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While I don’t usually cover train-related topics on the blog (my enthusiasm for transportation is largely plane-centric… sorry President Biden), I like to keep an eye on Brightline. Why? Well, it’s in my backyard, and I’d say it’s America’s coolest train service.
Brightline Basics
The United States isn’t exactly known for its excellent rail service, although Brightline Florida is an exception. Brightline operates a service between Miami and Palm Beach, with a stop in Fort Lauderdale.
Brightline was once associated with Richard Branson and was to be renamed Virgin Trains, but Brightline and Virgin cut ties in mid-2020. Brightline has had significant expansion goals in Florida, including plans to offer service to Orlando, and possibly even beyond.
I reviewed the Brightline experience in 2019, and it’s so incredibly enjoyable it’s hard to believe it’s in the United States. The stations are beautiful, the trains are new and well maintained, and the employees are always friendly. It’s like the US rail equivalent of a Gulf carrier.
For about $ 15 more, you can book “Select,” which is the equivalent of Business Class, and gives you access to lounges, onboard food and alcoholic beverages, and more.
Brightline will resume operations in November
Brightline suspended operations near the start of the pandemic and has not operated since. At first glance, this seems a bit odd, considering Florida wasn’t exactly closed during this time. Many have wondered when (or if?) Brightline will resume operations, although there has been no timeline so far. This has finally changed.
It has been announced that Brightline will resume operations in the first half of November 2021. The exact date has not yet been communicated, but we should find out more in the coming weeks.
As Brightline resumes operations, all employees will need to be vaccinated, and guests and employees will be required to wear masks, in accordance with the federal mandate for masks for transportation.
Brightline’s new door-to-door service
One of the challenges with Brightline is that Miami, Fort Lauderdale, and West Palm Beach aren’t exactly places with great public transportation, so most people have to drive to and from the station.
Brightline plans to introduce a services platform that will handle customers’ first and last mile connections. In partnership with Iomob, the new service will offer customers a door-to-door travel service, eliminating the gaps created by trips to and from the station. Apparently, this service will offer a selection of private luxury cars, shared shuttle services, golf carts, and micro-mobility options.
I’m curious to see what exactly this looks like in practice, and how it will be different from a rideshare app.
Brightline expansion progress
Currently, Brightline only operates from Miami to Fort Lauderdale to West Palm Beach. However, the company has expansion plans:
- Stations are under construction in Aventura and Boca Raton; Aventura station is under construction, while Boca Raton station is expected to lead the way in the coming months
- Brightline will extend to Orlando; construction is past mid-term and is expected to be completed by the end of 2022
- Discussions continue for expansion to Disney and Tampa, though nothing concrete has been announced
Will Brightline ever make money?
Before getting to the heart of the matter, let me point out that I love the Brightline passenger experience and also find Brightline to be extremely useful. I take advantage of existing Brightline. I would love to see Brightline expand to Tampa because I have family there too.
That being said, I can’t help but comment on the fact that the company continues to pretend that it will someday make an operating profit and that it is so far removed from projections compared to reality. Brightline has already invested over $ 4 billion in its South Florida operations, and this is purely a real estate game, as it is about developing real estate around these stations and areas.
Even before the pandemic, Brightline was recording a huge operating loss:
- The company predicted that in 2019 there would be 2.3 million passengers and $ 112 million in revenue
- In 2019, Brightline had one million passengers and $ 22 million in revenue
- In other words, ridership was less than half of what was expected and revenues were less than a fifth of what was expected.
I think this also explains why Brightline has suspended operations for so long, despite the boom in Florida – investors know they won’t make money operating trains, so the more they can suspend operations while selling the real estate dream, the better.
Brightline sticks to its narrative, however. Today, the CEO of Brightline said this about the money-making company:
“We always knew that South Florida would only be a fraction of our operations. The end game is to connect South Florida to Central Florida, and we expect to see profitability in this segment. “
So yes, the company’s leadership was down more than 80% on revenues in existing markets, but Orlando will be another story and will be profitable? Even assuming the demand is there (which I question), what should ticket prices look like for Brightline to make an operating profit on the road? I just can’t make the calculations work, especially considering that they would likely target largely families.
At the end of the line
Brightline has announced that it will resume operations in November 2021. Glad to see this as it is a service that I have found very useful considering we live in Miami and have family in West Palm Beach . When Brightline resumes operations, the company will offer some sort of new door-to-door service, which appears to be able to eliminate one of the hassles of getting on the train. In addition, Brightline is working on opening stations in Aventura, Boca Raton and Orlando by 2022.
Brightline continues to claim that it will someday generate a direct profit, this is a real headache for me, however …
Anyone else looking forward to Brightline getting back to business?
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