UK's high-speed rail faces new delays, deemed ‘appalling mess'
[LONDON] Britain's transport secretary on Wednesday announced further delays to the country's new high-speed HS2 train line, describing the project as an 'appalling mess' amid soaring costs.
The high-speed rail track between London and Birmingham will no longer be delivered by the planned 2033 target, despite the project already being scaled back due to repeated delays and spiralling costs.
'Billions of pounds of taxpayers' money has been wasted by constant scope changes, ineffective contracts and bad management,' Transport Secretary Heidi Alexander told parliament.
She pledged 'we will sort it out,' without specifying an updated timeline.
Britain's Labour party, which came to power in July, has pinned its hopes on big spending on infrastructure to boost sluggish economic growth.
High Speed 2 would be Britain's second such fast track, after the line that carries Eurostar trains from London to the Channel Tunnel and onwards to France.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
But HS2 has been mired in controversy since the previous Conservative government axed key legs of the railway because of spiralling costs.
The project's estimated costs have almost tripled to more than £100 billion (S$173.6 billion) from £37.5 billion in 2013, making it one of the world's most expensive lines.
Originally planned to link London with Britain's second biggest city Birmingham in the English Midlands and then travelling further north to Manchester and Leeds, HS2 is aimed at shortening journey times and taking capacity off existing busy routes.
It was initially planned to open in 2026, but was pushed back to between 2029 and 2033, before the latest delay. AFP
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
18 hours ago
- Business Times
China's top Hong Kong official says security will ensure city's success
[HONG KONG] China's top official for Hong Kong affairs said the city needs to prioritise national security to ensure prosperity. The China-imposed national security law helped Hong Kong maintain its status as an international financial hub, Xia Baolong, director of the Hong Kong and Macau Affairs Office in Beijing, said on Saturday (Jun 21) on his third trip to the semi-autonomous city in three years. 'Profound changes are occurring inside and outside Hong Kong. It is necessary to fully implement the One Country, Two Systems principle, guided by national security, to provide favourable safety protection for achieving better development of Hong Kong,' Xia told a government forum marking the fifth anniversary of Beijing's implementation of the 2020 national security law, which silenced dissent in the once-freewheeling territory. His comments build on China's emphasis on national security in recent years, after massive pro-democracy protests roiled the former British colony in 2019. A continuing crackdown on perceived threats and the introduction of supporting legislation has stifled political dissent and led to the imprisonment of dozens of former activists. Earlier this month, Beijing's national security office in the city carried out its first known joint operation with local police to investigate a case of alleged foreign collusion. In the same week, authorities invoked a security law to ban a Taiwanese-made video game they accused of advocating for overthrowing the government. Xia's speech at the forum represents the most public appearance he has made during his five-day trip that began on Wednesday, which has included meetings with political and business leaders. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He also held discussions with university presidents earlier in the week, in a move seen as reinforcing Beijing's vision for Hong Kong as an innovation and talent hub. Appointed as Beijing's top man in Hong Kong in 2020, Xia's tenure has seen growing integration between the Asian financial hub with the rest of China. He has urged the city to accelerate the development of its so-called Northern Metropolis, a sprawling area bordering the mainland city of Shenzhen. Xia's visit comes as Hong Kong grapples with economic headwinds, buffeted by a slowing Chinese economy and a prolonged property slump. The city is also caught in the crossfire of the US-China trade war, with tariffs imposed by the Trump administration now applying to Hong Kong-made goods, further blurring the lines between the city and mainland China. Still, some observers argue Hong Kong could paradoxically gain from the deteriorating US-China relationship. Having declared the city 'over' last February, former Morgan Stanley Asia chairman Stephen Roach said recently that the territory may benefit because of its unique position as China's most important window to international finance. BLOOMBERG
Business Times
18 hours ago
- Business Times
Trump pledge of quick China magnet flows has yet to materialise
[HONG KONG] Almost 10 days since US President Donald Trump declared a 'done' trade deal with Beijing, US companies remain largely in the dark on when they will receive crucial magnets from China, and whether Washington, in turn, will allow a host of other exports to resume. While there has been a trickle of required permits, many American firms that need Chinese minerals are still waiting on Beijing's approval for shipments, according to sources familiar with the process. China's system is improving but remains cumbersome, they said, contrary to Trump's assurances rare earths would flow 'up front' after a Jun 11 accord struck in London. The delays are holding an array of American industries hostage to the rocky US-China relationship, as some firms wait for magnets and others face restrictions son elling to China. That friction risks derailing a fragile tariff truce clinched by Washington and Beijing in Geneva last month, and triggering fresh rounds of retaliation. Interviews with multiple Western buyers, industry insiders and officials familiar with discussions revealed frustration over vague policies in both countries and lingering confusion about what level of magnet approvals from China would trigger Trump to abandon his tit-for-tat export curbs. 