Bad News for Las Vegas Transportation

Well it’s not quite all transportation but definetly some of it. This bad news particularly concerns the Las Vegas monorail which was a project that was supposed to be fully funded on a private basis. It seems that this may not quite be the case as some tax dollars may now be required to keep the project running to scale.

The monorail is experiencing particular low traffic ever since the trains started moving about 5 years ago. As you may have guessed, the current economic situation isn’t making things any better as there hasn’t really been a pickup in traffic in recent times.

When the original forecasting was done to predict the traffic of the project and provide a cushion fund for the off seasons it seems as though traffic this low was never part of the consideration thus raising the issue of the predicament that it is currently facing. And funds are running out at a rather quick rate.

What will happen now? Well it seems that the weeks to follow will have some missed bond payments meaning that the project can be taken over by the original financers, however it is important to point out that the people in question are actually just that: financers and wouldn’t know the first thing about operating a train company.

While several different financing options are now up for discussion it is not clear at this time what the exact plan for payout will be. In the meantime the debt of the project is not getting any lower.

For those that may be concerned, there is nothing to worry about just yet as there are no plans to cancel operation and the train will continue to operate on schedule, at least until further notice.

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