The passenger transportation demand, rapidly changing due to the rising cost of gasoline, has generated new private investment opportunities in the areas of high-speed rail and unconventional ground transportation systems in the United States and Canada. The Ray Rail, LLC, is introducing a dual development model that consists of an environmentally friendly guided passenger transportation component, and a real estate component that includes residential, commercial and recreational development of land and/or air rights within the terminals, key stations, and other suitable localities along the line. The passenger transportation component thus becomes one of the private development utilities that can be built and operated without public subsidies.
This model successfully functions in Hong Kong, and it is similar to the early US railways’ implementation approach based on private development generated by governmental land grants. The Ray Rail’s updated version offers outstanding opportunities to private capital, and generates new levels of public transportation convenience including housing, employment, and mobility to those who do not wish or cannot drive. The future Ray Rail’s focal communities will have it all at a walking distance, including travel.