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$40 million / mile is pretty expensive. Neither light rail nor DMU should cost that much. They sometimes do, but that's more towards the high end of the range.
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Once you include planning studies and ROW acquisition, $40 million/mile becomes easily obtainable. Another thing to consider is that any rail system here in Hampton Roads would require a lot of bridging, which in turn would drive construction costs up further.
Furthermore, I was looking at some sort of automated or semi-automated system, which while having an expensive up-front cost (tied into my $40M/mi estimate), would have the advantage of requiring less manpower to operate. This is significant since roughly 80% of transit's operating costs relates to salaries and wages.
One recent rail example: the recently completed Hiawatha LRT in the Twin Cities ran a bit over $700 million for roughly 11.5 miles, coming out to about $61 million/mile. Granted, that included a tunnel section, but there was almost no ROW acquisition involved. Even taking out the tunnel segment, the non-tunnel length was still around $50 million/mile.
I suppose I could have used an estimate in the $30-35 million/mile range, based on planning-level estimates for LRT in Norfolk and on the Peninsula, but that would have been a lowball figure, not accounting for inflation (plus my preference to overestimate costs rather than underestimate them), and would still result in my theoretical system costing over $6 billion.