Private toll operator in VA hands failing road to creditor

Link to article here.

Toll road giant tasked with major VA projects hands one off to creditors
By Kathryn Watson
Watchdog.org
June 14, 2013

ALEXANDRIA—Something really is waiting ‘just around the river bend’ for the Pocahontas Parkway [2] in the Richmond region — creditors.

European banks are taking over the financially foundering enterprise owned by the state but operated and tolled by Australian-based toll road giant Transurban, which isn’t generating enough toll revenue to cover the multi-million-dollar project’s debt bills.  The Virginia Department of Transportation will have to seek out a new operator for the road that connects Henrico and Chesterfield counties over the James River.

NY Comptroller: Proceed with caution on public-private partnerships

Link to article here.

No such caution can be found in Texas. It's a public private partnership lovefest down here from the Governor on down...the public interest and affordable travel be scorned.

Comptroller: Proceed with caution on public-private partnerships
By Cara Matthews
June 5, 2013
lohud.com

Strong oversight provisions need to be in place if New York broadens the authority of the state to enter into public-private partnerships or privately finance public projects, state Comptroller Thomas DiNapoli said in a report today that looks at public-private partnerships in other parts of the country.

In December 2011, the state has authorized five state agencies and public authorities to use a simple form of public-private partnership called design-build contracting. The Thruway Authority is using design-build contracting for the new Tappan Zee Bridge, meaning design and construction services are awarded to the same contractor. The approach is expected to streamline the project, shift some financial risk to private contractors and save the Thruway Authority money.

Study: Public-private postal service proposed

Link to article here.

New Study Proposes Hybrid Public-Private Postal Service
By Lisa Barron
Newsmax.com
Monday, 03 Jun 2013

A new study by a nonpartisan Washington think tank recommends a radical new solution to the problems faced by the United States Postal Service in the form of a public-private partnership.

In the report released Monday, the Information Technology and Innovation Foundation argues that all but "final mile" mail delivery should be opened up to private competition and the size of the postal service should be drastically reduced to meet the realities of the digital age.

"Like many other industries whose business models made sense in an analog, paper-based era, USPS’s business model makes much less sense in today’s digital era and as such is in need of fundamental reform," foundation President Robert Atkinson wrote in the study report.

With a decline in the volume of mail, combined with the recession, the postal service has lost almost $30 billion dollars in the last three fiscal years and is on track to lose billions again in 2013, Atkinson notes.

The foundation's proposal centers on allowing private companies competing to transport and process much of the country's first-class mail. The postal service would maintain the mail carrier "letterbox monopoly" on existing delivery routes, and it would determine a national average for delivery costs that it would charge private carriers.

Atkinson acknowledges the plan would mean that 40 percent of the more than 500,000 postal workforce would lose their jobs and possibly half of the more than 30,000 post offices would close.

"These proposals laid out here will change the postal system to such an extent that it may no longer be recognizable. Competition may well force USPS out of every part of the postal system aside from the final-mile monopoly," he writes, adding, "If that happens, so be it."

Atkinson acknowledges that fixing the system "will require tremendous political will on the part of all the players," but he concludes: "The important goal is improving overall efficiency and quality in the postal system (public and private) and improving service for customers, not to preserve USPS as we know it."

"Opening USPS to private competition outside last-mile delivery is necessary to make the postal system better, and is therefore a step that should be taken," he wrote.

Editorial: What if Perry signs toll road bill & no new funding comes?

Link to blog here.

Finally a prominent member of the press who gets it! This is going to hurt all of us and our already fragile, stretched-to-the-limit incomes and economy.

What if Perry signs the toll road bill but doesn't add transportation funding to the 'call'?
By Rodger Jones
Dallas Morning News
May 31, 2013

Gov. Rick Perry has a bill on his desk to open up more projects to what planners call comprehensive development agreements, for deals with private companies to build roads in return for tolling rights. It’s how LBJ is being built with the Spanish company Cintra as partner.

The bill, SB 1730, would allow CDAs for a slew of new projects statewide, including I-35 E/US 67 south of town, SH 114 in Dallas County, SH 183 in Dallas and Tarrant, Loop 12 from 183 to I-35E, and Loop 9 in Dallas and Ellis counties.

If you think tolls are everpresent now, just think about the highway map of the future.

I bring this up because as anyone knows in the metro area, taking toll roads to and from work every day add up to another major utility bill. It’s a big hit on the family’s wallet. The DMN’s Tom Benning wrote this morning about the next round of NTTA rate hikes and how the pennies add up.

TxDOT seeks 'rule change' to pursue new P3s, after law failed to pass

Link to article here.

