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Is the cost of building new transit lines higher in the US than in Europe?

Tuesday, December 8, 2020
By Esther Honig
YES

Nearly all U.S. rail projects cost more than similar projects elsewhere. The International Union of Railways found that the construction cost of light rail in North America was triple the per-mile cost in Europe.

Europe has more experience building rail lines and has competition among suppliers, lowering prices. The U.S. also has higher costs for rolling stock, and U.S. projects tend to involve more expensive-to-build “elevated sections, tunnels or grade separation.” Labor practices may be a factor. Underground construction in the U.S. employs around four times the number of workers as in Europe.

Alon Levy, who writes extensively on the subject, observes that costs are higher across the entire English-speaking world than elsewhere, reflecting “insularity.” “New York needs to do what the Spaniards and Koreans and Italians and Swiss and Nordics do,” he says, citing some lower-cost providers.

This fact brief is responsive to conversations such as this one.
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