Train official offers answers Rail will pay much of costs By Arnie Rosenberg arnie.rosenberg@scripps 772-221-4137 Most of the cost of quiet zones along the All Aboard Florida corridor will be paid by the railroad, a top All Aboard Florida official told Scripps Treasure Coast Newspapers. In a wide-ranging interview, P. Michael Reininger, All Aboard Florida president and chief development officer, said other safety upgrades the railroad makes will bring down the cost of quiet zones for local communities and counties. “As a consequence of all of the safety improvements we are making to the various grade crossings ... the majority of the infrastructure improvements that are typically associated with the construction of a quiet zone and funded by the municipality will, in fact, be put in place and funded by All Aboard Florida,” Reininger said. He said he could not be specific about cost or the railroad’s share since each quiet zone is designed and built differently, based on Federal Railroad Administration guidelines. Reininger provided written responses See ANSWERS, 7A Article Continued Below See ANSWERS on Page A07 ANSWERS from 1A Wednesday to 12 questions emailed by Scripps Treasure Coast Newspapers. A reporter asked follow-up questions in a telephone interview. Other key points of the interview: All Aboard Florida will cost significantly more than the $1.5 billion usually cited in the media. The railroad has applied for a $1.5 billion federal loan for a portion of its infrastructure work. Buying land for stations, building stations, buying trains and maintaining equipment will make the total investment well in excess of $1.5 billion, he said. Reininger would not provide the total anticipated cost. All Aboard Florida does not anticipate asking the state for financial assistance. All Aboard Florida will not build sidings to allow its faster passenger trains to pass slower freight trains. Instead, periodic interlockings will allow trains to move between tracks. The second track will be added between Miami and Cocoa, and a double track will be built from Cocoa to Orlando. Q: How were the rail stops chosen and why are there no stops on the Treasure Coast? What would it take for AAF to consider adding stops on the Treasure Coast and how would AAF choose the locations? A: Our business proposition is based on the idea that we will connect the major population centers of the third-largest state in the country with an alternative transportation option that is more reliable, more convenient, more comfortable and cost-competitive than the other options available to serve the hundreds of millions of trips being taken today in the market. A key part of this proposition is station locations that are central to existing employment, government and cultural destinations and proximate to current and future population centers AND offer the maximum opportunity for multimodal connectivity with other existing and planned mass-transit systems in each location. Our focus is on first things first. We are proposing a first-of-its-kind service, adding fundamental transit infrastructure into the state and regions by deploying private investment to make this all possible. We understand the enthusiasm many have expressed, as evidenced by requests for more station stops. Once our original business plan has been executed, and we have a newly created operating service, a range of possibilities can be considered. Without getting past the starting line, these possibilities cannot even be considered as there is no basis on which these hopes can be based. Q: How much has AAF requested in federal loans? How much more will you apply for? A: All Aboard Florida has applied for a RRIF (Railroad Rehabilitation and Improvement Financing) loan. This fully funded federal program was enacted specifically to support projects exactly like All Aboard Florida. In addition to targeting railroad infrastructure improvements, as the name suggests, it favors projects that create economic development, generate environmental and safety improvements, promote intermodal activity and provide public benefits. It is a loan, not a grant, and therefore is backed by equity investment and collateral provided by All Aboard Florida to secure the loan, which must be repaid with interest. We applied for a loan of approximately $1.5 billion, which is a portion of our overall investment in infrastructure improvements, new stations, new trains and the other costs associated with developing this exciting new transportation service. Q: Will AAF seek any state assistance, subsidy or financial assistance beyond what the state has committed to the intermodal complex at the Orlando airport? A: Lets take these one at a time. All Aboard Florida has not requested any state or federal grant funding or any kind of ongoing operating subsidies that are commonly associated with this kind of infrastructure project. The unique circumstances of our historic infrastructure asset base and the investments made over the past century, coupled with the dynamics of the travel market and limited options, give us this oncein-a-lifetime opportunity to create this service as a viable stand-alone business . With respect to the Orlando Intermodal Facility, the state of Florida has committed to funding support to build this multimodal complex. It will be the centerpiece of the long-range expansion of this important Florida air gateway, and will be the host to four separate rail systems in addition to connectivity to air service and a full array of groundtransportation options. It will be the transit hub for the Central Florida market. All Aboard Florida will ultimately be a tenant in this building and pay full fair-market rent for the space it will occupy. The financial support provided to this facility is not for All Aboard Florida, but for the overall facility. Q: Local governments now are required to maintain the safety of grade crossings. Would you pay for the sealed-corridor safety upgrades recommended by the Federal Railroad Administration, even though they are not legally required? If not, please explain. A: We remain steadfastly behind our commitment to create a safe and secure operating railroad and will fund all the necessary costs in improvements to ensure this outcome. We will, of course, comply with all applicable regulations and laws. This railroad has been in continuous operation for more than 100 years and enjoys a set of systems and a safety record that can only be considered enviable in the industry. All Aboard Florida will use its investment to continue, and improve upon, this stellar legacy. Q: Since no trains will stop on the Treasure Coast, what will AAF do to help communities with the cost of building quiet zones? A: Last September, we stated our commitment to paying for the safety improvements required to operate our system, and nothing has changed. It is important to remember that due to long-standing agreements that permit the roadway to cross the railroad, these costs would have been born by the local governments. As a result of our significant investment, the local governments can focus on seeking the funds for any additional infrastructure improvements needed to improve the grade crossings to the level of quiet zones. Per the federal statute, the jurisdiction with authority over the roadway must apply for a quiet zone. If the quiet zones are approved by the FRA, it appears the majority of costs associated with the infrastructure needed for quiet zones in the areas north of West Palm Beach will have already been funded as a result of our commitment and investment. We remain committed to working with the local governments as they progress through the federal process and to helping them realize costefficiencies if we are able to time the safety upgrades and quiet zone work at the same time. Q: Please list five benefits All Aboard Florida has for the Treasure Coast under your current plans. A: All Aboard Florida is the centerpiece of an economic catalyst that will ignite growth, new revenues, increased productivity and attractiveness for the state as a whole. The financial and social benefits of this infrastructure investment are shared by everyone in the state, and most directly by those with proximity to the route in the form of job creation, improved environmental conditions, tax benefits and opportunity that come out of our original investment and the follow on additional investments that always come from infrastructure initiatives. YOUR QUESTIONS Do you have additional questions for All Aboard Florida? Our Editorial Board is slated to meet with company officials Wednesday. Send questions you have to larry.reisman@scripps or via [email protected] discuss the issue further on TCPalm , visit our All Aboard Florida Forum at tinyurl/nnceh45 .
Posted on: Sun, 20 Apr 2014 09:27:38 +0000
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