'Even if export approvals accelerate, there are so many unknowns about the licensing regime that it's impossible for companies to have a strong sense of certainty about future supply,' said Christopher Beddor, deputy China research director at Gavekal Research. 'At a minimum, they need to factor in a real possibility that talks could break down again, and exports will be halted.' In response to China's sluggishness on magnets, Trump last month restricted US firms from exporting chip software, jet engines and a key ingredient to make plastic to China until President Xi Jinping restores rare-earth exports. Companies subject to Washington's curbs have halted billions of US dollars in planned shipments as they wait for players in unrelated sectors to secure permits from Beijing, which could take weeks or even months to process, given the current pace. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Corporate chiefs affected by the export-control spat have sought clarity from the administration on its strategy, according to sources familiar with the matter. The Commerce Department, which administers the rules, has offered few details, they added. Oil industry executives have tried to convince Trump officials that blocking exports of ethane – a gas used to make plastics – is contrary to US national security interests, according to sources familiar with the deliberations. Business leaders have asked for export restrictions to be removed but that's been unsuccessful so far, the sources said. Energy and chemical giant INEOS Group Holdings has one tanker full of ethane waiting to go, while Enterprise Products Partners has three to four cargo ships stuck in limbo, according to a source familiar with the matter. That's particularly galling because China has adequate ethane supplies in reserve and can switch to using naphtha from the Middle East and other regions for much of their production, the sources said. Representatives from the companies did not respond to requests for comment. Industry figures have consistently told the Trump administration the ethane export restrictions are inflicting more pain on US interests than on China, according to the sources. China's Ministry of Commerce, which administers export licenses, has not responded to Bloomberg's questions on how many for rare earths have been granted since the London talks. At a regular briefing in Beijing on Thursday, spokesperson He Yadong said Beijing was 'accelerating' its process and had given the go-ahead to a 'certain number of compliant applications'. Access to rare earths is an issue 'that is going to continue to metastasise until there is resolution,' said Adam Johnson, chief executive officer of Principal Mineral, which invests in US mineral supply chains for industrial defence. 'This is just a spigot that can be turned on and off by China.' China only agreed to grant licenses, if at all, for six months, before companies need to reapply for approvals. Firms doing business in the US and China could see recurring interruptions, unless the Commerce Ministry significantly increases its pace of process applications. Adding an extra layer of jeopardy for US companies, Chinese suppliers to America's military-industrial base are unlikely to get any magnet permits. After Trump imposed sky-high tariffs in April, Beijing put samarium – a metal essential for weapons such as guided missiles, smart bombs and fighter jets – on a dual-use list that specifically prohibits its shipment for military use. Denying such permits could cause ties to further spiral if Trump believes those actions violate the agreement, the terms of which were never publicised in writing by either side. That sticking point went unresolved during roughly 20 hours of negotiations last week in the UK capital, sources familiar with the details said. Complicating the issue, companies often buy magnets from third-party suppliers, which serve both defence and auto firms, according to a person familiar with the matter. That creates a high burden to prove to Chinese authorities a shipment's final destination is a motor not a missile, the source added. Beijing still has not officially spelt out the deal's requirements, nor has Xi publicly signalled his endorsement of it – a step Trump said was necessary. 'The Geneva and London talks made solid progress towards negotiating an eventual comprehensive trade deal with China,' White House spokesperson Kush Desai said. 'The administration continues to monitor China's compliance with the agreement reached at Geneva.' China's Commerce Ministry is working to facilitate more approvals even as it asks for reams of information on how the materials will be used, according to sources familiar with the process. In some cases, companies have been asked to supply data including detailed product designs, one of the sources said. Morris Hammer, who leads the US rare-earth magnet business for South Korean steelmaker Posco Holdings, said Chinese officials have expedited shipments for some major US and European automakers since Trump announced the agreement. China's Advanced Technology & Materials said on Wednesday it had obtained permits for some magnet orders, without specifying for which destinations. The company's customers include European aerospace giant Airbus SE, according to data compiled by Bloomberg. Around half of US suppliers to Toyota Motor, for example, have had export licenses granted, the company said – but they're still waiting for those materials to actually be delivered. It's likely some of the delays are transport-related, one of the sources said. Even with permits coming online, rare-earth materials are still scarce because overseas shipments were halted for two months starting in April, depleting inventories. Trump's agreement 'will allow for rare earths to flow out of the country for a short period of time, but it's not helping the auto industry because they are still talking shutdowns', Hammer said. 