MAKING INROADS IN PRIVATE HIGHWAY CONSTRUCTION

Privately built and operated toll roads can take the financial pressure off local governments, but there are pitfalls. In general, consumers have shown some reluctance to pay tolls that do not vary with distance and/or time of day. Private toll roads also encounter substantial difficulties in negotiating for land acquisition and rights-of-way, and in dealing with environmental matters. Private toll roads also cannot issue tax-exempt securities--an obstacle that raises developers' interest expenses and, ultimately, the required tolls. Additionally, expensive projects that are contingent upon stimulation of land use or induced traffic have a lower chance of success. Government regulation of private toll roads also presents an obstacle since it can stifle price flexibility, reducing benefits of for-profit operation. Liability for accidents or other problems is another roadblock for private investors. Two examples of private ventures are presented. Congestion pricing has helped make California's 91 Express Lanes a heralded alternative to jam-packed State Route 91. Although the Dulles Greenway provides a quick trip from Washington, DC, to Dulles International Airport and the Virginia suburbs, the toll road has struggled; however, its popularity seems to be on the rise.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/0149337X
• Corporate Authors:

  Intertec Publishing Corporation

  6151 Powers Ferry Road, NW
  Atlanta, GA  United States  30339-2941
• Authors:
  • Hakim, S
  • Blackstone, E
• Publication Date: 1999-8

Language

• English

Media Info

• Features: Photos;
• Pagination: p. 52-56
• Serial:
  • American City & County
  • Volume: 114
  • Issue Number: 9
  • Publisher: Penton Media
  • ISSN: 0149-337X

Subject/Index Terms

• TRT Terms: Case studies; Congestion pricing; Eminent domain; Highways; Land; Liability; Private enterprise; Regulations; Right of way (Land); Road construction; Taxes; Toll roads; Tolls; Utilization
• Identifier Terms: Washington Dulles International Airport
• Geographic Terms: California; Virginia; Washington (District of Columbia)
• Subject Areas: Finance; Highways; Law; Research; I10: Economics and Administration;

Filing Info

• Accession Number: 00767826
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 26 1999 12:00AM