Reports indicate that Renfe, the Spanish railway company involved in the project, has shut down its U.S. subsidiary.
This move deals a significant blow to the long-discussed bullet train service connecting Dallas and Houston, which has been led by Texas Central.
Renfe of America cited over 4.5 million euros—amounting to more than $5 million—in accumulated investment losses associated with the project.
This figure represents a complete deterioration of the company’s investments over a five-year period, as stated in filings reviewed by a Spanish business publication, El Economista.
The company also pointed to a backlog of outstanding debts owed by Texas Central for work conducted since 2019 as a contributing factor to their closure.
Neither Renfe nor Texas Central has responded to inquiries concerning this shutdown.
The Dallas-to-Houston bullet train project was once viewed as a groundbreaking transit initiative that promised to position Texas on the global stage.
It aimed to replicate the success of high-speed rail systems like Japan’s Shinkansen, which a group of Texas officials had the opportunity to experience last September.
Originally proposed over a decade ago, the rail line was designed to transport passengers between Dallas and Houston in just 90 minutes.
It attracted international investments with the expectation that it could spur major infrastructure developments throughout the United States.
However, the project has faced a myriad of challenges, including regulatory obstacles, changing political dynamics, and financial pressures resulting from multiple leadership changes.
In April, President Donald Trump’s administration rescinded a nearly $64 million grant that had previously been awarded to Amtrak, the public rail operator Texas Central had hoped would support project advancement.
Following this development, officials from Texas Central and the Department of Transportation indicated that Amtrak would no longer play a leading role in this initiative, effectively reverting it to the private sector.
In January, Texas Central bought out its primary Japanese investors, who had reportedly lost over $270 million on the ambitious effort, bringing in new backing from Texas investor John Kleinheinz.
The company has also faced criticism from private landowners and state lawmakers who have accused it of a lack of transparency regarding its operations and funding strategies.
Jennifer Stevens, a spokesperson for a group named ReRoute the Route, which opposes the project, expressed concerns about Texas Central’s financial status.
“This is a company that has been nearly broke for at least half a decade,” Stevens emphasized, underscoring the skepticism surrounding the project’s viability.
Despite the closure of Renfe’s U.S. operations, Kleinheinz Capital Partners, which now backs Texas Central, claimed that there has been “no change” in the company’s plans moving forward.
The investment firm has characterized Amtrak’s exit as a positive step that could facilitate project advancement by reducing bureaucratic obstacles.
Nonetheless, uncertainties regarding financial backing continue to raise doubts about Texas Central’s ability to realize the project.
Major infrastructure projects typically rely on a combination of public and private funding sources.
“If that happens, it would be a first in world history that a transit system was fully supported just on private funding,” remarked council member Paul Ridley during an economic development committee meeting in June.
As part of ongoing restructuring efforts, Texas Central aims to alleviate some of its significant $750 million debt.
According to company representative Andy Jent, the objective is to complete essential planning work by year-end and submit an application to federal regulators to further the project.
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