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A Possible CSX Deal Breaker

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The Tampa Tribune

Published: February 19, 2008

CSX Transportation's demand that Florida assume liability for any accidents on a proposed Orlando commuter line should be enough to scuttle the deal.

The agreement to purchase 61 miles of CSX track for commuter rail in Orlando and shift freight traffic east into Polk County and elsewhere heavily benefits the railroad. Yet the company wants even more.

CSX is asking too much.

Florida Chief Financial Officer Alex Sink is right to oppose the liability agreement between the state Department of Transportation and the railroad. Taxpayers should not have to shoulder such a burden for a private company.

Fortunately, more state lawmakers seem to be reaching that conclusion. Up to now, state Sen. Paula Dockery of Lakeland has been a lonely voice in challenging the proposal, but Rep. Ed Homan of Temple Terrace, who chairs the House Committee on Audit and Performance, agreed last week that the liability agreement "is not going to fly."

Rep. Rich Glorioso of Plant City also says the proposed agreement is "unacceptable." He says it may be reasonable to free the company from some liability for commuter operations, but the indemnity should not be open-ended.

Glorioso pledges that the Legislature will thoroughly scrutinize the deal. That's reassuring, because the whole $491 million deal was inked with virtually no public oversight or input.

As reported by the Tribune's Lindsay Peterson, the liability agreement is the last unfinished piece of business needed to seal the deal. The state would take ownership of the commuter track, but the railroad would still run freight on it 12 hours a day. So the liability plan would require Florida to spend $2 million annually for an insurance policy to cover any accidents on the commuter line, regardless of fault.

Moreover, if the state ends up contracting with CSX to provide dispatching, maintenance or other services on the commuter tracks, the company would be granted the same immunity the state has from lawsuits.
CSX argues the agreement is standard in every state where it shares tracks with commuter rail and benefits victims because it allows for a quick payout. But if an accident is the fault of CSX, the company should not be allowed to escape financial accountability.

Florida is lucky to have a CFO who will not sign off on the deal. It's time for Gov. Charlie Crist to join her.

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