Financing

Financial Realities of the 

All Aboard Florida/Virgin Trains Project

Virgin Trains shelved its IPO last February. An analyst at Renaissance Capital  said, “We were concerned about the demand for that type of transportation in Florida — it’s unclear.”  She said, the cost of the expansion projects proposed were “astronomical” and “daunting.”  She wasn't wrong - Virgin missed it's 2018 ridership projections by a mile and missed 2019 projections by over 50%!

The system is losing money and pushing more capital expansion costs on to the taxpayers.  AAF/VT is demanding local taxpayers pay millions of dollars for roadway retrofits at hundreds of grade crossings and increased annual maintenance fees for upgraded crossing equipment. Indian River County has filed a lawsuit challenging the demands.

 

Now taxpayer grants are going to support a program for increased patrols to catch and fine trespassers; $250 million in tax monies went to the Orlando station. They need $100 million to replace the Loxahatchee Bridge; they advise counties to get grants if they want pedestrian safety features which were required in the Environmental Impact Statement.

Along with lagging ridership, the system lost $117 million in 2018 and in the first 9 months of 2019 has lost over $154 MILLION

AAF/VT will have massive debt but Grupo Mexico, owner of FECR and the tracks, will have double freight  capacity to all deep-water ports in the state.  From crossing costs to counties, to federal and state grants, to the indirect taxpayer subsidies of PAB's, we believe...

 

​Taxpayer dollars should not be used for this

DEATH TRAIN!

 

© 2019 Alliance for Safe Trains.