A Little More Sugar for CSX

The Tampa Tribune continues to take the initiative with the CSX story:

Florida’s rail deal with CSX Transportation includes a benefit for CSX that goes far beyond the hundreds of millions the company will get from the state.

After selling 61 miles of tracks in Central Florida for commuter rail, CSX will retain the right to use the line for 12 hours a day. It will pay only a fraction of the state’s operation and maintenance costs, however.

The year the rail service begins, the state expects to pay at least $10 million to keep the system running. CSX’s contribution will be about $3 million in access fees, according to the agreement it negotiated with the state. By the 10th year, the state’s costs will rise to more than $25 million, while CSX will pay less than $3.8 million. — Tampa Tribune

For months I’ve asked why if Florida is “buying” the tracks why does it look like we’re just renting the tracks during the day. This is another example of the inequity of this sweetheart deal for CSX.

The difference in Central Florida, he said, is that those fees were based on what CSX said it was paying for maintenance. “The numbers we worked out with them were taken from their numbers.”

Do the words “independent verification” mean anything to DOT officials?

Read Lindsay Peterson’s article for the details.

Recent CSX articles

Budget Tensions Blow Up in Rail Debate

CSX Deal Survives Budget Cuts

Nothing Sinister About Public-Private CSX Deal — Don’t miss the comments. That is a fine example of citizen reporting.

Budget wars heat up, reveal tensions