TxDOT is seeking to do P3s using a 'rule change' after the bill to authorize the 'availability payment' type of P3 failed to pass. So its up to its old tricks - when all else fails, break the law. The first P3 in Texas is already in danger of going bankrupt, and only public subsidies are bumping up the traffic on SH 130. So now TxDOT wants to make the public subsidies permanent by using ALL Texas taxpayers' state highway money to pay back these private toll operators for the benefit of Rick Perry's buddies (courtesy of the crony-capitalist infested highway department).

TxDOT May Sweeten Pot to Draw Private Funds to Projects
By Aman Batheja
May 30, 2013
Texas Tribune

In its first meeting after a legislative session in which requests for transportation funding fell billions of dollars short of requests, the Texas Transportation Commission voted Thursday to open the door to allowing private firms to take on a larger role in some road projects.

“We’re trying to stretch our resources as far as possible,” TxDOT Executive Director Phil Wilson said.

The five commissioners voted unanimously to consider amending the agency’s rules to allow for a new kind of public-private partnership for the agency in which TxDOT would share financial risk with private entities on a project and even agree to reimburse them from the state highway fund if needed to ensure they make a profit. TxDOT will accept public comments on the rule change until July 15. Afterward, the commission will consider adopting the proposal.

TX lawmakers pushed more tolls, debt over cash

Link to article here.

On Roads, Legislature Backed More Tolls, Debt Over Cash
By Aman Batheja
May 30, 2013
Texas Tribune

Texas political leaders entered this legislative session hopeful they might transform the state’s approach to funding transportation. After a decade of relying largely on borrowed money and tolls to expand the state’s highways, finding new revenue made economic sense, many lawmakers said.

But when the regular session ended Monday, the Texas Department of Transportation wound up with a fraction of the additional funding it requested. And legislators passed measures advancing toll projects and making it easier for communities to pay for road work on credit.

Confab in Germany pushes more P3s in U.S.

Read more here.

This shouldn't surprise anyone that the special interests, including foreign interests, are hot to get their mitts on U.S. infrastructure. Most have destroyed their own countries road systems and economies with these public private partnership boondoggles that are now seeking taxpayer bailouts, so naturally they're comin' after America's vast road infrastructure for more. Texans have adamantly opposed P3s and the sale of their public infrastructure since they first got word of it, and they haven't suddenly changed their minds because foreign leaders want a piece of our wallets.

Foreign leaders back private development of transportation projects
Tuesday, May 28, 2013
Bb Gordon Dickson
Star Telegram

LEIPZIG, Germany — Ministers from 54 nations last week opened the door to worldwide expanded private development of toll roads, rail lines and other projects.

It’s a potential investment that could amount to several trillion dollars over the next decade or so, several officials said.

But the declaration of support for so-called public-private partnerships also raises many questions about whether corporations will wield too much control over public roads — or whether public entities could be exposed to financial risks in these agreements.

Foxx downplays tolling, but fan of P3s

Link to article here.

There's clearly a disconnect here. You can't be a fan of public private partnerships and NOT be a fan of tolling...but we do hope he holds to his word that tolls are antithetical to prosperity and ought not to be the primary means of fixing our congested highways.

DOT appointee Foxx downplays interstate tolling as a funding solution
By David Tanner,
May 22, 2013
Land Line Magazine

President Obama’s choice to lead the U.S. Department of Transportation, Anthony Foxx, says interstate tolling should be used only to add new capacity and should not be viewed as a solution to the shortfalls facing the Highway Trust Fund. Foxx faced questions from a Senate committee on Wednesday, May 22, as part of his confirmation process to become DOT secretary.



The Senate Commerce, Science and Transportation Committee, led by Chairman Jay Rockefeller, D-WV, and ranking member John Thune, R-SD, questioned Foxx about how he would run the DOT and help solve challenges involved with infrastructure funding.

 Foxx told the committee he would rely on his experience as the current mayor of Charlotte, NC, to make difficult choices and be accountable for the tough road ahead. 



Virginians protest tolls on I-395

Link to article here.

Virginia Residents Protest Against Toll Roads
Virginia residents protest latest plan to convert freeway lanes into a toll road.
April 8, 2013
The Newspaper.com

About 100 residents of Alexandria, Virginia gathered Saturday to protest the conversion of the Interstate 395 high occupancy vehicle lanes into a toll road. The Concerned Residents of Landmark, a group representing eight homeowners associations in the area, are concerned that the plan includes building an elevated ramp that will raise freeway traffic up to the level of nearby homes, within 75 feet of some buildings. The Virginia Department of Transportation (VDOT) chose to end the toll road at the Landmark location instead of running the toll lanes all the way to Washington, DC because the city of Arlington filed a lawsuit that blocked the toll road from extending north through the city.

