Florida East Coast Railway

The Florida East Coast Railway (FEC), bearing the reporting mark FEC, is a Class II railway that operates in the state of Florida in the United States. Currently, it is owned by Grupo México.
== Historical Development ==
Constructed predominantly in the late 19th century and early 20th century, the FEC was conceived by Henry Flagler, a prominent figure associated with Standard Oil. Flagler first arrived in Florida with his first wife, Mary, in search of medical assistance for her health issues. During his stay in St. Augustine, he identified significant potential and a lack of services in the region. This marked the beginning of his second career, which involved developing resorts, industries, and communities along Florida's eastern coast along the Atlantic Ocean.
=== Key Projects ===
The FEC is renowned for its construction of the railroad to Key West, a project completed in 1912. When the Labor Day Hurricane of 1935 heavily damaged the FEC's line to Key West, the State of Florida acquired the remaining right-of-way and bridges south of Dade County. These were then transformed into road bridges for vehicle traffic, forming the Overseas Highway. Nonetheless, one of Flagler's lasting legacies was the development along Florida's eastern coast.
=== Ownership Changes ===
During the Great Depression, the du Pont family heirs purchased control of the FEC. After struggling financially for 30 years, the FEC, under the leadership of Ed Ball, took on labor unions. Ball argued that the company couldn't afford the same costs as larger Class 1 railroads and needed to invest its saved funds in infrastructure improvements, as the condition of the railway was becoming a safety concern. A prolonged and violent labor conflict ensued between the company, replacement workers, and some employees from 1963 to 1977, one of the longest and most violent labor disputes of the 20th century. Federal authorities had to intervene to quell the violence, which included bombings, shootings, and vandalism. Ultimately, the courts ruled in favor of the FEC's right to employ strikebreakers. During this time, Ball made substantial investments to enhance the railway's physical infrastructure and implemented various forms of automation. The FEC was the first U.S. railroad to operate with two-man train crews, eliminate cabooses, and discontinue all unprofitable passenger services by 1968.
=== Current Operations ===
Today, the FEC's primary rail revenues come from its intermodal and rock trains. The Brightline, an inter-city rail route, utilizes FEC tracks between Cocoa and Miami.
== Ownership History ==
Historically, the FEC was a Class I railroad owned by Florida East Coast Industries (FECI) from 2000 to 2016, FOXX Holdings between 1983 and 2000, and the St. Joe Company prior to 1983.
=== Henry Flagler's Vision and Expansion ===
The FEC's history can be traced back to Henry Flagler, a prominent American businessman, real estate promoter, and a partner of John D. Rockefeller in Standard Oil. Flagler's Florida ventures began in 1878 when he traveled to Jacksonville, Florida, with his first wife, Mary, who was in poor health. After Mary's death in 1881, Flagler married her former caregiver, Ida Alice Shourds, and together they visited St. Augustine, Florida, in 1883. Flagler was enamored with the city but noted the lack of adequate hotel facilities and transportation systems.
Flagler decided to develop the state of Florida, starting with the construction of the Ponce de Leon Hotel in St. Augustine, which opened in 1888. He understood the need for a solid transportation system to attract visitors from out-of-state. Flagler realized the existing Jacksonville, St. Augustine and Halifax River Railway was inadequate and decided to take control of the railway. He rehabilitated the line, converted it to standard gauge, and built modern facilities, revitalizing St. Augustine in the process.
Flagler continued to expand his railway network beyond St. Augustine. In 1888, he acquired three additional railroads to extend the line southward. These acquisitions provided access to the St. Johns River, enhancing connections with other railroads and facilitating further development of Florida's eastern coast.
Flagler created the Jacksonville, St. Augustine and Indian River Railway Company in 1892 as a holding company for his expanding railway network.
In 1892, Flagler faced a new challenge when landowners south of Daytona requested an 80-mile extension of the railway. This extension marked a significant departure from Flagler's previous practice of purchasing existing railroads. The Florida government's generous land-grant laws allowed him to claim 8,000 acres of land for every mile of track built. This marked the beginning of extensive development southward along Florida's eastern coast, leading to the growth of cities like New Smyrna and Titusville.
By 1894, the railway reached Fort Pierce, and in 1896, it reached Biscayne Bay, which later became downtown Miami. Flagler continued to develop the region, creating channels, streets, and infrastructure. In 1903, he extended the line from Miami to Homestead to access the agricultural potential of the lowlands in the region.
=== Labor Conditions ===
During the 1880s and 1890s, the FEC employed convict labor, including many African American convicts. The conditions for these laborers were harsh, and there were reports of peonage, forced indebtedness, and malfeasance by labor agents. However, historians believe that Flagler provided better working conditions and benefits for his employees compared to what was alleged by reformers and muckrakers of the time.
=== The Overseas Railroad ===
One of Flagler's most significant accomplishments was the construction of the Overseas Railroad, which connected the mainland to Key West. He embarked on this ambitious project after the announcement of the Panama Canal's construction in 1905, recognizing Key West's strategic location for trade. Despite facing challenges, such as hurricanes and labor disputes, the Overseas Railroad was completed in 1912. The extension to Key West was widely regarded as the "Eighth Wonder of the World."
=== Impact of the Great Depression ===
The Florida East Coast Railway benefited from the Florida land boom of the 1920s, which led to increased traffic. In response, the FEC expanded its network and made investments in capacity. However, the Stock Market Crash of 1929 and the Great Depression took a toll on the railway. It declared bankruptcy in 1931, leading to a reduction in passenger services.
=== Ed Ball's Leadership ===
In the early 1960s, Edward Ball, who controlled the Alfred I. duPont Testamentary Trust, gained majority ownership of the FEC and initiated efforts to make the railway profitable. This resulted in a protracted labor conflict that lasted from 1963 to 1977. The strike involved violence, bombings, and the use of replacement workers. Federal authorities had to intervene to restore order, and the strike ultimately led to significant changes in labor practices and cost reductions for the FEC.
== Recent Ownership Changes ==
After Ball's death in 1981, Raymond Wyckoff took over as the company's leader. In the early 2000s, the FEC saw changes in leadership, and it was eventually purchased by Fortress Investment Group in 2007. James Hertwig took over as CEO in 2010.
In 2017, the FEC was acquired by Grupo México, and Nathan Asplund became the new leader. The railway continues to operate in Florida, providing freight transportation and serving as the host railroad for the Brightline inter-city passenger rail service between Miami and West Palm Beach.
=== Impact on Florida's Development ===
The Florida East Coast Railway has a rich history and played a pivotal role in the development of Florida's eastern coast, connecting various cities and regions, and contributing to the state's growth and development.
Category:Class II Railroads
Category:Railways