http://www.bloomberg.com/news/2012-08-26/u-s-taxpayers-are-gouged-on-mass-transit-costs.html
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California Bloat
The French rail operator SNCF told the California High- Speed Rail Authority that it could cut $30 billion off the project’s $68 billion estimated price tag. San Francisco can barely build underground light rail for the price that Tokyo pays for high-capacity subways. Los Angeles’s planned subway to the sea will be a bit cheaper, but is still very expensive considering the area’s lack of density.
The budgets for other types of urban public-works projects can be just as shocking. Who can forget Boston’s Big Dig, the $24 billion highway boondoggle? But mass-transit networks stand to lose most from out-of-control infrastructure costs.
A huge part of the problem is that agencies can’t keep their private contractors in check. Starved of funds and expertise for in-house planning, officials contract out the project management and early design concepts to private companies that have little incentive to keep costs down and quality up. And even when they know better, agencies are often forced by legislation, courts and politicians to make decisions that they know aren’t in the public interest.
Comparing American transit-construction practices with those abroad yields a number of lessons. Spain has the most dynamic tunneling industry in the world and the lowest costs. In 2003, Metro de Madrid Chief Executive Officer Manuel Melis Maynar wrote a list describing the practices he used to design the system’s latest expansion. The don’t-do list, unfortunately, reads like a winning U.S. transit-construction bingo card.
Perhaps the most ostentatious violation of Melis’s manual of best practices is expensive architecture in stations. “Design should be focused on the needs of the users,” he wrote, “rather than on architectural beauty or exotic materials, and never on the name of the architect.”
American politicians have different priorities. The Port Authority of New York and New Jersey is spending $3.8 billion on a single subway station at the World Trade Center designed by Santiago Calatrava, a Spanish architect known for his costly projects. If New York could build subways at the prices that Paris and Tokyo pay, $3.8 billion would be enough to build the entire Second Avenue subway, from Harlem to the Financial District.
Spain’s Model
Melis also warned against “consultants who consultant with consultants and advisers who advise advisers,” something American planners would do well to learn. He said he didn’t hire any “large firm of consulting engineers” as general project managers for his Metro de Madrid expansions, and that designers weren’t allowed to interfere with, or bid for, their own construction contracts.
Not so in the U.S. Parsons Brinckerhoff, perhaps the biggest name in the nation’s transit construction industry, is both the lead-design contractor and project manager for California’s planned high-speed rail line, and the company stands a good chance of winning construction contracts for its own designs.
As if that conflict of interest wasn’t bad enough, the California High-Speed Rail Authority’s new CEO, Jeff Morales, arrived at the agency after a stint as senior vice present at Parsons Brinckerhoff, where he worked on the authority’s business plan.
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-- Andy