'Nobody trusts that this thaw is going to last.' For many automakers, the situation remains unpredictable, forcing some to hunt for alternatives to Chinese supplies. Two days after Trump touted a finalised trade accord in London, Ford Motor chief executive officer Jim Farley described a 'day-to-day' dynamic around rare-earths licenses – which have already forced the company to temporarily shutter one plant. General Motors has emphasised it's on firmer footing in the longer term, because it invested in domestic magnet making back in 2021. The automaker has an exclusive deal to get the products from MP Materials in Texas, with production starting later in the year. It has another deal with eVAC of Germany to get magnets from a South Carolina plant starting in 2026. In the meantime, GM and its suppliers have applied for permits to get magnets from China, a source familiar with the matter said. Scott Keogh, the CEO of Scout Motors – the upstart EV brand of Volkswagen – told Bloomberg Television his company is re-engineering brakes and drive units to reduce the need for rare earths. Scout is building a plant in South Carolina to make fully electric and hybrid SUVs as well as trucks starting in 2027. Until the rare-earth supply line is reopened to Washington's satisfaction, Trump has indicated that the US is likely to keep in place its own export restrictions. Senior US officials have suggested the curbs are about building and using leverage, rather than their official justification: national security. Commerce Secretary Howard Lutnick said the measures were used to 'annoy' China into complying with a deal US negotiators thought they'd already reached. Restrictions on sales to China of electronic design automation (EDA) software for chipmaking are emblematic of the standoff. Those EDA tools are used to design everything, from the highest-end processors for the likes of Nvidia and Apple to simple parts, such as power-regulation components. Fully limiting China's access to the best software, made by a trio of Western firms, has been a longtime priority in some Washington national security circles – and would build on years of US measures targeting China's semiconductor prowess. While some senior Trump officials specifically indicated the administration would relax some semiconductor-related curbs if Beijing relents on rare earths, EDA companies still lack details on when, and whether, their China access will be restored, said industry officials who requested anonymity to speak candidly. Even if that happens, there's a worry that heightened geopolitical risks will push Chinese customers to hunt for other suppliers or further develop domestic capabilities. 'The risk is there for the London deal to fall apart,' said Alicia Garcia Herrero, chief economist for Asia-Pacific at Natixis. 'Because rare earths is a very granular issue and mistakes can be made.' BLOOMBERG
Business Times
19 hours ago
- Business Times
Tesla set to open India showrooms in July with made-in-China EVs
[NEW DELHI] Tesla is set to open its first showrooms in India in July, sources familiar with the discussions said, kicking off formal operations in the world's third-biggest automobile market as the Elon Musk-led firm hunts for growth amid falling sales in Europe and China. The electric vehicle (EV) giant's first set of cars have arrived in the country – Model Y rear-wheel drive SUVs shipped from Tesla's China factory, according to the sources, who asked not to be identified as the information is private, as well as documents seen by Bloomberg News. The Model Y is the world's largest-selling electric car. Tesla is set to open its first showroom in Mumbai as early as mid-July, which will be followed by one in New Delhi, according to the sources. It has also imported Supercharger components, car accessories, merchandise and spares from the US, China and the Netherlands, the documents show. The debut will end a years-long on-again, off-again saga over Tesla's entry into India – a market Musk has long eyed but held back from entering due to disagreements over tariffs and local manufacturing. The breakthrough in bringing Tesla to India comes after Musk met Indian Prime Minister Narendra Modi in the US in February. Bloomberg News reported in February that Tesla was set to ship a few thousand cars to a port near Mumbai. Tesla spokespersons did not immediately respond to an e-mail seeking comment on the opening of the India showrooms and the preparations underway. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Premium price Five Model Y vehicles have already arrived in Mumbai from Tesla's Shanghai factory, according to documents reviewed by Bloomberg News. The cars were declared at 2.8 million rupees (S$41,558) and attracted more than 2.1 million rupees in import duties – a levy that's consistent with India's 70 per cent tariff on fully-built imported cars under US$40,000 plus surcharges, the documents show. The model is expected to go on sale for more than US$56,000 before taxes and insurance, though Tesla will determine the final sticker price based on its margin and positioning strategy, according to sources familiar with the plans. That compares with an ex-showroom price of US$44,990 for the same model in the US, which sells for US$37,490 once tax credits are applied. The premium price tag will likely be a major hurdle to Tesla's plans as the automaker will need to convince value-driven consumers to open their wallets. EVs account for just over 5 per cent of new passenger vehicle sales in India, but premium cars still represent less than 2 per cent of the market, data with the Indian government's vehicle registration portal shows. Beefing up The company has not appointed a new country head following the departure of Prashanth Menon, but is beefing up hiring across charging, retail and policy teams, according to sources familiar with the matter. The Model Y imports represent an initial foray into the market and Tesla plans to expand its presence, including offering more models. It's leasing warehouse space in Karnataka, in India's south, and is adding more in Gurugram, outside New Delhi, the sources said. Tesla executives from other countries are making weekly visits, the sources said, to the Mumbai and New Delhi showrooms, which are in high-profile, luxury business precincts in an effort to attract affluent shoppers. BLOOMBERG