Since Brightline has progressed since its AAF days and seems to be a going concern, I thought it deserves its own topic.
The latest is this financial report that perhaps GBN can decipher for us. It would appear that this reflects a lot of overhead/ administrative costs so its hard to tell what the financials are for only the direct costs and revenues for the rail operations (reminds me of the days of the debate, pre Amtrak, on calculating the loss on passenger service).
Regardless, it is clear that for Brightline it’s all about leveraging their real estate investement with the train service. Not a bad business model. I guess it’s sort of the reverse of 150 years ago when the UP and others hoped to grow the rail business by supporting new towns and, much later, hotels.
Posted by Gilbert B Norman (Member # 1541) on :
Well, now that we have a topic regarding the affairs of Brightline Trains, LLC, allow me to address several points addressed by Mr. Palmland when opening this topic.
The Financials noted by Mr. Palmland and as reported by "friend of Brightline", Gannett Treasure Coast Newspapers, appears they are released, but I'm unable to locate them on the web. The First Quarter are there on a PDF file, but to link them, I'll have to go to my desktop to post a link to them. Maybe tomorrow.
Now poking around for additional material on Brightline affairs, I note this report by the public interest group, The Florida Bulldog. They seem to question, independent of any kind of "feeder" to enhance real estate interests, the viability of BLT.
I detect some degree of Kubler-Ross Phase V on the part of the Gannett Treasure Coast staff, but I do think that this material regarding the now approved $1.6B proposed issue of Private Activity Bonds is straight forward. Apparently, only a private placement is being considered, but it should be carefully noted that such placement must be completed by the end of this year. Three months and counting...tick...tock.
Now to address reporting by the McClatchy Miami Herald. This report simply can't be too earth-shaking in these days of our cynical political process.
Finally, The Herald had a softball interview with the new BLT CEO that hardly breaks any new ground
Posted by palmland (Member # 4344) on :
I thought it might be good to get back to a rail topic and I found this interesting link to a TV report on the progress of Brightline to Orlando. Saw this link on the Trainorders site.
Posted by sojourner (Member # 3134) on :
I'm a little confused about why Brightline inaugurated its route on a route already served by Trirail. I know its faster, but still, seems to me they ought to have begun with Orlando south, or West Palm to Jupiter Beach and north, or Miami to Tampa (served only, and poorly, by Amtrak), or JAX to St Augustine to Daytona, or Sarasota to West Palm Beach, or Orlando to Tampa, or something like that. . . . (or LA to Vegas).
Also, other than being faster, what are the benefits of taking Brightline over TriRail? Are there more trains at better hours? Are the station locations in Fort Lauderdale and Miami a whole lot more convenient than the Trirail stations? When you get to the Miami Brightline station, is there some kind of shuttle to Miami Beach, or must one still take costly taxis?
And what's with plans to go to Orlando Airport but not anywhere else up there? I mean, Brightline is advertising itself as downtown to downtown, so why is it just going to Orlando airport?
If the airport is so attractive, how come it doesn't go to the airports in Fort Lauderdale and Miami? Are there shuttles? Isn't it convenient that the Florida TriRail goes to Miami Airport?
BTW, whatever happened to plans to move Miami's Amtrak station?
Posted by Gilbert B Norman (Member # 1541) on :
Ms. Sojourner, Brightline and Tri-Rail have two distinct markets. Tri-Rail provides regional rail (commuter) within a service area defined by the boundaries of public funding, while Brightline is a private sector intercity passenger rail service that temporarily operates wholly within Tri Rail's service area.
As I noted, I have been highly skeptical of the initiative figuring that when first announced during '11, it was a ploy to sell the FEC Ry. to the State. To me, with all the public funds spent to make the South Florida ports "players" in a neo-PANAMAX environment, the State was the greatest party in interest to keeping that road independent, for having only one road serving a Port is cause enough for maritime companies to just "keep on sailing".
Obviously, I was very mistaken.
However, if Brightline is unsuccessful with their plans to "build out" to MCO (Orlando International Airport; once McCoy AFB), I doubt if they will be long for this world. The reason they chose to build to the Airport is that there are adequate automobile parking facilities so that passengers can be drawn from the entire region and not simply one municipality.
Brightline plans to expand service to Tampa, which would open a rail market that has never been served beyond the Amtrak innovation of the "one a day" Star and the prior Palm. But they would now have to deal with another railroad, CSX, that doesn't have too much reputation so far as "making nice" with passenger train operators.
Finally, regarding Amtrak using the Miami Airport Intermodal station, short of some "political leaning", "notagonna happen".
