Publicly funded transit projects are not the only ones that overestimate ridership and underestimate costs. The casinos that own the Las Vegas Monorail, which started operating in 2004 and went bankrupt in 2010, wants to borrow $110 million to extend the line about 0.8 miles. That’s a lot of money for a system that carries less than 13,000 riders per day.
Serving the gaudy hotels on the Las Vegas Strip (which isn’t actually in Las Vegas), the existing monorail has been strategically positioned to give its patrons excellent views of parking lots, dumpsters, and service roads, which is one reason why it went bankrupt. It could increase patronage by going to the airport, but taxi and limo companies have lobbied hard against that (and even limos might be less expensive than unsubsidized rides on the monorail). Continue reading