Honolulu Rail More Boondoggly Than Ever

The Federal Transit Administration’s latest estimates suggest that the Honolulu rail line now under construction could cost nearly $10.8 billion, or more than twice the $5.1 billion originally promised. That’s the “highest possible cost” calculated by its estimation process, while the “likely range” is $7.2 to $8.0 billion. However, two years ago, the highest possible cost was estimated to be $7.6 billion, which is right in the middle of today’s likely range.

Any of those numbers are drastic overruns. Typically, transit agency officials have denied there is an overrun. But now they are proposing to not build the last five miles of the rail line into downtown Honolulu. Since they started construction in middle of farm lands 20 miles from downtown, they would truly have a rail line going from nowhere to hardly anywhere.

Even if it doesn’t finish the line, the city has already purchased and may continue to purchase land in the downtown area for the rail line. This creates uncertainty among property owners. Even further uncertainty is generated by reports of shoddy construction. Meanwhile, the FTA has hinted it might withhold some of the federal government’s share of funding if the line isn’t completed.

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