Posted on 09/22/2018 11:52:38 AM PDT by Publius
With its funding plans clearer, South Florida passenger start-up Brightline is looking west for its next venture into private high speed rail.
Brightline on Tuesday said it had acquired XpressWest, a high-speed passenger rail project with rights to develop a federally approved corridor connecting Southern California and Las Vegas.
he project would be only the second privately funded intercity passenger rail in the United States after Brightline.
No terms were disclosed.
“Brightline is changing transportation in our country by connecting heavily trafficked corridors that are too long to drive and too short to fly,” said Wes Edens, co-founder and co-chief executive of Fortress Investment Group, parent of Brightline. “Our experience in Florida is proving that private-sector investment has a meaningful role to play in developing transportation infrastructure. We’re excited to bring Brightline’s world-class and convenient travel experience to Southern California and Las Vegas.”
Less than 300 miles away, The Strip’s hotels and casinos have long been a getaway destination for visitors from California. Proposals for high speed rail go back decades, most recently the Las Vegas Railway Express, or X Train, a 2010 start-up that had received state approval, issued stock, and purchased passenger cars before being discontinued in 2016.
Earlier this month, the Florida Development Finance Corp. approved Brightline’s request to act as a conduit for the issuance of $1.75 billion in Private Activity Bonds to finance construction of rail infrastructure in Miami-Dade, Broward, Palm Beach, Brevard and Orange counties for Phase 2 of the higher-speed passenger rail system. Phase 2 covers construction of the true high speed line to Orlando.
“The introduction of high-speed rail between Las Vegas to Southern California will bring significant economic and environmental benefits to our state and support increased tourism,” said Nevada Gov. Brian Sandoval. “Brightline has built a proven model for privately funded high-speed rail service in Florida and we are excited to welcome them to Nevada.”
Brightline currently operates higher-speed passenger service between Miami and West Palm Beach limited to 79 mph. The company hasn’t said when it will be able to break ground on Phase 2.
The XpressWest deal will potentially enable Brightline to link one of the most traveled routes in the country, connecting more than 22 million people living in Southern California with Las Vegas, one of the most visited cities in the US. Brightline quoted ridership studies as finding travelers make more than 50 million annual trips between Las Vegas and Southern California. Today those travelers are limited to traveling by air or highway; Brightline expects to make the trip in less than two hours.
High speed rail is also expected to benefit from the move of the NFL’s Oakland Raiders to Las Vegas in 2020.
As a result of the acquisition, Brightline will take over the development, construction and operation of the project and work with federal and local transportation officials to connect Las Vegas with Victorville, CA, 200 miles away, with future plans to expand into the Los Angeles area.
The first phase of the corridor is expected to be built on a right of way within and adjacent to Interstate 15, traversing 185 miles with no at-grade or pedestrian crossings. Construction is expected to begin in 2019, and Brightline is planning to begin initial service in 2022.
Union Pacific and BNSF maintain mainline operations in the vicinity, including from Southern California through Cajon Pass through the San Gabriel mountains to Las Vegas, among other destinations. It’s unclear whether Brightline, which operates on sister company Florida East Coast Railway’s track in South Florida, intends to negotiate agreements for use of those lines.
“Brightline’s model is setting a new standard for train travel in America,” said Patrick Goddard, president of Brightline. “Today’s announcement is an important milestone for our company as we re-imagine transportation between these major metropolitan areas. We look forward to working with the region’s stakeholders to make this vision a reality.”
“The XpressWest team has done an incredible job bringing this project together and we’re confident that Brightline will fulfill our mission and promise to the region,” said Tony Marnell, founder and chief executive officer of Marnell Companies, a southern Nevada developer that built the Mirage, Bellagio and Wynn Las Vegas, and is backing Xpress West. “We’ve been impressed with what Brightline has accomplished in Florida and are excited to be part of the team that is working to deliver privately funded high-speed rail to improve mobility in America.”
Brightline said it is in the process of acquiring 38 acres of land adjacent to the Las Vegas Strip for construction of mixed-use development and an intermodal hub with access to taxis, buses, shuttles, and limousines.
The first Southern California station is planned for Victorville, a 30- to 45-minute drive for 4-5 million people who live in the Inland Empire and eastern Los Angeles County, and within reach of Southern California’s remaining 17 to 18 million residents. Planning for additional stations and connections, Brightline said, to the Metrolink commuter rail system – and eventually California high speed rail – is underway.
“California has a vision for a modernized rail network that is fast, clean, and convenient for travelers, and the introduction of Brightline service linking Southern California to Las Vegas will help us achieve that vision,” said California State Transportation Agency Secretary Brian Annis. “Brightline will be beneficial for our economy and our transportation system.”
They have been talking about a train from LA to LV since at least 1981 when I came out here.
Maybe Jerry Brown could run the project after he is termed out.
I don’t think anyone in the private sector would hire Brown for anything but janitorial work.
Boatloads of taxpayer’s cash forever!
No, this is a total private sector operation, just like the one in Florida. It sinks or swims on its own.
How about a design based on capsules propelled through tubes.
Like merchants and their payment tubes, back in the day.
Fill up a ‘vessel’ with people, and ‘shoot’ them to LV.
No interference from surface traffic, whatever form it may be.
Pack them back in the capsule for the trip home.
It’s all a huge scam. There was a viable rail system called Mag Lev, but then Harry Reid got into it with his shill Sig Rogich and Desert Xpress. Rogich immediately eaded Republicans For Reid.
Parking in Victorville is going to be a problem unless the city creates an enclosed, guarded parking structure.
A rail line is time-tested technology and a lot cheaper to build and operate. Considering that this is to be a total private sector operation, if it turns out to be a scam, then Fortress Capital will lose its shirt.
The city of Victorville won’t build the garage, the passenger rail company will build it.
Too much public land, encumbered with various environmentally-sensitive flora & fauna, is the major hurdle to acquiring a dedicated right-of-way. The routes mentioned that already exist and are in use by the UP & BNSF won’t support HSR on the same tracks as freight rail operations. Lots of money down a rathole here...
I’ve talked to Union Pacific about this very issue with respect to passenger rail service between Phoenix and Tucson. They are willing to let other operators pay to use their right of way but with a 102 foot track separation from their freight tracks.
The only way this is built is with massive subsidies. Having chatted extensively with the Maglev engineers, the point they made is Desert XPress can’t make it over the grade. I’m not for Maglev either. There is no compelling evidence people would actually use this.
And yet Fortress Capital, a New York hedge fund, thinks it can be done without government subsidies and that people will use it. Their Brightline operation in south Florida has its 16 daily trains running full, and they put the whole thing together without a penny from the state of Florida. Their only federal connection was a low interest FRA loan.
I have heard from COUNTLESS foreigners visiting here in LA why there is not one train that goes to LV for many, many years...
I prefer to drive. I like deserts and it’s a change of pace from seeing the urban hell we live and work in..
Can we give Willie Green temporary amnesty so he can weigh in on this??
I support this and would use it. I prefer public funding.
The line should be split. Ontario Airport to Barstow. Burbank airport to barstow. These would be the only stops to ensure higher overall speeds. A high speed train with multiple stops will not be high speed. You go to one of those places to catch the train Then one line barstow to vegas with gambling on the train.
SF and Oakland and Sacramento could do the same.
Vegas hotels should be asked to raise roomfuls to fund the train since they will benefit the most.
It’s not mag-lev, so I don’t think he would be interested.
I meant PRIVATE funding.
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