Why Texas High-Speed Rail is Stuck
I’ve been asked on social media why the US can’t build a Shinkansen-style network, with a specific emphasis on Texas. There is an ongoing project, called Texas Central, connecting Dallas with Houston, using Shinkansen technology; the planning is fairly advanced but the project is unfunded and predicted to cost $33.6 billion for a little less than 400 km of route in easy terrain. Amtrak is interested, but it doesn’t seem to be a top priority for it. I gave the skeet-length answer centering costs, blaming, “Farm politics, prior commitments, right-wing populism, and Japanese history.” These all help explain why the project is stuck, despite using technology that in its home country was a success.
How Texas Central is to be constructed
The line is planned to run between Dallas and Houston, but the Houston station is not in Downtown Houston, in order to avoid construction in the built-up area. There are rail corridors into city center, but Texas Central does not want to use them; the concept, based on the Shinkansen, does not permit sharing tracks with legacy railways, and as it developed in the 2010s, it did not want to modify the system for that. Sharing the right-of-way without sharing tracks is possible, but requires new construction within the built-up area. To avoid spending this money, the Texas Central plan is for the Houston station to be built at the intersection of I-610 and US 290, 9 km from city center. Between the cities, the line is not going into intermediate urban areas; a Brazos Valley stop is planned as a beet field station 40 km east of College Station.
Despite all this cost cutting, the line is also planned to run on viaducts. This is in line with construction norms on the newer Shinkansen lines as well as in the rest of Asia; in Europe, high-speed rail outside tunnels runs at-grade or on earthworks, and viaducts are only used for river crossings. As a result, on lines with few tunnels, construction is usually more expensive in Asia than in Europe, with some notable exceptions like High Speed 2 or HSL Zuid. Heavily-tunneled lines sometimes exhibit the opposite, since Japanese standards permit narrower tunnels (more precisely, a slightly wider tunnel accommodates two tracks whereas elsewhere the norm is that each track goes in a separate bore); this works because the Shinkansen trainsets are more strongly pressurized than TGVs or ICEs and also have specially designed noses to reduce tunnel boom.
But in an environment like Texas’s, the recent norm of all-elevated construction drives up costs. This is how, in an easy construction environment, costs have blown to around $87 million/km. For one, recently-opened Shinkansen extensions have cost less than this even while being maybe half or even more in tunnel (that said, the Tsuruga extension that opened earlier this year cost much more). But it’s not the only reason; the construction method interacts poorly with the state’s politics and with implicit and explicit promises made too early.
Japanese history and turnkey projects
The Shinkansen is successful within Japan, and has spawned imitators and attempts at importing the technology wholesale. The imitators have often succeeded on their own terms, like the TGV and the KTX. The attempts at importing the technology wholesale, less so.
The issue here is twofold. First, state railways that behave responsibly at home can be unreasonable abroad. SNCF is a great example, running the TGV at a consistent but low profit to keep ticket fares affordable domestically but then extracting maximum surplus as a monopolist charging premium fares on Eurostar and Thalys. Japan National Railways, now the JR group, is much the same. Domestically, it is constrained by not just implicit expectations of providing a social service (albeit profitably) but also local institutions that push back against some of management’s thinking about how things ought to be. With SNCF, it’s most visible in how management wants to run the railway like an airline, but is circumscribed by expectations such as open platforms, whereas on Eurostar it is freer to force passengers to wait until the equivalent of an airline gate opens. With JR, it’s a matter of rigidity: the Shinkansen does run through to classical lines on the Mini-Shinkansen, but it’s considered a compromise, which is not to be tolerated in the idealized export product.
And second, the history of Taiwan High-Speed Rail left everyone feeling a little dirty, and led Japan to react by insisting on total turnkey products. THSR, unlike the contemporary KTX or the later CRH network, was not run on the basis of dirigistic tech transfers but on that of buying imported products. To ensure competition, Taiwan insisted on designing the infrastructure to accommodate both Japanese and European trains; for example, the tunnels were built to the larger European standard. There were two bidders, the Japanese one (JRs do not compete with one another for export orders) and a Franco-German one called the Eurotrain, coupling lighter TGV coaches to the stronger motor of the ICE 2.
The choice between the two bids was mired in the corruption typical of 1990s Taiwan. The Taiwanese government relied on external financing, and Japan offered financing just to get the built-operate-transfer consortium allied with the Eurotrain to switch to the Shinkansen. Meetings with European and Japanese politicians hinged on other scandals, such as the one for the frigate purchase. Taiwan eventually chose the Shinkansen, using a variant of the 700 Series called the 700T, but the Eurotrain consortium sued alleging the choice was improperly made, and was awarded a small amount of damages including covering the development cost of the train.
The upshot is that in the last 20 years, a foreign country buying Shinkansen tech has had to buy the entire package. This includes not just the trainsets, which are genuinely better than their European and Chinese counterparts, but also construction standards (at this point all-elevated) and signaling (DS-ATC rather than the more standard ETCS or its Chinese derivative CTCS). It includes the exact specifications of the train, unmodified for the local loading gauge; in India, this means that the turnkey Shinkansen used on the Mumbai-Ahmedabad line is not only on standard gauge rather than broad gauge, but also uses the dimensions of the Shinkansen, 3.36 m wide trains with five-abreast seating, rather than those of Indian commuter lines, 3.66 m with six-abreast seating. It’s unreasonably rigid and yet Japan finds buyers who think that this lets them have a system as successful as the Shinkansen, rather than one component of it, not making the adjustments for local needs that Japan itself made from French and German technology in the 1950s and 60s when it developed the Shinkansen in the first place.
