Project Management – Summer 2022

Assignment 5: Hussam Dawood Al-Areeqi [ID: 62030123]

Case Study (5.2):

California’s High-Speed Rail Project

Questions:
1. Assess the benefits and drawbacks of the high-speed rail project. In your opinion, do
benefits outweigh drawbacks, or vice versa? Why? Justify your answer.

The high-speed rail project has many benefits which include:

• Benefits of the High-Speed Rail Project (HSRP)
o Providing an easy, fast, and cheap means of connection for people living far
away from one other.
o This project will lead to the establishment of new relevant projects in the
targeted states and will result in substantial economic and environmental
improvement.
o This project provides a transportation means that is not only cheap & fast; it is
also reliable and will not cause any delays in traffic, for instance.
o High-speed rail will also reduce pollution caused by motor vehicles since it is
powered by electricity that is generated by renewable energy sources. With
most people relying on high-speed rail, the number of motor vehicles on the
road will decrease and therefore less air pollution. The quality of air will
improve.

• Drawbacks of the High-Speed Rail Project (HSRP)

o This project is almost impossible to complete because the budget estimation did
not take many factors into consideration, such as the geographic nature of
California’s valley, the exaggerated land prices in areas close to Las Vegas & San
Francisco, etc.
o With the change from Obama’s Administration (Democrats) into Trumps
(Republicans), the project did not continue to have the necessary funds.
o The neighboring villages of this project may experience sever noise of the trains
passing through these villages, especially that the proposed wall will not be
implemented anymore.
o This issue will also reduce the property values of these neighborhoods, which
was the same issue that Wasco residents faced.

In my opinion the drawbacks of this project are way too many and they outweigh the benefits.
Within 10 years from now, it is not even clear whether or not many residents would be able to
reap the benefits of this project and whether relevant issues would be resolved.
 Project Management – Summer 2022
Assignment 5: Hussam Dawood Al-Areeqi [ID: 62030123]

2. What are the implications of starting a project based on tenuous projections that may
or may not come true 10 years from now ?

The apparent consequences are to commit to the project and then build a "escalation of
commitment" attitude that claims that because we have already invested so much time and effort
in this project, we must now continue working on it regardless of future expenses or concerns.
Economic conditions, demography, and energy challenges are all transient, and the choice to start
this project may or may not pay off in the long run. That is a significant risk for a state that is now
running a $35 billion deficit.

3. Could you justify the California high-speed rail project from the perspective of a
massive public works initiative? In other words, do other factors enter into the
decision of whether or not to pursue a high-speed rail project? Why?

With the 2011 economy still exhibiting indications of major slumping and high unemployment
rates, some may argue that the California High-Speed Rail Initiative is merely a modernized
version of earlier schemes that have resulted in successful projects in the United States. The
difficulty is that contemporary economics implies that the multiplier impact of public-works
investment does not always have long-term beneficial consequences on the economy, even if this
is a public-works effort. So why not use the money to repair the hundreds of bridges and roads
that are deteriorating at frightening rates around the country?