June 9, 2016
LAS VEGAS — XpressWest, the private U.S. firm proposing to build a
high-speed rail link between Las Vegas and Los Angeles, terminated a
joint venture with Chinese companies less than nine months after the
deal was announced, citing delays faced by its partner, Business Insider reported.
Vegas-based XpressWest said the decision to end the relationship
stemmed from problems with "timely performance" and challenges that the
Chinese companies, grouped under a consortium called China Railway
International (CRI), faced "obtaining required authority to proceed with
required development activities," the report said.
The announcement is a blow to China, which has built the world's
largest high-speed rail network in less than a decade. The XpressWest
project was seen as a foothold into a burgeoning U.S. high-speed rail
market and an opportunity to showcase China's technology, according to Business Insider. For the full story, click here.
Read the full press release below:
XPRESSWEST to Continue Development of Nevada – California
Interstate High-Speed Passenger Rail System Without Assistance from
China Railway International U.S.A., Co., Ltd
XpressWest has terminated its joint venture activities with CRI regarding high-speed passenger rail.
September 2015, XpressWest and CRI commenced joint venture activities
intended to advance the substantial work already completed by
XpressWest. After an exhaustive process, XpressWest selected CRI to
assist develop, finance, build and potentially operate the XpressWest
rail project connecting Las Vegas, Nevada to Los Angeles, California
(the “Southwest Rail Network”), with stations in Las Vegas, Nevada,
Victorville, California, and Palmdale, California, and service
throughout Los Angeles.
The decision to terminate the relationship was based primarily upon
difficulties associated with timely performance and CRI’s challenges in
obtaining required authority to proceed with required development
“The team at XpressWest is optimistic CRI and its
affiliates will one-day succeed in establishing a viable presence in the
United States rail market, however, our ambitions outpace CRI’s ability
to move the project forward timely and efficiently. XpressWest is
undeterred by this development and remains dedicated to completing its
high-speed passenger rail project. XpressWest will now aggressively
pursue other available development partnerships and options expected to
result in a more efficient and cost-effective project implementation
experience,” said Tony Marnell, CEO of XpressWest.
eagerly anticipating the completion of the final environmental work
required for the development of the line connecting the project to Los
Angeles through Victorville and Palmdale, California. The environmental
approvals for the Victorville-Palmdale segment are expected no later
than September 2016. Additionally, XpressWest, the High Desert Corridor
Joint Power Authority, California High Speed Rail Authority,
San Bernardino County and Los Angeles County Metropolitan
Transportation Authority are also expecting the completion of the
jointly-funded Southwest Rail Network ridership study no later than
August 2016. The ridership study is a prerequisite for a variety of
regulatory and financing activities.
XpressWest is dedicated to completing all necessary activities to complete its high-speed passenger rail project.
biggest challenge continues to be the Federal Government’s requirement
that high-speed trains must be manufactured in the United States. As
everyone knows, there are no high-speed trains manufactured in the
United States. This inflexible requirement has been a fundamental
barrier to financing high-speed rail in our County. For the past 10
years, we have patiently waited for policy makers to recognize
high-speed rail in the United States is a new enterprise and that
allowing trains from countries with decades of safe high-speed rail
experience is needed to connect the Southwest region and start this new
industry. After the environmental work connecting Palmdale to
Victorville is completed, we intend to renew our request for support
from the Federal Railroad Administration and are hopeful policy makers
in Washington D.C. will allow the Federal Railroad Administration to
adopt a more flexible and realistic approach to support highspeed rail.
The bottom line is XpressWest is ready to go and we are excited to bring
true high-speed rail to our Country. The real question is: do those in
Washington D.C. have the courage and vision to proceed or is our
leadership going to force projects throughout the United States to seek
financial support for infrastructure in our Country from foreign