Sojourner, I think the reason Brightline started with the Miami to W. Palm portion is that it was the easiest. The railroad was already there (Mr.Flager’s Florida East Coast RR) it jurst needed some upgrading to handle their trains. No environmental or regulatory requirements. The only real obstacle were the NIMBY’s.
As GBN says, this is really a fast intercity service, not all stops commuter line like TriRail. Because of the location of the FEC, it is much closer to the coast than TriRail and therefore does a better job of serving the downtown city core of the W. Palm to Miami locations.
Further on the Orlando airport terminus, don’t forget Orlando Sunrail system plans to build from their Deland-Orlando-Kissimmee route. It will include a short extension to the airport which will connect much of the metro area to Brightline. And, plans for a new route (using hiway right of ways) to Tampa would likely bring it in close proximity to WDW southern border as it parallels I-4.
Posted by sojourner (Member # 3134) on :
Thanks for explaining about the Brightline and Sunrail likely connection. That now makes a little more sense to me.
The location of the TriRail vs Brightline stations in West Palm don't really seem that different, though granted, the TriRail stop is on the other side of downtown with a dicier area north of it. I am unfamiliar with the TriRail locations in Ft L and Miami but I thought Miami TriRail was right downtown; at least, it's not where the stupid Amtrak station is!
But downtown or not, what they need to do is have free or inexpensive luggage-friendly buses or shuttles to Miami Beach and also to Ft Lauderdale cruise port. Do they? If people are parking in Orlando and taking the train to Miami, they will not want to pay $40-50 in cabfare to get where they are going, and another $40-50 to get back.
Posted by Gilbert B Norman (Member # 1541) on :
Ms. Sojourner, Port Everglades is accessible using Tri-Rail to the Dania station. From there, (pretty sure) free transfer busses go to the Airport. Once at the Airport, all major cruise lines operate busses to the Port. It would appear show up at one with ticket and they will get you to the dock.
I recommended just that to a young couple from overseas last January when I was using Tri-Rail as part of my Brightline joyride. They had all day to get there for their sailing.
Posted by palmland (Member # 4344) on :
Sojourner, I think the easiest way to get to Port Everglades is to use a ride share service which will help you with your luggage. According to my Uber app the fare is about $11 from the Brightline station in Fort Lauderdale. It could be a few dollars more during rush hour. The Brightline site says they have a designated pick up spot at the station for ride share services.
Posted by sojourner (Member # 3134) on :
Thanks for the tips. Actually, if I went, I'd want to come in the night before and stay at a hotel (near the port) to be sure to be sure. But leaving I might leave straight.
Posted by Vincent206 (Member # 15447) on :
Washington Monthly has an article: The Train That Only Libertarians Can Love . Perhaps a better title would be "A Train That Even Libertarians Can Love". The article summarizes the history of planning for fast trains in Florida and looks at the challenges facing Brightline on its march to Orlando and Tampa. The most revealing item I learned from the article is that Governor Rick Scott, the official who rejected ARRA money for Tampa to Orlando HSR, has an investment of at least $3 million in Fortress, the company that owns FEC and Brightline. I guess that explains Scott's lack of opposition to the Brightline express trains.
The article also ends with the writer, Maddy Crowell, taking Amtrak from Tampa back to New York. Part of her trip report:
quote:The ride from Tampa took twenty-five hours, traveling along tracks, congested with freight trains, that are owned by the CSX corporation—or, more exactly, by the hedge funds and other financial institutions that own CSX. The station in Tampa was true to Amtrak’s reputation—a decrepit and tired-looking gray. Water dripped on our heads as we waited for a man with a whistle to allow us to board. But every seat was full. Next to me, an elderly woman was traveling to visit her son, somewhere in Virginia. She couldn’t drive and depended on Amtrak to see her family. She asked what had brought me to Florida, and I explained that I was writing about Brightline, the new high-speed rail. “What is high-speed rail?” she asked, yawning.
Posted by Gilbert B Norman (Member # 1541) on :
Thanks for locating this material Mr. Vincent. While the freelance journalist author has done a good job in codifying material already "out there" (the FECI financial interests of Gov. Scott had been previously reported) and presented in a readable manner, there is no new ground broken for those who have followed AAF/Brightline affairs
Posted by Ocala Mike (Member # 4657) on :
Thanks, Vincent. The journalist was certainly not kind with her comments about Tampa Union Station, but I will counter by saying that restoration projects are ongoing, and the place looks a lot better than it did just a few years ago. For those interested, you can go here: http://www.tampaunionstation.com/ Posted by Vincent206 (Member # 15447) on :
I hope Tampa hasn't hired the same contractor that did Seattle's King Street Station rehab. That project took foreeeeeeeeeeever.