Prior commitments
Texas Central began as a private consortium; JR Central saw it as a way of selling an internationalized eight-car version of the N700 Series, called the N700-I. It developed over the 2010s, as Republican governors were canceling intercity rail projects that they associated with the Obama administration, including one high-speed one (Florida) and two low-speed ones (Ohio, Wisconsin). As a result, it made commitments to remain a private-sector firm, to entice conservative politicians in Texas.
One of the commitments was to minimize farmland takings. This was never a formal commitment, but one of the selling points of the all-elevated setup is that farmers can drive tractors underneath the viaducts, and only the land directly beneath the structures needs to be purchased. At-grade construction splits plots; in France, this is resolved through land swap agreements and overcompensation of farmers by 30%, but this has not yet been done in the United States or in Japan.
Regular readers of this blog, as well as people familiar with the literature on cost overruns, will recognize the problem as one of early commitment and lock-in. The system was defined early as one with features including very limited land takings and no need for land swaps, no interface with existing railroads to the point that the Houston terminal is not central, and promises of external funding and guidance by JR Central. This circumscribed the project and made it difficult to switch gears as the funding situation changed and Amtrak got more interested, for one.
Farm politics and right-wing populism
Despite the promises of private-sector action and limited takings, not everyone was happy. Texas Central is still a train; in a state with the politics of Texas, enough people are against that on principle. The issue of takings looms large, and features heavily in the communications of Texans Against High-Speed Rail.
The combination of this politics and prior commitments made by Texas Central has been especially toxic to the project. Under American law, private railroads are allowed to expropriate land for construction, and only the federal government, not the states, is allowed to expropriate railroads. Texas Central intended to use this provision to assemble land for its right-of-way, leading to lawsuits about whether it can legally be defined as a railroad, since it doesn’t yet operate as one.
Throughout the 2010s, Governor Greg Abbott supported the project, on the grounds that he’s in favor of private-sector involvement in infrastructure and Texas Central is private-sector. But his ability to support it has always been circumscribed by this political opposition from the right. The judicial system ruled in favor of Texas Central, but state legislative sessions trying to pass laws in support of the project were delayed, and relying on Abbott meant not seeking federal funds.
This also means that there is no chance of redesigning the project to reduce its cost by running at-grade. There is too little political capital to do so, due to the premature commitments made nearly 15 years ago. California has been able to resile from its initial promises to Central Valley farmers to use legacy rail corridors rather than carve a new right-of-way, but even then the last-minute route redesign toward the latter, in order to avoid running at 350 km/h on viaducts through unserved towns, are route compromises. But California has only been able to do so because it’s a one-party state and the Central Valley farmers are Republicans; it has not been able to modify early commitments in case of conflict with Democrats or nonpartisan interest groups. In Texas, the state is likewise run by a single party, but the farmers and the opponents in general are members of the party. Thus, right-wing populism and farmer politics, while claiming opposition to government waste, are forcing the project to be more wasteful with money, in order to marginally reduce the obtrusiveness of the state in managing eminent domain; they would not accept land swaps except in a situation of extreme political weakness.
Abbott is not a popularist (in the sense of European Christian democracy, not the unrelated American term). Popularist leaders like the string of corrupt Democrazia Cristiana leaders of the First Italian Republic, or the more moderate CDU leaders here including Angela Merkel, have sometimes enacted policy that had more support on the center-left than on the right, if they thought it was necessary to maintain their own power and enact the popular will. This way, Angela Merkel, personally opposed to gay marriage, finally permitted a vote on it in 2017, knowing it would pass, because if she didn’t, then SPD would use it in the election campaign and could win on it. Republican governors in the United States do not do that, except in very blue states, like Maryland or Massachusetts. If they moderate too much, they face a risk of losing primary elections, and this is even truer of state legislators; moderation is still not going to get them Democratic support for anything. The result is what’s called majority-of-the-majority: in practice, a majority party will not take action unless it has the support of a majority of the caucus, rather than just a handful of moderate members allying with the other party. This is not the milieu for experimenting with land swaps, which are a far more visible instantiation of state power than populist farmers are ever comfortable with.
Is Texas High-Speed Rail doomed?
I don’t know. I think it’s notable that the funding the project is receiving this year is perfunctory, for planning but not construction. The promised private funding seems dead, and Pete Buttigieg’s promise of funding one project to showcase that there can be high-speed rail in the United States seems focused on funding 25% of Brightline West (which needs 50%), connecting Las Vegas with Rancho Cucamonga, 60 km east of Downtown Los Angeles.
That said, planning is still continuing, as if to keep this project fresh for when more funding materializes. This is not the era of perfunctory $8 billion bills like that of the Obama stimulus; Seth Moulton is proposing $205 billion, and presumably this would include Texas Central, depending on the political environment of 2025 and the spending priorities then.
But I’m still pessimistic. High-speed rail could work between Dallas and Houston. It’s a reasonably strong corridor, and is growing over time, even if it is not as superlative as Tokyo-Osaka or Boston-New York-Washington. But I’m not sure it’s worth it at $33.6 billion, and I don’t think anyone with the power to fund it thinks it is either. Those costs are not just what high-speed rail is supposed to cost; this is a premium of a factor of at least 2, and likely 3, over what can be done with efficient at-grade construction, of the kind that the project unfortunately ruled out over the 2010s.


