US cancels environmental review, grants for long-stalled high-speed rail
The transportation department said it was rescinding funds for the proposed $20bn (R360.17bn) Baltimore-Washington Superconducting Magnetic Levitation (Maglev) project, after 'nearly a decade of poor planning, significant community opposition, tremendous cost overruns, and nothing to show for it'.
The proposal aimed to run trains powered by magnetic forces at speeds up to 500km/h, either underground in deep tunnels or elevated on viaducts.
The developer, Northeast Maglev, criticised the decision to cancel the environmental review, calling it the 'missed opportunity of a generation to deploy the fastest and safest ground transportation system in the world,' that 'further cements America's transportation infrastructure technological inferiority'.
It noted that since its inception, the privately-led initiative had invested nearly $158m (R2.84bn) in the project.
The Federal Railroad Administration (FRA) said it will not prepare a final environmental analysis, saying the project is no longer feasible. An environmental review, started in 2016, has been on pause since 2021.
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TimesLIVE
04-08-2025
- TimesLIVE
US cancels environmental review, grants for long-stalled high-speed rail
The US government said on Friday it cancelled an environmental review of a long-delayed proposed high-speed rail project between Washington and Baltimore, and scrapped $26m (R468.1m) in grants, effectively ending the project. The transportation department said it was rescinding funds for the proposed $20bn (R360.17bn) Baltimore-Washington Superconducting Magnetic Levitation (Maglev) project, after 'nearly a decade of poor planning, significant community opposition, tremendous cost overruns, and nothing to show for it'. The proposal aimed to run trains powered by magnetic forces at speeds up to 500km/h, either underground in deep tunnels or elevated on viaducts. The developer, Northeast Maglev, criticised the decision to cancel the environmental review, calling it the 'missed opportunity of a generation to deploy the fastest and safest ground transportation system in the world,' that 'further cements America's transportation infrastructure technological inferiority'. It noted that since its inception, the privately-led initiative had invested nearly $158m (R2.84bn) in the project. The Federal Railroad Administration (FRA) said it will not prepare a final environmental analysis, saying the project is no longer feasible. An environmental review, started in 2016, has been on pause since 2021.
The South African
23-07-2025
- The South African
MAJOR steps taken towards South Africa's first bullet train
South Africa's first bullet train means you'll be able to travel a 500 km loop from Limpopo to Gauteng in the blink of an eye. Better still, major steps towards its highly anticipated 2030 completion are being made. The Limpopo-Gauteng Speed Train Project was first announced in 2023 and is now entering feasibility and environmental impact assessment. As such, these studies will determine whether the project is safe, environmentally sound and economically viable. The launch of South Africa's first bullet train is being led by both national and provincial government, along with a consortium of private and foreign investors. The Department of Transport says one key challenge it has identified is land acquisition along the planned 500 km route. Therefore, successful negotiations with communities and landowners in Limpopo and Gauteng must still take place before South Africa's first bullet train comes to life. However, if all goes to plan, construction is expected to begin next year, in late 2026, reports BusinessTech . Talk of High-Speed Rail was first raised in South Africa back in 2010. Will it finally come to fruition two decades' later? Image: File According to reports, South Africa's first bullet train will significantly reduce travel time along the route. Currently, a six-hour journey by car from Pretoria to Polokwane would take just 90 minutes on South Africa's first bullet train. And that will include multiple stops in the likes of, Hammanskraal, Bela-Bela, Mokopane, Louis Trichardt, and Musina. Using a phased approach, the train is expected to exceed 200 km/h on specific segments of the route. And then travel at a slower speed between frequent stops, attaining an average speed of approximately 175 km/h between Pretoria and Polokwane. While South Africa's first bullet train won't match the speeds of others globally, it still technically qualifies as one: TRAIN COUNTRY YEAR TOP SPEED Maglev China 2003 311 km/h CRH380A China 2010 302 km/h Transrapid Germany 2008 279 km/h Shinkansen Japan 1964 275 km/h TGV France 1992 236 km/h Japan's impressive Skinkansen, which has been in operation since 1964, is actually a fleet of high-speed trains. Image: File Furthermore, Gauteng government has already committed R120 billion towards expanding its rail network over the next five years. Not only does this include South Africa's first bullet train, but also six new areas in Gautrain's revived rail network. It also says it hopes to see PRASA's commuter network reach 600-million passenger journeys annually by 2030. However, cost estimates for South Africa's first bullet train are high. This single line alone is said to cost in the region of R530 billion. Quite rightly, this is raising serious questions about funding and long-term feasibility. It will also not be the only one on the African continent. Morocco received a high-speed TGV back in 2018. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
