Ticket to ride on FECI’s ‘All Aboard Florida’

August 28, 2013

Florida East Coast Industries believes it can make money offering a service no private company has offered.

Fortress Investment Group, a New York-based private equity firm, bought Florida East Coast Industries — one of Florida’s ultimate hard assets companies — in 2007, for $3.5 billion, and… carved the company into four operating units… the freight rail company, Florida East Coast Railway, [is now] an independent company that [Fortress] owns separately, along with the 350 miles of track between Jacksonville and Miami on which the railroad operates its freight trains.

When Fortress decided to separate the freight company from the rest of the business, however, it included a provision that has become the basis for FECI’s fourth and most surprising venture: Private passenger rail service…

If it comes to fruition, All Aboard Florida will be the first private intercity passenger rail service in America since 1971, when government-subsidized Amtrak took over passenger train operation nationally…

Rest of the story in Florida Trend (August 28, 2013)

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