Yet another rail boondoggle, this time in New Mexico

Published July 6, 2011 4:00am ET



Here’s one that I know Michael Barone will enjoy: An op-ed from a New Mexican mayor on the disastrous, money-losing boondoggle of a rail line between Albuquerque and Santa Fe — the “Rail Runner.” A few key numbers from the piece:

The train’s operating expenses are $23 million per year — covered in part by a federal grant that is expiring. The train’s revenues are just $3.2 million per year.

The principal and interest on the project comes to $18 million per year, until two balloon payments come due next decade, amounting to about half a billion dollars.

Mayor Lawrence Abraham of Los Ranchos de Albuquerque writes:

Putting this in even bleaker perspective over the span of 20 years, the true cost of the Rail Runner is close to $1.3 billion, with revenues of only $60 million.

So here we have a project that is losing 95 percent of cost. Note that this isn’t high-speed rail, but also that every single one of President Obama’s vaunted high-speed rail lines is its a potential repeat of this disaster. Don’t say you weren’t warned.