ATA Report

Highway Users Form Coalition to Oppose Privatization of Toll Roads

Group Says Government Must Be Held Accountable for Financing

From the RD News Desk

WASHINGTON, D.C. -- The American Trucking Associations, in conjunction with the American Automobile Association, the American Highway Users Alliance, the National Association of Truck Stop Operators, the Recreation Vehicle Industry Association and the Owner-Operator Independent Drivers Association today announced the formation of a coalition of highway user groups to combat the growing trend toward the privatization or leasing of existing toll facilities to private investors.

Known as “Americans for a Strong National Highway Network,” the coalition is designed to advance the rights of American motorists to travel on safe, reliable public roads; maintain a robust national highway network for the efficient transport of goods and the military; and to hold government accountable for ensuring financing is transparent, motivated by public good and dedicated to transportation purposes.

The announcement was made at a press conference held at the National Press Club.

“The sale or lease of existing toll facilities generates revenue at great expense to taxpayers and the trucking industry and carries potential negative impacts on highway safety, security and the motoring public,” said ATA President and CEO Bill Graves. “We must consider the long-term impact privatization will have on our nation’s transportation system and explore all available financing options to ensure that the government is motivated by public good and transportation purposes.”

Rep. Peter DeFazio (D-Ore.), Chairman of the House Subcommittee on Highways and Transit, stated: “For the Bush Administration, the rush to promote public-private partnerships is based in ideology, not a critical evaluation of how public-private partnerships might help meet the goal of an improved, integrated national transportation system and further the public interest.”

ATA strongly opposes the lease or sale of existing toll roads, bridges or tunnels to private parties and has called upon the government to abandon these financing techniques.

The trucking industry supports the objective of a toll-free national highway system where funds to finance highway improvements primarily come from highway user fees, such as the fuel tax.

Projects Currently Privatized

Indiana Toll Road (I-80/90)

Leased to a joint-venture between the Australian Macquarie Infrastructure Group and Spanish Cintra Concesiones de Infraestructuras de Transporte S.A. , by the State of Indiana

Lease effective: June 30, 2006

Concession agreement signed for 75 years in exchange for a one-time payment of $3.85 billion

Chicago Skyway (I-90)

Leased to Macquarie-Cintra by the City of Chicago

Lease effective: Jan. 30, 2005

Concession agreement signed for 99 years in exchange for a one-time payment of $1.83 billion

Pocahontas Parkway ( State Route 895)

Leased to Australian Transurban by the State of Virginia

Lease effective: June 29, 2006

Concession agreement signed for 99 years in exchange for a one-time payment of $611 million

Projects Proposed for Privatization

New Jersey Turnpike (I-95), Garden State Parkway and Atlantic City Expressway

New Jersey Gov. John Corzine raised the possibility of “monetizing” state assets in his 2007 State of the State speech. It’s widely believed that the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway are the most likely assets to be monetized, i.e. leased. Sen. Raymond Lesniak (D-N.J.) introduced legislation Feb. 5 authorizing the lease of the Turnpike and Parkway for up to 75 years. He speculated that the lease could generate $10 billion to $15 billion.

Pennsylvania Turnpike (I-70/76/276)

In November, Pennsylvania Gov. Ed Rendell asked for "Expressions of Interest" from companies interested in a concession. The state had received 48 responses by late December. Rendell has indicated that he is likely to decide by March whether to seek a lease agreement. Estimates of a concession fee have ranged between $2 and $30 billion

Report Source: http://www.truckline.com/NR/exeres/F9603B8E-0E50-45DC-8FA5-00CADC72A15B.htm