Posted by Gilbert B Norman (Member # 1541) on :
Well, I guess this topic should be retitled Virgin Trains, as Richard Branson is prepared to take a position in the enterprise by means of an IPO:
Looks like there will be a new market for "I slept on a Virgin" T-Shirts and other apparel.
Posted by palmland (Member # 4344) on :
And here is an article Branson put out. Amtrak wouldn’t know what to do if a creative guy like Branson tried to work with their bean counters.
Posted by Vincent206 (Member # 15447) on :
Reading reviews of Virgin Trains UK , it seems that Virgin Trains UK runs the trains on time but customer service is frequently "shocking", "rude" or "appalling". Plenty of complaints about food and the difficulty of changing tickets, too.
FWIW, my strongest surviving memory of Branson's Virgin America airline was the pretentious and inattentive attitude of the customer-facing employees. But Richard Branson was only a minority investor in VX, the day to day operations were controlled by Americans.
Posted by Gilbert B Norman (Member # 1541) on :
I have a Brightline joyride set for this Sunday. Leave Miami 4P arrive WP 515P return 8P arrive 915P. Select $80, so they're not giving anything away any more.
Posted by Vincent206 (Member # 15447) on :
After one year of service, Brightline trains are becoming part of the South Florida urban landscape, according to this article :
quote:Brightline’s train stations are luring new development and other amenities into South Florida’s downtowns. New offices and hundreds of apartments will open this year near the stations in Miami and West Palm Beach, and Fort Lauderdale officials expect a similar project across 7 acres in their city, too.
High(er) speed rail won't solve everyone's mobility problems, but with the right changes in local land use patterns, a lot of people can make their job commutes faster, business trips more convenient and vacations easier. Brightline has been spurring localized development around its stations and creating neighborhoods that support work and livability without the need for long auto commutes.
What a surprise! Maybe there is a future for high(er) speed rail in North America.
Posted by yukon11 (Member # 2997) on :
Speaking of high speed rail, here is a plan for HSR from Eugene to Vancouver, BC. Also a run east from Seattle to the Tri Cities and on to Spokane.
I guess one should emphasize that this is nothing more than a plan. They don't say what the cost prediction might be. Also, could it really reach 250 mph speeds? If that is true, Eugene to Vancouver would take less than 2 hours. What speeds could be obtained over the Cascades, Seattle to Ellensburg?
I do like the suggested route going east to Spokane. If the plan is just a pipe dream and no more, how about a Cascade train to Spokane?
Richard
Posted by Gilbert B Norman (Member # 1541) on :
Joyride in progress dp MIA 410P ar WPB 525. Near Lake Worth. Load at best is 30%.
On Board service in Select (First) is "impeccable".
The return, the 800P train (numbers are only circulated to operating employees), all kinds of "goodies" in the Select Lounge - alcoholic and otherwise. But once again, I had Select as good as to myself. Raining for the return so not too many "privileged jerks" hanging around Atlantic Ave in Delray playing "dare you" to beat the train.
Finally, this as good a place as any to note in Miami, the transfer between Rail and/or Mover is not seamless. Station is First Ave NW and 6th St. Government Center Rail/Mover station is 2nd St, so you have a four block hike. Closest Mover is Wilkie Ferguson station 5th and 1st Ave. Really was "no biggie" to me; getting off Rail with five minutes to spare?....well.
Posted by palmland (Member # 4344) on :
GBN, the high today, Tuesday, in Chicago is supposed to be -10. Hope you decided to stay a few extra days in the sunny south! It would seem to be worth it even if United had a change charge. Although I suspect with many flights canceled (as well as todays EB), they waived change fees.
Any more thoughts on Brightline and, more importantly, any local news on progress towards Orlando?
Posted by yukon11 (Member # 2997) on :
Here is a review of Brightline by one of the editors of Trains magazines:
A big positive would be the "friendly and polite" train staff. We could all use that benefit.
I am impressed by the "Select Class" lounge at the Miami Central station.
The phone app problem, as discussed, seems to be not unusual. Our SMART train, here in Santa Rosa, requires a phone app to park in the train parking lot. I couldn't figure out how to get the app for parking, and even others, with me, who are more computer savvy couldn't figure it out, as well.
Why couldn't they use credit card parking meters? I would like to think you could use cash, on board, for beverages, etc. I am amazed, whenever I am at a Starbucks, at the number of people using debit/credit cards for a $3.00 cup of coffee. I guess I belong to an older generation.
