JACKSONVILLE, Fla. — The economy has slowed Florida East Coast Railway, but the St. Augustine-based company is right on track to have commuter trains on its line, the Florida Times-Union reports.
Starting next year or in 2004, Amtrak is expected to use part of Florida East Coast’s 351 miles of track between Jacksonville and Miami, said Robert Anestis, chairman, president and chief executive officer of Florida East Coast Industries.
The freight-only railroad operates the only rail line running down Florida’s east coast with a direct route to Miami, Anestis said. A year ago, Amtrak said it would restructure its Florida routes and double its passenger rail service in the state starting this year.
That hasn’t happened yet, but Gov. Jeb Bush said he would ask the Legislature for $37 million to extend coastal Amtrak passenger service between West Palm Beach and Jacksonville.
The funding of the project will be done in phases. The first phase would allow the improvements necessary to operate one train per day in each direction.
The total Florida Department of Transportation contribution for the phase one track and station improvements is $23.5 million.
With $15.5 million in state funds already available, an additional $8 million would be funded in fiscal year 2002-03 by the department, according to a Bush news release.
Completion of the second phase of funding would be deferred until fiscal 2005-06, when the remaining $37.6 million state contribution will be programmed.
Because of a non-disclosure agreement with Amtrak, Florida East Coast has declined to reveal how much it will be paid in the deal. But benefits to the railroad would go beyond money, Anestis said.
“It’s a validation of the multiple uses for the right of way and our ability and willingness to work with public authorities to allow passenger service in the corridor,” he said.
Meanwhile, Florida East Coast Railway is doing better than most railroads during a sluggish economy.
During the first quarter of this year, the railroad reported $40.9 million in revenue, a 3 percent increase compared with the same period last year. Profit was $9.7 million compared with $10.3 million last year.
In terms of carloads, the railroad reported five consecutive down quarters before the fourth quarter of 2001. But carloads have increased since then due to better deals with major customers such as Tropicana, Anestis said.
Although Anestis isn’t about to pronounce the end to the recession, he said the railway is in a great position to continue to prosper.
The railroad has the only direct train route to Miami and a labor agreement that allows one crew to complete the entire trip.
“It’s really a pretty straightforward operation,” he said, “and we run a pretty efficient one.”