A group of investors claims that it can build a 220-mile high-speed rail and utility transmission system for Indonesia by the end of 2011. If built, the $3 billion “Hydrogen Hi-Speed Rail Super Highway” (H2RSH) would shake up the transportation world, providing a material advance in the movement of both goods and people at an incredibly low cost and with few ecological consequences.
It sounds great, until you realize that the technology to be used for the line is untested.
H2RSH would offer fast services between Jakarta, Bandung, and Cirebon on the island of Java if the government approves the construction of the line after a 90-day feasibility study. Financing would come solely from private investors, who claim to be able to make a $400 million annual profit. The Indonesian chamber of commerce, in favor of the line, suggests that it would create an eye-popping six million jobs and has pushed the government to allow project proponents to construct the project.
Indonesia may be making a mistake if it does so. H2RSH would use Interstate Traveler technology — an unproven electric maglev vehicle. Interstate Traveler proposed its system to the State of Michigan in March of 2009, claiming that it would be able to offer 100-mile trips between Detroit and Lansing to commuters for a price of only $4.50, all the while making a profit and building the line with no government aid. No recent intercity ground transportation corridor has been built anywhere in the world without financial support from the public sector. Nor has any been able to offer close to $400 million a year in profits!
For two years, Interstate Traveler founder Justin Sutton has been promoting his concept for the maglev vehicles, which would float above dual tracks through which electricity, water, fiber optics, and gas would flow. Solar panels inlaid in the track would create enough energy to power the vehicles but also to convert water to hydrogen, which could be stored for future use as fuel. The concept is ambitious, but its all-inclusiveness may induce skepticism. Mr. Sutton’s sketches of an on-track hospital and what he terms the “equestrian explorer” — among other fantastical ideas for his technology — do just as much to de-legitimize his ideas. So do his previous plans to construct huge BioDome Humanitarian Complexes in war-town regions like Afghanistan.
The world’s major train manufacturers have been incapable of producing a system even remotely as cheap or as multi-purpose as the Interstate Traveler. Yet Indonesia seems to be willing to take the risk with an unknown Michigan-based company that has yet to produce even a prototype.
Nevertheless, project leader Caedz Eco Synthesis Group, a San Francisco-based developer of what it calls “sustainable infrastructure,” is convinced of the strength of its team. In an email, company Director of Investment, Finance and Business Development Marjorie Hoeh pointed to H2RSH’s association with German engineering firm Obermeyer Planen + Beraten, which has participated in light rail and high-speed rail programs around the world. She writes that “we strongly believe in the expertise selected and brought together specifically for this project.”
And indeed, the risks may be worth taking. After all, if the government’s not being asked to contribute any funds to the line, what’s the worst that could happen if the project fails, or if it never even gets off the ground?
Update: This post has been altered to reflect new information since it was first published. Previously, we associated the project with a group called Global Green Holdings, but the firm actually aiding in providing funding for the project is Global Green Management, an unrelated company. The discussion of the former firm’s questionable business practices previously posted have no relation to the latter company. We regret the error.
January 8th, 2010 at 5:21 pm
The 19 mile Shanghai Maglev cost $1.3 billion and this group plans to to 220 miles for $3 billion?
Amazingly enough this magic train will, according to the company’s website, also put an end to drought and famine. http://www.interstatetraveler.us/Forward.Thinking/Hydroponic.Highway/HydroponicTraveler.htm
January 8th, 2010 at 5:47 pm
If no public funds are required than I can’t see any reason for not letting them fail.
January 8th, 2010 at 5:50 pm
If it sounds too good to be true…
January 8th, 2010 at 6:08 pm
I have to say that I love Justin’s imagination, and lot of his work incorporates some interesting ideas. But at the same time most of it is very impractical in the real world.
Instead of scamming companies he should work in LA doing concepts work for Sci-Fi and futuristic movies.
January 8th, 2010 at 8:27 pm
@B.S.
I think Yonah is trying to point that because of the past dealings between cities and states and these “Interstate Traveler” investors, and with the excitement of the Indonesian government, that Interstate Traveler will expect free land in exchange for the great public good they will be offering.
If the company could buy its own land and then setup the train, then I would agree with you: Let them try.
It would be imprudent, though, for anyone to hand over large swaths of (probably) valuable land.
January 8th, 2010 at 10:14 pm
@Steven Vance
Good point. I did not really consider the option that this project could ever get through design, planning and financing and to a point where they would actually start putting shovels in the ground.
January 9th, 2010 at 8:36 am
Someone will have to be giving something to Global Green Holdings! They are not buiding this train out of being a good Samaritan!