Richard
Posted by Gilbert B Norman (Member # 1541) on :
I did get home last night. United CXD the morning flight I was to take but they rebooked me on their afternoon, which got to ORD on time. Despite warnings from dear friends to not do my poor man's ("get an Uber" like that is something I do all the time - I've never used them), I did it (I had five layers of clothing) - it's what I've always done since the '80's when I had to think about the cost of things more than I do today. It went without incident - the cold just kept me moving.
Oh and applying for about the one thing airlines will refund for - a downgrade from First to Coach - went smoothly at the website. And Middle Seat Coach really wasn't the end of the world - a really nice gal was happy to share company with me on the flight and with hugs parting ways ("just think, had you been up there in your First Class you would have never met me").
Posted by Gilbert B Norman (Member # 1541) on :
quote:Originally posted by yukon11: Why couldn't they (SMART) use credit card parking meters? I would like to think you could use cash, on board, for beverages, etc. I am amazed, whenever I am at a Starbucks, at the number of people using debit/credit cards for a $3.00 cup of coffee. I guess I belong to an older generation.
Richard, I'm one of those I think older than you who hates cash. To me it's "sinister" (well, not your $3 Starbucks) and in my daily life the only thing I use it for is my monthly haircut ($20 - old school) and the laundromat every 45 days ($10 - coin-op).
On the trip, I took $50.75 with me and returned with $2.75. I'll even share where it went:
$20 Hotel housekeeper $6 METRA $3 CTA $4 MIA Metro $10 Tip for a comp Breakfast at hotel $2 gift to a homless veteran $3 New York Times
Why Amtrak hasn't gone cash free on board escapes me.
Posted by yukon11 (Member # 2997) on :
Mr. Norman: I think, long ago, there was a forum discussion on the possibility of an Amtrak debit/credit card for on board services (kind of an "Amtrak Club card"). Do you think that would be something useful? What about an Amtrak phone app for paying for beverages and meals?
Richard
Posted by Gilbert B Norman (Member # 1541) on :
Fair Use Quotation from the material immediately submitted:
Virgin Trains USA, the Sir Richard Branson-backed company that has partnered with Florida's Brightline passenger train, on Wednesday announced an initial public offering of stock to raise up to $619 million.
Altogether, Virgin Trains is offering to sell more than 32.5 million shares of stock at $17 to $19 per share. The shares will be listed on the Nasdaq stock exchange under the ticker symbol VTUS.
Of course, this is all well and good for an outfit about which I have been mistaken more than any in the sixty five years I have followed railroad industry affairs, and for which, so far as I'm concerned (six trips to date), offers an entire (station and on-board) product never found anywhere in all three "Americas"(of course, let it be noted the only South American country in which I have set foot is Venezuela).
Now, first $600M (if they get it) is only a "down payment" on the $1.6B they need to "build out" to MCO - never mind all the rest. The Private Activity Bonds (exempt from Federal Income Tax) have been rated "junk", and at present "they're losing their shirts" even with the apparent "post-intro" fares (my MIA-WPB-MIA was $80).
How do I know they're losing their shirts? Safe assumption they'd be trumpeting it from the wherever (can't say hilltops in South Florida) if otherwise.
Sir Richard is a showman - and this is just one more outlet to sell "I slept on a..." T-Shirts.
Oh and finally, when I got off the plane at ORD last Tuesday wearing my Brightline hat, someone recognized it and asked "you ridden Brightline?", and to which I favoraby responded.
Posted by Gilbert B Norman (Member # 1541) on :
The Palm Beach Post has now reported on the IPO and has come to same conclusion as have I.
Fair Use:
Virgin Trains expects to raise net proceeds of $467.8 million in the IPO. The company already has $700 million in debt, and it’s looking to borrow $2.3 billion to fund its expansions from West Palm Beach to Orlando and Tampa, and also for a proposed line connecting Los Angeles and Las Vegas. That’s after Brightline missed two 2018 deadlines to raise $1.15 billion in a sale of tax-exempt bonds. “We are currently in discussions for a commitment for a one-year bridge loan facility (subject to a one-year extension) to permit us to borrow up to $2.3 billion aggregate principal amount,” the company says. “We do not yet have a commitment for such bridge loan facility.”
Virgin Trains has yet to hire a contractor to connect West Palm Beach to Orlando. The company says it aims to open service between West Palm Beach and Orlando International Airport in three years, placing the launch date in 2022. “We have not yet entered into certain construction contracts for the completion of the North Segment, including contracts for the construction of rail infrastructure and our Orlando vehicle maintenance facility, as well as contracts for the completion of signage, off-site roadway work and utility connections,” Virgin Trains says..
