The Real Deal Miami

All Aboard Florida to lose $110M annually: study

Miami to West Palm Beach route expected to open in late 2016

February 18, 2015 04:30PM

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Rendering of All Aboard Florida's Miami station

Rendering of All Aboard Florida’s Miami station

All Aboard Florida, the planned Miami to Orlando railway, will reportedly lose $110 million a year due to debt and operating costs, according to a study from an anti-rail group.

The railway would reportedly have to charge $273 for a one-way ticket from Miami to Orlando to break even — $145 more than the average cost of a plane ticket between the two cities.

John Friedman, an associate professor at Brown University, headed the analysis.

Friedman determined that the railway’s estimated $206.5 million in annual expenses would overshadow its yearly revenue of $95.8 million, the Palm Beach Post reported.

All Aboard Florida is a Coral Gables-based subsidiary of Florida East Coast Industries.

The route from Miami to West Palm Beach is expected to open in late 2016. The West Palm Beach to Orlando stretch will start in 2017, according to the Palm Beach Post.

The company plans to run 32 trains daily on FEC tracks.

Fort Lauderdale-based Moos & Associates was tapped in January to construct two of the railway’s stations in South Florida. The West Palm Beach station is expected to cost $29 million. [Palm Beach Post]Sean Stewart-Muniz

  • Al Czervik

    My suggestion is that the anti rail group should not invest any of their own money in All Aboard’s privately funded project.
    This just in: Professor Genius also determined that AT&T would have to charge $600 to break even on every iPhone. (He neglected to couple the monthly service charges gained when the phone is subsidized).
    The unanswered question going forward, Professor Genius, is how much will All Aboard make on the office tower that is connected to Miami Central Station? How much on all the real estate they own, and will rent all around the All Aboard stations?

    • unsatisfied reader

      Agreed, this article only makes me lose respect for the prestige of Brown University. I’d like to see the basis for John Friedman’s 7th grade level spreadsheets, $100m annually? is that a joke? I have a simple industrial engineering degree from a state school yet this sort of commentary is so poor in my opinion it is grounds for dismissal.
      Seriously, from a Brown professor?
      Never thought this would happen, but why don’t you let a 22 year old teach you a lesson in money in the real world…John, this might be hard for you to get, but All Aboard Florida is a real estate venture. Like many railroads before it, including the property on which AAF will operate, this rail will bring PEOPLE to property that is owned by FECI. The railroad is the monorail trip to Disney land. Ticket prices are nearly insignificant to the other sources of revenue this will bring.

      This study alone has made me seriously reconsider hiring anyone from Brown University; hope you get a chance to read this friedman..and while you’re busy attempting to justify your maimed calculations and ego, why don’t you go ahead and run the numbers on the revenue streams of the businesses surrounding the station areas, many of which are owned by the same company running the passenger train you think can’t fund itself. Recalculate your estimate including the apartments above the stations, the shopping malls inside of them, and the land parcels filled with shopping centers all paying rent to FECI; and have that on my desk by Monday.

  • j in jupiter

    ok unsatisfied reader. I get that it is a real estate play but that will probably be owned by affiliates and I can’t understand what idiots will buy the bonds even if they are tax exempt??

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