Thursday, January 1, 2009

Things We Could Have Told You

Sometimes studies are funny things.
However, very few road projects are 100 percent “toll viable” — meaning, profitable and thus enticing to the private sector...
So much for PPPs for all!

3 comments:

AC said...

As you know, I think the problem is they're tolling the wrong roads -- they should price the congested roads rather than the new, uncrowded roads.

As for privatization, I think TxDOT should just forget about it for now. It doesn't have to privatize roads to price them properly, and privatization just seems to piss people off.

Alon Levy said...

Pan, the article you link to says the report is controversial and many of the people who were commissioned to write it have criticized its conclusions.

arcady said...

The purpose of road privatization from the point of view of politicians is twofold: first, it lets them outsource the responsibility for toll increases, and second, it lets them get kickbacks from 50 years of toll revenues up front. Now, if there's some road project, and the traffic projections don't make it attractive for tolling, then maybe that's a sign that it shouldn't be built at all.