Econ Focus
The End of the "Free" Ride: Tolls bring home the true cost of roads
With traffic congestion worsening, transportation economists are emphasizing pricing tools to make drivers think about how much highways really cost.
By Betty Joyce Nash
Private-Public Toll Roads in the Fifth District
Cross Island Parkway
Location: Hilton Head, S.C.
Length: 7.5 miles
Opened: February 1998
Cost: $83 million
Private Role: ACS State and Local Solutions operates and maintains the toll system.
Public Role: The State of South Carolina issued bonds to help cover the Cross Island's construction costs and owns the roadway.
Dulles Greenway
Location: Loudon County, Va.
Length: 14 miles
Opened: September 1995
Cost: $350 million
Private Role: Private bonds financed the Dulles Greenway's development. The TRIP II private consortium owned the roadway until it sold 87 percent of its stake to Macquarie Infrastructure Group in September 2005. Currently, Autostrade International of Virginia O&M has a contract to maintain and operate the roadway.
Public Role: Ownership of and operational responsibility for the Dulles Greenway will revert to the Commonwealth of Virginia in 2056.
Pocahontas Parkway
Location: Richmond, Va.
Length: 8.8 miles
Opened: May 2002
Cost: $324 million
Private Role: FD/MK, a joint venture of Fluor Daniel and Morrison Knudsen Corp., was the project developer. Also, private bonds issued by the Pocahontas Parkway Association covered the majority of the construction costs.
Public Role: The Commonwealth of Virginia owns Pocahantas Parkway, but sold the right to manage, operate and maintain the roadway to Transurban Group, an Australian toll road operator, in May 2006.
Southern Connector
Location: Greenville, S.C.
Length: 16 miles
Opened: February 2001
Cost: $191.3 million
Private Role: Interwest Carolina Transportation Group, a consortium of engineers, builders, contractors and other experts, developed the roadway. Most of the construction cost was covered by private bonds issued by the Connector 2000 Association, a nonprofit corporation.
Public Role: The State of South Carolina will own and operate the Southern Connector once the bonds sold to finance its construction are retired. In the meantime, the Connector 2000 Association operates the roadway and collects tolls.
SOURCE: InnovativeFinance.org (website superceded by www.transportation-finance.org)
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