Throwing Good Money After Bad

The Federal Transit Administration has agreed to give Honolulu another $125 million to finish its insane rail transit line. Years ago, the FTA agreed to provide $1.55 billion for the rail line, but that was when the line was expected to cost $5.1 billion.

When projected costs exploded to $12 billion and the city proved to be an inept project manager, the FTA withheld about half of the promised money, saying that it didn’t believe the city would be able to complete the project. Now, after redesigning the system, negotiating with the FTA, and no doubt twisting some arms, the federal agency is handing over about 17 percent of the withheld funds.

Most importantly, the city now plans to terminate the line at South Street, a little over a mile short of the Ala Moana Shopping Mall where it was originally supposed to end. While South Street is in downtown Honolulu, Ala Moana is right on the edge of Waikiki and thus within walking distance of hotels, shops, and other tourist businesses. Waikiki and Ala Moana probably have more jobs than downtown Honolulu, and by ending at South Street, the rail line will miss carrying those employees to and from work.

On one hand, federal taxpayers can be grateful that the FTA isn’t handing over all of the withheld $755 million. On the other hand, the FTA originally agreed to spend money on this project based on ridership numbers that assumed the line would reach Ala Moana and shouldn’t have caved in by giving any support at all to this truncated system. The FTA is going to waste the money no matter where it goes, but Honolulu shouldn’t be rewarded for undertaking and mismanaging this rail line that never made sense in the first place.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

6 Responses to Throwing Good Money After Bad

  1. LazyReader says:

    Just leaving it out there.

    Honolulu downtown center to Waikiki is 3.3 Miles.

    Just gonna leave this… Las Vegas Monorail cost 650 million to build and is 3.9 miles in length. And built stations, track and train……….Finished construction in 7 Months. Months, Not years………

    • gsn794 says:

      Here’s another one for you. The Shinkansen extension from Nagano to Kanazawa: 142 miles, over 60 of which are in tunnels, 21 years, actual cost $17 billion (120 million per mile). It should also be noted that the top speed is three times higher than Honolulu’s rail.

    • PlanningAspirant says:

      Las vegas is much flatter, so that could account for some of the cost and time difference. Not enough that this isnt entirely the city’s fault tho.

  2. rovingbroker says:

    “Ladies and Gentlemen, thank you for riding Honolulu transit. This is the final stop. For those of you continuing to the Ala Moana shopping center, the next bus will be leaving the station in about ten minutes … if you’re lucky.”

    Watches every passenger on the train get off and stand in line … in the rain … where the shelter will be completed in about five years … if they can get the Feds to pay for it.

  3. gsn794 says:

    “FTA has said it will release $125 million in federal funding once the new full funding grant agreement is finalized, and will provide an additional $250 million after HART awards a contract for construction of the rail line and stations in the city center from Middle Street of the end of the line near South Street” civilbeat 10/20/2023

    Getting the next increment of $250 million will prove difficult at best. The last time they tried to award a contract for the then four mile long final city center segment, their estimate was over $1.1 billion lower (41%) than the lowest bid.

    “The Honolulu Authority for Rapid Transportation set the project’s design and construction affordability limit at $1.7 billion with a target of almost $1.6 billion, but City Center Connection Group’s bid was almost $2.8 billion, and Imua Transit Honolulu’s bid was just over $2.7 billion.“ construction dive 12/17/2020

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