Brightline shows people want more trains. But who will pay for them?
The company helped demonstrate the appeal of rail service in Florida. Its restructuring — and the billions in public financing sought for Brightline West — reveal the limits of private capital.
Brightline, a privately operated higher-speed rail line, continues its operations despite filing for Chapter 11 bankruptcy protection. The company, which runs between Orlando and Miami, will continue to operate its trains at up to 125 mph, as the bankruptcy filing does not include a division that operates service from Las Vegas to Los Angeles.
Since its launch in 2018, Brightline has seen a 14 percent increase in ridership and a 17 percent rise in revenue. However, the company now needs to borrow an additional $490 million to meet payments on its $4.4 billion debt. Brightline's financial struggles and safety concerns come as Americans show a growing willingness to travel by rail, despite the high cost of a ticket.
Some argue that the government should play a stronger role in financing high-speed rail, as private investors often lack the capacity to fund such large projects.
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