Toll Tunnels, a $30 Trillion TAM?
High Speed Toll Tunnels are poised to eliminate stop and go traffic worldwide. A $2B cost tunnel can generate as much as $30B net profit. Transportation tunnels will become a ubiquitous new form of travel speeding vehicles at 120MPH (193KPH)
What’s right, and wrong, with Boring Company’s Tunnels?
Today, the Boring Company is focused on building subway like tunnel systems in Las Vegas. These systems will be awesome for pedestrians, but lack versatility for longer distance travel of tens to hundreds of miles. For most travel, a new variant of tunnels is needed. High Speed Toll Tunnels will enable fully autonomous 120MPH travel in private cars. Similar to a toll road these tunnels can be local urban solutions to traffic congestion or cross country solutions for high speed travel.
ROI for Urban Tunnels
A 100 mile long, high speed urban tunnel will cost around $2 billion to construct. In the best locations it will generate a $10 billion net profit for the tunnel operator and a $20 billion net profit for a vehicle manufacturer. IOW, Tesla could spend $2B on “marketing” and generate a $20B + $10B - $2B = $28B net profit.
Optimizing Returns: The Economic Advantage of Electric Vehicles in Transportation Tunnels
Like ink jet printers in the past, auto manufacturers will profit more from the construction of toll transportation tunnels than will the tunnel operators themselves. Auto manufacturers will build tunnels as a marketing expense to increase vehicle sales, once these facts are well known.
What’s Better, Brightline-West or a Transportation Tunnel?
Transportation tunnels are superior to trains running the same route because they cost less, are faster overall door to door, use less energy, operate 24/7. Brightline West is doomed to bankruptcy.
Planes, Trains and Automobiles
The advent of High Speed Toll Tunnels changes the economics of travel. The 120MPH speed in tunnels increases the distance people will travel by car, shifting people from shorter air routes into high speed tunnels. Also, high speed autonomous trucking and cars will eliminate the benefits currently enjoyed by passenger and freight trains.
High Speed Trucking
The longest road tunnel in the world today is the Laerdal in Norway at just 14.5 miles. In the future, a 2400 mile long tunnel following I-10 will be constructed between Los Angeles, CA and Jacksonville, FL. This tunnel will enable fully autonomous, 120MPH trucking from the ports of LA to points east all the way to the Atlantic coast at a cost in $/ton*mile lower than container shipping from China through the Panama Canal. Savings stem from both energy reduction and the elimination of driver wages via autonomous truck controls.
What About Emergencies?
High Speed Toll Tunnels will only be as good as their ability to deal with emergencies. This is especially important in dealing with fires because tunnels are naturally an oxygen deprived environment during fires. By developing all electric emergency vehicles, every emergency scenario can be rapidly dealt with.