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Follow TURFDriving declines effect toll roads
They can run but they can't hide. Toll advocates cannot deny the decline in driving as gas prices remain high. That means fewer people have the money to keep gas in their tanks much less handle the added expense of paying tolls on a daily basis. Toll roads will continue to be risky propositions that are an unsustainable, foolish way to address road funding shortfalls. They don't work!
Driving declines could challenge toll roads
By Robert Grattan
Austin Chronicle
Jun 21, 2013, 9:26am CDT
Americans are driving less, and that means less revenue for toll road operators such as SH130 Concession Co., according to a study by Fitch Ratings.
The conclusion could mean trouble for toll routes — including Central Texas' State Highway 130 — which was built by Spanish company SH130 Concession and its parent company Cintra. The road reportedly cost $1.3 billion, and the company will maintain and operate it for the next 50 years to recoup the cost.
Toll roads with meaningful un-tolled competition, especially those designed to relieve congestion, are most at risk, the report states.
Fitch cites a U.S. Public Interest Research Group that found Americans drive about the same amount they did in 2004. The study also showed that people ages 16 to 34 drove 23 percent fewer miles on average in 2009 than in 2001.
Recent cuts to the debt rating on the project's capital have shown investment analysts' concern. Moody's has warned that the debt rating on the toll road could fall to junk levels, according to Bond Buyer.
The road has, however, played a role in the economic development of nearby towns. You can read more about its impact on Pflugerville in tomorrow's print edition of the Austin Business Journal.