News & Reviews News Wire Digest: U.S., California in settlement talks over high speed rail lawsuit

Digest: U.S., California in settlement talks over high speed rail lawsuit

By David Lassen | March 23, 2021

News Wire Digest second section for March 23: MBTA to fund pre-pandemic service levels in new fiscal year; Mexico’s trans-isthmus rail corridor could be operational by 2023

Email Newsletter

Get the newest photos, videos, stories, and more from Trains.com brands. Sign-up for email today!

Department of Justice in talks with California to settle suit over funds withheld from high speed rail project

California High Speed Rail Authority logoThe U.S. Department of Justice is in talks with California to settle a lawsuit resulting from the Trump administration’s cancellation of a $929 million grant for the state’s high speed rail project. Reuters reports the Justice Department and California Attorney General’s Office said in a court filing they were in settlement discussions and asked the case be put on hold. The California suit, filed in 2019, argues the U.S. Department of Transportation lacked the legal authority to withhold the funds allocated by the Obama administration. The FRA, under the Trump Administration, said the state had “failed to make reasonable progress on the project,” while California claimed the cancellation stemmed from Trump’s “overt hostility” toward the state.

MBTA to fund return to pre-pandemic service levels, but no date set for restored service

MBTA will fund pre-pandemic service levels, The Massachusetts Bay Transportation Authority says it will fund restoration of rail and bus service to pre-pandemic levels in its 2022 budget, although full service will not return immediately when the budget year begins on July 1. State House News Service reports an MBTA spokesman said the funding will allow the agency to begin hiring and training personnel needed to restore service, as well as developing new schedules. “While the T is not in a position to restore all pre-pandemic services immediately,” spokesman Joe Pesaturo said, “the planning process for getting there is starting now.” MBTA officials have not yet determined a timeline for full restoration of service. The move comes after widespread criticism of the agency’s plan to cut service while receiving large sums of federal stimulus money.

Mexico’s cross-isthmus rail, port project could be operational in 2023

Mexico’s Isthmus of Tehuantepec rail and port corridor, the 180-mile project meant to create an alternative to the Panama Canal, could be open as early as 2023, President Andrés Manuel López Obrador has indicated. BNamericas.com reports construction is under way on the the $1 billion project, building the rail line to connect the ports of Coatzacoalcos in the state of Veracruz and Salina Cruz in Oaxaca, as well as expanding the ports. Still to come are tendering of contracts for 10 industrial parks to be built along the route. López Obrador recently said Mexico’s navy will receive part ownership of the project [see “Digest: Sonoma-Marin rail transit sued …,” Trains News Wire, March 22, 2021].

 

 

10 thoughts on “Digest: U.S., California in settlement talks over high speed rail lawsuit

  1. Isn’t Mexico’s cross-isthmus rail just a rerun of a previous project that was supposed to be electrified? NdeM bought a block of GE E60s that sat for years.

    1. The GE E60s that Mexico bought actually ran from Queretaro to Mexico City, but it didn’t last very long, then they sat for years before being sold off for practically nothing.

  2. I bet the Mexico land bridge/canal thing never happens. The Chinese were going to build a canal through Nicaragua in a notorious earthquake zone, the Colombians through the NW part of their country in pure jungle, all to compete with the Panama Canal AND the Panama Canal Railway, a KCS property. It will never happen, no matter what socialist or capitalist is pres. of Mexico.

  3. With the election of the horrid Kamala Harris as president, California ultra-leftists will be negotiating with a California ultra-leftist. Wonder how this one will play out????

  4. What is California’s explanation for the delay and failure to complete what they agreed to complete? That is the issue. If California agreed to the terms, they agreed to the consequences if terms are not met.

  5. I’m all in favor of high-speed rail projects. I’m just NOT in favor of the typical governmental waste in this particular project. This is a whole lot more wasteful than the wasteful “Bridge to Nowhere” project. Now we’re working on the “Railroad to Nowhere.” Where does common sense take over and waste end?

    1. The current administration seems to believe that there are no limits to how much money the government can spend. There is no reason for this project; it can’t compete with the airlines on cost, time,or flexibility (the location of multiple airport options in both the Bay Area and Southern California).

  6. “The FRA, under the Trump Administration, said the state had “failed to make reasonable progress on the project,” while California claimed the cancellation stemmed from Trump’s “overt hostility” toward the state.”

    No matter how wasteful the project has been, with a SPOTH and VPOTUS both hailing from California, a “settlement” was inevitable.

  7. “Still to come are tendering of contracts for 10 industrial parks to be built along the route. López Obrador recently said Mexico’s navy will receive part ownership of the project”

    Why would a branch of the military need to have part ownership in a railroad entity?

    1. AMLO (country’s president) has been putting the military in charge of different projects. In countries like Burma, Iran and Venezuela a dictatorship has solidified its power by letting the government enforcement agencies (the police and the military) share in the stealing so they have a pecuniary motive to keep the dictator(s) in power. AMLO has done some things (like interfering with the judiciary) to solidify his power but exactly what he intends to do with the military is unknown. He is certainly leftwing and anti-capitalist/socialist in favor of government control (most recently by locking private companies of the electrical utility market in favor of the high cost government company).

You must login to submit a comment