CHINA & US: China Interested In California's High-Speed Rail

April 12, 2010

by Stephanie Martin

The Chinese rail ministry is in talks with the state government in California to both build and finance a link between Los Angeles and San Francisco. The high-speed rail project needs private financing of up to $12 billion. California is talking to other countries that have high speed rail as well.

TRANSCRIPT

RENEE MONTAGNE, host:

And here's another possible Chinese export to the U.S.: high-speed rail. Beijing has built thousands of miles of high-speed rail lines in China. Now it wants to offer its expertise to California.

From member station KQED, Stephanie Martin reports.

STEPHANIE MARTIN: China's railway ministry is currently in talks with California and General Electric to help build and finance a high-speed route linking San Francisco to Los Angeles.

Mr. JEFFREY BARKER (Deputy Director, California High-Speed Rail Authority): We don't have high-speed rail in the United States, and so we want to borrow the expertise from those who do.

MARTIN: The California High-Speed Rail Authority's Jeffrey Barker says the state wants to learn as much as possible about existing systems.

Mr. BARKER: And on their end, I think it benefits them to keep apprised of where we are in our process because, of course, other countries, you know, want to do business with California when we finally build a high-speed rail.

MARTIN: But before it can do that, it needs money - between $10 and $12 billion in private financing. The Chinese have offered to provide capital, though no word yet on how much. They've drawn up preliminary plans to license Chinese technology to GE and to supply engineers.

The University of California Berkeley's William Garrison is an expert on high-speed rail. He says a partnership with the Chinese would likely mean speedy construction and a good price.

Professor WILLIAM GARRISON (University of California, Berkeley): So the benefit would be the Chinese would produce it at less cost than we would produce it. We'll be busy producing something else that we can make more money from.

MARTIN: California is also talking with other countries that have high-speed rail, but it will need to decide a contract winner soon. The state wants to have its system up and running by the year 2020.

For NPR News, I'm Stephanie Martin in San Francisco.

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