumbarton tunnel. None of these decisions is close, and the official alignment decisions to detour via the Inland Empire and Palmdale and to go via Pacheco are all bad and played a role in the failure of the project. Los Angeles-San Diego is in a way the most frustrating: it was left to a future phase, but a medium-speed rail alignment along the coast could be done relatively quickly with electrification and some strategic investments, speeding up trains to about 1:45.

Frequency

I talked about frequency a little bit in the video, but not in much detail. The biggest problem is that Philadelphia is set up poorly: ideally trains coming from New York should branch to either Washington or Pittsburgh, but instead, 30th Street Station requires New York-Pittsburgh trains to reverse direction. This can be handled through actual reversal, as is done today at Frankfurt, with 4-minute turnarounds (cf. 10 at Philadelphia), or through having New York-Pittsburgh trains skip Philadelphia, as was historically done, with a stop at North Philadelphia instead.

With that in mind, my best guess, based partly on the model and partly on intra-metropolitan fudge factors like New York-New Haven, is as follows:

  • 8 tph New York-Boston, 4 New York-Springfield
  • 8 tph New York-Washington, 4 New York-Pittsburgh-Cleveland, 4 Washington-Philadelphia-Pittsburgh-Cleveland
  • 8 tph New York-Albany, 4 short Boston-Albany, 8 Albany-Buffalo (4 short), 4 Buffalo-Toronto, 4 Albany-Montreal, 2 short Buffalo-Cleveland
  • 2 tph Cleveland-Detroit, 4 (2 short) Cleveland-Chicago, 2 Chicago-Detroit, 2 Cleveland-Louisville
  • 4 tph Chicago-Milwaukee, 2 Milwaukee-Minneapolis
  • 2 short tph Chicago-St. Louis
  • 4 tph Chicago-Indianapolis, 2 Indianapolis-Cincinnati, 2 Indianapolis-Atlanta
  • 2 short tph Nashville-Memphis
  • 6 tph Washington-Richmond, 2 Richmond-Norfolk, 4 Richmond-Charlotte, 2 Charlotte-Atlanta
  • 2 short tph Miami-Tampa, 2 Miami-Atlanta, 2 Atlanta-Tampa
  • 2 short tph Houston-DFW, 2 short DFW-San Antonio, 2 short Houston-San Antonio
  • 2 short tph Vancouver-Portland (at best)
  • 4 tph Los Angeles-San Diego, 2 Los Angeles-Phoenix, 2 Los Angeles-Las Vegas
  • 2 tph Los Angeles-San Francisco, 2 Los Angeles-San Jose, 2 Los Angeles-Sacramento, 2 San Francisco-Sacramento

Streaming Crayoning

I’m going to stream on Twitch at 18:00 tonight my time (UTC+1). This is usually intended as a platform for streaming playing video games, but can also be used for other things, such as discussions that would benefit from video and screen sharing. This may turn into a regular feature, covering a different topic every time – probably monthly, I don’t see myself having enough time to do this weekly unless it’s extremely impromptu.

Today’s topic is crayons:

  • How I make maps such as these ones: how I grab the base map, how I draw lines, etc.
  • Good tips for how to figure out which lines are useful, including very rudimentary cost-per-rider analyses.
  • An example of making a map, probably a US-wide high-speed rail map based on my Metcalfe’s law posts but maybe something else if there’s popular demand.

I Gave a Talk at Transit Con

An online conference just concluded in which I gave a half-hour presentation about construction costs. Instead of giving my usual spiel, showing parts of our growing database and pointing out patterns, I spent a lot of time on why this is important. I’d written about this before, twice, but I’ve since looked more carefully at an example of two countries that are similar enough in their rail and public transit tradition that their large difference in costs must be the primary reason one has a bigger and more successful urban rail system than the other. I focused on developed countries, that is countries that manifestly have high incomes, good public health, good education, and so on; however, I believe the importance of costs is also a big reason behind delays in public transportation in high-cost developing countries like India.

You can read the slides here; this was recorded, and I’ll update this post with a link when it gets published.

