Toll forecasts over promise, underdeliver

Link to article here.

Study Documents Optimism Bias In Toll Road Traffic Forecasts
Study finds toll road industry plagued by inaccurate traffic forecasting.
The Newspaper.com
April 10, 2013

Toll roads around the world are struggling. Moody's Investment Services on March 21 warned of a possible downgrade of the SH130 toll road in Austin, Texas because the 50 percent fewer people used the road than projected. In Australia, toll operator BrisConnections finally went bankrupt in February after its $4.8 billion Airport Link toll road in Brisbane failed to deliver. In Virginia, the newly opened 495 high occupancy toll lanes have continued to disappoint officials.

Obama pushes more tolls, public private partnerships

Link to article here.

President's budget strong on transportation, with a catch
By David Tanner, Land Line associate editor
April 11, 2013

President Obama’s proposed budget shows the administration’s commitment to funding transportation and infrastructure. But while the numbers look good for roads and bridges over the short term, critics say the document lacks a long-term funding solution and gets off track in areas such as sharing highway money with rail and expanding the cross-border trucking program. 


Traditionally, a presidential budget request is a wish list, and the one President Obama delivered on Wednesday, April 10, is no exception.

The wish list calls for an immediate $50 billion in upfront spending for structurally deficient bridges and other needs.

Greece selling off infrastructure to get out of financial trouble

Link to article here.

Greece On The Auction Block: Country Seeks Bidders For Sale Of Its Railroad Infrastructure By Early 2014
By Angelo Young | April 01 2013
International Business Times

The Greek government has been trying in recent years to sell everything short of its historic Parthenon in an attempt to climb itself out of a massive debt hole.

Now, facing mounting pressure from international lenders to speed up its national yard sale, the government has announced it would begin the tender to sell the Hellenic Railways Organization, known by its Greek acronym OSE, by the end of the second quarter.

Ordinary Americans hurt by P3s

Link to article here.

Obama Plans to Sacrifice Ordinary Americans Yet Again in “Public/Private Partnership” Infrastructure Scam
Naked Capitalism
March 31, 2013

Apparently Obama’s idea of a Holy Week sacrifice is to feed American citizens to rapacious bankers, this time through the device of “public/private partnerships” to support infrastructure spending. Some NC readers were correctly alarmed by a speech by Obama on Friday on using public/private partnerships to fund infrastructure spending. This is not a new idea; Obama first unveiled it in his Statue of the Union address. But it is a singularly bad idea, that is, if you are anyone other than a promoter of or investor in these deals.

Toll roads are double taxation

Link to article here.

Toll Roads and Double Taxation: The Left and Libertarians Converge

By Rachel Alexander
Town Hall.com

4/1/2013

Toll roads are appealing to many on the right, because the fees don't look like taxes; motorists are charged for the voluntary action of driving on a specific road. Toll roads appear to be run by private entities, not the government. Also known as turnpikes, they are becoming an increasingly popular way to raise money to build roads, instead of increasing gas taxes which have traditionally paid for highways. Gas tax revenues only have about one-third the buying power they did a decade ago, insufficient to build new roads or maintain existing ones. There are now 5,244 miles of toll roads in the U.S., operating in 35 states.

Cintra’s credit woes, speed limit hike adjacent to toll road spell trouble

Link to article here.

Cintra’s credit woes, speed limit hike adjacent to toll road spell trouble
By Terri Hall
Examiner.com
March 29, 2013

It’s been a rough road for Cintra, Spain-based global toll operator, ever since it opened its first privately-operated tollway, State Highway 130, in Texas last fall. Yesterday, the Texas Transportation Commission voted to increase the speed limits on US Highway 183 to 60 MPH through Mustang Ridge and up to 65 MPH on the southern leg that runs through Lockhart, on the freeway that now serves as the frontage road to Cintra’s high-speed tollway. When SH 130 opened, the Commission increased the speed limit to the fastest in the country - 85 MPH - while also lowering the speed limit on the adjacent freeway, US 183 from 65 MPH down to 55 MPH.

