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| Re: $6.9 Billion Second Avenue Subway Phase II a “bargain”? (1592231) | |||
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Re: $6.9 Billion Second Avenue Subway Phase II a “bargain”? |
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Posted by JAzumah on Sat Dec 11 00:16:46 2021, in response to Re: $6.9 Billion Second Avenue Subway Phase II a “bargain”?, posted by Joe V on Fri Dec 10 06:56:52 2021. The private sector can make a profit above the rails without a problem. It is the debt service that bankrupts them (see Eurotunnel et al). This is why the real estate component is important as well as the speed and capacity of the service.Brightline has a shot because they are building into a growing market that is somewhat premium. There are a few Japanese metro and mini-metro lines that can do it. It is actually easier to make money if you go faster as long as the right of way costs aren't outrageous. For example, if the Azumah Automatic Metro (ZAM) split the cost of Phase 3 and 4 of the Second Avenue Subway with the MTA by enlarging the tunnels to be two tracks, that would actually be profitable despite the insane cost of those phases. It would only cost 15-20% more to be four tracks instead of two. MTR has the right template. Granted, the land is not going to be free, but if you can capture some of the additional value that you bring to it, private railroading can be profitable. |
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