23-04-2025
- IOL News
Interest rates to stay high despite inflation plunging to 5-year low
Stats SA said the headline consumer price inflation (CPI) fell sharply by 0.5 percentage points to 2.7% in March from 3.2% in February, mainly on account of food and non-alcoholic beverages and fuel prices. Image: Ayanda Ndamane/ Independent Newspapers. CONSUMERS reliant on credit may have to endure an extended period of restrictive monetary policy before the South African Reserve Bank (Sarb) considers cutting interest rates later this year, despite recent data showing inflation has plummeted to its lowest level in nearly five years. Data from Statistics South Africa (Stats SA) on Wednesday showed that inflation surprised on the downside and cooled for the first time in five months on the back of lower fuel and education. Stats SA said the headline consumer price inflation (CPI) fell sharply by 0.5 percentage points to 2.7% in March from 3.2% in February, mainly on account of food and non-alcoholic beverages and fuel prices. This better-than-expected inflation print marked the lowest reading since June 2020, falling below the lower bound of the Sarb's 3–6% target range. Even though inflation appeared contained, the Sarb last month decided to keep the policy rate unchanged at 7.5% on the back of more moving parts than usual, including a reweighting of the CPI and the proposed value-added tax (VAT) increases, as well as the oil price that reflected shifts in global markets. Kristof Kruger, senior fixed income trader at Prescient Securities, on Wednesday said real interest rates were now meaningfully restrictive, increasing the probability of a dovish pivot from the Sarb even though there was widening room for policy easing. 'The April CPI print will be critical. If it confirms this trend, the Sarb could begin easing by November 2025, with markets already pricing a 50–75 basis points cycle. The main constraint remains the rand vulnerability, any sharp selloff could complicate the outlook,' Kruger said. 'The March CPI report has changed the tone. With inflation now comfortably below target and FRA [Forward Rate Agreement] markets responding accordingly, a window for Sarb easing has opened. Positioning for a shallow cutting cycle, especially in the front-end and belly of the curve, looks increasingly justified.' Inflation has been a hot topic globally in the wake of Trump's tariff war, prompting both the US Federal Reserve and the International Monetary Fund to prominently raise concerns recently around the potential impact on both global economic growth and inflation. Inflation has fallen significantly, prompting discussions about potential rate adjustments. However, the Sarb's Monetary Policy Committee (MPC) maintains that sustained inflationary pressures continue to necessitate a cautious approach. Stats SA said the core inflation rate, which excludes volatile items such as food, non-alcoholic beverages, fuel, and energy, dropped to 3.1%, the lowest since September 2021, easing from 3.4% in February. On a monthly basis, consumer prices rose by 0.4% in March, the softest annual print since April 2021, after having slowed down from a 0.9% advance in February. Reza Hendrickse, portfolio manager at PPS Investments, said inflation was unlikely to remain sub-3% going forward, and this could be something the MPC flags next month, in addition to significant global risks. 'With CPI currently below the bottom of the Sarb's historic target range, and well below the mid-point, inflation is clearly not a problem in SA. Electricity is the only component of the CPI basket, which is and will remain a problem, given persistent above-inflation increases,' Hendrickse said. 'Although the situation remains fluid as posturing and negotiations continue among countries, we do expect some impact on both global growth and inflation. The impact on SA will be relatively muted however, and probably not enough for the Sarb to be overly concerned about delivering the one or two more cuts that the market is currently expecting.' Housing rents, which were surveyed for the first quarter in March, increased by 2.9%, and earners' equivalent rent by 2.4%, compared with the fourth quarter of 2024. Standard Bank Group head of South Africa macroeconomic research, Dr Elna Moolman, said rental inflation was a big part of the consumer inflation basket, and this was the second consecutive quarter in which rental inflation surprised to the downside. 'So this is clearly reflective of weakness in the residential rental market. Inflation pressure generally remains quite benign, and this vindicates the Reserve Bank's decision to cut interest rates since late last year,' Moolman said. 'This doesn't, however, necessarily remove all of the Reserve Bank's potential concerns around medium-term upside pressure on inflation from the global tariff developments and a weaker currency, so this doesn't necessarily guarantee further interest rate cuts in the short term.' BUSINESS REPORT
