News Roundup

City's Toll-Road Future Could Break Ground by Next Summer
San Antonio Business Journal (12/24/07) Phinisee, Tamarind

The Alamo, Texas, Regional Mobility Authority thinks that building of the toll lanes scheduled for its Highway 281 North Toll Project could start as soon as the summer of 2008. The toll project will erect non-tolled lanes on the outside on Highway 281, north of Loop 1604, to the Bexar-Comal County line on either side of the current freeway, and reconstruct the center as toll express lanes. The authority is currently waiting for financial approval from the state Transportation Commission, which must provide right of control to the authority to create the toll project, which is expected to occur at the end of January. The authority sent out a request for qualifications earlier in 2007 looking for firms interested in constructing the Highway 281 toll project. After construction starts, the plan is to finish the Highway 281 North Toll Project in 49 months or less. The authority wants to have the initial phase of the project finished within 31 months. Financing for the project will mandate federal and state monetary subsidies, in addition to money generated from issuing bonds. The Highway 281 North Toll Project is predicted to cost $475.7 million.
(http://www.bizjournals.com/sanantonio/stories/2007/12/24/story9.html?b=1198472400%5E1567714)

A Green Light for Common Sense
Washington Post (12/24/07) P. A9; Whitlock, Craig

Bohmte, Germany, has been undergoing a massive makeover since September, taking up sidewalks, removing curbs, and doing away with street markers in order to terminate almost all traffic rules and make people depend on common sense and manners. This traffic-management concept--known as shared space--is becoming popular in Europe. The European Union has subsidized shared space initiatives in seven cities in five nations. Interest is growing globally, with cities in nations such as Australia and Canada dispatching representatives to Europe to find out if the experiment is viable. In Bohmte, just two traffic regulations are still on the books. Motorists cannot drive faster than 30 miles per hour, and everybody must yield to the right. The program is meant just for public areas where cyclists and pedestrians share routes with vehicles. Traffic engineers claim it could cause gridlock if launched in high-traffic regions, such as big cities.
(http://www.washingtonpost.com/wp-dyn/content/article/2007/12/23/AR2007122302487.html?nav=rss_world)

City Told to Budget for Infrastructure
Jakarta Post (12/24/07) P. 4

Jakarta, Indonesia's proposed budget for 2008 is Rp 20 trillion (around $2.12 billion), or 3.28 percent less than the 2007 budget of Rp 20.68 trillion. In spite of this, City Council members stated they hoped the administration would help fund Jakarta's infrastructure projects. M. Nakoem A.R. noted that if the budget could be expanded, the administration should keep building busway corridors. Meanwhile, Golkar Party member Prya Ramadhani stated that a larger budget could be utilized to fund inner-city toll roads and upgrade other kinds of transportation. Prya explained that one of the budget allocations that could be raised was the retribution tax, including entertainment and restaurant taxes, which he thought could be increased 40 billion from the predicted Rp 800 billion.
(http://www.thejakartapost.com)

MRCB to Start Building EDL Road in Q1: Report
Business Times Singapore (12/25/07)

Building of the RM977 million Eastern Dispersal Link Expressway (EDL in Johor, Malaysia, will probably begin in the initial quarter of 2008. In June, the MRCB signed a concession deal with the government to devise, build, maintain, and manage the EDL with the provision that its subsidiary would handle the project. The 8.1-kilometer toll road will connect the new Customs, Immigration and Quarantine Complex at Bukit Chagar, Tanjung Puteri in Johor Baru and the North-South Expressway by way of the Pandan Interchange. With a 34-year concession deal, the EDL is expected to produce continual group income during three decades until 2041. It is predicted that it will take four years to construct the EDL. For the MRCB group, which is primarily valued based on its order book, the EDL initiative is an important development as a model for long-term income. If the EDL becomes profitable for the MRCB, the firm will be able to obtain other big projects with equally high cash flow, and create additional sources of sustainable income.
(http://www.businesstimes.com.sg/sub/news/story/0,4574,261502,00.html?)

Toll Road Critics' