[ad_1]
The Brightline project connecting Los Angeles (though technically not in L.A.) to Las Vegas is progressing, with officials eyeing a 2028 completion date. However, a corporate rivalry surrounding the first high-speed train manufacturer could complicate the timeline.
According to a report from Bloomberg, issues stemming from federal funding through the infrastructure bill have sparked complications behind the scenes.
Brightline West, supported by Fortress Investment Group, has received partial funding of $3 billion from the bipartisan infrastructure bill. However, this funding is contingent on adhering to “Buy America” mandates, which require the use of domestically produced materials.
Due to these mandates, the trains must be manufactured in the United States by American firms. Unfortunately, there are currently no American train manufacturers equipped to produce trains that meet Brightline’s specifications for high speeds. As a result, Brightline is seeking train manufacturers in Europe. Presently, both France’s Alstom SA and Germany’s Siemens have applied for exemptions from the infrastructure bill’s requirements to construct the trains. This situation has led to numerous lawsuits as each company aims to prevent the other from securing the exemption needed for production.
In July, Alstom filed a lawsuit against the U.S. Department of Transportation, contesting the contract award for Brightline West’s train sets to Siemens. Alstom’s suit, submitted in the U.S. District Court in Washington, D.C., claims that the new Amtrak Acela fleet being produced at its Hornell, New York, facility should qualify as a domestic option.
In response, Siemens dismissed the lawsuit as an “unrelated challenge” in late August. The company had previously announced plans to establish a new factory in the U.S. to support Brightline West and confirmed on September 9 that the factory will be located in Horseheads, New York.
Both companies are heavily investing in U.S. facilities and labor. Alstom has committed $80 million to upgrade its Hornell facility, where it is modernizing Amtrak’s Northeast corridor trains. Siemens is slightly ahead, planning to start production of trains capable of exceeding 200 mph at its Horsehead, New York plant in 2026. Bloomberg has noted that while construction of the rail line from Las Vegas to Southern California is progressing, the ongoing Alstom lawsuit is causing concern among rail advocates, as ambitious projects can easily be disrupted.
Meanwhile, politicians like Democratic U.S. Rep. Seth Moulton from Massachusetts are advocating for modifications and exemptions to the “made in the U.S.” mandate. “While we all support ‘Buy America,’ we must find a starting point. Initial exceptions are very reasonable. It’s crucial that we actually establish high-speed rail in America so that citizens can appreciate its benefits,” he stated in an interview with Bloomberg.
.
[ad_2]
