by SouthernRailway
As conservative as I am on economic issues, I've always maintained that private-sector rail passenger service absolutely requires government subsidies, since passenger rail does not make money, period.
However, Brightline has upended my perspective. I can't imagine that Brightline trains will ever make a cent of profit, but the entire package of what Brightline is doing (station and other real estate development plus train operations) must have been well thought out; Fortress (its financial sponsor) is a highly reputable investment fund, and Softbank is behind Fortress. So there must be a decent business plan there somewhere that involves profit, somehow. Plus Brightline seems to have very quickly built really nice stations and put really nice trains into operation.
Question: why isn't Amtrak doing what Brightline is? Brightline's management has mentioned other corridors where Brightline might replicate its South Florida project. Why isn't Amtrak beating Brightline to the punch and doing a combination of real estate development plus frequent train operations in other parts of the country? Couldn't places where Amtrak already has some service, such as the Pacific Northwest, California and elsewhere, be places where Amtrak could do that? In short, if the Brightline business plan will result in profits (somehow), why isn't Amtrak racing to do the same thing?
However, Brightline has upended my perspective. I can't imagine that Brightline trains will ever make a cent of profit, but the entire package of what Brightline is doing (station and other real estate development plus train operations) must have been well thought out; Fortress (its financial sponsor) is a highly reputable investment fund, and Softbank is behind Fortress. So there must be a decent business plan there somewhere that involves profit, somehow. Plus Brightline seems to have very quickly built really nice stations and put really nice trains into operation.
Question: why isn't Amtrak doing what Brightline is? Brightline's management has mentioned other corridors where Brightline might replicate its South Florida project. Why isn't Amtrak beating Brightline to the punch and doing a combination of real estate development plus frequent train operations in other parts of the country? Couldn't places where Amtrak already has some service, such as the Pacific Northwest, California and elsewhere, be places where Amtrak could do that? In short, if the Brightline business plan will result in profits (somehow), why isn't Amtrak racing to do the same thing?