The California High-Speed Rail Authority has identified a consortium of private companies that could help finance and develop sections of the state’s high-speed rail network beyond the Central Valley.
During a recent board meeting, CEO Ian Choudri affirmed that the agency intends to award a co-development agreement to Momentum Alliance Partners by the end of June. The consortium includes infrastructure investors, engineering firms and rail operators from several countries.
Choudri said the level of private-sector interest demonstrated that companies are willing to participate in the project despite previous doubts about investor involvement.
More specifically, under a new model previously outlined by the Authority, private investors could provide funding to design and construct rail segments more quickly than would be possible using public funding alone. In return, the investors would operate and maintain the infrastructure while being repaid through public funding and, over time, revenue generated from passenger services and commercial activities associated with the rail network.
Speaking at the recent meeting, Choudri said similar financing arrangements have been used in countries including Japan, Italy, Spain and France.
Choudri, who became chief executive of the authority in 2024, has advocated for financing approaches commonly used in countries with established high-speed rail systems. He has previously stated that securing private investment depended on the state’s commitment to long-term funding.
In 2025, California lawmakers approved annual funding of 1 billion USD for the high-speed rail programme through 2045. This increased the project’s available public funding to 39.3 billion USD.
The proposed investment consortium consists of eight companies:
- Plenary, an Australian infrastructure investment and development company
- CDPQ Infra, an infrastructure development firm owned by La Caisse, a Canadian public pension fund manager
- SNCF Voyageurs, a rail operator and subsidiary of France’s state-owned SNCF Group
- Jacobs, an engineering and development company headquartered in Dallas, Texas
- Keolis, a public transport operator partly owned by SNCF and La Caisse
- Steer, an international consultancy specialising in infrastructure and transport services
- Sener, a Spanish engineering and technology company
- Systra, an engineering and consulting firm involved in the design of high-speed rail projects worldwide.
According to Choudri, the co-development agreement will run for 30 months and be divided into three phases. The authority plans to invest between 9 million USD and 10 million USD during the initial phase.
He said the partnership would focus on identifying investment opportunities and exploring ways to generate value from rail-related assets before the wider network is completed.
The California High-Speed Rail project is currently under construction in the Central Valley. The authority is seeking additional funding and delivery models as it works towards extending the network to other parts of the state.
To engage further with the discussions surrounding the project, check out our recent podcast episode on California High-Speed Rail’s New Delivery Strategy.