"VDOT has shirked its moral and legal duty to ensure its planned actions cause no harm to surrounding environment," the group explains on its website, Delay the Ramp. "In its rush to build, VDOT arbitrarily and without careful analysis selected the Turkeycock Run location, not because it was the best site, but because it was convenient and VDOT wanted to make up for time lost fighting the Arlington case."

Another Aussie toll road goes bankrupt

Link to article here.

Once again, Texas should learn from others' mistakes. Toll roads are unreliable, unaffordable, and unsustainable as a method of road finance. There simply aren't enough people with enough money to pay tolls on a daily basis for basic mobility.

Australia: Another Toll Road Goes Bankrupt
Another Australian toll road joins the worldwide list of failed projects.
May 7, 2013
The Newspaper.com

Transportation officials in the United States and around the world remain fascinated with tolling public-private partnerships as a method of financing roads, but tolling continue to prove itself an unreliable choice. Last week, the Rivercity Motorway Group's bankruptcy administrators began soliciting bids for the Clem7 toll road in Brisbane, Australia.

The 4.2 mile tunnel links five major area roads at a cost of $8.10 per round trip -- a proposition few residents found worthwhile. A bankruptcy judge with the Federal Court of Australia explained the problem.

Spanish toll traffic down, calls to suspend all tolls

Link to article here.

Considering Spanish companies dominate public private partnership toll concessions in Texas, shouldn't be learning from the plight of the Spanish people who cannot afford to travel these privatized toll roads and the whole system is in danger of going bankrupt? Who's going to bail it out? Cash-strapped taxpayers and an already struggling government?

JUST ANOTHER TOLL STORY
Mark Nolan / 2013-05-16
TheLeader.com

On numerous occasions in the past, we have reported on the financial state of the companies running the toll roads around Spain, with reductions in use and the subsequent losses incurred, but information released this week shows that the picture is not likely to improve any time soon, with many groups calling for the suspension of all tolls on the Spanish highway network.

Traffic using the toll roads has reduced by 30% in 2012, with 16,631 vehicles using the system, on average, each day, a figure comparable to that of fifteen years ago.

Judge in VA rules tolls are taxes

Link to article here.

Virginia judge rules tolls are taxes
By David Tanner
Land Line Magazine
May 2, 2013

A circuit court judge in Virginia has ruled that the state DOT cannot impose tolls on two existing tunnels to pay for construction of a third tunnel or freeway improvements that accompany the Elizabeth River Crossing Project in the Hampton Roads region.



Portsmouth Circuit Court Judge James Cales Jr. ruled in favor of a group of individual plaintiffs on Wednesday, May 1.

The group consists of business owners and area residents, including numerous truckers and small trucking companies who filed a lawsuit in July 2012 against the Virginia Department of Transportation and a contractor hired to complete the Elizabeth River Crossing Project.



Cintra puts squeeze on DFW commuters, closes one lane

Link to article here.

Anyone who thinks the private toll operators in public private partnerships don't call the shots on PUBLIC mobility and transportation needs, hasn't been paying attention. Spain-based Cintra is clearly in the driver's seat and has closed an existing lane of traffic on LBJ, further congesting one of the most congested roads in the country, before the project even opens!

Lane shift puts the squeeze on LBJ traffic
by JASON WHEELER
WFAA
Posted on May 21, 2013

DALLAS — A huge change is coming to LBJ Freeway at the end of this month. As we first reported, the lack of shoulders in the construction zone has raised safety concerns.

But the fix means that instead of four lanes in each direction, we'll soon have only three.

In much of the Interstate 635 construction zone, there are no emergency shoulders, which leaves no room for error.

"Right now there's no space... there's just no space," said LBJ Express project spokesman Andy Rittler. "If there is an accident — a fender-bender &mdsh; it's a three-hour ordeal."

Putting lipstick on the P3 pig - 'availability payments'

Link to article here.

New tricks? 'Availability payments' a public private partnership in sheep's clothing
By Terri Hall
May 8, 2013

The Texas legislature is considering another 'tool in the toolbox' to build roads, without the controversial concession public private partnership (P3) model, called ‘availability payments.’ House bill 3650by Rep. Linda Harper-Brown opens the door to this type of P3 where the private sector pays for the road and gets paid back as money is ‘available.’

The argument by proponents is that payments to the private entity are only made if money is appropriated or 'available,' and that it does not constitute a debt to the state. However, this 'tool' puts ALL Texas taxpayers on the hook for repayment of the project. Whether it’s a toll project and revenues are inadequate to repay the obligation or debt to the private company, or a non-toll project, taxpayers are obligated to re-pay the private entity, presumably with interest. Just because the debt is off the balance sheet, doesn't mean taxpayers are not obligated to pay it.