Again I must note. The IPO, if successful, will only raise a small portion of the funds needed to build out to MCO - never mind the rest?
Finally, Sir Richard is a showman. He is not King Midas.
Posted by Gilbert B Norman (Member # 1541) on :
Maimi Herald reports that the IPO has been "shelved".
Fair Use:
..Virgin Trains USA, formerly known as Brightline, has decided to shelve previously announced plans to take the company public.
“As we explored a public offering, a number of alternative financing sources became available that allow us to keep the company private and meet our growth strategies,” the company said in a statement. The company declined a request for an interview, citing its required regulatory quiet period for any securities filings...
Somehow, "alternative financing" means additional public fund guarantees of any bond issue. That translates to "subsidy", resulting in me being off the hook to "eat my hat".
But even if soon it will be "tilt; game over", I have had six superlative rides on Brightline. They have set a standard that will be hard for any passenger carrier to match.
It is my hope that if it's all over, they will go out in the same manner as did the Santa Fe on A-Day Eve.
Posted by Gilbert B Norman (Member # 1541) on :
First chapter of my best-seller "How to lose friends and make enemies" is shouting "I told you so".
So I refrain from that and offer this ominous report in the spirit of "they sure have tried":
Financial experts say it’s unclear how long Virgin Trains USA can continue to operate after putting the brakes on a stock offering that would have raised nearly $500 million in much-needed capital.
With a cash flow of negative $6.8 million per month, the money-losing parent of the Brightline train service must look outside passenger revenue for a financial lifeline, said Ozgur Ince, a finance professor at the University of South Carolina.
“Their cash position looks very precarious,” Ince said. “With only $273,000 in cash and cash equivalents, they really needed the $500 million or so cash infusion from the IPO.”
Richard Rampell, a Palm Beach CPA and former board member of the RailAmerica freight line, also sees financial trouble down the track.
“At this rate, they could last maybe a year,” Rampell said. “Then they’re going to be in big trouble unless they can get some more capital.”
Best advice; "get on down" and "on the pronto" for a taste of what rail travel can be.
Posted by Gilbert B Norman (Member # 1541) on :
I think Gray Lady knew she had a "knothole in her paywall", and has now plugged it. Feedback on this will be appreciated
Nevertheless, here is "very favorable" reportage appearing in the Travel section today:
A "cautiously optimistic" article appeared recently in the Miami Herald:
Fair Use:
If you build it, will people ride it?
It is the question now dictating the future of Brightline, the express train that hopes to take passengers from Miami to Orlando and beyond.
Almost a year after launching its service from Miami, tens of thousands of passengers now hop the train for the Miami-to-West Palm run, and back, each month. In February the figure totaled more than 78,000, according to a monthly Brightline ridership filing. (In an email provided after this story was published Monday at 7 a.m., Brightline shared that its March ridership totaled over 90,000.)
The number of riders is on a recent uptick, the company reports. Still, passenger levels remain below the company’s initial projections, and Brightline continues to operate at a loss. In February, the company decided to forgo an initial public offering (IPO), one that Bloomberg reported was set to be the largest of the year.
Posted by palmland (Member # 4344) on :
Trains newswire and the Palm Beach Post reported on the enthusiastic demand for selling private bonds to finance construction to Orlando. Looks like that train will depart the station!
Posted by Gilbert B Norman (Member # 1541) on :
6% tax-free yield - wow!
But lest we forget, only the cash flow of VTUSA secures them. Try as the creditors might should a default occur, no other FECI asset can be touched.
I have a High Yield fund in my portfolio (Virtus SEIX); for all I know, some piece of it will be in these VTUSA PAB's.
But I guarantee you, I'd never hold a position outright in such. I have too many GE bonds that were A or better when I bought them, but now are Baa.
Posted by Gilbert B Norman (Member # 1541) on :
Likely, this week is proving to be amongst the most significant in Virgin/Brightline's history. Here is an Editorial by the Orlando Sentinel's Editorial Board:
Fair Use:
Remember back in 1999, when Central Florida was just one Orange County Commission vote away from building a light rail line along Interstate 4?
Remember back in 2011 when newly elected Gov. Rick Scott turned down $2 billion in federal money for high-speed rail between Orlando and Tampa?
Let’s hope we’re not going to remember 2019 as the year Florida passed up yet another opportunity to kick our addiction to roads.
On Friday, a quasi-government agency is scheduled to decide whether Virgin Trains USA — the new name for Brightline — should be allowed to sell $950 million in tax-exempt bonds to complete a rail project linking Miami and Orlando. The agency already approved $1.75 billion in bonds for the project.
