Escalating Cost Leads To Junking Of High-Speed Rail Project In Berlin

Munich, Germany (AHN) - The spiraling cost of a magnetic levitation rail that would have linked Munich and its airport led to the junking of the $4.7 billion project. German Transportation Minister Wolfgang Tiefensee bared Thursday the decision to scrap the high-speed rail after a crisis federal meeting at the capital city.

Originally, the project was supposed to cost $1.58 billion (1.85 billion euro), with the federal government shouldering half of the cost, Bavaria picking up the tab for $790 million (500 million euro) and the balance split among state-owned Deutsche Bahn, the Munich Airport, the European Union and proposed manufacturers Siemens and ThyssenKrupp and Hochtief.

Siemens, ThyssenKrupp and Hoctief pointed to one another for the escalating cost of the rail project. Hoctief insisted it was not part of the team that gave the 2004 estimate of $1.58 billion.

Had the project pushed through, it would have made travel between the airport and Munich city proper a zip at 10 minutes from the current 40 minutes. The decision also affected plans to build a similar rail system that would link Berlin and Hamburg.