You raise a good point: Though they've sold off many of the landholdings (I think there was a partial separation during one of the mergers/acquisitions). Even if TOD isn't the objective, they do own about a 9-acre piece of land surrounding a likely station location in Miami that would certainly appreciate in value with a passenger terminal there (and the station itself might well make money, too). Likewise, I wouldn't be surprised if they can get something going at the intermediate stations and/or Orlando (even if it is adjacent to the airport, enough of the station's concessions will likely be more accessible to the public than the airport's).Think of the inverse of the statement, "Those who do not know history are doomed to repeat it." For the FEC, it could well be that the situation is that "Those who know history are choosing to repeat it."Yes, I've long thought that is part of the reason for this sudden interest in passenger service. Yes, it wouldn't surprise me if the passenger service does rather well, but I still don't see it as a huge money maker for them, if it makes money at all. The passenger service opens doors that might not otherwise be easy to open, even as it comes with its own baggage that could still hurt them.(the FEC is likely trying to backdoor freight access to Tampa in opposition to CSX...at least, that's my guess of the game here). So it could be either (or both).
If you go back to Falgler, he used the fEC to promote south Florida. He really did not care how profitably or unprofitable the railroad was by itself so long as the some of all holdings was profitable. If I recall correctly, the FEC never paid a stock dividend until several years into the post paseenger service time. If the FEC has even a fraction of the land holding that it had a century ago, if the introduction of passenger service helps promote the area and increase the value or income from or both of their land holdings, the passenger service losses would look like small change to them.
Mind you, I suspect they will be expecting a positive cash flow of some sort on the passenger operations themselves, but the presence of lots of incidental benefits and/or attached projects may well serve to offset potentially thin margins and risks of losses here. The trains don't need to make much money to justify the capital costs if there are other benefits to be had. What's more, this may well make for a convenient way to round up some funding for PTC.