Answer Case study questions in 2 pages

cars for peak period service. Thus, they contend that At this stage in the rail project, projected future
this rail project is the worst design possible because cost estimates are nearly meaningless. Both advocates
it combines an intrusive and expensive infrastructure and opponents of the rail system understand that the
including 21 stations, along with a low passenger car- summer of 2017 will be a watershed year for the proj-
rying capacity where over 60% of passengers will be ect, as the next round of bids for construction along the
forced to stand and hold handrails. Advocates of the critical four-mile corridor through downtown Hono-
projelt alsu appear luliave minimize the power reeds lulu is wel lu belielu. Opponents like forme guverne
for adding this rail system to the city’s electrical grid. In Cayetano and Dr. Panos Prevedouros, a civil engineer-
fact, the rail project’s power draw is estimated at nearly ing professor at the University of Hawaii, are adamant
50 MW, which is a major requirement The city’s utility that the pmjert’s hudget is not supportable “They can-
company is requiring the HART to renegotiate a price not complete the four in-town miles because those are
for the combined cost of substations, power generation, very expensive and we don’t
have an actual budget for
and possible airport utility relocation tasks that are them,” noted Prevedouros, who has run for mayor as an
likely to add an extra $500 million to the price tag. opponent of the project.
Why has the project budget ballooned to its pres- “Honolulu’s rail project does not deserve a single
ent state? Some of it is due to issues of timing. When dollar more from the federal government,” stated Cay-
cost estimates were first given to voters, the region was etano. “It has become a poster boy for how politics,
suffering from the effects of the Great Recession and incompetence, disinformation and outright lies are at
construction work was at a stand still, leading to expec the root of wasteful rail projects which do little for the
tations of low costs. However, after delays from lawsuits public except raise taxes.”19
took over a year to resolve, Honolulu’s construction
industry had dramatically changed for the better and Questions
preliminary cost estimates were no longer even close to 1. Why are public works projects like the Honolulu
accurate. “We gagged on the number. It was something Rail project nearly impossible to stop once they
over 60 percent higher than the estimates we had in 2011 have been approved, even if later cost estimates
and 2010,” said Daniel Grabauskas, the executive direc- skyrocket?
tor of the Honolulu Authority for Rapid Transportation. 2. Project management researchers have charged that
Other reasons for the cost escalation are more insidious; many large infrastructure projects, like this one,
critics have long charged the project’s advocates and suffer from “delusion” and “deception” on the
public officials with deliberately low-balling their initial parts of their advocates. Explain how “delusion”
estimates to win public approval reasoning that once might be a cause of ballooning budgets in this proj-
the project was started and on the books,” it would be ect. How does “deception” affect the final project
nearly impossible to cancel it
budget overruns?
FIGURE 13.18 Huiululu’s Elevated Rail project
Source: Drpnncpptak/Shutterstock
cars for peak period service. Thus, they contend that At this stage in the rail project, projected future
this rail project is the worst design possible because cost estimates are nearly meaningless. Both advocates
it combines an intrusive and expensive infrastructure and opponents of the rail system understand that the
including 21 stations, along with a low passenger car- summer of 2017 will be a watershed year for the proj-
rying capacity where over 60% of passengers will be ect, as the next round of bids for construction along the
forced to stand and hold handrails. Advocates of the critical four-mile corridor through downtown Hono-
project also appear live minimized di puwer meus lulu is set to be lelu. Opponents like fumer yuveme
for adding this rail system to the city’s electrical grid. In Cayetano and Dr. Panos Prevedouros, a civil engineer-
fact, the rail project’s power draw is estimated at nearly ing professor at the University of Hawaii, are adamant
50 MW, which is a major requirement The city’s utility that the project’s budget is not supportable “They can-
company is requiring the HART to renegotiate a price not complete the four in-town miles because those are
for the combined cost of substations, power generation, very expensive and we don’t have an actual budget for
and possible airport utility relocation tasks that are them,” noted Prevedouros, who has run for mayor as an
likely to add an extra $500 million to the price tag. opponent of the project
CASE STUDY 13.3
“Dear Mr. President–Please cancel our project!”: The Honolulu Elevated Rail Project
Speaking on the status of Honolulu’s Elevated Rail pub- run through the middle of the city, and terminate at the
lic transport system, former Hawaii Governor Benja- Waikiki beaches. Included in the huge project are 21 sta-
min Cayetano had an interesting message for President tions, of which seven will be elevated and set 60 feet
Trump: “As a lifelong Democrat and former governor of high above the city’s streets, and a 35-foot high elevated
Hawaii, I opposed your candidacy. I must admit, how- rail line that will run four miles through the middle of
ever, that you are on the right track scrutinizing waste- the city.
ful spending on pork barrel projects.” The admission by The project has drawn fire from residents who are
former governor Cayetano was prompted by the latest increasingly sick of blocked streets, traffic jams, and dirt
details emerging from a project that the New York Times and noise from multiple construction sites. In fact, a poll
has written is in danger of becoming a financial boon- conducted in late 2016 showed that only 15% of the city’s
doggle. The Honolulu Authority for Rapid Transporta- residents favor completion of the rail project. Meanwhile,
tion’s (HART) 20-mile elevated heavy steel rail system costs continue to rise. The original $4.6 billion budget was
that has been under construction for six years is now readjusted to $6.7 billion, and with the newly-announced
slated to cost nearly $10 billion, or $500 million per mile. delays in construction, being at least two years behind
If these costs are realized, Honolulu’s rail project would schedule and counting, the city has announced a five-
have the distinction of being the most expensive transit year extension in the “temporary” excise tax to cover
project in the country’s history,
what critics are arguing will actually end up being over
Honolulu is a beautiful but increasingly congested $10 billion in costs. Critics of the project such as Mr. Cay-
city on the south coast of Oahu. Residents and visitors etano, who argues that the elevated rail “will change the
have long complained that transportation options, high- beauty and ambience of the city forever,” also charge that
ways, and other infrastructure have not kept pace with in addition to its aesthetic shortcomings the final envi-
the growth of the city. In 2008 and following a close ref-ronmental impact study revealed that the rail project
erendum vote, the city approved the beginning of the would, at best, reduce traffic congestion by under two
elevated rail system. To partially offset costs of the sys- percent and noted,”traffic congestion will be worse in
tem, the mayor and city council instituted a temporary the future with rail than what it is today without rail.”
excise tax increase for residents and visitors. They also Opponents of the project note, among other prob-
received $1.5 billion in Federal funding to support the lems, that the Honolulu rail project will employ light
project. Initially budgeted for $4.6 billion, the rail project rail-sized cars limited to about 650 passengers in two-
is intended to start in the western edge of Honolulu,car combinations. Moreover, it can run only up to four
Continued)

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