The bond proceedings themselves would be a crashing bore to the average person. But they’re key to Virgin Trains’ plans.
We’ve been on board with this idea from the start, in part because Florida desperately needs transportation options. A state with this many people cannot continue to rely so heavily on roads to move people around. It’s a losing proposition...
There does, however, appear to be a conflict between the Post's reporting noted by Mr. Palmland, and the opinion expressed here by the Sentinel's Board. The Post reported "it's a done deal" while Ten Sentinel's Board holds the decision will be made today.
I do think the Board's position of keep the government out of it, is a bit optimistic. True, these bonds are "6% tax-free" and will be privately placed with "institutionals". Presumably they are professional enough to know what they are getting into, being quite aware that they will be paid only from the farebox after the trains are gassed up and the drivers are paid - and, oh, the wine vendor.
Now what I think is unsaid is that these institutional holders are betting on is that they will be bailed out at the "Tallytrough" should there be a default.
Finally, I remain astounded how far the initiative has come (again "for those tuning in late", I thought it was a ploy to "fatten up the steer" to sell the railroad to the State) and further acknowledge that in my sixty five years of following industry affairs, including eleven "inside", I have never been so mistaken regarding an outcome
Posted by George Harris (Member # 2077) on :
While this looks to be a project that is needed, making a profit would surprise me. Passenger systems simply seldom if ever do. If this were Texas High Speed Rail, I would probably go for it, but not whole hog. If Brightline into Orlando does become profitable, my view would be something like the comment made about the Chicago and North Western many years ago when it was claiming a profit on its Chicago commuter service. It was to the effect, "It is like watching a hippopotamus do ballet. It is not that it does ballet so well, it is that it manages to do ballet at all."
Posted by Gilbert B Norman (Member # 1541) on :
So it appears that the industry trade magazine, Bond Buyer reports the private placement by Morgan Stanley was successful.
Fair Use:
The Virgin Trains USA name made a hit with qualified investors who eagerly scooped up its high-yield bonds to finance Florida’s privately owned passenger train project.
In the largest municipal bond deal of the week, the $1.75 billion of unrated private activity bonds priced Monday with the Florida Development Finance Corp. as the conduit issuer on behalf Virgin Trains USA, formerly known as Brightline.
The deal, upsized from $1.5 billion initially proposed in bond documents, priced a day ahead of schedule because of strong demand.
Morgan Stanley, the sole underwriter, said 67 participants sought orders after “very successful” roadshows in Boston and New York. In-person site visits also allowed prospective investors to ride the train service on its current route between Miami and West Palm Beach, which offers passengers wireless internet service, electrical power and USB outlets at all seats, and food and drink service.
Posted by George Harris (Member # 2077) on :
Still think I would stay away from them and any fund that has much in them.
Posted by Gilbert B Norman (Member # 1541) on :
It's undeniable that the "tempo" and success of getting things done has increased since Sir Richard has come on board. Seems like having a showman associated with anything enhances it's "cache".
Oh well, he now has a new market to sell "I slept on a Virgin" T-shirts.
Surprisingly, a showman affiliated with a railroad is not new. For years, Billy Rose held a seat on the New York Central's Board.
Finally, first here is a video I have not seen referenced here:
Also, here is Miami Herald reporting and video on the renaming of MCS to VM - Virgin Miamicentral:
Fair Use:
quote:Although the downtown station has been renamed, the trains will continue to carry the Brightline yellow stripes until they are repainted with Virgin’s red logo. Virgin Trains USA, whose parent is Fortress Asset Management, will operate separately from Virgin Group.
Morgan Stanley was the underwriter for the transaction, which was purchased by 67 different investors, the company said. The sale of the tax-free private activity bonds, which was authorized earlier this month by the Florida Development Finance Corp., represents one of the largest such transactions recorded. The FDFC says taxpayers would not be on the hook if the company were to default.
Ridership on Virgin’s express train may finally be on track to meet its aggressive targets.
Formerly known as Brightline, the company reported late Friday that March ridership had increased 17 percent over February’s to 91,903 passengers, with revenue increasing 21 percent.
The company is aiming for more than 2 million passengers and revenues of $55.8 million for 2019. So far this year, it has carried approximately 244,000 passengers, grossing $5.9 million. Last year, it carried 580,000 passengers, grossing about $10 million in revenues.
