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June 13, 2016

XpressWest terminates high-speed rail JV with China Railway

US railway firm XpressWest and China Railway International (CRI) USA terminated their joint venture (JV), which was formed to build and operate a high-speed passenger rail project.

US railway firm XpressWest and China Railway International (CRI) USA terminated their joint venture (JV), which was formed to build and operate a high-speed passenger rail project.

According to a statement posted on XpressWest’s website, the JV was ended due to difficulties associated with timely performance and CRI’s challenges in obtaining required authority to proceed with required development activities.

The 370km high-speed rail Southwest Rail Network is planned to connect Las Vegas in Nevada with Los Angeles in California. XpressWest said it will continue the development of this interstate passenger rail system without assistance from CRI.

CRI was selected to develop, finance, build, and operate the project, which planned for stations in Las Vegas, Victorville, and Palmdale, as well as services throughout Los Angeles.

"XpressWest said it will continue the development of this interstate passenger rail system without assistance from CRI."

XpressWest’s CEO Tony Marnell said: "The team at XpressWest is optimistic CRI and its affiliates will one-day succeed in establishing a viable presence in the US rail market. However, our ambitions outpace CRI’s ability to move the project forward timely and efficiently.

"XpressWest is undeterred by this development and remains dedicated to completing its high-speed passenger rail project. The company will now aggressively pursue other available development partnerships and options expected to result in a more efficient and cost-effective project implementation experience."

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XpressWest expects to receive environmental approvals for the Victorville-Palmdale section of the line by this September.

However, the company is yet to find a manufacturer to build the trains as the Federal Government needs them to be produced in the US despite no such trains yet being manufactured in the country.

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