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Bush derails bullet train
By PETER WALLSTEN © St. Petersburg Times, published January 15, 1999 TALLAHASSEE -- The dream of a French-style, 200-mph bullet train moving passengers in style from Tampa to Miami is dead. Gov. Jeb Bush, in office less than two weeks, announced Thursday that there were "too many uncertainties" to go ahead with the $6.3-billion train. "The only way I could see for this thing to work would be for the state to accept greater and greater liability, which was never the intention," said Bush, a Republican who first talked skeptically of high-speed rail during last year's election. The state has spent $22.4-million to study the project and will have to pay the developers as much as $6-million for bowing out. Bush said the state could lose much more if it proceeds. He cited a new report by the federal General Accounting Office, which suggested the project faces uncertainties and said it would be at least two years before there was enough information to determine the cost, financing, ridership and schedule for the bullet train. The report said the project could cost up to $8-billion. Knowing that, Bush predicted Wall Street investors would look with disfavor upon the project when state officials try to borrow money. "The financial structure of this deal was not viable," Bush said. "I am absolutely convinced of that." Bush wants the money to be spent on other transportation projects, such as improvements in Tampa and Orlando to boost the area's bid for the 2012 Summer Olympics. Florida transportation officials have been studying high-speed rail for more than a decade, boosted by support from the late Gov. Lawton Chiles. Bush's decision -- which he reached late Thursday -- came more quickly than some had thought. The project's director didn't hear about it until around 7 p.m. Thursday. His announcement was bad news for the three private companies that make up the public-private Florida Overland Express, which signed a contract in 1996 to plan, build and operate the trains. Shares in Alston, the French company that was to make the train cars, fell four points in Paris amid news of Bush's stance. "I'm disappointed," said David Gedney, chief executive officer of FOX, which will be disbanded. "I thought that the private and the public sector had a very, very, good chance of making this project a reality." Bush's announcement came at a critical time in the push for high-speed rail. This year, FOX and transportation officials were asking the Legislature to make its first payment toward building -- rather than studying -- the train. The state would agree to chip in $70-million this year, with annual payments increasing by 4 percent each year for 40 years. Also this year, the state was preparing to ask the federal government for a $2-billion loan. FOX had agreed to invest $349-million to purchase the trains. Thursday, Republican House Speaker John Thrasher applauded Bush's decision to stop the project. "As speaker of the House, I did not see or hear anything that gave me any degree of comfort that this project would provide the type of benefits necessary to justify the high costs," Thrasher said in a written statement. Republican Senate President Toni Jennings said she has generally been supportive of high-speed rail as long as the project was financially sound. In a statement, she said, "A project of this magnitude needs the support of all the decisionmakers to move forward. At this juncture, it appears a re-evaluation is in order." The first leg of the system, Orlando to Miami, would have opened in 2004, and Tampa would have been added in 2006. Bush cited concerns about FOX's original ridership projections -- 8.3-million riders a year by 2010. Last year, an independent consulting firm called those figures optimistic, suggesting a more accurate number would be closer to 5.2-million riders. The federal GAO report also expressed skepticism about FOX's numbers. In other words, the train would not be able to pay for itself if the riders did not come. Bush's announcement indicates a cultural difference between Floridians and Europeans, who are used to riding train systems subsidized heavily by the government. Still, Florida suffers from clogged highways and constant complaints that the state does not have the infrastructure to support its burgeoning population. Tom Barry, Florida's transportation secretary, said Thursday that the state would continue to look for alternatives to highways. He said at least 15 percent of the transportation budget is set aside for mass transit. Barry said high-speed rail still should be considered in the state's transportation plans. Among other things, Bush said he will consider spending high-speed rail money on improving bus systems that will allow former welfare recipients to get to work; urban rail projects; projects linking highways with the state's major ports; and relieving road congestion in urban counties. Boosters of bringing the 2012 Olympics to Florida have used the prospect of high-speed rail as a way to lure the games. Bush suggested using the train money to enhance mass transit in Tampa Bay to attract the games. Former Hillsborough County Commissioner Ed Turanchik, now heading Tampa Bay's Olympic effort, said Bush's decision will not jeopardize that pitch. "There is an absolute need for a solution to transportation problems, regardless of the Olympics," he said. Bush's decision was applauded by Gary Brosh, director of the University of South Florida's Center for Urban Transportation Research. "The . . . fact is that the train would have an extremely minor impact on the highways," Brosh said. "Adding one lane to the interstate (in each direction) would add more capacity than the train over 20 years."
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