Quick Note: Consumption and Production Theories of Berlin

I’ve periodically written about consumption and production theories of cities – that is, whether people mostly move to cities based on consumption or production amenities. The production theory is that what matters is mostly production amenities, that is, jobs, and this underlies YIMBYism. Consumption theory is that people move for consumption amenities, and, moreover, these amenities are not exactly consumption in the city, for example good health outcomes, but consuming the city itself, that is neighborhood-level amenities in which who lives in the city matters. The latter theory, for example promulgated by Richard Florida, is that jobs follow consumption amenities like gay bars, and not the other way around. It is wrong and production theory is right, and I’d like to give some personal examples from Berlin, because I feel like Berliners all believe in consumption theory.

The situation in Berlin

Berlin is an increasingly desirable city. After decades in which it was economically behind, the city is growing. Unemployment, which stood at 19% in 2005, was down to 7.8% last year. With higher incomes come higher rents, and because Berlin for years built little housing as there was little demand, rents rose, and it took time for housing growth to catch up; on the eve of corona, the city was permitting about 6 annual dwellings per 1,000 people, up from about 1 in the early 2000s.

This is generally attributed to tech industry growth. There are a lot of tech startups in the city. I don’t want to exaggerate this too much – Google’s biggest Germany office is by far Munich’s, and the Berlin office is mostly a sales office with a handful of engineers who are here because of a two-body problem. But the smaller firms are here and the accelerator spaces are very visible, in a way that simply didn’t exist in Paris, or even in Stockholm.

Berlin’s production amenities

I might not have thought that Berlin should attract so much tech investment. My vulgar guess would be that tech would go to cities with many preexisting engineers, like Munich and Stuttgart, or maybe to Frankfurt for the international flight connections. But Berlin does make sense in a number of ways.

English

The city is mostly fluent in English. Jakub Marian’s map has France 39% Anglophone and Germany 56%, which doesn’t seem too outlandish to me. But Paris seems in line with the rest of France, whereas in Berlin, service workers seem mostly Anglophone, which is not the case in (say) Mainz or Munich.

The global tech industry is Anglophone, and good command of English is a huge production amenity. Other English-dependent industries seem to favor Anglophone European cities as well, for example various firms fleeing Brexit moved their European headquarters not to Paris but to Amsterdam or maybe Dublin.

The capital

The federal government is here. This is not relevant to tech – the startups here don’t seem to be looking for lobbying opportunities, and at any case German lobbying works differently from American lobbying and firm-level proximity to the capital is unimportant. However, the government stimulates local spending, which has increased employment. The government’s move here has been gradual, with institutions that during division were spread all over West Germany slowly migrating to Berlin.

Good infrastructure

The quality of infrastructure in Berlin is very good. The urban rail network was built when Berlin was Western Europe’s third largest city, after London and Paris, and has even grown after the war because the West built U7 and U9 to bypass Mitte. This means that commute pain here is not serious, especially on any even vaguely middle-class income. Moreover, Berlin has benefited from post-reunification investment, including Hauptbahnhof and two high-speed rail lines.

Consumption theory and the counterculture

The queer counterculture that I am involved with in Berlin tells a different story. To hear them tell it, Berlin has a quirky, individualistic, nonconforming culture, unlike the stifling normality of Munich. Artists moved here, and then other people moved here to be near the artists, paying higher rents until the artists could no longer afford the city. This story is told at every scale, from Berlin as a city to individual neighborhoods like Prenzlauer Berg and Neukölln. A lot of the discourse about Berlin repeats this uncritically, for example Feargus O’Sullivan at CityLab/Bloomberg Cities writes about the cool factor and about gentrification of old buildings.

It is also a completely wrong story. This is really important to understand: nobody that I know in the sort of spaces that are being blamed for gentrification, that is the tech industry and its penumbra, has any interest in the counterculture. I go to board games meetups full of tech workers who are fluent in English and often don’t know any German, and they have no connections at all to the local counterculture. They interact with immigrant culture spaces, not with the 95%+ white counterculture as defined by queer spaces in Neukölln that complain about gentrification in a neighborhood undergoing white flight at the rate of postwar New York (compare 2019 data, PDF-pp. 25 and 28, with 2016, PDF-pp. 28 and 31). Occasionally there are crossovers, as when an American comedian hosted live standup in February and then there were tech workers and said American also interacts with the counterculture, but a standup comic is not why Berliners complain.

