Boring Company Wins Bid For High-Speed Rail In Chicago

JUN 15 2018 BY STEVEN LOVEDAY 19

Soon, Chicagoans may be able to get to the airport in record time and save money in the process.

About six months ago, we reported that Elon Musk’s Boring Company put in a bid to build some type of high-speed transportation system to deliver people to Chicago O’Hare International Airport much quicker. Details were slim about what type of system would be constructed. It could be an above-ground train (Hyperloop) or a subterranean tunnel of sorts.

Apparently, the city of Chicago has a lot of faith in Musk and his side venture, because The Boring Company has been chosen to carry out the multibillion-dollar high-speed rail project. The company is currently digging proof-of-concept tunnels near Los Angeles and Washington, but this is the first, more official project to go public.

The city is set to make an official announcement in the coming days, but a source with details surrounding the matter told Bloomberg that The Boring Company secured the deal ahead of other highly qualified outfits like Mott McDonald and JLC Infrastructure. Mott McDonald designed a Heathrow Airport terminal in London and JLC is funded by basketball legend Magic Johnson. Meanwhile, The Boring Company has already Tweeted that the deal is a go:

The project will require Musk’s company to foot the entire bill. The city of Chicago is not planning to finance the operation, which likely meant a limited number of bids. Oftentimes, with projects of this nature, this is not the case. However, it gives Musk and his new company an opportunity to prove itself on a larger scale. Joe Schwieterman, director of the Chaddick Institute for Metropolitan Development at DePaul University said:

Elon Musk is looking for a place to prove his technology works, and Chicago is rolling out the red carpet for him.

Details surrounding the project are still as unclear as they were when Musk first mentioned it. Back in December, he answered a few questions without divulging much:

The new transportation system will connect the airport with downtown Chicago. Currently, the 15-mile trip costs about $40 by taxi. People can also choose to use the Chicago Transit Authority train system, which takes about 40 minutes and costs $5. The city’s goal is to have the new system run every 15  minutes and take less than 20 minutes to deliver passengers to O’Hare, at fares that are lower than that of current taxi and ridesharing rates.

The Boring Company will negotiate exclusively with the city of Chicago over the course of the next year to iron out the details.

Source: Bloomberg

Categories: General, Tesla

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19 Comments on "Boring Company Wins Bid For High-Speed Rail In Chicago"

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Hopefully the downtown boarding station is near Union Station. Then I could take the train to Chicago, walk to the Tesla shuttle, and get to the airport for a flight.

Hope this doesn’t impact funding for the Y and Semi.

Separate ventures.

OK, but since Musk is funding this project, where are the funds coming from?

Someone else. Who say they can’t go crowdfunding?

Hope you are right.

> Who say they can’t go crowdfunding?

Because they will need around $1 billion for this project, and there is no way crowdfunding can provide those kind of funds.

And crowdfunding has some kind of payback, usually in the form of a product. This is a service for a specific city.

The type of crowdfunding generally used for this type of project, when it’s not paid for by taxes, is called “municipal bonds”. 😉

Apparently that’s not the plan here, but my point is that more traditional forms of investments aren’t really all that different from crowdfunding.

You just answered your own question.

What makes you think Musk is using Tesla funds?
That is a ridiculous assumption.

Distraction? What distraction?

Yep, it makes total sense for Tesla to build the cars for this, since they have manufacturing and logistics distilled down to a complete science.

“The city of Chicago is not planning to finance the operation, which likely meant a limited number of bids.”

Yep, fersure, that’s why I didn’t bid on it…

They have no record of building anything like this on an urban scale but they get this contract?

Maybe because the test tube in LA was convincing enough? Got to start somewhere. For the right price Chicago won’t be picky.

There are companies who have real track records building subways.

But are they willing to build it at no cost to Chicago?

“The project will require Musk’s company to foot the entire bill. The city of Chicago is not planning to finance the operation, which likely meant a limited number of bids.”

Read this article, it can cost $500 million per mile, where is Musk getting this?
https://cleantechnica.com/2018/06/15/the-chicago-transit-authority-selects-the-boring-company-for-new-high-speed-route/

“They have no record of building anything like this on an urban scale but they get this contract?”

I imagine there was not a lot of competition for a large-scale urban transportation project built on the basis of “Our city can’t pay for it, but if you want to fund it out of your own pocket, then we’ll give it our blessing!”

It will cost billions, where is he getting that?
I doubt he will pay for it himself.