SunRail finishes first year $27.2 million in the red.
By Dan Tracy
Orlando Sentinel
May 10,2015
The SunRail commuter train finished its first year of operation $27.2 million in the red, bringing in $7.2 million while spending $34.4 million.
The shortfall was covered by taxpayers through the state Department of Transportation, which oversees the system running from DeBary in Volusia County through downtown Orlando to south Orange County.
He predicted SunRail's losses would fall in coming years because the train would carry more passengers and advertising income would increase.
"We should be able to grow that [revenue] over time," he said.
But chances are slim of SunRail breaking even, much less making money. Virtually all mass transit systems are subsidized.
A 2014 survey by the U.S. DOT found that the so-called fare box recovery rate — revenue from fares — across the country ranges from about 27 percent for bus systems to 48.5 percent for commuter-rail operations.
In South Florida, the Tri-Rail commuter train, which has been running since 1987, covered just more than 21 percent of its $75.3 million budget with fares. Lynx, which runs buses in Orange, Seminole and Osceola counties, brought in 30 percent of its $126.4 million budget with fares.
SunRail completed its inaugural year May 1, carrying just short of 900,000 fare-paying customers. The daily ridership average was almost 3,700, about 600 short of the 4,300 passenger goal.
Those riders paid $2 million, or an average of about $2.22 per one-way fare. SunRail's base fare is $2, plus $1 for crossing from one county to another. The top charge is $4.
Fares actually account for about 5 percent of SunRail's revenue, but another $5.2 million came in from advertising and rent from the CSX railroad company and Amtrak for using tracks owned by SunRail.
Noranne Downs, the FDOT manager over SunRail, said she intends to speak with other more-established mass transit agencies about ways to increase revenue. She also said SunRail could bring in another $1 million annually if the state Legislature allows it to lease land in the corridor to fiber communication companies.
"Obviously," she said, "we want to increase the total income."
Dyer said the six-year overhaul of Interstate 4 that should take hold during the summer should push disgruntled motorists to SunRail, increasing ridership and income.
In 2017, the train is slated to expand into Osceola County, which has a projected ridership of 2,000 people — more than half of what SunRail carries now.
Expenses will rise to serve Osceola, which will add four stops and 17 miles to the system, but SunRail officials could not give a cost estimate.
SunRail also is supposed to go north to DeLand, which would add another 220 riders. But SunRail officials are struggling to find federal money to help pay for that leg.
U.S. Rep. John Mica, R-Winter Park, thinks SunRail could reap additional fares if Lynx was more cooperative.
"Lynx has ignored bringing high-volume, long-distance carriers like Greyhound into the downtown terminal and forced Megabus out of downtown. Those two carriers bring more than 1 million people into Central Florida and would provide substantial revenue to SunRail," said Mica, who has helped get federal grants for SunRail.
Lynx CEO John Lewis said Megabus and Greyhound — which has its own terminal west of downtown — serve people going from city to city, not within the confines of Orlando.
"That has absolutely nothing to do with SunRail," Lewis said of Megabus and Greyhound.
About 500 Lynx riders, Lewis said, get on SunRail trains each day.
Mass transit supporter John Olivieri said SunRail's performance is fairly common in the industry and pointed out that the mode of transportation most often used in this country — roads — do not pay for themselves, either.
Read more:
http://www.orlandosentinel.com/news/...510-story.html
*On a side note SunRail doesn't run on weekends.*
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Ah, politics. What a shame. From the technical and service standpoints I think it could stand a good chance of being successful. Perhaps a two-operator-system approach like a Metrolink/Coaster setup between LA and San Diego would be in order? And while I'm dreaming, Disney would expand their monorail...
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