Brightline to become Virgin Trains USA

Lisa Broadt | Treasure Coast Newspapers

Show Caption Hide Caption Video: Brightline train moves quickly through Boynton The orange Brightline train is seen traveling through Boynton Beach on Thursday, Jan. 18, 2018. Brightline trains can reach speeds of up to 79 mph south of West Palm Beach and up to 110 mph through the Treasure and Space coasts.

Brightline will be renamed Virgin Trains USA as part of a new partnership with Richard Branson’s Virgin Group, the railroad announced Friday morning.

Virgin — parent company of Virgin Atlantic airlines and more than 60 media, entertainment and hospitality brands — will become a minority investor in the South Florida passenger railroad, according to Brightline.

But the powerful new affiliation doesn’t come without a cost.

Brightline has been building its brand since 2015, and was on the cusp of bringing its colorful logo across the country with a planned expansion into California and Las Vegas. The railroad will be giving up three years of intense branding efforts in exchange for Virgin's internationally-known name.

The Virgin partnership also carries financial benefits, and could bring a needed infusion of cash to the $4 billion railroad, which began service among Fort Lauderdale, Miami and West Palm Beach earlier this year and plans to begin full Miami-to-Orlando service by 2021.

Brightline currently is trying to finance construction between West Palm Beach and Orlando International Airport, the second phase of the project.

The company has pursued a variety of financing options for the second phase, and now is facing a Dec. 31 deadline to sell $1.15 billion of tax-exempt bonds.

Unaudited financial statements reveal Brightline struggled in the first half of the year, losing $28.2 million in the first quarter of this year and $28.3 million in the second quarter. The railroad began West Palm-to-Fort Lauderdale service in January and expanded to Miami in May.

Virgin Group’s existing high-speed railroad in the United Kingdom, also called Virgin Trains, has had its own financial struggles and faced criticism earlier this year for accepting a government bailout.

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Virgin and Brightline officials on Friday expressed enthusiasm about the new partnership.

“Brightline is at the forefront of innovation in this market, and the ideal partner for Virgin to work with to alter perceptions and traveling habits across the United States,” Branson wrote in a blog post on Virgin's website.

Edens on Friday said working with Virgin is “another leap forward” for Brightline.

“Virgin has built a respected and trusted brand in travel and hospitality,” Edens said in a news release. “With our shared focus on customer experience, powered by a culture of innovation and disruption, we are well positioned to build on our success.”

The new partnership is the latest in series of major developments the company has announced this year.

In June, Brightline revealed it would pursue an expansion from Tampa to Orlando along state-owned right of way.

Then, in September, Brightline announced plans to buy the rights to build a high-speed railroad between Southern California and Las Vegas. Service there is to launch in 2022, and eventually could expand into the Los Angeles area, according to Brightline.

Brightline’s current management team will continue to oversee daily operations, engineering, business development and strategy, the company said Friday.

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