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The Indicator from Planet Money

Why California's high speed rail was always going to blow out

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 6 June 2024

⏱️ 11 minutes

🧾️ Download transcript

Summary

99.5 percent of megaprojects are either over time, over budget or have lower benefits than expected. What's going wrong? Today, we look at case studies from California's high speed rail project to the Sydney Opera House to consider the do's and don'ts of ambitious projects.

Bent Flyvbjerg and Dan Gardner's book on megaprojects is How Big Things Get Done: The Surprising Factors that Determine the Fate of Every Project, from Home Renovations to Space Exploration and Everything In Between.

Related episodes:
Why building public transit in the US costs so much (Apple / Spotify)
Planes, trains and bad bridges (Apple / Spotify)

ICYMI, preorder our new Indicator t-shirt at the NPR shop. For more ways to support our show, sign up for Planet Money+ where you'll get sponsor-free listening, bonus episodes, and access to even more Indicator merch!

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Transcript

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0:00.0

NPR.

0:03.0

In

0:05.0

In the

0:08.0

In 2011.

0:12.0

In 2011, Dan Richard got a call from California's governor at the time, Jerry Brown.

0:18.1

And Jerry Brown had a job offer for him that Dad actually turned down. But they kept talking and eventually they got to this other idea that had been around for decades.

0:28.0

California high speed rail, a super fast train that would take passengers from LA to San Francisco in just two and a half hours.

0:36.0

Nothing like this had ever been done before in the US.

0:39.0

And at this time it was more than a dream.

0:41.0

It had a budget, $33 billion when it went to voters a few years prior.

0:46.5

It had a completion date, 2020. It also had a board. So Dan, a veteran transport executive, said I could help there.

0:55.0

And I believe I literally said the words to him, you know, how hard could that be?

0:59.0

So, uh, famous last word.

1:01.0

He gave me an opportunity to find out.

1:04.1

How hard could it be?

1:06.3

Well, Dan soon learned that California high-speed rail was victim to what often plagues

1:12.4

mega projects. En cost overruns, and delays.

1:17.0

Today on the show How to Build Big. From California High Speed Rail to the Sydney Opera House, We will learn that do-s and don'ts on

1:24.4

leading ambitious projects.

1:28.2

Support for this podcast and the following message come from Wise, the app that makes managing your money

1:34.6

in different currencies easy.

1:36.7

With Wise, you can send and spend money internationally at the mid-market exchange rate,

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