How freight rail fueled a new luxury overnight train startup
Co-founders Joshua Dominic and Thomas Eastmond think so — and there's a connection to freight rail at the heart of their proposal.
Dreamstar is a private venture reimagining medium-length passenger service in a setting that harks back to the heyday of first-class trains with all-bedroom accommodations, onboard gourmet dining and five-star hotel hospitality.
'Dreamstar started from a deeply personal frustration with the state of American travel,' said Dominic, in an interview. 'After experiencing modern rail across Europe and Asia in my 20s, I kept asking, 'Why don't we have this in the U.S.?' Years later, after hundreds of business and leisure trips that forced a choice between wasting precious daytime or sacrificing sleep, the idea crystallized: Build a better alternative. Dreamstar is our answer — a rail service that brings rest, reliability and elegance to medium-distance travel.'The Southern Pacific's Lark was the last domestic all-sleeper train to run exclusively in one state, operating two daily trains between San Francisco and LA. Espee added coaches after the Second World War; Amtrak's all-sleeper California Zephyr ended service between Chicago and Emeryville, California, in 1997.
Dreamstar plans to run over much of the Lark's route, having signed a memorandum of agreement for track access with Union Pacific, which merged with SP in 1996. That includes 400 miles between San Jose and Ventura, which the partners say has minimal overnight freight and passenger traffic.
Union Pacific (NYSE: UNP) in a statement confirmed that it is in formal negotiations with Dreamstar but offered no details.
Freight tracks are an essential component of the original proposal, like another recent passenger train startup, Brightline, which started out running on the tracks of sister company Florida East Coast Railway.Dominic said Dreamstar is working on access agreements with commuter agencies Caltrain and Metrolink, as well as the agency that manages Los Angeles Union Passenger Terminal.
'The flagship route is designed as an overnight, limited-stop service optimized for uninterrupted rest,' said Dominic. 'We aim to keep stops to a minimum while ensuring operational viability and regional access.'
The startup also claims its trains will reduce carbon dioxide emissions by 75% compared to flying.
Conceptual renderings emulate the proportions and outlines of contemporary passenger equipment. The cars follow the profile of the original Budd Hi-Level cars of Santa Fe's El Capitan, an all-coach train running between Los Angeles and Chicago, that were passed on to Amtrak and eventually replaced by the bilevel Superliners, also manufactured by Budd, which included sleeping accommodations.
There are four classes of accommodations — called private cabins — including standard, bedroom, stateroom and family room sleeping six, as well as lounges, dining spaces and a spa.
The renderings also depict Dreamstar's Auto Ferry, car transporters similar to those of Amtrak's Auto Train.
Dreamstar's original proposal in 2018 called for construction of an all-new train. Now, the company plans to rebuild four previously owned cars.
'We've completed the concept development phase in partnership with BMW Designworks,' Dominic said. 'The next step is further refinement and engineering drawings. We've identified a handful of potential suppliers and are evaluating next steps.'The Los Angeles design studio has worked with aircraft maker Embraer, John Deere and Singapore Airlines, among many other clients.
Construction of rolling stock is expected to take 18 to 24 months, with service to begin prior to the 2028 Olympics in Los Angeles.
A locomotive supplier has yet to be selected, 'but we've identified several viable options that align with our performance and emissions goals. We've reviewed a few promising options and are continuing to explore the right partners for both operations and maintenance.'
The company said location planning is underway for maintenance facilities in parallel with operational modeling.
Dominic said Dreamstar is working with industry experts to smooth the way through regulatory approval processes.
At the same time, California homebuilder Bill Lyon has dropped $100,000 on Dreamstar.
'We've received additional support beyond Mr. Lyon, though we're not disclosing specific names at this stage,' Dominic said. 'Investors do include a mix of real estate families, early-stage angels and mission-aligned private backers.'
Dominic did not say what total costs will be to get trains rolling, but added Dreamstar itself does not currently own any property along the proposed route.
'Our cost model is built from the ground up using data from international private rail benchmarks, infrastructure partnerships and real-world U.S. market factors,' said Dominic. 'Unlike legacy operators, we're able to build leaner and smarter — with no statutory obligations or route mandates. Our model prioritizes capital efficiency, operational control and long-term financial sustainability.'
Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Find more articles by Stuart Chirls here.Cumberland & Knox runs first revenue train on Maine's Rockland Branch
Norfolk Southern board chair Mongeau resigns
BNSF stands up shortline rail team
Regulator concerns pause Watco's Michigan shortline rail deal
The post How freight rail fueled a new luxury overnight train startup appeared first on FreightWaves.
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