Nor do I find foreign tech workers especially interested in German minutiae comparing Berlin with Munich. By my non-German standards, Berliners already jaywalk at indescribably lower rates, and I gather that Munich is stuffier but that’s not why I’m here and not there, the rents and the language are.

We’re not even particularly oppositional to the counterculture. I personally am because seeing queer space after queer space host indoor events during corona without masks was a horrifying experience; I went to a queer leftist meetup in late October in which people huddled together maskless and I was the only one with a mask on, except for one trans Australian physicist who drank a beer and then masked after finished. But the rest? They don’t care, nor should they. The counterculture is not the protagonist or the antagonist of Berlin’s story; it’s barely a bystander. Consumption theory is just what it promotes in order to convince itself that it’s important, that it spreads ideas and not viruses.

Corona and Europe’s Idiocy

550 new coronavirus cases in Berlin yesterday. 7,000 in Germany. 110,000 in the European Union, which at 240 per million people is even higher than the US, which is at 200/million. French hospitals are flooded with corona patients, and the state expresses its grave concerns but will still not set up quarantine hotels or universalize the use of surgical masks or do anything else that Taiwan did in less time. This is the second wave, and seven months after Taiwan showed the way how to deal with this and ended up being the only country this year to have positive economic growth to boot, Europe (and the US) still stays in its comfort zone of mass death.

It’s worth discussing the excuses, because so many of them port well to the realm of public transportation, where Europe is not so bad (there are even things East Asia can learn from us); Europe’s real disaster compared with rich Asia is in urbanism and its resistance to tall buildings. But the United States is horrific on all matters of transportation and urban redevelopment and the excusemaking there is ensuring no infrastructure can be built.

Excuse #1: the restricted comparison

The Max Planck Society (MPG) put out a statement three weeks ago, with some interesting insights about the need for a multi-pronged strategy, including contact tracing, hygiene, and social distancing. But it kept engaging in these silly intra-European comparisons, praising Germany in contrast with Britain. At no point was there any engagement with East Asia, even though we know that Taiwan has not had community spread since April, and that in Korea and Japan the current rates are about 2 and 4 daily cases per million people respectively.

Excuse #2: bullshit about culture

I’m told that there is general understanding within Germany that Taiwan and South Korea are doing far better. However, people keep making up cultural reasons why Europe can’t have what East and Southeast Asia have. This excuse unfortunately is not restricted to people who are totally unaware: a few months ago, Michel Bauwens, a Belgian degrowth advocate who lives in Thailand, talked up Thailand’s corona suppression, but attributed it to a communitarian, collectivist culture. The Thais are mass-protesting their autocratic government’s state of emergency (while wearing masks, unlike Western anti-regime protesters); what collectivism? The actual policy differences – mandatory centralized quarantine for people who test positive, mask wearing mandates – were not mentioned.

When I bring up the necessity of centralized quarantine, and even the fact that Israel used corona hotels to nearly eradicate the virus in the first wave (the second wave came from mass abandonment of social distancing – MPG is right about multi-pronged strategies), Europeans and Americans keep making a “but freedom” line. It’s strange. Yes, Thailand is autocratic. But Taiwan and South Korea are not – and they had authoritarian governments within living memory, and both are currently run by political parties that emerged out of democratic opposition to autocracy in the 1980s and 90s, and that far from becoming autocrats themselves, ceded power peacefully when they lost reelection in the past.

Excuse #3: the fake tradeoff

Many aspects of policy involve genuine tradeoffs. But many others don’t, and corona protection is one. Taiwan is the only developed country that is projecting positive economic growth in 2020. South Korea is projecting 1% contraction, the smallest contraction in the OECD, of which Taiwan is not a member. There is no economy-death tradeoff. Plowing through with reopening before the virus has been suppressed just means mass closures later and a weaker economy. The only major suppression country that is seeing economic contraction is Thailand, whose economy is based heavily on tourism and therefore more sensitive to crises outside its borders than are the industrial export-based economies of Taiwan and Korea.

