The Growing Importance of Public Private Partnerships in Meeting Americas Transportation Needs

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The Growing Importance of Public Private
Partnerships in Meeting Americas Transportation
Needs

• AASHTO Executive Director John Horsley
• Presentation to the
• ARTBA PPV Conference
• Washington, DC
• November 1, 2007

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New Transportation Vision for the 21st
CenturyMay 2007, Cambridge, Maryland

• Partnering Organizations
• AASHTO AAA
• ACEC APTA
• ARTBA AGC
• ATA AAR
• 17 Organizations Jointly Developed and Submitted
  Vision Report to National Commission

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Policy Priorities

• Increase funding for core highway and transit
  programs and ensure solvency of Highway Trust
  Fund
• Generate net new funding for strategic national
  investments from sources outside the Highway
  Trust Fund
• Critical Commerce Corridors an excellent option
  to meet this objective

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Policy Priorities

• Preserve the system
• Aggressively invest in new transit and highway
  capacity
• All levels of government federal, state and
  local must fund their share of the increase
  required

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Federal Highway Program Possible with 3-Cent
Fuels Tax Adjustment in 2009 with Additional
7-Cent Adjustment Through 2015 or Equivalent
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All Levels of Government Must Continue to Fund
Their Share

• National Capital Investment in Highways
• (billions)
• 2010 2015 Funding New Toll Net
• Increase Revenue Required
• Needed
• Federal 43 73 30 30
• State/ 52 87 35 8 27
• Local
• Total 95 160 65 8 57

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Tolling and Public Private Partnerships Playing
an Increasing Role

• Chicago Skyway SR-125 San Diego
• Indiana Tollway I-95, I-495 Virginia
• TransTexas Corridor Tacoma Narrows Br.

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AASHTOs Policy Position

• Every state should be given all options possible
  in the areas of tolling and public private
  ventures so those states can determine for
  themselves what is in the best interests of their
  citizens.

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Tolling and Public Private Partnerships Playing
an Increasing Role

• Last 10 Years
• 150 miles per year of new expressways 30-40
  funded by tolls and PPVs
• Next 10 Years
• 50 to be funded by tolls and PPVs. Tolls
  revenues now 5 to grow to 7 of total highway
  revenues

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Backlash Has Set In

• Congressional concerns
• Texas moratorium
• PA tolling of I-80 through PA Turnpike Authority
• New Jersey Governor Corzine New Jerseys
  roadways not to be sold or leased to a for-profit
  or foreign operator.

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Increased Customer Focus

• Hold down initial tolls to lowest rate possible
• Protect customers from uncontrolled increases in
  future
• No Compete Clauses more carefully drafted
• PPVs and State DOT joint ventures share
  risk/share reward/protect customers

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Highway Pricing

• Supported by
• Economists
• Transit Advocates
• Political appointees who will never again have to
  face the voters
• Political leaders who will have to face the
  voters will demand
• Better deals
• Better protection of the public

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PPVs are Vital

• Public Private Venture financing of highway
  improvements is vital to meeting national needs
• But, at best, it represents 10 of what is needed
• Dont oversell it to the detriment of sustaining
  Highway Trust Fund solvency

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Thank You

• http//www.transportation.org
• John Horsley
• Executive Director
• AASHTO