A circle would have made more sense, I think, but having it in a line still makes a little sense: a long, narrow city usually works well with public transit because trains do well in moving along corridors. Still, a circle would have been better because you could have trains going both directions and the average time to get to any destination would be shorter. Anyway, your criticism of it being a line instead of a circle holds for Manhattan, for instance.

The location doesn't seem to make much sense though. And what exactly will be the industry that supports this place economically? Most cities have some kind of local industry.