Somewhere, someone is giving up the land. The land must have timber, or coal on it guranteed! Once Global Green comits to developing, they will come in like Termites, consuming every natural resource within 220 miles, then sell the timber and coal for their own benefit, and then abandon the project like they have done so many times before.
Why does this matter? Indonesia will loose something in this “Development.” Global Green does not have a history with International Trade, nor are they license to do so……. This is a big deal for Indonesia, alot of families who are expecting employment will be let down, all over ONE MAN’s GREED.
We dont want to see your people hurt, please hire an international attorney to represent you, and by all means DO NOT LET GLOBAL GREEN HOLDINGS ATTORNEYS draft up your CONTRACTS THEY ARE DESIGNED FOR GLOBAL GREEN TO WIN IN COURT, should they fail to preform!
January 9th, 2010 at 1:58 pm
you may want to research what others are saying about these company.
http://www.complaintsboard.com/complaints/global-green-holdings-llc-amp-usa-global-business-holdings-trust-c282332.html
http://sites.google.com/site/ggh411/home
http://www.topix.com/forum/city/woollum-ky/TNH81SLSBBLESD16Q
BBB - Better Business Bureau - USA Global Holds an “F” Rating, for not having the required license.
http://www.vegasbbb.org/bbb_rated_acc_rpt.asp?bbbid=72410&tr=rated&lg=F&ex=11%2C26
January 10th, 2010 at 1:04 pm
Reading this is pretty crazy as I attempt my own initiatives to get New York State to consider leasing rights of way along the thruway to a company that will build a maglev line using new technology. What I’m trying to do is pretty much the exact same thing–the company will build it themselves–but instead the investors include companies such as GE. The technology however is much more realistic, called SPM maglev. Check out launchpoint technologies or fastransit.com if you want to take a look. I hope that these guys in Indonesia don’t turn out to be a scam and discredit my efforts.
January 10th, 2010 at 7:38 pm
It’s unfortunate that the illustration has next to nothing to do with the specific technology that Justin Sutton is proposing, apart from using magnetic levitation and the induction principle to move the vehicles. The differences between maglev technologies are far more different than those between steel wheel on rail technologies. The illustration is of Japan Railway’s maglev system that after a good two decades of testing has finally been approved for a long distance high speed line in Japan. The Sutton concept is nothing but a concept: there is no record I have seen anywhere of it being anywhere beyond the concept stage of development. The article really should have shown one of the sci-fi concept illustrations from Mr. Sutton’s web site instead: this would have given a far more accurate impression of the maturity (in more than one sense) of the proposal.
January 10th, 2010 at 9:16 pm
Christopher -
Thanks for the point, I’ve changed the image to a picture produced by the Interstate Traveler folks themselves, rather than of the unrelated Japanese train.
January 17th, 2010 at 2:11 am
Good content, I will be back to read more
January 19th, 2010 at 3:45 pm
Realistic or not, I am glad this concept is being considered. Peoples’ skeptisism of new technologies such as the comments Ive seen on this post so far, are the reason we are still driving gas guzzling cars running on 200 year old technology. It is time for a change and I am not saying that this is the guy to do it, but everyone should be getting behind some new 21st century technology. I think that the concept of meshing utilities and other infrastructure with this rail is great. I think the thought of reducing our dependence on foriegn oil is great. I am pleased that this concept does not require additional funding and limited involvement from the government. and we have been living in a world of inflated prices for so long that people think that $10mil per mile is cheap… thats whats insane. I saw a news report last winter here in MI where they said it cost $1mil per inch of snow per mile for the county road crews to plow the snow. There is no way things could cost this much and the only reason large projects these days come with these outrageous price tags is because of government involvement. I dont believe that public rights of way should be handed out to private companies with no restrictions, but they should be leased to companies with plans that could benifit our people with limitations that allow the plan to move forward but not allow these companies to take advantage of the resources on or below this public lands. I hope you will be able to take from this that we need to look forward and as space age as some ideas sound, we need to be open minded and and take the best of these ideas and get a working system in place. It is 2010 for crying out loud!
February 1st, 2010 at 7:08 pm
[...] Arnold the Governator, East Coast state govs, etc. etc) for various parts of the US, I guess Indonesia also wants a high-speed train. Which is fine, as long as the risks & gains are clear and understood by [...]
April 3rd, 2010 at 11:04 pm
In my opinion as a former investor in the Interstate Traveler Company by Justin Sutton, this is a fraudulent concept designed to bring in new investment partners with their money, but without the ability to deliver on promises. Read more at http://www.execulink.com/~impact/itc.html