UPDATE 2-US looks to private investment for high-speed rail (Source: Reuters)

UPDATE 2-US looks to private investment for high-speed rail | Reuters

UPDATE 2-US looks to private investment for high-speed rail
Wed Jul 15, 2009 7:21pm EDT

* Participation seen from those with overseas experience

* Broadband another possible area for private investment

* Economic recession to dampen private investment in roads (Adds Alstom interview, LaHood quotes, highway funding)

By John Crawley

WASHINGTON, July 15 (Reuters) - The United States expects significant private investment in high-speed rail in coming years with firms from Europe and Asia -- where bullet and other trains are prominent -- to factor heavily in its development.

Transportation Secretary Ray LaHood, speaking to policy experts and reporters, said rail would be a strong opportunity for outside participation with the Obama administration taking early steps financially and politically to advance new train corridors to compete with short-haul air and highway travel.

"Companies involved in (overseas) high speed rail are in the U.S. right now," LaHood said, noting that several states are vying for a piece of an $8 billion downpayment in federal rail funding from February's economic stimulus package.

"I think you'll see private investment in high speed rail -- from Europe and Asia, not just the U.S.," he said.

LaHood also said broadband expansion would be a good bet for private interests but was less optimistic about attracting near-term investment from outside government in U.S. road projects due to recession.

"That may wait a little longer," LaHood said.

Some U.S. and overseas corporations have recently looked into renting roads and levying tolls to finance repairs.

States with high-speed train plans in the works include Nevada and California. Experts define high speed above 120 miles per hour and very high speed -- like bullet trains -- in excess of 200 mph.

Experts say building U.S. high-speed rail corridors will require tens of billions of dollars in federal and private financing over many years.

IBM (IBM.N) , which provides technology for rail systems, has said some $300 billion will be spent around the world over the next five years on high-speed rail.

Amtrak, a government-subsidized for-profit company, is the only long-haul passenger railroad in the United States. And its signature line, the Acela, runs in the Northeast and only a fraction of the time at maximum speed due mainly to infrastructure limitations.

LaHood was not specific about which overseas entities might invest or seek contracts in rail projects.