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I think the clear answer for the city is to create surface right of ways for transit, but invest money to avoid bottlenecks. The bottlenecks would be elevated or underground. This gives you roughly the same performance at a small fraction at the cost.
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Seems reasonable enough for me.. however I would be concerned with how fast the trains would be allowed to go on surface level within dense parts of the city.
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Could that be reduced by having only one way on any one street and the opposite direction over a street or two?
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I'm also in BC and looove the Skytrain. Anyways I think that your idea is definitely possible that you could have a train go on one narrow road in one direction, and then the opposite direction on the street over. My concern with this would be the station design as people would need access to both platforms.
Without doing any research my concern would be capacity and speed. To me the H-Bahn doesn't seem like it carries a lot of people and it doesn't look like it's going all that fast. Again, I don't know a lot about it but just from my perspective, I would like to see larger trains and a faster travel speed. I love that you're thinking outside of the box and I would like seeing something innovative being orchestrated by Halifax.
Now when it comes to elevate rail, I find that Canadians can be a little overly sensitive to its shadowing and I can certainly see why. I don't think that we've seen any good examples of a downtown with a relatively "nice" looking elevated line through the core. I think that everyone jumps to images of the Chicago L train in their heads.
Vancouver's Skytrain is a bad example of elevated rail in the
centre of the city because the skytrain lines in the downtown area are all underground. The elevated parts we have are built in areas where they don't "disrupt" the street levels, and then the rest of the city will build up around the stations (see Brentwood or Metrotown). So if you guys were to compare to any automated rail system, you should definitely compare it to Montreal's proposed REM system as it cuts through dense parts of the city. Just food for thought.