Over the last several years, much has been written about the impending arrival of All Aboard Florida, the new express rail line owned and operated by the Florida East Coast Railway.
While most people are familiar with the high-speed passenger train’s planned route, which will connect Miami to Orlando with stops in West Palm Beach and Fort Lauderdale, relatively little has been revealed thus far concerning construction, projected costs, etc.
In an interesting turn of events, several media outlets across the Sunshine State have recently come into possession of bond documents outlining just this type of vital information.
To illustrate, the bond prospectus, which only address Phase I of the project (i.e., the line from Miami to West Palm Beach), fills in the blanks on some of the everyday details concerning All Aboard Florida:
- Ticket costs during the first year of service: Tickets for the Miami to West Palm Beach stretch will cost $30 for coach and $36.60 for business; Tickets for the Fort Lauderdale to West Palm Beach stretch will cost $20 for coach and $24.40 for business.
- Estimated riders: The FECR predicts that ridership will consist of 43 percent for leisure, 27 percent for personal travel and 30 percent for business
More significant for our purposes, the bond prospectus set forth vital information about the construction costs of All Aboard Florida:
- Cost totals: The estimated cost of construction for Phase I is projected to be $795 million, while the estimated cost of Phase II (West Palm Beach to Orlando) is expected to be $1.4 billion.
- Improvements and infrastructure costs: $95 million will be spent enhancing existing tracks and bridges, while $105 million will go toward signals and crossings.
- Train station costs: The West Palm Beach station is projected to cost $29 million, the Fort Lauderdale station is projected to cost $30 million and the Miami station is projected to cost $150 million.
Perhaps most significant of all, the bond prospectus indicates that construction on All Aboard Florida, which is expected to have 32 trains per day running by 2016, will start once the successful offering is finalized. Given that this occurred last week with the bond offering a 12 percent interest rate, it’s likely crews will be getting to work sooner than later.
“We have never constructed or managed a fully operational passenger railroad,” reads the prospectus. “Our ability to achieve profitability and generate positive operating cash flows in the future is subject to significant uncertainty.”
Stay tuned for updates …
If you require assistance with any aspect of your construction project or would like to learn more about your options for resolving a construction dispute, consider speaking with an experienced legal professional as soon as possible.
Source: The Palm Beach Post, “All Aboard Florida to spend $29 mill on West Palm Beach station,” Kim Miller, June 22, 2014