A JR Tokai N700 series shinkansen
NAGOYA -- A project to develop a high-speed railway in the U.S. state of Texas, building upon the technological assets of Central Japan Railway, is tapping local businesses to raise about $4 billion, according to people familiar with the matter.
Through the fundraising campaign, the project will secure about a third of the $12 billion in assumed total construction costs. Central Japan Railway, known as JR Tokai, could invest a few million more.
The envisaged high-speed railway is to run a revamped version of JR Tokai's mainstay N700 series shinkansen on some 400km between Dallas and Houston. Unlike most other high-speed railway projects, which are funded with state money, the Texas venture is being bankrolled entirely by the private sector. Locally financed Texas Central Partners is responsible for setting routes and acquiring the necessary land.
Texas Central Partners plans to set up a new company by 2017 to start construction. It hopes to open the route by 2021. The rest of the construction costs are expected to be covered by debt. Texas Central Partners has already raised about $73 million from local companies and other parties.
The Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development on Saturday said it will help to speed up the project by investing $40 million in Texas Central Partners, with an eye to increasing the amount to about $146 million.
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