NEW DEVELOPMENTS ARE BEING MADE AFTER BRIGHTLINE BEING PURCHASED BY VIRGIN LAST MONTH, reports David Peter Alan of the Railway Age. These developments include an IPO for stock and a possible additional station near Disney World.
On November 23, Jeff Ostrowski of the Palm Beach Post reported that the high-speed passenger rail service revenue of was exponentially lesser than initially projected and commented that "even if the IPO is successful, Virgin Trains will need billions more to pay for its ambitious expansion plans. Virgin Trains reportedly seeks to raise $100 million from investors in its stock offering." Ostrowski also noted in his report that Brightline has been paying their parent company Florida East Coast Industries for pricey rental fees for stations and parking garage.
Virgin Trains USA has filed a document with the Securities and Exchange Commision (SEC) for the IPO, which can be found on the SEC website at www.sec.gov.
The venture has positioned itself as an "emerging growth company," claiming it could establish high-speed passenger rail services across the US. However, it is unclear if their model would succeed in other corridors.
Alan commented, "It appears reasonable to assume that management did not believe that the Brightline brand had what it takes to bring in the money needed to complete the new railroad to Orlando Airport and beyond... It would not be correct to call Brightline a success, because that bold and snappy brand is about to be thrown into the dustbin of history."
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