Posted by Kent on February 20th 2007 to
Daily I’ve returned from hearing Phillip Russell, Director of the Texas Turnpike Authority (TxDOT’s toll road division), and have to say that I was charmed. He was a really friendly guy, well-spoken, and politically correct to a fault. He gave a very brief extemporaneous talk (which he’s probably given a thousand times before to similar groups) that generally provided the motivational groundwork for TxDOT’s pursuit of toll road facilities, in general, and the Trans-Texas Corridor (TTC) program, in specific.
There were at least 50 public- and private-sector transportation planners, engineers, and consultants in attendance, not the type of crowd to be particularly hostile to the TTC. He highlighted the need for new funding sources not only to build new surface transportation infrastructure, but also to maintain the roads and bridges we already have. While claiming to be agnostic regarding the manner in which this funding is to be secured, he emphasized that the Texas Legislature, beginning in the mid-199os, has provided an increasing number of financing tools with which to accelerate the development of surface transportation projects and leverage private participation in those initiatives. Whether one agrees with the evolving emphasis on private concessions (and tolls) for these facilities, there is little doubt that the financial need is there. If one grants the need for new capacity, then the only way that we can develop it in a reasonable timeframe (short of raising taxes) is to leverage private capital. What is clear is that the TTC (or some giant infrastructure capacity improvement project) will happen, and that it will probably be funded largely by private (corporate) investment. And in spite of insurances that mechanisms are being written into the contracts for managing the unexpected over the lifetime of these concessions and that all stakeholders will be treated fairly, the TTC will never be uncontroversial.
A few interesting snippets from Russell’s talk and answers to questions:
- Rail components of the TTC will probably be funded with project concession revenues. That is, the high-speed/commuter rail components will only be developed after the roadway facilities have begun generating spendable revenue.
- There will be no non-compete clauses, per se, written into TTC contracts. He emphasized that TxDOT will continue to maintain and expand non-TTC roadway capacity as the need arises, but that they would build into the contracts provisions allowing for negotiations between TxDOT and the concessionaires for issues arising in the course of the concession period.
- Asked to comment on the criticism of the TTC for destroying the connectivity of FM and other state roads, Russell reflected back on the construction of the Interstate Highway System. He suggested that if you were satisfied with the way TxDOT addressed the issue then, then you would probably be satisfied with the manner in which it will deal with the connectivity issue raised by the TTC. And the converse would be true.
All in all, an interesting, though not terribly informative talk. I wish Russell would be in attendance on Friday to rebut more populist criticism contained in “Truth Be Tolled.”