Phoenix is a good example of where it won't work... But it doesn't stop them from trying.
Full disclosure: the author of the blog I'm about to link is pretty strongly libertarian, so obviously he comes at this from a certain point of bias. However I strongly recommend reading some of his posts with the Phoenix Light Rail tag. It's some really good insight.
https://coyoteblog.com/coyote_blog/tag/phoenix-light-rail
Specifically, though, this is a really good one: https://coyoteblog.com/coyote_blog/2014/10/phoenix-light-rail-update-we-spent-1-4billion-to-reduce-transit-ridership.html
If you look at Phoenix, they were showing consistent increases in transit ridership for a decade. As soon as they built light rail, transit ridership--in a city that's been growing like gangbusters--immediately stagnated. Bus ridership went down and light rail went up, at almost a 1:1 number. Was that worth it?
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The issue is a lot of places like to think they're high density enough for light rail, but... They're not. Every medium-sized city has people who fetishize light rail. But rarely does it actually work out.
You get these enlightened city planners who think they can "revitalize downtown" by connecting the suburbs to the city center via light rail. Of course, in a lot of cases those suburban workers work in... The suburbs. Light rail, rather than being a real commuting option, tends to be what drunks use to get downtown to party so they don't have to drive. That's not a bad thing (I've done it), but hardly worth the billions that cities throw at it.
The poor largely don't need medium-distance travel. Usually a big part of being poor is working relatively low-skill jobs, which doesn't require commuting "downtown" every day.
Light rail is a great thing for middle-class folks who have nice houses and shiny vehicles they leave at their park & ride to feel good about themselves for taking "transit" to work and being green. But it's a really expensive solution for that "problem", and the cost of that solution then tends to crowd out meaningful transit options for those who need it most.
Yup, I was completely mixing up nomenclatures, so that is my bad. Some of the concerns (park and rides) struck me as more rapid transit system situations.
I tend to be accepting of grade separated transit in some cases, depending on where you are and the scale you can get it to. I thought the Phoenix stuff was interesting, but it makes sense why it's not doing much. Phoenix is not particularly dense. Phoenix does not have any particularly crowded urban center. It's also a relatively low-functioning line. Outside running through downtown and I guess Tempe, it seems to have relatively low reach geographically (I get that it's more expensive, but having a slightly expansive system kinda matters). But I will concede, in a place without density or foot traffic, it's a crap idea. (I do kinda chuckle at Phoenix's idea of putting stations next to mall parking lots)
But there are other cities, ones that feature actual density in the urban core. Ones that concentrate jobs. Ones where parking can't keep up. They seem to make sense there. The argument about being green, I'm sorry, it's just not the case. Those middle class folks do it because spending several grand a year to store a car at your job is unpleasant, as is waiting it out in traffic. That transit offers a chance to be somewhat on schedule, not battle 45 minutes of traffic, and that matters to some folks. I dunno if it is worth the money. But I know if I dropped at least 100,000 more cars in downtown Chicago all day, it would not be great.
Now I will agree, some of where it’s being done is not good. And there’s another sort of moving target factor. So much of any investment like that is long-term. Paradoxically, by the time you really, really need that level of transit, you’re likely too late. By the time your traffic arteries are pushed to the point of causing so much lost time, by the time you’re building endless parking structures to keep up. the cost to build over all the stuff is titanic. I look at a place like Nashville, that is growing fast with little planning. At some point, robust public transit will be valuable, but at the moment, it’s not valuable enough (I think they scuttled high-speed bus stuff as well). But of course it’s hard to predict. New York built a lot of public transit and in retrospect probably should’ve built more.
(It leads to an interesting question about vestigial infrastructure and long-and-short term questions. I think you’ve worked on railroads. You mentioned they’re efficent for freight, but no one would ever build them. No one would build the interstate either)
TLDR I think separated rail makes sense in some places. Light rail, less so if it is still operating mostly on city streets.