And CSX isn't getting $433 Million for the sale of the tracks. They are getting $150 million for the sale of the tracks. They are also getting some other "concession" funding like IIRC $23M to help move operations from the current intermodel yard in Orlando to the new one southwest of Orlando, some funding for that new facility including new roads for the trucks. All totaled CSX will see $377 million in state monies because of the deal. But again, the purchase price of the ROW is $150M.
Alan,
I am sorry, that is incorrect. The price tag is $433 Million. I have a website that says this and I found the line it says :
"Though not part of the bill, the state plans to purchase 61.5 miles of track for $432 million from CSX Corp (CSX.N) for SunRail in the Orlando area." at
http://www.reuters.com/article/idUSB71270520091209
Thank you.
Why you would ever trust a newspaper to get things right I don't know, but they are indeed quite wrong.
The project is slated to cost a total of $1.2 million. Of that $440 million will be spent double tracking the A line and improving the signal system. Another $174 million goes to buy the equipment. That number may well have changed due to the delays and the demise of Colorado Railcar. Another $209 million will be spent on building bridges to close 5 grade crossing on the S line. I don't count this as money being given to CSX for its benefit. The beneficiaries are the residents of Florida who live in that area and will no longer have to wait for a freight train to pass.
Yes CSX will save a few bucks by not having to maintain the grade crossing equipment, but again that $209 isn't going to CSX. So already that's $823 million of the $1.2 billion gone, leaving only $377 million and thereby making it impossible for CSX to be getting $433 million.
As I already noted, $23M goes to CSX to help move the current intermodal yard operations to the new site. That plus the $150M purchase price accounts for $173M of that $377M. At the moment I don't recall and cannot find how the remaining $204 is being allocated, but again at least some of it (if not all) is for the new intermodal facility.
Finally if you flip to Adobe page number 14 or document page 6 in
this scan of the contract between CSX & FDOT you can see right in section 2 that the price is quite clearly $150 million for the section of the A line that the state is buying from CSX; confirming what I've said above.
With all the delays and aruments going on in Florida there have been so many wrong numbers flying around that probably 3/4ths of those living in Florida probably have no idea just who's getting what anymore. Confusion is unfortunately quite widespread in Florida on this project.