Monrail on track for Vegas Loop conversion, but not any time soon

Plans remain on track to transform the Las Vegas Monorail into an elevated roadway for the Boring Co.’s Vegas Loop. But don’t expect a Vegas version of the PeopleMover anytime soon.

Las Vegas Convention and Visitors Authority president and CEO Steve Hill said Tuesday that the conversion will eventually happen — but since the Monorail is not losing money, there is no rush to make the change.

Hill said there are a couple of things that would cause the monorail to be discontinued.

“It’s run with a fairly old system, but mostly it’s trains,” Hill said. “If we had to replace those trains, it’s a $350 million-plus commitment to do that… and that’s not going to happen. Then there is going to be competition once the Boring Co. expands further, so the monorail needs to continue to at least be financially neutral for us. We don’t really have to make money, it’s great that we are, but it can’t be a huge drain on the rest of our mission.”

Once one of the two scenarios plays out, the LVCVA would close the monorail and begin transforming it into an elevated Boring Co. roadway. The switch is still years away from occurring, according to Hill.

“We know it’s on the other side of the horizon, but we can’t really see that on the horizon right now,” Hill said.

When the LVCVA decides it’s time to repurpose the Monorail for the Vegas Loop, workers would remove the rail and place a precast, two-lane road on top of the monorail tracks and connecting with the existing stations at the six resorts.

“We would use the existing stations and transform them into pull offs with cars instead of having the trains roll through there. So you’d have the road running through the middle, then off to the side you’d have an elevated station like we do at the south hall here (at the Las Vegas Convention Center) or the west hall.”

The Vegas Loop uses Tesla EV cars to transport passengers in underground tunnels in a point-to-point system. The Vegas Loop includes stops at the Las Vegas Convention Center as well as Encore, Fontainebleau, Resorts World and Westgate. Rides between convention center halls are free, while a ride including a resort stop require a fee. At full build out, the Vegas Loop will have 68 miles of tunnels and 104 stations at resorts along the Strip, in downtown and Chinatown, at Allegiant Stadium and near Harry Reid International Airport.

LVCVA chief strategy officer Ed Finger said that the Monorail system, already more than 20 years old, can last another 10 years. Last year, the LVCVA approved $12 million in upgrades for the system to ensure it can remain operable for the next decade.

The Monorail features six stations at various resorts and runs behind the Strip between MGM Grand to the south and the Sahara Las Vegas to the north.

The LVCVA purchased the Monorail in 2020 for $24 million when it was a struggling business. Since the takeover, the LVCVA brought in Western Management LLC to operate the system. The LVCVA board of directors approved a three-year contract extension with Western Management on Tuesday.

The monorail averages around 5 million passengers per year, with the LVCVA netting a total of $31 million from the monorail since the purchase of the system.

“We’ve owned the monorail for about five-and-a-half years now, purchasing a $650 million asset for $24 million,” Finger said. “We’re on pace to make over $6 million this year.”