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The completion of a fully automated vehicle system that aims to reduce traffic and provide convenient public transit options to and from Los Angeles International Airport (LAX) is facing another delay.
According to a report released by Fitch Rating Service, one of the major bond rating agencies in the US, the LAX Automated People Mover is now expected to be finished no earlier than April 2025.
The 2.25-mile system aims to enhance the passenger experience, ease traffic congestion, and connect one of the busiest airports in the world with improved public transit. It will have six new stations along its route, connecting to parking facilities, car rental services, and a newly built LA Metro transportation hub in El Segundo.
The project is a major part of the multi-billion dollar modernization effort at LAX.
As of December 2023, 93% of the station work and 94% of the guideway have been completed, according to a report from the California Public Utilities Commission. However, the bond rating agency’s report states that ongoing disputes between Los Angeles World Airports and the chosen operator of the system have caused delays and strained relations between the two partners.
The agency’s report states, “Although the project is around 96% complete, the Negative Outlook reflects the likelihood that any unresolved construction issues, further deterioration of the relationship between the two parties, or further disputes during the testing and commissioning phase could result in additional material completion risk concerns.”
Fitch also highlights that the project currently only has a 16-day buffer between its construction schedule and the longstop date set by the lender, which marks the deadline for the completion of construction. If this deadline is missed, it is uncertain if the project will secure further construction funding.
However, Fitch believes that both parties will likely agree to an extension, citing a recent technical advisory report.
This is the latest setback for the project, which, like many transportation projects in Los Angeles, has faced construction delays, escalating costs, and legal disputes.
The automated cars for the system were delivered in 2022, and testing was initially scheduled for that year with a completion date set for 2023. However, in August 2023, the project was delayed until 2024, with Fitch’s bond rating report again being cited as the source of the news.
Even if construction were to be completed soon and with cooperation between the two parties, Fitch warns that the project will still have to undergo a thorough testing and commissioning process, which is not expected to be finished until April 2025.
KTLA reached out to LAWA for a comment on Fitch’s new proposed timeline, but there has been no response regarding any schedule delays. However, a spokesperson mentioned that the airport authority is actively engaged in discussions with the Automated People Mover Contractor to address outstanding claims.
No further information has been provided.
Another automated people mover project in Los Angeles has also faced several obstacles.
The $2 billion Inglewood Transit Connector Project, which aims to connect the Metro K Line to Inglewood and provide convenient access to venues such as SoFi Stadium, Kia Forum, and Intuit Dome, has experienced multiple delays in its early stages.
Originally, the system, which will be owned by the City of Inglewood, was expected to start operations before the 2028 Summer Olympics, with construction scheduled to begin later this year.
However, the project has been postponed until at least 2030, causing it to miss the Olympics and other high-profile sporting events such as the 2026 FIFA World Cup, the 2026 NBA All-Star Game, and Super Bowl LXI in 2027.
