In what appears to be its biggest management shakeup in years, the parent of Brightline, the South Florida-based high-speed passenger railroad, has reached across the Atlantic to hire a past CEO of the iconic Eurostar rail line to spearhead the company’s expansion and quest for profitability.
Nicolas Petrovic, 56, has been retained as CEO of Brightline Holdings LLC and will be based in Miami, according to an announcement released by Brightline Trains early Wednesday morning.
Petrovic will succeed Michael Reininger, who led Brightline’s development from 2012-2018 and again since 2021. Reininger will now focus on the buildout of the company’s Brightline West high-speed rail project linking Nevada and Southern California.
“In his new role, Petrovic will focus on driving long-term value and sustained growth for Brightline’s Florida operations while maintaining the operational excellence that has distinguished the brand,” the company said in the announcement. “Reininger will continue with the company in the new capacity of managing director and member of the board of Brightline West, where he will oversee the development of America’s first high speed passenger system.”
Brightline West, a $12 billion project, is being built from Las Vegas, Nevada, to a point outside Los Angeles in Southern California.
While Petrovic heads Brightline Holdings, Patrick Goddard, CEO of Brightline Florida, and Sarah Watterson, president of Brightline West. will continue in their posts, the company announcement said.
“Petrovic is a globally recognized name in the rail industry with more than 25 years of experience in multiple leadership positions in Europe and the Middle East,” Brightline said. “He originally joined Eurostar, the iconic rail service connecting London, Paris and Brussels, in 2003.”
Born and educated in France, he started his rail career with SNCF (Société Nationale des Chemins de Fer Français), the French national railway system, where he worked in the company’s high-speed rail sector.
Most recently, Petrovic has served as CEO of Etihad Rail Mobility in the United Arab Emirates, which has been developing extensive freight and passenger rail services in the region.
From 2018 through 2021, Petrovic served as the chief executive of Siemens France, where he led the company’s mobility, infrastructure, and digital industries divisions. Siemens is the maker of Brightline’s train sets, which are being manufactured in California.
Growth and development leader
For Brightline, it appears that Petrovic’s experience leading Eurostar is the most attractive segment of his resume. The high-speed railroad, which got its start in 1994, connects London and Paris via a 31.5-mile tunnel [a.k.a. The Chunnel] beneath the English Channel. It also serves Amsterdam, Antwerp, Brussels, Cologne, Disneyland @ Paris, Lille in northern France, and Rotterdam, the Netherlands, according to the Eurostar website.
Between 2006 and 2010, Petrovic oversaw all aspects of Eurostar’s train operations, safety and service delivery across three countries.
While Petrovic was Eurostar CEO from 2010 through 2018, the rail line “achieved record passenger numbers while navigating complex international regulatory environments and intensifying competition from low-cost airlines,” Brightline said.
Petrovic also oversaw major fleet modernization programs, network expansion into the Netherlands, and drove improvements in operational performance and customer service, all elements that are important to Brightline, which has set its sights on expanding its Miami to Orlando segment to Tampa while it builds its regional high-speed project in the West.
“Brightline has introduced new and elevated expectations for the passenger rail industry in America, and it is an honor to lead the company’s next stage of growth,” Petrovic said in the company announcement. “With the tools and experiences from a global peer group, I believe Brightline will continue to show the way forward for profitability and customer experience that will firmly position the business in America’s transportation landscape.”
As he settles into the company’s Miami headquarters, Petrovic will find a number of challenges on his plate.
Profits have been fleeting for Brightline, which started as a regional commuter service in Broward, Palm Beach and Miami-Dade counties in 2018 before launching a 170-mile extension to Orlando International Airport in late 2023.
Brightline has burned through cash faster than industry analysts and management expected, and is now seeking more investor support after raising more than $5 billion in private sector debt for its initial buildout and continuing operations. Late last year, management announced it is seeking lender support to raise $100 million to shore up liquidity. It is also waging a global campaign to raise equity from investors.
Although the rail line has reported year-over-year gains in passengers and revenues, the improvements have not been enough to assuage bond ratings agencies such as Fitch and S&P Global, both of which have downgraded Brightline’s debt.
In the meantime, Brightline is in a legal battle with the Florida East Coast Railway, owner of the rail corridor over which Brightline operates its passenger trains. In a dispute that is now in arbitration, the FEC objects to its plans to create a South Florida commuter service in concert with Miami-Dade, Broward and Palm Beach counties.
In addition, Brightline still faces safety challenges along its corridor. Nearly 200 pedestrians and motorists reportedly have died since 2018 in collisions with its trains. While the company has not been found responsible and has spent millions of its own money as well as government grants on safety measures, accidents continue to occur.
Petrovic was not immediately available for comment.
But Brightline’s founder has great expectations of Petrovic and the new leadership arrangement.
“We are excited about the future of Brightline, and these moves will align our executive leadership with the specific needs to support both of our businesses,” said Wes Edens, founder of Brightline Holdings. “As Brightline continues to pioneer a new era in American transportation, the insights that Nicolas brings from around the globe will strengthen our operating company as it continues to grow and expand, while Mike concentrates his focus once again on implementing an unprecedented infrastructure development.”
New finance officers
In other management moves Wednesday, Brightline Holdings also named Mauricio Anderson as its new chief financial officer of the company and its subsidiaries, other than Brightline West. He replaces Jeff Swiatek who departed in January. Anderson served with one of Brightline’s indirect parent entities, Florida East Coast Industries, LLC since 2013 and as CFO since 2019.
In addition, Bruce Snyder is being promoted from deputy CFO of Brightline West to CFO of the company.