Michigan considers PPP for rail line

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Michigan considers PPP for rail line

The Michigan Department of Transportation is considering to build the high speed rail line covering Detroit-Lansing-Holland through a public-private partnership (PPP) method. They have already requested a feasibility study for the project.

The project would consist on three rail line routes, which were examined in the study, and is being managed by the Michigan Environmental Council.

According to the analysis, the routes that would run through Ann Arbor and either Jackson or Howell are financially viable. On the other hand, a third route for bypassing Ann Arbor is not viable.

The construction cost of the railway line would vary from US$130 million to US$540 million, depending on technical implementations as security and train speed issues.

The analysis indicates that if the final decision is to adopt faster trains, the implementation cost is bigger but also the profit they could generate, reaching US$14.4 million per year in benefits. The study also indicates that the slower trains would have to be subsidized annually.

According to technicians, the rail line will to take seven to ten years to be completed. 

Liz Treutel, a transportation expert with the Michigan Environmental Council, said:

"The rail line is viable and worth looking into. I think the biggest thing the report revealed is that, yes, the ridership potential is there and the costs are relatively reasonable for a transportation project." 

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