Excuse #4: learned helplessness

I write occasionally about the importance of state capacity, but centralized quarantine is not some specialized technique only available to the most advanced states. It was routine in developed countries until the 1960s, when the incidence of infectious disease had fallen to a point that it was no longer necessary. The same is true of social distancing – Nigeria for example has used it and appears to be successful, with semi-decent test positivity rates and lower per capita confirmed infections than Korea.

However, various leaders keep saying “we can’t.” This is not about technical matters. Rather, it’s about political ones: we can’t established corona hotels, we can’t ban indoor dining and drinking, we can’t scale up surgical mask production like Taiwan did 8 months ago and require people to wear surgical masks in public. The only thing Europe seems capable of doing is prohibiting travel from countries that at this point often have less corona than we do.

This is learned helplessness. Risk-averse politicians who know on some level what needs to be done are still too spineless to do it, even knowing very well that successfully suppressing corona is an amazing crowd booster.

The connection with infrastructure

All of the above problems also lead to disastrous infrastructure projects. This is to some extent a problem in Germany, where “we can’t” is a common excuse for surrender to NIMBY opposition; this is why certain key high-speed rail segments have yet to be built. But it’s a truly massive drag on the English-speaking world, especially the United States. I have seen advocates engage in internal-only comparisons within the last 24 hours; the other excuses, I saw earlier this week, and many times in the last few months, with so many different American transit managers incanting “it’s not apples-to-apples” whenever Eric and I ask them about costs. One literally said “we can’t” and “it’s not possible” and is regionally viewed as progressive and forward-thinking.

In the same manner Europeans discount any knowledge produced outside of Europe and the United States, Americans discount everything produced outside their country. Occasionally they’ll glance at Canada and Britain to affirm prior prejudices. They treat foreign language fluency as either dilettantism or immigrant poverty and not as a critical skill in the modern world right next to literacy and numeracy. They’ll flail about as they die of corona and blame one another when, just as the EU flag today is twelve yellow coronaviruses on a field of blue, the US flag is fifty white viruses on a field of blue with red and white stripes.

Transit Costs Website

Go here to see the our construction costs website. The static dataset is here, but I encourage people to go to the site, which has some interesting mapping – in particular, because the coverage is close to comprehensive, it is easier to see where many subways are being built (China!) and where they are not.

There are still gaps in coverage, plus some numbers that I am not perfectly certain about because the projects are still under construction. Please email us if you have corrections or additional data, whether it’s current or historic. For example, I wish I had complete historical data for Paris, Berlin, and Tokyo – in all three cities I have current data, and in the first two I also have early 20th century costs, but I don’t know what the postwar costs were, or the 1930s costs in Berlin. (In London and New York I have better though still imperfect historical costs, they’re just not integrated into the site yet.)

And please thank everyone who has worked on this. The lines in the database that I added are not even a plurality of the database – the Chinese data comes from Yinan Yao, the Arab data comes from Anan Maalouf, we’re adding massive amounts of current and historic Korean data due to Abdirashid Dahir, Marco Chitti has added some Italian data, Eric has been invaluable in checking some of the Spanish-language numbers, and the Turkish data comes from Elif Ensari, who also built the website and is responsible for the data visualization and mapping.

Case Selection

Eric and I recently sent in a list of criteria for case selection. We’re currently funded for 6 detailed case studies, of which one is the Green Line Extension in Boston due to funding from a different grant. My guess is that we need about 15-20 different cities to have near-perfect information about the institutional and geographic factors that influence infrastructure construction costs. Because different subway lines in the same city tend to cost the same to build, and even in the same country, our 500 lines in the database are more like 50 independent observations, and there are even identifiable clusters of countries.

These clusters are important, because ideally we should have 2 cases per cluster. With 6 cases in total, we’d like to have a case for at least one per cluster, even though it’s unlikely, depending on where we can find the most detailed information and the most people who will talk to us.

Clusters

1. Very low-cost countries

The first cluster is the success cases. These really come in two flavors: one is Switzerland and the Nordic countries, and the other is everywhere else with costs lower than $150 million per km, that is Spain, Portugal, Italy, Greece, Bulgaria, Turkey, and South Korea. The difference between the two flavors is that the first one consists of very high-wage countries with populations that trust their institutions, and the second consistent of countries with wages at the bottom of the first world or top of the second with populations who don’t believe me when I tell them their infrastructure construction is cheaper than in Germany. Even then, there are some important differences – for example, contracts in Turkey are lowest-bid, using the country’s high rate of construction and multitude of firms (a contract must have a minimum of 3 bids) to discipline contractors into behaving, whereas Spain instead has technical scoring for bids and only assigns 30% weight to cost.

