FEC sale does not include Brightline; Brightline expects breakeven or profit in 2018

March 29, 2017

Jacksonville-based Florida East Coast Railway acquired by Mexican corporation for $2.1B

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Jacksonville-based Florida East Coast Railway Holdings has been acquired for $2.1 billion by Grupo México, Mexico’s largest mining corporation and operator of the nation’s largest rail fleet.

The transportation unit of Grupo México, which trades in the Mexican stock exchange under the ticker GMEXICOB, financed the all-cash deal with $1.75 billion in debt and $350 million in capital, the company said in a statement to the Mexican stock exchange.

The assets were purchased from Fortress Investment Group, a New York hedge fund that manages FECR assets.

Florida East Coast Railway was once under the umbrella of Florida East Coast Industries, parent company of All Aboard Florida, which is developing the Miami-to-Orlando passenger train Brightline. Just prior to the Grupo acquisition, FECR was a corporate entity also owned by Fortress, though separate from FECI.

Click here to read the full story in the Jacksonville Business Journal.

Florida East Coast Railway to sell to Mexican mining group for $2.1 billion

By Roger Bull, The Florida Times-Union

A Mexican mining group and transportation company has agreed to purchase the Jacksonville-based Florida East Coast Railway, it was announced Tuesday. Grupo Mexico said it was buying the railway for $2.1 billion cash.

The sale is subject to government approval.

FEC, which dates back to 1895 and was a vital part of Florida’s development, operates 351 miles of mainline track along the state’s East Coast. It is the exclusive provider of rail service to South Florida ports and connects to CSX and Norfolk Southern in Jacksonville. FEC employs 300 people in Jacksonville, according to JAXUSA’s website.

Click here to read the full story.

Trains, Tickets and Transit: Brightline in the Sunshine Economy

By Tom Hudson, WLRN

Brightline hasn’t picked up a train passenger yet or even announced what fares will be when it does, but its former boss says the passenger train service won’t lose money during its first full year in operation.

Mike Reininger is executive director of Brightline’s parent company Florida East Coast Industries. Until earlier this month he was the CEO of All Aboard Florida, which will operate Brightline.

“We expect that we will be break even or profitable in 2018,” he told WLRN’s Sunshine Economy.

The privately funding passenger trains are expected to begin running between new stations near the downtowns of Ft. Lauderdale and West Palm Beach in July. Trains will come to downtown Miami in August.

Click here to read the full story.

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