The public fury was swift and Caldwell County Commissioners passed a resolution requesting that the Commission return the speed limit on US 183 to 65 MPH. TxDOT claimed it was ‘studying’ the speed limit situation, meanwhile SH 130 experienced its first fatality due to the dramatic difference in speed when a car on the tollway collided with a car getting onto the tollway from the dramatically lower speed frontage road that’s now US 183. The speed differential was believed to be the cause of the fatal accident.

TxDOT lowers truck tolls, increases speeds on free route

Link to article here.

Transportation commission lowers truck tolls on Texas 130, raises speed limits on its frontage roads
By Ben Wear
American-Statesman Staff
March 28, 2013

The Texas Transportation Commission unanimously decided Thursday to lower truck tolls on Texas 130 for the next year and to increase the speed limit on the tollway’s frontage roads near Mustang Ridge and Lockhart.

Starting Monday, all vehicles will pay the same toll rates on Texas 130 for its full 90-mile run from north of Georgetown to Seguin, about $17 for the entire trip (or 25 percent less for those with an electronic toll tag). Likewise, all vehicles will pay the same rates on Texas 45 Southeast. Larger trucks with more than two axles currently pay two to four times what cars and small trucks pay, and they will do so again starting in April 2014 unless the Texas Department of Transportation decides to continue the discounts.

Default coming? Cintra's SH 130 may receive credit downgrade

Link to article here.

Light 130 traffic prompts credit review of toll debt
By Ben Wear
American-Statesman Staff
March 26, 2013

The privately operated section of the Texas 130 tollway south of Mustang Ridge is attracting about half the predicted traffic, according to Moody’s Investor Service, prompting it to investigate downgrading credit ratings for more than $1.1 billion in debt attached to the toll road.

Meanwhile, toll rates for trucks on the entire length of the tollway, from Seguin to north of Georgetown, will likely be lowered for one year to encourage more traffic. That move is expected to put a dent in revenue, however.

Buy out of SH 130 tollway could make it a freeway

Link to article here.

$3 billion plan would end tolls on Texas 130
By Ben Wear
Austin American Statesman
March 20, 2013

How could the state lure people away from Interstate 35 and onto the Texas 130 tollway several miles to the east? State Rep. Paul Workman has a $3 billion answer to that question: make it free.

The solution proposed in House Bill 3682 by the Austin Republican, whose district doesn’t include Texas 130, likely faces more political hurdles than there are miles in Texas 130 — 90. Some lawmakers Wednesday referred to it as a “statement” bill, in effect no-hope legislation filed mostly to make a point.

Republicans try to sell Texas Capitol to developers for commercial development

Link to article here.

It shows how far off their rockers Republicans have gone...they're actually considering selling off the Capitol, the PEOPLE'S building, in a public private partnership (P3) for commercial developers to wreak havoc with and profit from, including a 47-story building, grocery stores, and tearing down the ONLY public parking garage to make way for condos!

Note that it's primarily Democrats opposed this nonsense, though they're without excuse since they all voted for this disastrous bill (that TURF tried to stop, SB 1048), which opened the floodgates to P3s with NO oversight, accountability, or ANY input from lawmakers or the public.

Guess they had to pass the bill before they knew what was in it!

Legislators addressing development in Capitol complex
By Laylan Copelin
American-Statesman Staff
February 17, 2013

Concerns about plans to build out the Capitol complex have some lawmakers reconsidering the role of public-private partnerships, including changes in state law that could afford Austin neighborhoods some protection from commercial development on state lands.

Public-private partnerships — commonly called P3s — aren’t going away, but powerful legislators are telling Terry Keel, executive director of the Texas Facilities Commission, that the controversial financing option might not be right for the heart of the Capitol complex.

Slash in toll rates attracts bump in trucks using SH 130

Link to article here.

TxDOT claims a 57% jump in trucks using SH 130 when they are offered the auto rate. A 57% jump from a base number of not too many in the first place, is still a far cry from the revenues needed to make SH 130 financially solvent.

Even with an uptick of trucks on SH 130, all I see twice a week when I drive I-35 is two lanes of bumper-to-bumper big rigs. SH 130 may be gaining a small percentage of trucks temporarily, but with diesel at over $4/gallon, the high speed (85 MPH, which means you blow extreme amounts of gas) on SH 130, and the distance one takes out of the way, it costs a whole lot more than $11 to take this bypass.