I completely remain astounded by this whole initiative. While I have now had three enjoyable joyrides to date, never in my over sixty five years of following railroad industry affairs, have I been so mistaken about the outcome of anything within such. I knew Amtrak was a "con job" business plan right from A-Day, and while I did at first think Conrail was a "con game", I realized "they're gonna make it" once they were able to emiciate the ERIE and LV and still retain its traffic and sell the DL&W and CNJ to the State for its NJTransit lines.
But I can only acknowledge so far as Brightline, how mistaken I have been.
Posted by George Harris (Member # 2077) on :
While I wish these people every success and would like to be part of their cheering section, "putting my money where my mouth is" won't be part of it. I just feel like good an idea as this may be I don't see it coming out financially in the US transportation situation.
Posted by Gilbert B Norman (Member # 1541) on :
My hat shaped cake waits until there are financials satisfying this CPA (ret; title is mine for life) Brightline is a going concern without anything from the "Tallytrough".
Sir Richard has had his "fun"; he got to promote his new cruiseline and splash some of his Red paint around. Beyond that, what did he do other than offer up a celebrity endorsement?
Must say, some of this rings of RRY on the Chessie with his ordering twice as many passenger cars as they could ever use; ordering cars, including Domes, for a Wash-Cinci trains that couldnt fit into Wash. However, there was back then, a ready market for the excess with the B&O, DRGW, IC, and NYC.
Posted by Gilbert B Norman (Member # 1541) on :
This article, appearing in Today's Wall Street Journal gives insight, as well as mention, regarding the successful underwriting of the "junk". Apparently, in search of yield, institutional investors are willing to take a high risk of default:
Fair Use:
Virgin Trains U.S.A., backed by Fortress Investment Group, has benefited from high demand for munis. Also known as Brightline, the train seeks to connect Orlando, Fla., to Miami.
But it didn’t fill up its trains with as many passengers as expected in 2018 after station opening delays, according to bond-offering and financial documents. The company also faced losses, financial records show. A spokesman for the train said it had always projected a “multiyear ramp-up” for revenue and ridership.
Even so, in April, muni investors lent Virgin about $1.8 billion to expand, marking the largest unrated muni bond deal over the past five years, according to calculations by MMA.
Brian Wynne, head of public finance at Morgan Stanley , which underwrote the bonds, said high demand enabled the railway to sell $250 million more in debt than initially planned, with yields roughly a fifth of a percentage point less than expected. Virgin could issue $950 million more in the coming months, according to the Florida Development Finance Corporation.
Such bonds “enable the private sector to deliver critical infrastructure projects,” said Wes Edens, co-chief executive of Fortress and Chairman of Virgin Trains..
Promise; you won't find these "puppies" in my portfolio.
Posted by Gilbert B Norman (Member # 1541) on :
Hard as it may be to believe, "Brightline/Virgin buddy", Gannett Treasure Coast Newspapers actually has run a piece that could be called "news".
Fair Use:
In May, Virgin Trains carried nearly 86,000 passengers, generating about $1.7 million in revenue, according to self-reported numbers released this week. The company is obligated to publish monthly ridership and revenue numbers because it's receiving tax-free bonds.
Over the first five months of the year, Virgin Trains has carried just over 401,000 customers and brought in $9.4 million. In Virgin's efforts to sell $1.75 billion in private- activity bonds, the company projected carrying roughly 2.3 million passengers in 2019 and generating a little more than $60 million, according to financial statements from the company
Of interest is that it looks like their Opinators have "thrown in the towel", and the only remaining opposition is Indian River County, who is pursuing their interests in Federal Court (a lawyer once said to me "if you feel you got screwed at State level, you go to Federal"). I guess those folk out on John's Island need to "blow their $B's" on something.
Finally, of greatest interest to me is that May revenue and ridership is out there. This will be the first real "comparo" of MIA-WPB available.
Posted by Gilbert B Norman (Member # 1541) on :
.....and some call me skeptical!!!
Well, how say we try this Miami Herald columnist, Carl Hiaasen, on for size.
"Tallytrough", anyone?
Posted by TBlack (Member # 181) on :
Well, Carl, why don't you tell us what you really think!
Posted by palmland (Member # 4344) on :
Guess I’m not surprised that Carl Hiaasen would not be thrilled with Virgin Trains. My wife and I have always enjoyed his very funny books, full of eccentric characters and thinly discussed loathing of Florida developers and politicians. While he has some valid points, i suspect those who have to deal with south Florida traffic will embrace this service, regardless of how profitable or not. Just run the trains fast, frequently, and on time.