Loop 1604 could be handed to private toll operator for 50 years

Link to article here.

A common myth believed by elected officials who foist these bad deals on taxpayers comes from the idea that the private entity brings all the money to the table for the project and hence takes on the risk if the project fails. That would be how a true private road project would be financed. However, that's NOT the case with public private partnerships (P3s) or CDAs as they're known in Texas.

Here's what the excerpt from the article says:
Hall suggested Loop 1604 isn't even toll viable, and no for-profit company would want to take that risk.

As an example, in its initial months of operation, the Texas 130 extension, which at 85 mph has the highest speed limit in the nation, drew only half the number of drivers originally expected on the toll road.

But Judge Wolff said, so what?

“That's what a concession agreement does, it puts the risk on the concessionaire,” Wolff said. “Seems like the state was pretty smart.”

TX lawmakers vote to sell-off 20 roads to private entities

Link to article here.

SOLD: Lawmakers vote to sell-off Texas roads to private corporations
By Terri Hall
Examiner.com
May 1, 2013

Yesterday, the Texas House joined the Senate in voting for SB 1730 (authored by Robert Nichols, House sponsor Larry Phillips) to hand 20 Texas highways to private corporations in controversial contracts called public private partnerships(P3s) or comprehensive development agreements (CDAs) despite public opposition. These sweetheart deals are designed to extract exorbitantly high toll rates, as high as 75 cents per mile, and guarantee profits, using taxpayers to socialize losses and privatize profits.

This crucial vote will effect the next three generations of Texans since P3s grant private, even foreign, entities government-sanctioned monopolies for 50 years. By limiting the expansion of free roads and, in effect, guaranteeing congestion on free routes through non-compete agreements, P3s hamper future transportation needs of the public -- for up to 30 years in Texas. P3s also erode property rights taking land in the name of 'public use,' but turning it into a private purpose for private gain.

VA Residents protest toll lanes on I-395

Link to article here.

Virginia Residents Protest Against Toll Roads
Virginia residents protest latest plan to convert freeway lanes into a toll road.
The Newspaper.com
April 8, 2013

About 100 residents of Alexandria, Virginia gathered Saturday to protest the conversion of the Interstate 395 high occupancy vehicle lanes into a toll road. The Concerned Residents of Landmark, a group representing eight homeowners associations in the area, are concerned that the plan includes building an elevated ramp that will raise freeway traffic up to the level of nearby homes, within 75 feet of some buildings.

The Virginia Department of Transportation (VDOT) chose to end the toll road at the Landmark location instead of running the toll lanes all the way to Washington, DC because the city of Arlington filed a lawsuit that blocked the toll road from extending north through the city.

Reasons to be wary of public private partnerships

Link to article here.

6 Reasons to Be Wary of Public-Private Partnerships
By Laura Barrett

Huffington Post

April 5, 2013

During his recent visit to Miami, President Obama praised Public Private Partnerships ("P3s") and lifted up the idea of a national infrastructure bank. While most Americans support the idea of building a sustainable economy and fixing decaying infrastructure, building up a national system of public-private partnerships is a whole other animal and needs to be carefully considered. The record on P3 agreements is mixed at best.

Moody's downgrades Cintra's credit rating on SH 130 for foreseeable future

Link to Moody's downgrade announcement here.

Rating Action:
Moody's downgrades the ratings on SH 130 Concession Company Senior and TIFIA loans to B1
Global Credit Research - 12 Apr 2013
Downgrade affects $1.1 billion of outstanding debt

New York, April 12, 2013 -- Moody's Investors Service has concluded the review period for the ratings of the SH 130 Concession Company. The rating on the Senior Bank Facility, which has $686 million outstanding have been downgraded to B1 from Baa3. The Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, which has $451 million outstanding to B1 from Ba1. The outlook on both ratings is negative.

Toll hikes anger citizens in VA

Link to article here.

Greenway Toll Hikes Decried At SCC Hearing
Leesburg Today
Wednesday, April 10, 2013 

In the first of two State Corporation Commission public input sessions held yesterday at Loudoun Valley High School, a number of speakers decried the toll raises granted to Dulles Greenway’s owners, Toll Road Investors Partnership Trip II.

Opposition came on several fronts—slamming Greenway management Australian hedge fund Macquarie Group for excessive and speculative financial practices; the SCC for not taking a firmer line to control Macquarie’s repeated calls for toll raises; the plight of commuters facing ever-rising tolls; and the intention of some Northern Virginia politicians to assume ownership of the toll road through a budget amendment in the 2014 session of the General Assembly next January.

Page 24 of 29

Donate Now

Help us fight to preserve our rights and freedoms!
Make a secure donation today!
or donate by mail. We cannot do it without you!