Toll cut on Texas 130 entices more big rigs
By Ben Wear
American-Statesman staff
February 13, 2013

The number of big rigs using the Texas 130 tollway has jumped almost 57 percent in the eight days since tolls for multi-axle vehicles were cut by two-thirds, Texas Department of Transportation officials said Wednesday.

Cars and pickups also are using the toll road in greater numbers, compared with the same period a year ago, even though tolls for those vehicles are unchanged, said James Bass, TxDOT’s chief financial officer.

Virginia's 495 Express Lanes attracting much less traffic than needed

Link to article here.

The primary thing to look at with these privately-run toll express lanes is the difference between the forecasted traffic and the actual traffic. Though Toll Road News is cheerleading for the success of these toll lanes, the expected traffic is off by 64% and revenue is 85% less than expected. Scroll down to the end where it tells you all the fines and fees you rack up if you can't figure out how to pay these electronic tolls without an electronic Toll Tag account. These tolls are a threat to your freedom to travel, and can bankrupt you if they mail the bills to the wrong address (which happens frequently with TxDOT).

VA495 Express Lanes report good start after 6 weeks - doing 24k weekdays
Toll Road News
January 11, 2013

Operators of the 495 Express Lanes on the Capital Beltway in the Washington DC area - a Transurban/Fluor subsidiary - report  traffic has been building steadily since they opened November 17 and that they are getting "great feedback" from customers via twitter, emails, and calls to the customer service center.

They cite motorists saying the new toll express lanes are saving them up to 20 minutes on their Beltway commutes, that they are "a game changer" and "the best money I've ever spent."

On startup they had some motorist confusion and minor incidents at the entry northbound from the Springfield Interchange.

Boycott success? TxDOT keeps Cintra's early traffic data on SH 130 secret

Link to article here.

What's TxDOT trying to hide from the public? That our boycott of Texas' first foreign-owned toll road is working?

TxDOT mum on use of new tollway section
By Ben Wear
Austin American Statesman
January 27, 2013


Maybe they should have set the speed limit at 90.

I kid.

I’m referring to the new section of the Texas 130 tollway, of course, the 41-mile stretch from Mustang Ridge to Seguin that last fall was briefly the most famous (notorious?) road in America. Having an 85-mph speed limit will do that.

But has it enticed a substantial number of drivers?

Kasich's alternative plan for Ohio Turnpike a disaster

Link to article here.

While we're glad the Ohio Turnpike won't be sold off to a private company, Kasich's alternative plan is a disaster. We agree with Peter Samuel's analysis on some points, but he's dead wrong on others. The public should ALWAYS have the right to build 'competing' freeways as the public interest dictates. Samuel's happy to lockdown all free travel and turn everything into an unaccountable toll road in the hands of unelected or privately-run boards. Affordable travel is never his goal -- he wants travel costs to be as punitive as possible to drive up the profits of his toll road buddies. He lends an important perspective nonetheless.

In Fitch's fantasy world Kasich plan for Ohio Turnpike 'conservative,' won't affect rating
By Peter Samuel
January 6, 2013
Toll Road News

Fitch Ratings say that an extra $1.5 billion in debt "is not expected to negatively impact the quality of existing OTC debt" and that they view the plan as "conservative." The money will be used for a mix of reconstruction and for off-Turnpike untolled projects.



Victory: Ohioans reject sale of Ohio Turnpike

Link to article here.

Ohioans sideline sale of Ohio Turnpike
By Terri Hall
January 19, 2013

In a victory for state sovereignty, property rights, and taxpayers, the grassroots managed to defeat Ohio Governor John Kasich’s proposal of selling off the Ohio Turnpike to a private toll operator using a controversial public private partnership (P3). The state officially pulled the plug on the P3, announcing the turnpike would stay public but the state will issue bonds backed by future toll revenues to generate needed cash. Kasich considered the turnpike an ‘unused asset’ that he could sell-off for a half century to get $3 billion now for other road projects. But Ohioans had a different opinion.

