The Dallas-to-Houston high-speed rail project has been in the planning stages for more than a decade.
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The Dallas-to-Houston bullet train project has hit another obstacle.
Renfe, the Spain-based railway company contracted as the development’s early operator, has closed American subsidiary company Renfe of America and put it into liquidation. According to a report from Spain, the subsidiary accumulated a loss of 4.5 million euros, or about $5 million, and recorded a 100% impairment on investments made over the past five years.
The impairment of Renfe’s stake in Renfe of America indicates the company’s refusal to recover invested capital and recognizes that it doesn’t anticipate any returns from the subsidiary, according to Spanish business publication El Economista. The railway company has also had to recognize the loss of outstanding balances for previous years due to non-payment for work conducted since 2019. According to company sources, Texas Central’s balances with Renfe of America have “reached a certain age and there is no prospect or guarantee of collection,” El Economista reported.
Renfe established Renfe of America to help it expand in the U.S. rail market. The company was picked to serve as the strategic partner of the Texas high-speed rail project in 2018, helping Texas Central design, develop and construct the development. In 2021, Renfe became the early operator of the project and was set to help design and develop the “high-speed service’s operational and commercial aspects,” according to the Renfe of America website.