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A Florida TaxWatch Economic Report
The rise of commuter rails in Florida
A significant amount of public funds has already been allocated to these projects. In order to share tracks and prevent disruption of freight service, the state agreed to pay $432 million to CSX Corporation for the track upgrades and for terminal costs. The state also agreed to pay $66 million for operating costs and maintenance over the first seven years of service.4 In addition to state funds, public funds were provided by all four counties benefited by the system, and the City of Orlando. The federal government provided 50 percent of the funding of Phase I through a federal transit grant.5
Like any major transportation investment, SunRail has generated economic activity. Phase I of the project has created 17,000 construction and permanent, nonconstruction jobs combined, and has helped produce about $1.7 billion worth of new and planned development along the rail lines.6 An HDR Engineering Inc. study stated that the project would pour $10 billion in economic impact over 10 years into the impacted areas.7
Commuters have already begun to use the commuter rail service, and the Florida Chamber of Commerce reported that 12,000 tickets were pre-sold to consumers.
SunRail has plans to eventually be linked to the proposed All Aboard Florida rail line, in order to connect the South and Central Florida regions, expecting to facilitate the travels of about 50 million people per year.8
South Florida:
All Aboard Florida
All Aboard Florida would connect Miami, Fort Lauderdale, West Palm Beach, and Orlando upon completion. This proposed commuter rail system will be the first privately-owned, operated, and maintained passenger rail system in the U.S in 50 years. Developed by Florida East Coast Industries (FECI), this system is intended to connect about 9 million residents along the rail line corridor.
The initial phase will service the 66.5 miles of the FECI corridor connecting stations in Miami and West Palm Beach. A recent study by The Washington Economics Group reported that All Aboard Florida will deliver more than $6 billion in economic impact for Florida over the next eight years, creating an average of 10,000 jobs per year during the rail line construction. Work on the first phase of the track is set to start this year, and the train is expected to start operating between Miami and West Palm Beach in mid 2016.
4 Bloomberg. "Scott Heeds Disney in Backing Orlando Commuter Rail Line"
5 Sunrail Press Release (PDF)
6 Florida Chamber of Commerce. "New Rail Gives Florida Edge".
7 The Tampa Tribune. "New CSX terminal will bring big changes".
8 Reuters. "New commuter rail link ready to roll in central Florida"
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