• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Group to Propose Taking Over Road

Posted on: Wednesday, 27 July 2005, 03:00 CDT

A consortium of private companies wants to take over operation of the Dulles Toll Road from the state. The group is pledging $1 billion in highway improvements that the Virginia Department of Transportation says it cannot afford.

A proposal called the Dulles Corridor Mobility Initiative will be submitted to VDOT this week under the state's Public-Private Transportation Act, which allows the agency to partner with the private sector to build roads more efficiently.

The proposal, one of the most ambitious yet under the transportation act, calls for the private entity to operate the 14- mile toll road for 50 years, collecting tolls that now go to the state. Proponents of the plan claim it would speed traffic along the heavily traveled highway and accelerate plans to build a rail line to Washington Dulles International Airport.

The plan for a privately operated toll road has been discussed for about a year, said Curtis M. Coward, president of Vienna-based Trident Investment Group LLC. Discussions deepened this year when the Commonwealth Transportation Board approved increased tolls for the highway, he said.

The increased toll was put into effect to cover the state's share of extending the Metro subway system to Dulles airport. Under the private ownership plan, that portion of the tolls would still be dedicated to the rail project.

"It really is a win-win situation," Coward said.

Virginia and other states increasingly have turned to the private sector to build highways and other expensive transportation improvements.

Several privately financed projects already have been completed, including state Route 288 and the Pocahontas Parkway near Richmond. State officials recently approved enlisting a private firm to add two new lanes to the Capital Beltway. Several more privately financed highways are under consideration.

The Dulles proposal differs in that the highway is already built and operating. The demographics of the Dulles corridor -- which includes Tysons Corner, a booming high-tech business community and a growing international airport -- make it attractive to investors, Coward said.

The companies involved in the plan include Citigroup Global Markets, the world's largest commercial bank; Clark Construction Group; Shirley Contracting; and Autostrade, Laing and Infrastructure Investment Group.

Under the plan, the Dulles initiative would raise $1 billion through a combination of private investment and the sale of special purpose bonds. The money would be pumped back into the highway through 19 separate improvement projects, including ramps and auxiliary lanes, said J. Kenneth Klinge, a former member of the CTB who is working as a consultant on the project. Work would begin as soon as next year, he said. None of the improvements are now being planned.

The state would assume no financial risk, he said. The ownership of the highway would not change hands. Rather, the consortium would be granted a concession to operate the state highway.

The planned improvements are aimed at eliminating backups at toll booths by expanding the current automated toll-collection system. Automated toll lanes can process collections about four times faster than traditional toll booths.

"The best thing is that people who drive on the highway would see improvements right away in return for the increased toll," he said. "They would get a better highway, and it adds capacity to the road."

Klinge said the consortium plans an extensive public outreach program.

Numerous state leaders already have been briefed on the plan, and the consortium plans to launch a Web site to answer questions about the proposal.

Source: Richmond Times - Dispatch

More News in this Category