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