Passenger train travel in this country basically became obsolete, with the advent of the Eisenhower Interstate System. Something European countries never pursued with vigor and instead put their resources behind high-speed rail travel.
Eisenhower championed the Interstate System for primarily national military defense, after seeing German troops in WWII moving so easily on their Autobahns.
Americans fell in love with their automobiles and the idea that they could jump in them at their house and pretty much go anywhere, at their own pace and schedule...meant fewer and fewer were taking trains.
All Aboard Florida, now 'Brightline,' which is owned by the same hedge fund (Fortress) that owns the Florida East Coast Railway, believes there is an upscale market for a Miami to Orlando airport operation, but have never stated what the anticipated costs will be. Assuredly, it will be much more expensive than a family renting a car and driving on Florida's Turnpike between those two points...while adding only a little more time.
Right now, Brightline cannot find funding on the private bond market, after being rejected by the state and the feds, and the new track from the Titusville area to Orlando is still not funded...much less built.
So they've decided to start out running between Miami and West Palm using existing Florida East Coast trackage.
The only problem is, TriRail (which is actually owned by the state), already covers that same run at a reasonably low price.
But since Brightline has already purchased some equipment (locomotives & passenger cars), they need to do something and will try competing with TriRail.
Not surprisingly, Brightline is counting a lot on commercial property built in Miami & Ft. Lauderdale (and possibly other locations) to help defray train operating costs.
Another big issue are the communities along the Florida East Coast tracks, that are litigating/demonstrating about the number of additional trains (as many as 34) through their small communities.
I wish them luck, but can't see with all the obstacles they face...how it will ever succeed.
All Aboard Florida's plan for Miami-Orlando trains in jeopardy | Florida Bulldog
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The need for taxpayer-subsidized bonds
AAF has said it can finance the project without government funding, yet also that it would be difficult if not impossible without the taxpayer-subsidized bonds.
AAF president Michael Reininger stated in a deposition that not approving the sale of the tax-exempt PABs “would certainly disrupt the current financing plan, make the project more expensive to complete and may delay its progress.”
In a letter to Paul Baumer of DOT’s Office of Infrastructure Finance and Innovation that emerged during discovery, Reininger went further, calling the funding a “linchpin for completing our project” and “a crucial factor in ensuring our project is financed and completed.”
According to The Bond Buyer.com, there is little interest in the market for high-risk, high-return bonds for a variety of reasons.
The owner of AAF’s parent company apparently cannot help. Court documents state that Fortress’ market capitalization has shrunk by nearly half in the past 14 months.
Likewise, Florida East Coast Investments, AAF’s parent company, has significant debt obligations coming due in three to four years, according to court documents.
While AAF appears to have no funding for Phase II, it does have equity in train stations, which it could sell, according to Ryan.
“You know, all along AAF has claimed that this is a private entity, but it is totally dependent on subsidies,” he said. “They should knock off this fiction. They have their hands in every government pocket they can find.”
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