Greyhound bus stops are valuable assets. Here’s who’s cashing in on them

Greyhound bus terminals, long-standing pillars of American intercity transportation, are vanishing at an alarming rate across the United States. This decline presents a worrying challenge for the millions of low-income travelers who rely on these services, while simultaneously opening lucrative opportunities for shrewd investors. In examining this trend, the realities of economic hardship contrast sharply with the potential for profitable gains in real estate.

Greyhound Bus Terminal Closures: A Crisis for Communities and an Opportunity for Investors

Problem: The Disappearing Greyhound Terminals Impact Vulnerable Riders

The closures of Greyhound bus terminals reflect a deepening crisis in America's transportation infrastructure, hitting the disadvantaged hardest. Cities like Houston, Philadelphia, Cincinnati, and Tampa have witnessed the disappearance of centrally located bus depots. These stations were once bustling with passengers who could access other public transit systems conveniently. Now, stops are being relocated to the periphery of cities or turned into curbside services, rendering them less accessible and lacking vital facilities.

The ripple effects are profound. Three-quarters of intercity bus riders earn less than $40,000 annually, and a significant portion of them would be stranded without this mode of transport. For individuals of minority backgrounds, the disabled, and the unemployed, the bus system's overhaul means more than just inconvenience—it symbolizes a removal of their lifeline to work, family, and services.

Cause: A Cocktail of Underfunding, High Costs, and Investor Strategy

Multiple factors have conspired to usher in the decline of Greyhound's physical presence. The sustenance of these terminals has faltered under high operating expenses, property taxes, and a lack of government support. Strikingly, these vanishing terminals are often due to a strategic repositioning by hedge funds like Alden Global Capital, which has purchased a significant number of Greyhound stations with the endgame of selling to real estate developers for a substantial profit.

The absence of public sector intervention has left private companies to shoulder the burden of providing essential services. Historically, bus terminals have served as more than just transit points; they have been places where travelers could find refuge and amenities during long hauls or layovers. Now, these locations face uncertain fates, leading to a situation where the quest for higher returns infringes on the public's need for dependable transport.

Remedy: The Search for Sustainable Intercity Bus Solutions

Resolving the intercity bus dilemma requires fresh thinking and robust partnerships between the private and public sectors. The success story of Greyhound's new terminal in Atlanta indicates that when federal funds are leveraged efficiently, favorable outcomes are possible. Here, a state-of-the-art terminal stands adjacent to other public transit systems, a beacon of what can be achieved with a collective resolve.

Intercity bus travel need not languish in the shadows of neglect if municipal governments recognize its significance and necessary symbiosis with other forms of transit. For instance, Milwaukee and Boston feature bus stations seamlessly integrated with train services, creating intermodal hubs that bolster transportation resilience.

Promise: Beyond Investment Returns, a Commitment to Public Service

While investors like Alden and its subsidiary, Twenty Lake Holdings, reap financial benefits from the sale of Greyhound's real estate, a broader societal promise must be acknowledged. The value extracted from these assets could, and perhaps should, be redirected in part to ensure that intercity buses remain a viable, accessible option for all. There's a compelling case for profit-sharing mechanisms that could support ailing transit services for the public good.

Moreover, the creation of centrally located, publicly-owned transportation hubs would serve as fortresses against the continued erosion of accessible transport options. Picture a future where every city has a dedicated intercity bus terminal, safeguarding the rights and needs of the underserved, and delivering a powerful communal return that rivals any financial windfall.

F.A.Q. on The Closure of Greyhound Bus Terminals

Question 1.

Q.: Why are Greyhound bus terminals closing around the country? 

A.: A combination of factors including high operational costs, reduced government funding, and strategic acquisitions by investment firms like Alden Global Capital are leading to the closure of Greyhound bus terminals. These closures reflect the company's shift away from owning real estate for bus stops, instead opting for more cost-effective alternatives such as curbside pickup points.

Question 2.

Q.: Who is purchasing these Greyhound bus terminals, and what is their plan? 

A.: Investment entities, notably Alden Global Capital through its subsidiary Twenty Lake Holdings, have been acquiring Greyhound's valuable real estate properties. They are primarily looking to repurpose these sites for higher profits, often involving their redevelopment for commercial or residential projects.

Question 3.

Q.: What is the impact of these closures on bus travelers, especially those with lower income? 

A.: The shuttering of Greyhound bus terminals has a significant impact on travelers with limited means. With three-quarters of intercity bus riders having an annual income below $40,000, these terminal closures can mean longer travel times, less accessibility to necessary facilities, and overall, a decrease in affordable transportation options.

Question 4.

Q.: How have Greyhound terminal closures contributed to the decline of intercity bus services? 

A.: The closing of bus terminals disrupts the intricate web of national bus routes by hindering efficient transfers and connectivity between cities. This can lead to the suspension of routes, as seen with Greyhound's service in cities like Jackson, Mississippi, and Little Rock, Arkansas, thereby exacerbating the decline in intercity bus services.

Question 5.

Q.: Are there any steps being taken to provide alternative solutions for Greyhound bus service users?

A.: In the face of terminal closures, some cities and transportation advocates are pushing for publicly-owned intermodal facilities that can accommodate intercity buses. Such efforts are seen in Atlanta, where a new Greyhound terminal was built with federal support. Additionally, local governments are urged to support access to intercity bus services by offering centrally located transit hubs near existing public transportation networks.

Question 6.

Q.: What historical significance do Greyhound bus terminals hold? 

A.: Greyhound bus terminals have been an essential element of American transportation since the early 20th century, symbolizing connectivity and mobility for a diverse range of passengers. Many old terminals were built in a distinctive Streamline Moderne architectural style, becoming icons of Americana and featuring in popular culture. They served as crucial 24-hour access points and symbolized adventure and opportunity for many Americans. However, with the growth of private car ownership, air travel, and city center declines, the demand for intercity bus services has decreased over the decades.

Question 7.

Q.: What alternatives are bus companies considering in light of terminal closures? 

A.: Bus companies are increasingly adopting curbside operations as a cost-saving alternative to running full-service terminals. This approach has been successful for newer carriers offering rapid intercity service, such as Megabus, attracting new riders with amenities like free internet onboard. However, large-scale adoption of curbside service requires city regulation and planning to prevent congestion and ensure the safety and comfort of passengers.