Economic Challenges
Our economy is dependent on the high-speed transportation of people and cargo. Therefore, any new transportation solution must integrate and connect with existing air travel, lower speed ground systems, and the movement of goods through the creation of multimodal transportation centers. Currently, airplanes are our only source of high-speed travel. As we learned from the events of 9-11, a more diversified high-speed U.S. transportation system is required if we are to maintain economic stability and decrease our exclusive reliance upon air travel and fossil fuels. To meet the needs of our region's expanding population, the maglev system is the only real and viable solution that exists at this time for Southern California and the United States.
Currently, all transportation systems in the U.S. are subsidized by tax dollars. Maglev represents a chance to change this. The low operations and maintenance costs are key factors in the economic viability of the maglev system. The basic nature of the non-contact electro/magnetic technology means low-wear and less maintenance costs than traditional transit technology. There are no engines with bearings and other moving parts to wear out. Coupled with its fully automatic operation, resulting operating costs are half as high as conventional systems. Low energy consumption is another factor in the economic viability of maglev. Because the conductors in the guideway are divided into individual sections that are only supplied with power as the vehicle passes, energy is used only when necessary. Maglev allows for smaller turning radii, and has higher grade climbing ability to compare to conventional rail systems. This makes initial routing of the system much more flexible and therefore cost effective. Passenger operating revenues from the daily commuters, cargo fees, and other projected revenues would fund construction and operations.
In addition to passengers, maglev vehicles can also carry time-sensitive, high-value cargo, in specially designed cargo sections. These can be used for dedicated high-speed cargo trains, or added to passenger trains for mixed use. As a result, no government grants are foreseen for construction, operations, and maintenance of the system, potentially making the Southern California Maglev Project the first, non-subsidized transportation operations in the United States.