Posted by Gilbert B Norman (Member # 1541) on :
These numbers are "out there" on the "light web". I have no idea regarding source, but if there is any foundation to them, it is no wonder BL/VT is becoming "opaque". Possibly they are able now that the IPO was CXD and the bonds have been privately placed:
Updated monthly ridership data: Code: ----- 2018 2019 Jan 17,783 73,568 Feb 24,098 78,707 Mar 32,899 91,903 Apr ?????? 71,308 May ?????? 85,740 Jun ?????? Jul Aug Sep Oct 60,013 Nov 80,660 Dec 98,076 Code: Revenue: ---------- 2018 2019 2020 Jan ---------- $1.7m Feb ---------- $1.9m Mar ---------- $2.3m Apr ---------- $1.8m May ---------- $1.7m Jun Jul Aug Sep Oct $1.0m Nov $1.5m Dec $2.2m
Comparative May ridership and revenue would be great to have made public, but if they are dismal, and with private placement of the bonds obviating any requirement to do so, they will be hard to come by.
I have no knowledge if the "Tallytrough" will be "open and ready to serve you", but with the "clubby" environment at any state capital, I wouldn't be surprised. Also wouldn't be surprised if "it never got out".
Posted by Gilbert B Norman (Member # 1541) on :
OK, I'll stand corrected; a May ridership and revenue report does exist:
It appears my earlier concerns that ridership reports would no longer be circulated are unfounded.
Of interest; service from Miami Central was inaugurated May 19, 2018, so June will be the first month for which comparative "numbers" will be available.
Posted by Ocala Mike (Member # 4657) on :
I will concede that never in more than sixty five years of following railroad industry affairs, have I been so mistaken about the outcome of a project.
I have now learned that the FDFC bonds have been rated Aaa, or investment grade, by Moody's. This is in sharp contrast to the earlier rating agency, Fitch, bestowed on them of not investment grade.
Now a question: what benefit has been gained by Sir Richard Branson's "horn in"? Enquiring mind wants to know.
Posted by Gilbert B Norman (Member # 1541) on :
From Marriott Biscayne Bay Miami--
This afternoon, it's off for a joyride. Leave Miami Central 350P to WP, early Dinner @Ruth's, return 740P.
$72; Select (Business).
Of interest, no mention of Virgin at the site. Is Sir Richard "still in"? Who knows what will be at either station.
Sorry Sir Richard, but with all the carefully crafted branding Brightline has done, shame to have it go to waste. But then, those with "Big egos" seem to have "thin skin".
Posted by palmland (Member # 4344) on :
Glad you made it to FL and anxious to hear your Brightline and A -T reports. Looks like we won’t make it to FL for spring baseball this year as heading to an Alabama gulf beach instead. No trains involved as I don’t think the Gulf Wind is still running.
Posted by Gilbert B Norman (Member # 1541) on :
So let's see.
First, I found the Brightline labels remaining at Miami Central, even if Sir Richard has horned in with some of his. At West Palm, you wouldn't know he had any connection whatever.
Both "Pink" and "Green" remain liveried as such. Can't speak for the other three sets.
But I really hold the best positive is the revamp of their site allowing passenger seat selection. When selecting, you will be shown a diagram of the car - including the direction of travel.
Amtrak, are you reading?
The only negative is they have downgraded their wine offerings. Last year, in both the Select lounge an on board, they were offering Ferrari-Carrno Chardonnay (upscale). This year Cupcake, for which at the liquor store, you bend low enough to have it hurt.
Everything was fine on the Northward trip, but the return....?
At 29th St in the Wynwood neighborhood, some "room temperature IQ idiot" made a right turn at the X-ing - and on to the ROW. There was no collision and cannot imagine any injuries. The train was able to clear, but there was still "head scratching time" between the cops and FEC officials.
We were delayed about twenty minutes - big deal. All told, $72 well spent.
Posted by palmland (Member # 4344) on :
Even I, with very low wine standards, skip over Cupcake. But glad everything else went well. Wonder if you can have a beer in lieu of wine. I’ll take a Guinness over a mediocre wine any day.
I guess Amtrak can’t let you select seat based on direction of travel and location of seat because they have no clue on a daily train specific basis which cars are being used.
Posted by Gilbert B Norman (Member # 1541) on :
From Hilton Suites Boca Raton--
Well, now that the act has been moved 40 miles up the road, and Black Beauty is back in my custody, first was an "ABC Run" to get two bottles of a Gruner Veltliner and a Papa John's pizza. One glass of that, along with a Chardonnay at the hotel's "Manager's Reception", I'm ready for the bunkhouse. Two 11PM nights are enough for me.
Mr. Palmland, last time I had "suds", was @ Kam's in Champaign - that's been a while, needless to say.
Posted by Gilbert B Norman (Member # 1541) on :