Spain's Renfe departs from Texas rail project
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Texas' bullet trains would be able to reach 205 mph. Rendering: Courtesy of Texas Central Railway
A Spanish railway company has pulled out of the bullet train project that aims to connect Dallas and Houston.
Why it matters: The departure is another setback for the project, which hasn't started construction amid eminent domain challenges, investor changes and federal funding cuts.
Flashback: Texas Central Railway in 2018 named Renfe, with routes covering about 9,300 miles in Spain, as an early operator for Texas' future bullet train.
- Central Japan Railway was chosen to provide the technology.
The latest: In April, the U.S. Department of Transportation ended a $64 million grant to Amtrak for the rail project, saying the project is "a waste of taxpayer funds."
- Fort Worth-based Kleinheinz Capital Partners joined the project as a lead private investor.
- And Renfe has liquidated its American subsidiary that was part of the Texas train project, writing off 4.5 million euros in losses, per the Spanish newspaper El Economista.
The intrigue: The 240-mile route would get travelers from Dallas to Houston within 90 minutes, per Texas Central. The project is estimated to generate billions of dollars in revenue.
- Texas Central regularly shared updates on its website when the train was first announced but hasn't posted any updates for nearly two years.
Between the lines: Renfe's closure of its American subsidiary indicates the company isn't expecting any returns from the project, El Economista reports.
Zoom out: A separate project aims to link Fort Worth and Dallas via high-speed rail but still needs to secure land and funding. Leaders would also need to decide where the train would stop.
What they're saying: Kleinheinz Capital Partners tells Axios their plans for the high-speed train between Dallas and Houston haven't changed and that the project is "shovel-ready."
- Renfe and Amtrak did not respond to Axios' requests about the project.
Editor's note: This story has been updated with a comment from Kleinheinz Capital Partners