2. Middle-range countries

This is countries close to the global average, which is around $250 million per kilometer for underground construction. China has about the same average cost as the rest of the world, and since a slight majority of our current database is Chinese, it falls in this category. France and Germany are definitely in this category; Austria, Czechia, and Romania are also in this category but have fewer distinct metro tunnels; Japan may be in this category but it’s unclear, since the few tunnels it’s building nowadays are both more expensive and more uniquely complicated, rather like regional rail. Big parts of Latin America fall into this category too, though they bleed with the high-cost category too. There’s a good case for separating China, France, Germany, and Japan into four separate categories (Austria should probably be institutionally similar to Germany), each of which gets different things right and wrong.

3. Countries with recent cost growth

This cluster consists of places that have high costs but didn’t until recently. Canada and Singapore are both competing for worst construction costs outside the United States but were not until well into the 2000s. Australia may be in this category too – it’s unclear, since Melbourne is extremely expensive to tunnel in but Sydney isn’t. New Zealand’s regional rail costs suggest it might be too – initial electrification was cheap but the regional rail tunnel is expensive. All of these countries share the characteristic of extreme cultural cringe toward Britain and the US, adopting recent British and American ideas of privatization of the state, and it would be valuable to follow up and see if this is indeed what happened with all of their infrastructure programs.

4. Rich countries with very high costs

This cluster is dominated by the US and UK. Taiwan is there too but is much smaller and likely has completely different institutional reasons – one person told me of political corruption. Hungary and Russia might be in this category too – they have very high costs (Budapest is scratching $500 million per km), but their wages are at the first/second world boundary, rather like Bulgaria or Turkey.

5. Countries on the global periphery with very high costs

This cluster consists of the high-cost world that is too poor or peripheral to be in cluster 4. This includes ex-colonies like India, Pakistan, Indonesia, Egypt, and Vietnam, but also the never- or more-or-less-never-colonized Gulf states; these two categories, the Gulf and the rest, must form two distinct flavors, but I lump them together because both seem to have extreme levels of cultural cringe and to associate bringing in European and East Asian consultants with modernity and success. (Meanwhile, parts of Europe, at least in the less self-assured East, bring in Turkish contractors.) The higher-cost Latin American countries, like Brazil and possibly Colombia, belong here too, and may form a distinct flavor. Thailand is on the edge between this cluster and cluster 2, which may befit its liminal colonial status before and during World War 2.

Where we struggle

We’ve been sending feeler messages to people in a number of places. This is far from perfect coverage – so far none of these countries is poorer than Turkey. In general, we’ve had early success in the lower-income range in cluster 1 (Italy, Spain, Korea, Turkey) and in cluster 4. Cluster 3 seems reachable too, especially since Stephen Wickens did much of the legwork for Toronto’s cost growth; we may be able to look at Sydney as well, and Singapore and Auckland seem like it shouldn’t be too difficult to find sources, nor to get people to listen if our conclusion ends up being “your government reforms in the last 15 years are terrible and should be reversed.”

Within the rich world, so far getting sources in Germany and Scandinavia has proved the hardest. I don’t know if it’s random or if it’s the fact that in countries that believe their standards of living are higher than those of the US and UK people are less likely to be forthcoming to someone who writes them in English. I’ve seen a decent amount of written material about rail capital construction projects in Germany, though not about the one I’m most interested in, that is the U5-U55 connection here in Berlin; but the rail advocates I’ve talked to are not quite in metro construction, though I have learned a lot about public transportation issues in Germany from them.

In Scandinavia things are even harder. Costs there seem pretty consistently low. A common explanation is that the rock in both Stockholm and Helsinki is gneiss, which forms a natural arch and makes tunnel boring easy, but a short tunnel in Oslo, the Løren Line, was even cheaper in softer rock. Moreover, the planned Helsinki-Turku high-speed rail is currently budgeted at €2 billion for 94 km of which 10 are in tunnel, so maybe equivalent to 140 km of at-grade line; this is noticeably below French costs, let alone German ones.

