Thursday, January 30, 2025

Florida’s Brightline Railway Shows Value in Private Enterprise

Must read

In an era when infrastructure projects mean government inefficiency and endless delays, Florida’s Brightline railway stands as a remarkable counterexample. America’s only privately owned and operated intercity passenger railroad, Brightline demonstrates how private enterprise can revolutionize transportation infrastructure.

The story begins in 2007, when Fortress Investment Group, led by Wes Edens, acquired Florida East Coast Industries for $3.5 billion. FECI, Florida’s oldest and largest rail infrastructure company, traces its roots back to South Florida pioneer Henry M. Flagler. What followed was a masterclass in efficient project execution: track construction beginning mid-2014, financing secured by late 2014, and service launching between Miami and West Palm Beach in 2018. (Brightline got a leg up in this process by repurposing 235 miles of existing tracks that go back to the days of Flagler more than a century ago.) The Orlando extension, financed in April 2019 with construction beginning in June 2019, began service in September 2023.

The contrast with government-run projects is stark. While the California High-Speed Rail Authority, which started around the same time as Brightline, has spent $11.2 billion from 2015 to 2023 with only 119 miles of construction to show for it, Brightline has created a functional, modern rail system. Though the project has benefited from some government support through Department of Transportation private-activity bonds and Bipartisan Infrastructure Law funding, its private-sector efficiency remains evident.

Brightline excels in passenger experience. It offers hourly departures, self-check-in systems, streamlined security procedures, and stations with quality amenities like restaurants and grocery stores. This attention to customer service has made it an attractive choice for South Florida residents.

Brightline’s success stems from its strategic focus on routes “Too Long To Drive, Too Short To Fly.” Such markets exist across the United States. Looking ahead, Brightline plans to expand to Tampa Bay and Jacksonville. Even more ambitiously, it is also developing Brightline West, a new route that would connect Los Angeles to Las Vegas.

Though Brightline is seeing rising revenue and growing ridership with its Orlando expansion, it reported a nearly $493 million loss in the first nine months of 2024. The company has responded by raising fares. Its future business model will rely, in part, on curbing short-distance trips to meet demand for its more profitable long-distance segments. 

Despite these financial hurdles, Brightline’s accomplishments offer valuable lessons for infrastructure development nationwide. It demonstrates that private sector efficiency, combined with strategic government support, can deliver infrastructure projects quickly that serve communities effectively. Only a decade after its initial launch, Brightline is already producing substantial consumer benefits in South Florida while planning for expansion and long-term profitability. As the United States grapples with infrastructure challenges amid the chronic obstacle of public-sector inefficiency, Brightline might just offer a model for moving forward.

Photo by Joe Raedle/Getty Images

Donate

City Journal is a publication of the Manhattan Institute for Policy Research (MI), a leading free-market think tank. Are you interested in supporting the magazine? As a 501(c)(3) nonprofit, donations in support of MI and City Journal are fully tax-deductible as provided by law (EIN #13-2912529).

Latest article