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High Speed II HS2 In An Initiative Essay

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High Speed II (HS2) in an initiative by the British government to invest in the future of the country's rail network in order to transform its economic geography. The project is aimed at helping businesses to function more productively, bring key cities closer together, and foster the growth of employment and regeneration. Moreover, the high speed II rail initiative is for the purpose of providing alternatives to domestic aviation and developing a platform that supports long-term and sustainable prosperity and economic growth. As part of the strategy, the British government has set up the High Speed Two Limited Company (HS2 Ltd.) to consider the feasibility of the rail services between London and the West Midlands. Problems Associated with High Speed II Strategy:

While the strategy is geared towards accomplishing several goals that will transform the rail network, there are various problems associated with the high speed II initiative. Some of these major issues of the project include

Huge...

As compared to the earlier high speed I strategy, the high speed II initiative has a huge level of financial risk given that the estimated cost for the project is approximately £34 billion. The success of the HS2 strategy is dependent on estimates of demand growth, which are very high as compared with a series of past predictions for long-distance rail travel (Aizlewood & Wellings, 2011).
Commercial Viability:

The second problem associated with the HS2 strategy is that it's not commercially viable and will need substantial and rising subsidy levels. The project is likely to create demand for extra high costs and transport capacities that are funded by taxpayers. Moreover, the construction of the high speed II rail network will incorporate the…

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References:

Aizlewood, K. & Wellings, R (2011), High Speed 2: The Next Government Project Disaster?

Institute of Economic Affairs, viewed 9 December 2011, <http://www.iea.org.uk/sites/default/files/publications/files/High%20Speed%202%20-%20the%20next%20government%20project%20disaster%20%28web%20version%29.pdf

United Kingdom Parliament (2011), High Speed Rail, United Kingdom Parliament, viewed 9

December 2011, <http://www.publications.parliament.uk/pa/cm201012/cmselect/cmtran/writev/rail/m145.htm>
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