Why the Private Sector Must Lead the Way

For the foreseeable future, there are no discretionary tax revenues available from federal, state, and local governments to build a new public transportation system serving this corridor, so the private sector must lead the way.

Therefore, DesertXpress has been uniquely designed to be a financially viable, long term solution to the mobility crisis in the corridor without requiring public tax dollars. The forecasted revenue stream from fares, advertising, and sponsorships is robust, and it will enable the project to be self sustaining as a private interstate passenger railroad.

Working in cooperation with the public sector, which controls the bulk of the right of way upon which the system will operate, the resultant private/public partnership represents the most responsible and cost-effective way to address the pressing need for a new "people pipeline" in this corridor.

Financial Feasibility and Economic Impact

A wide range of fares has been studied and the fare structure has not yet been adopted. Comprehensive ridership studies show that if the average one-way fare were to be in the range of $55, ridership in the first full year of service is estimated to be 4.1 million round trips, which would divert 22.8% of the total annual trips (18.2 million) between the two cities. Trains would operate between 6 am to 10 pm (or later), daily, 365 days a year, at 20 to 30 minute intervals during peak periods and 1 to 2-hour intervals during non-peak periods.

The preliminary total cost for DesertXpress is estimated to be approximately $3 billion, including design, construction, trains, systems, testing, and commissioning. This figure will be firmed up through the EIS process as the specific alignment alternatives are selected for each portion of the corridor. Construction of the project is estimated to take up to four years, beginning in early 2008 following environmental review and approval.

A study conducted by the Sacramento Regional Research Institute found that the economic impact of $3 billion invested in transportation infrastructure results in over $50 billion in total economic impact from direct, indirect and induced impact comprised of output, employment, value added and employee compensation. Based upon this study, the private investment to design, build, operate and maintain the DesertXpress would generate a positive economic impact for both states and the local economies, and would create nearly 80,000 new direct and indirect jobs¹.

¹ California Infrastructure Coalition: Economic Impact of Funding California's Transportation Infrastructure, 2004