^
It seems to me that according to that report, the cost of adding passing sidings and such is $771 million (in 2006 dollars) and a whole new alignment would be $1.5 Billion (2006). Both of which would include the direct service to Midway. Am I wrong? I am just curious since Hayward was talking more about upgrading existing blue line infrastructure and not building a whole new alignment.
However, my main point is that even though the two projects are comparable with respect to projected cost, they are not revenue comparable. The business model forecasts $18.1 million (2006) in fare revenue in the airport express's first year of operations. In 2030, the model forecasts $91.1 million (2006). Meanwhile operating and maintenance costs are estimated at $11.7 million and $42.9 million respectively. On the other hand, the red line
alternative analysis predicts $8.4 million (2009) in fare revenue in 2030 due to implementation of the red line extension. O&M costs of the red line extension are estimated at $18 million (2009).
This is why the airport express endures. Whether or not the estimates would turn out to be correct I don't know but it has the possibility of bringing in huge money. It is why we can sit here and talk about routes and time, etc. and it is also why those things are so important for the project. The more time that can be saved, the higher the ticket premium. Transferring and long ATS commutes would negate any savings and impact revenue. It is also why we can prioritize its construction over the red line, if it will make money, it is easier to get the capital costs.
Edit: I was criticizing the cost of the airport express previously, so I figured I should say something about that. The red line extension should go forward because it increases transit opportunities for other citizens of the city. It is a project for the greater good and I don't mind paying for it. I also think that the Electric District could plan a restructuring with fewer stops in the city and operate more express service once the red line is extended. I would like to see the billions of dollars go to projects that will affect more people and have greater impacts of ridership but I am not going to complain if money is spent on the red line extension.
On the other hand, I do mind if huge sums of money are spent shuttling business travelers and tourists from the airport downtown and back. If it does not make business sense to build the airport express, then it should not be built.