At the first public hearing held by the state to get public feedback last summer, 75 of 77 attendees said they were against privatizing the Ohio Turnpike. The Cuyahoga County Commissioners in northern Ohio opposed the sale. Many pointed to the poor conditions of the Indiana Toll Road once it was handed to Spain-based Cintra and Australian company Macquarie in a 75-year lease. Rates more than doubled, maintenance went down, and the concession company is struggling financially.

State leaders taking Texas off fiscal cliff with road debt

Link to article here.

Lawmakers taking Texas off fiscal cliff with road debt
By Terri Hall
January 10, 2013
Examiner.com

Thirty-one billion and counting. That’s how much road debt Texas Governor Rick Perry and Texas lawmakers have racked-up since they abandoned pay-as-you-go and started down the road of borrow and spend road policy. In fact, federal data shows Texas has the highest road debt of any state in America. Texas officials have been building roads with credit cards, and they're maxed out. Local debt incurred by toll authorities, cities and counties is equally out of control with just the North Texas Tollway Authority at $9 billion and climbing.

Indeed, the transportation picture looks bleak. If lawmakers fail to get the Texas Department of Transportation (TxDOT) adequate traditional funding this session, Texans will be faced with more of the same failed policies -- unsustainable debt, failing toll roads subsidized with tax dollars, and public private partnerships that sell-off our public infrastructure to private corporations that charge oppressively high tolls with impunity for generations.

Texas, we can do better.

Street car draws criticism in Virginia

Link to article here.

Columbia Pike Streetcar Drives Heated Procurement Debate
Arlington County Board adopts rules that allow public-private partnerships to finance major transportation projects.
By Jason Spencer
December 11, 2012

The Arlington County Board on Monday adopted guidelines that will allow public-private partnerships to help finance major transportation projects, like the Columbia Pike streetcar, after an unusually heated discussion.

Board member Libby Garvey, who was elected in November to her first full four-year term partially on a platform that included opposing the streetcar, fought an uphill battle all night.
She fought — with question after question, after question, after question.

For about three hours, the board dissected the Virginia Public-Private Transportation Act and pages of new or amended county procurement guidelines.

Orange County toll system falling short of paying its debt

Link to article here.

Orange County toll roads under review by California
With ridership and revenue on Orange County's toll roads falling short of projections, the state of California has launched a formal inquiry into their economic viability.
By Dan Weikel, Los Angeles Times
December 11, 2012

When it opened during the 1990s, Orange County's $2.4-billion tollway system was touted as an innovative way to build public highways without taxpayer money.

Today, the roads offer smooth sailing for gridlock-weary commuters willing to pay the price. But far fewer people are using the turnpikes than officials predicted, which means the highways generate far less revenue than expected to retire their debts.

Brits face threat of yet more toll roads

Link to article here.

Drivers facing threat of new toll roads
Motorists could face new tolls or pay some of their road tax to private companies who take over the running of the motorway network, under plans being discussed in Whitehall
By James Kirkup, and David Millward
The Daily Telegraph
10:00PM GMT 21 Dec 2012

Reforms that could give private investors control over Britain’s biggest roads will be included in the new policy agenda for the second half of the Coalition due next month, The Daily Telegraph has learnt.

The private managers of the roads would then be allowed to levy tolls on any new capacity they provide, such as new lanes or bypasses.

Existing roads that are “improved beyond recognition” by private managers could also be considered for charging, sources suggest.

Highway Robbery: How P3s extract private profits from public infrastructure

Highway Robbery: How So-called Public-Private Partnerships Extract Private Profit from Public Infrastructure Projects
By DARWIN BONDGRAHAM | November/December 2012

This article is from the November/December 2012 issue of Dollars & Sense magazine.

In 1995, California granted a private company the right to construct express toll lanes along the State Route 91 freeway in Orange County, a region inhabited by millions, with some of the heaviest traffic flows in the nation. This was the first modern privatized highway in the United States. The California Private Transportation Company (CPTC), a partnership of three corporations—Level 3 Communications, Granite Construction, Inc., and the French toll operator Cofiroute SA—completed the project with $130 million in mostly privately sourced money. To recoup this expense, and to make a profit, CPTC was given a 35-year concession to operate the toll route. State leaders promised that the private company would provide greater efficiency and savings, and that the public would benefit from clear and safe roads, even during a time of government budget constraints.

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