"Elected leaders see private investment as a palatable alternative to raising gas taxes to pay for roads."
When good toll-road ideas turn bad
January 23, 2006
By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2006
Today, 17 states are negotiating about $35 billion worth of private toll-road projects. Elected leaders see private investment as a palatable alternative to raising gas taxes to pay for roads.
But some early examples of private projects didn't go so well.
Transportation officials in Texas and other states, who collectively are privatizing at least $36 billion in toll-road projects, say they can prevent similar mistakes by negotiating contracts that protect the public.
Here are some examples of early private toll-road projects that seemed like good ideas but went bad, based upon reports from the toll-road industry, newspapers and other sources.
Camino Colombia, Laredo -- Investors spent about $90 million in the 1990s building a 22-mile truck bypass from the Mexican border around Laredo, but traffic was only 13 percent of projections. Some critics say the downfall was high tolls of up to $16. Others say planners misjudged the way trucking companies use border crossings.
Last year, the Texas Department of Transportation bought Camino Colombia for $20 million and immediately began making improvements and lowering tolls. Officials expect traffic to pick up this year and the road to eventually be profitable.
Supporters note that it was the original investors, not the public, that took a bath.
SR 91 Express Lanes, California -- Private investors in 1995 built toll lanes in the median of a busy freeway connecting Riverside and Anaheim. A few years later, county officials wanted to expand adjacent non-toll lanes but were forbidden by a noncompete clause in their contract. SR 91 investors didn't want non-toll roads hurting business. The county bought back the toll lanes for $208 million to clear the legal hurdle.
407 ETR, Toronto -- Residents and government officials have gone to court to try to stop Madrid-based operator Cintra and its partners from raising toll rates and taking strict steps to punish motorists who use the road without paying their tolls. Because of a contract between the company and the Ontario provincial government, Cintra can block motorists from re-registering their vehicles if they haven't paid tolls, and some residents say their credit is shot.
Cross City Tunnel, Sydney -- Australians boycotted the 1.2-mile tunnel rather than pay a stiff toll, roughly $2.60 in U.S. dollars. Above ground, perfectly good lanes on city streets were shut down to try to persuade people to try the tunnel.
Gordon Dickson, (817) 685-3816 gdickson@star-telegram.com
© 2006 Fort Worth Star-Telegram: www.dfw.com
January 23, 2006
By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2006
Today, 17 states are negotiating about $35 billion worth of private toll-road projects. Elected leaders see private investment as a palatable alternative to raising gas taxes to pay for roads.
But some early examples of private projects didn't go so well.
Transportation officials in Texas and other states, who collectively are privatizing at least $36 billion in toll-road projects, say they can prevent similar mistakes by negotiating contracts that protect the public.
Here are some examples of early private toll-road projects that seemed like good ideas but went bad, based upon reports from the toll-road industry, newspapers and other sources.
Camino Colombia, Laredo -- Investors spent about $90 million in the 1990s building a 22-mile truck bypass from the Mexican border around Laredo, but traffic was only 13 percent of projections. Some critics say the downfall was high tolls of up to $16. Others say planners misjudged the way trucking companies use border crossings.
Last year, the Texas Department of Transportation bought Camino Colombia for $20 million and immediately began making improvements and lowering tolls. Officials expect traffic to pick up this year and the road to eventually be profitable.
Supporters note that it was the original investors, not the public, that took a bath.
SR 91 Express Lanes, California -- Private investors in 1995 built toll lanes in the median of a busy freeway connecting Riverside and Anaheim. A few years later, county officials wanted to expand adjacent non-toll lanes but were forbidden by a noncompete clause in their contract. SR 91 investors didn't want non-toll roads hurting business. The county bought back the toll lanes for $208 million to clear the legal hurdle.
407 ETR, Toronto -- Residents and government officials have gone to court to try to stop Madrid-based operator Cintra and its partners from raising toll rates and taking strict steps to punish motorists who use the road without paying their tolls. Because of a contract between the company and the Ontario provincial government, Cintra can block motorists from re-registering their vehicles if they haven't paid tolls, and some residents say their credit is shot.
Cross City Tunnel, Sydney -- Australians boycotted the 1.2-mile tunnel rather than pay a stiff toll, roughly $2.60 in U.S. dollars. Above ground, perfectly good lanes on city streets were shut down to try to persuade people to try the tunnel.
Gordon Dickson, (817) 685-3816 gdickson@star-telegram.com
© 2006 Fort Worth Star-Telegram:
posted by Porkus Maximus Tex: at Monday, January 23, 2006
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