The California High-Speed Rail Authority is increasing its engagement with the private sector as it moves ahead with plans to expand the state’s high-speed rail network.
In January, more than 400 infrastructure, finance, and engineering professionals from around the globe gathered at an industry forum hosted by the Authority to explore practical approaches for delivering the project more efficiently.
This event marked the first significant step in a broader strategy to involve private capital and expertise in shaping and accelerating delivery. Ongoing discussions with industry stakeholders are now expected to inform the next phase of the project’s implementation.
A guaranteed minimum level of funding for the project would also help support more effective project planning and delivery, enabling a broader range of delivery options that could attract private investment. Governor Gavin Newsom has proposed a guaranteed minimum of 1 billion USD annually from Cap-and-Trade revenues through to 2045.
This funding proposal is designed to reduce financial uncertainty, particularly for the Merced to Bakersfield segment, identified by the Authority’s Office of the Inspector General as needing additional funding assurances. The measure aims to support long-term planning, lower overall delivery costs, and reduce exposure to inflation and market risks.
Since becoming CEO in late 2024, Ian Choudri has prioritised a number of measures focused on the delivery and financial stability of the project. These include:
- Adjusting the sequencing of construction to manage costs and focus resources on completing the 119-mile Central Valley segment
- Improving planning and construction methods
- Simplifying organisational processes
- Establishing a clear strategy to connect major cities earlier in the build programme
- Strengthening long-term funding agreements with the state government
Ian Choudri, California High-Speed Rail Authority CEO said:After 200 days in this role, I’m proud to report that all five of these initiatives are well into the implementation phase. Notably, our outreach to the private sector has been met with strong and growing interest. While each of these actions is advancing rapidly, a major priority is to bring private capital into the program by early next year. Now is the time for California to show leadership by seizing this ‘once in a project lifetime opportunity’ to unlock private capital and build the future of transportation in California.
A Request for Expressions of Interest (RFEI) will soon be issued to begin formal consultation on potential public-private partnerships. These partnerships may involve commercial opportunities related to rolling stock, stations, track access, communications infrastructure, and real estate. Other areas being explored include transit-oriented developments and freight applications.
Meanwhile, progress on the ground continues, particularly in the Central Valley:
- Active construction is underway along 119 miles
- Design work is progressing on extensions to Merced and Bakersfield (totaling 171 miles)
- 85 of 93 major structures are either complete or under construction
- 96 miles of the guideway have been built or are being built
- 99% of the land required for the initial segment has been acquired
- 463 miles of the 494-mile route between San Francisco and Los Angeles/Anaheim have full environmental clearance
The project has also produced notable economic and workforce outcomes:
- Over 15,000 construction jobs have been created, with more than 97% filled by Californians
- More than 1,600 workers are currently deployed weekly across over 25 sites
- 13 billion USD has been invested so far, with the majority directed to California-based firms and workers
- Over 1.84 billion USD has been paid to more than 900 certified small businesses, including nearly 860 million USD to disadvantaged business enterprises
- The project has generated an estimated 8.3 billion USD in direct labour income and nearly 22 billion USD in overall economic activity
- Training programmes have supported more than 250 pre-apprentices preparing for construction careers
