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Brightline postpones Orlando extension opening until 2020

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Posted by BaltACD on Monday, July 24, 2017 8:41 PM

I'll be surprised if it ever gets built to Orlando.

Never too old to have a happy childhood!

              

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Posted by MidlandMike on Monday, July 24, 2017 7:58 PM

kgbw49

...

One wonders how much of the FEC sale proceeds had to be plowed in to this endeavor to get it to an operational date, as the cash burn on this passenger train project has to be enormous.

...

 

I hought the Miami-WPB leg was about built when the FEC sale went thru.  I assumed the proceeds would have gone to self finance the Orlando extension.  Did Fortress just pay it out in dividends?

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Posted by CMStPnP on Monday, July 24, 2017 9:56 AM

oltmannd
Someone needs a ride on the LIRR or MetroNorth trains in the afternoon rush hour!  

The difference there is they are both self-insured government operations.   If your a trail lawyer seeking a quick buck off a drunk driver.......are you going to sue the almost unlimited legal funds government entity (LIRR or Metro-North) or would you sue a private firm (Brightline) that is more eager to settle and move on as it sees that delaying a settlement only increases future settlement and or legal costs?

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Posted by CMStPnP on Monday, July 24, 2017 9:54 AM

kgbw49

We are all hoping for Brightline to actually become the first true profitable passenger train operation in decades.

But it will be a miracle for that to happen.

Perhaps the overall umbrella company will make money managing the real estate developments along the line - that may actually be their strategy to use the train operation as a loss leader to get businesses leasing office space and residents leasing condos in Fortress-owned transit-oriented developments.

If this passenger train operation turns a true unsubsidized profit - covering all operating expenses and all capital costs for equipment and roadbed plus a return for the owners - they will really have done something unique in the world.

One wonders how much of the FEC sale proceeds had to be plowed in to this endeavor to get it to an operational date, as the cash burn on this passenger train project has to be enormous.

If the Amtrak Capitol Corridor, Hiawatha and Surfliner operations need a subsidy, one has to wonder how the economics of this operation will be different.

Trend for the Hiawatha Service is declining subsidy, in fact I am surprised how little it costs for all the train freqencies we get between Chicago and Milwaukee and I forecast with the projected projects next to and around the Amtrak station in Milwaukee........the trend towards further reduction in subsidy for Chicago to Milwaukee is on it's way.    Thats if they go forewards with making the current large Post Office annex to the Amtrak station in Milwaukee a retail shopping mall as well as develop some planned apartments around the station......who knows though......all that could also could fall apart.    I am amazed at how busy the Bus Terminal at the Amtrak Station has become, you have to be there in the early morning 7:30 to 9:00 a.m. to see all the traffic but they do seem to serve a lot of Bus routes out of that small station.

Onto Brightline, it seems like they are rushing the real estate projects because the rail development fell behind.    It could be either encouraging sign or a disappointment they have postponed Orlando.    Right now it looks kind of encouraging they are holding out for the best and lowest cost capital deal to finance the Orlando extension...........seems like a smart move that would significantly lower their operating costs vs. just jumping at any finance deal to get the project done.

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Posted by oltmannd on Monday, July 24, 2017 7:31 AM

CMStPnP
Also announced they will serve alchol on the trains which could be risky for a Commutter Train operation

Someone needs a ride on the LIRR or MetroNorth trains in the afternoon rush hour!  

 

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by kgbw49 on Monday, July 24, 2017 5:28 AM

We are all hoping for Brightline to actually become the first true profitable passenger train operation in decades.

But it will be a miracle for that to happen.

Perhaps the overall umbrella company will make money managing the real estate developments along the line - that may actually be their strategy to use the train operation as a loss leader to get businesses leasing office space and residents leasing condos in Fortress-owned transit-oriented developments.

If this passenger train operation turns a true unsubsidized profit - covering all operating expenses and all capital costs for equipment and roadbed plus a return for the owners - they will really have done something unique in the world.

One wonders how much of the FEC sale proceeds had to be plowed in to this endeavor to get it to an operational date, as the cash burn on this passenger train project has to be enormous.

If the Amtrak Capitol Corridor, Hiawatha and Surfliner operations need a subsidy, one has to wonder how the economics of this operation will be different.

 

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Posted by CMStPnP on Monday, July 24, 2017 2:51 AM
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Posted by CMStPnP on Monday, July 24, 2017 2:37 AM

Also announced they will serve alchol on the trains which could be risky for a Commutter Train operation but I can see the need to make money.    Attached link also has another onboard tour of the train with a large restroom.

http://www.sun-sentinel.com/news/transportation/fl-reg-brightline-town-hall-20170601-story.html

 

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Brightline postpones Orlando extension opening until 2020
Posted by CMStPnP on Monday, July 24, 2017 2:25 AM

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