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Sat July 31 2021

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Webuild finalises $16bn US rail deal

16 Jun Webuild and its US subsidiary Lane Construction have signed the final agreement for a US$16bn (£11.4bn) project that will introduce Japanese bullet trains to the USA.

 The train will be the Tokaido Shinkansen N700S, produced by Central Japan Railway Company
The train will be the Tokaido Shinkansen N700S, produced by Central Japan Railway Company

The agreement with Texas Central LCC involves construction of a high-speed railway between Dallas and Houston. Financial close is expected to take place in the coming months, clearing the way for the start of construction.

The final agreement signed with Texas Central consolidates the results of four years of work and analysis by Webuild (formerly Salini Impregilo) and Lane, bringing the project to the advanced design stage. It also updates the value of the preliminary agreement signed in 2019.

The contract is set to create approximately 17,000 direct jobs and 20,000 indirect ones. It will involve an estimated US$7.3bn-worth of materials from suppliers across 37 states, together with services provided by specialised Italian suppliers.

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Webuild and Lane will oversee the civil engineering work, which entails the design and construction of the 380km of railway, as well as the buildings and services for maintenance and other equipment, industrial buildings, train depots and facilities. A major part of the railway will be elevated to minimise the impact that the infrastructure will have on residents and landowners.

The Dallas-Houston high-speed railway is based on Central Japan Railway’s Tokaido Shinkansen system. It will carry passengers at speeds of up to 320km/h, faster than any other rail service in the United States. It will bring them to either destination in less than 90 minutes, with a single stop at Brazos Valley near Texas A&M University. The service is designed to prove a major benefit for at least 100,000 people – known as super commuters – who travel between the two cities by car or air every week. 

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