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takyon [soylentnews.org] writes:

A private venture that aimed to build high-speed rail between Los Angeles and Las Vegas [reuters.com] has fallen apart:

XpressWest, the private U.S. firm proposing to build a high-speed rail link between Las Vegas and Los Angeles, terminated a joint venture with Chinese companies less than nine months after the deal was announced, citing delays faced by its partner.

Las Vegas-based XpressWest said the decision to end the relationship stemmed from problems with "timely performance" and challenges that the Chinese companies, grouped under a consortium called China Railway International (CRI), faced "obtaining required authority to proceed with required development activities".

XpressWest was started by Las Vegas developer Marnell Companies. It formed the venture with the Chinese consortium in September, infusing $100 million into the project. XpressWest had expected to break ground as soon as this year on the project, which one analyst estimated to be worth $5 billion.

The announcement is a blow to China, which has built the world's largest high-speed rail network in less than a decade. The XpressWest project was seen as a foothold into a burgeoning U.S. high-speed rail market and an opportunity to showcase China's technology.

One sticking point was a federal funding requirement that high-speed trains be built in the United States. XpressWest says it will continue to pursue other partnerships.

Related: Texas Company Looking to Japanese Partner to Build Dallas-Houston High-Speed Rail, Opposition Mounts [soylentnews.org]

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