Brightline says Tampa is next up

[Tacachale]

There's a handful of people on the CD forums who speculate that the objective of Brightline is to fail as a passenger rail line so that FECI will be allowed to takeover with its freight trains. Like the entire concept is a ruse to simply upgrade and increase freight service.

Those of you who understand the business, why is this a ridiculous theory? Or is it actually possible?

It's crazy that they'd invest so much into the stations if they planned for the system that used them to fail.

[thelakelander]

There's a handful of people on the CD forums who speculate that the objective of Brightline is to fail as a passenger rail line so that FECI will be allowed to takeover with its freight trains. Like the entire concept is a ruse to simply upgrade and increase freight service.

Those of you who understand the business, why is this a ridiculous theory? Or is it actually possible?

I remember some speculation here a few years back.  However, FEC was sold to Grupo Mexico a few months ago.  Why would Brightline want to fail so another company can operate freight?

Grupo Mexico, a mining and rail conglomerate, is buying the Florida East Coast Railway Holdings Corp. for $2.1 billion under an agreement announced Tuesday.

The purchase will enable the Mexican company to expand its U.S. freight transport business on Florida East Coast Railway's 351 miles of tracks stretching from Miami to Jacksonville. Grupo Mexico has existing rail operations in Texas.

The transaction will be financed by $350 million in Grupo Mexico funds and $1.75 billion in debt, according to Grupo Mexico.

The sale of Jacksonville-based FEC Railway, which is owned by Fortress Investment Group, will have no impact on the company's other holdings — including the Brightline passenger train operation in South Florida.

The investment group also owns Florida East Coast Industries, the parent company of All Aboard Florida, developer and owner of the Brightlight passenger train system being built from Miami to West Palm Beach and Orlando.

"The sale of the Florida East Coast Railway does not impact Brightline," said a spokeswoman, AnneMarie Mathews. "Brightline is a separate company that has dual ownership of the corridor and the right to operate passenger service."

http://www.miamiherald.com/news/business/article141301728.html

[ProjectMaximus]

There's a handful of people on the CD forums who speculate that the objective of Brightline is to fail as a passenger rail line so that FECI will be allowed to takeover with its freight trains. Like the entire concept is a ruse to simply upgrade and increase freight service.

Those of you who understand the business, why is this a ridiculous theory? Or is it actually possible?

I remember some speculation here a few years back.  However, FEC was sold to Grupo Mexico a few months ago.  Why would Brightline want to fail so another company can operate freight?

Grupo Mexico, a mining and rail conglomerate, is buying the Florida East Coast Railway Holdings Corp. for $2.1 billion under an agreement announced Tuesday.

The purchase will enable the Mexican company to expand its U.S. freight transport business on Florida East Coast Railway's 351 miles of tracks stretching from Miami to Jacksonville. Grupo Mexico has existing rail operations in Texas.

The transaction will be financed by $350 million in Grupo Mexico funds and $1.75 billion in debt, according to Grupo Mexico.

The sale of Jacksonville-based FEC Railway, which is owned by Fortress Investment Group, will have no impact on the company's other holdings — including the Brightline passenger train operation in South Florida.

The investment group also owns Florida East Coast Industries, the parent company of All Aboard Florida, developer and owner of the Brightlight passenger train system being built from Miami to West Palm Beach and Orlando.

"The sale of the Florida East Coast Railway does not impact Brightline," said a spokeswoman, AnneMarie Mathews. "Brightline is a separate company that has dual ownership of the corridor and the right to operate passenger service."

http://www.miamiherald.com/news/business/article141301728.html

LOL well that settles that. Thanks!

[spuwho]

Yes, there is a small vocal conspiracy crowd claiming that Brightline will fail and that it will be sold to the State of Florida while FEC will get to leverage to upgraded system.

I think that theory has been debunked well, but detractors persist.

Once we see the WPB-Miami segment running day in, day out into Miami Central, the conspiracy theorists will be reduced even more.