Major partner leaves Texas high-speed rail project behind
A major partner of the proposed Dallas-Houston high-speed rail project has withdrawn from the North American market, according to a news article published Tuesday, June 23, by European online media site Rail News Vista. (Read the full article here.)
The site reported that the company, Renfe, was “liquidating” its subsidiary, Renfe of America, after experiencing losses in excess of $5 million relating to the project. Renfe, which is based in Spain, “has the second-largest high speed rail network in the world,” according to its website, which places China's as first and Japan's as third.
Spanish media site elEconomista.es also published the news under an article entitled “Fin a la aventura americana de Renfe” or “End of Renfe’s American adventure.”
Both articles referenced delays, legal challenges, and financial issues as basis for the company’s decision. Also cited was the Trump Administration’s decision in April to terminate a $63.9 million planning grant.
At the time, the Texas Tribune quoted Transportation Secretary Sean Duffy as saying the Federal Railroad Administration and Amtrak were “in agreement that underwriting this project is a waste of taxpayer funds and a distraction from Amtrak’s core mission of improving its existing subpar services.”
The Tribune article quoted the project’s lead investor, Kleinheinz Capital Partners, as saying the Trump decision was “good news for the overall project” and described the project as “shovel-ready.” That company’s website URL goes to a non-secure, splash page with just the company name on it.
Investor statement notwithstanding, Rail News Vista noted in its article that the Trump decision had left “more than $40 billion worth of infrastructure financially unviable.’
The last press release listed on the Texas Central website is almost two years old. Its social media are also outdated, with its last Facebook post three years ago and its last Twitter post (now X) also almost three years ago. In The Know Ellis has reached out to the project, Texas Central, via the media email listed on the website for comment.
The project has been years in the making, with Ellis County one of several rural counties aligned with other groups against it. The Ellis County Commissioners Court issued a proclamation early on against the project; U.S. Rep. Jack Ellzey, R-Midlothian, has also announced his opposition.
On Tuesday, the Facebook group, Texans Against High Speed Rail, posted about the Renfe decision and called on “the charade” to stop about the project being viable.
If constructed, Texas Central officials have said it would take 90 minutes to travel the roughly 240-mile route between the two major cities.
A city of Dallas-commissioned economic impact study released in May 2025 indicates a potential $5 billion impact if the project were completed. It included information that the federal planning grant had been cancelled, but was issued before the Renfe decision. The report said construction was expected to begin in 2029, with train service to start in 2034.
“Investors for Texas Central have indicated they will continue to pursue the project as a fully privately funded venture,” the 108-page report PDF, "Memorandum," reads. “Their path forward is not yet known.”
(Editor's note: The 89th Legislature passed HB 2003, which would require transparency relating to high-speed rail projects. The measure was signed by Gov. Greg Abbott on May 29 and goes into effect Sept. 1).
Written by Jo Ann Livingston/In The Know Ellis.