The low-income world is an entirely different situation. My suspicion is that the same cultural cringe that makes India build turnkey Shinkansen at something like 3 times its domestic cost (correcting for tunnel length) would make India eager to talk to us – if we were covered in the first-world discourse first. People in India, Nigeria, etc. know their countries are poor and are desperate to absorb the knowledge of richer places; they don’t understand the US as well as Americans do, but they understand it better than Americans understand the third world.

Cluster curiosities

The reasons I’d ideally like to have 20 case studies are that there are a lot of questions about internal differences, and that things that look like clusters from cost data may not actually be similar. There are a lot of questions that doing more cases might explain.

  • South Korea and Japan share many institutional similarities, and many of those are also shared with Taiwan. How come South Korea near-ties for lowest costs in the world, Taiwan near-ties for highest costs in the non-Anglophone first world, and Japan is somewhere in the middle?
  • What explains why different Eastern European countries with similar histories and institutions have such cost divergence?
  • Why does Italy have low metro construction costs (more in the North than in Rome and the South, but Rome is at worst average) and high costs of high-speed rail construction?
  • Why does Japan have high metro construction costs where it builds and low costs of Shinkansen tunneling?
  • Turkey seems similar in costs to Southern Europe, but it does things very differently – for one, it uses lowest-bid contracting. To what extent this is about Turkey’s very high rates of construction recently, and does this generalize elsewhere? Of note, there are extremely high construction rates all over middle-cost China, and also decently high rates in high-cost India, Singapore, and California.
  • The Netherlands is institutionally within the same range of what’s seen elsewhere in Northern Europe, and yet its construction costs are high. Is this just a matter of alluvial soil tunneling? If so, why did HSL Zuid cost so much?

We Ran a Conference About Rail Modernization

The Modernizing Rail (Un)Conference happened last Sunday. We’re still gathering all the materials, but here are video uploads, including the keynote by Michael Schabas.

We will also have slides as given by presenters who used them. But for now, here are the slides used by the keynote. You may notice that the recording does not begin on the first slide; we missed Schabas’s introduction and some remarks on his background, detailing his 40 years of experience designing public transit systems in a number of countries, mainly Britain and Canada but also elsewhere in the developed world.

My session on construction costs was slide-free (and was not recorded), since I mostly just showed people around our under-construction cost dataset and answered a lot of questions. Some of those questions were annoying, by which I mean they questioned my thinking or brought up a point I haven’t considered before. I am not talking too much about it partly because I was mostly (mostly) repeating things I’ve said here, and the full database should be out later this summer, with all the mistakes I’ve made in currency conversion rates and in not updating for cost overruns fixed.

After my breakout, I was uncertain between which of two sessions to attend – one on HSR-legacy rail compatibility by María Álvarez, and one on equity issues in rail planning, by Grecia White and Ben She. I ended up going to the latter, which featured interesting discussions of inclusion of low-income people and minorities, both as riders (that is, serving people who are not middle-class whites better on regional rail) and as workers (that is, diversifying planning and engineering departments).

It went well in that there was no monopolization of discussion by people who have more a comment than a question, or any open racism or sexism; but it was somewhat frustrating in that while there was a lot of productive discussion of racial equality in rail planning, there was very little of gender equality even though we did intend to talk about both; Grecia was specifically interested in discussing these, for example women’s perceptions of public safety. This is in line with conference demographics – the organizing team and the breakout presenters were each one-third people of color, in line with US demographics; but the organizing team had 2/18 active women and the presenters 3/15. TransitMatters is similar in that regard – racial diversity is comparable to that of the Boston region, and the proportion of regulars who are queer is enormous, but there are very few women.

Finally, I hosted a session on how to set up a transport association, a.k.a. Verkehrsverbund. Christof Spieler did the most talking, and German attendees explained a lot about the difference between a transport association and agency amalgamation. But for the most part that session felt like an ersatz conclusion to the entire conference; it technically lasted an hour, but once the hour had lapsed, people from other sessions came to the room and the conversation continued naturally, talking a bit about different transit planning issues in Germany and a bit about applicability to rail reform in the Northeastern US.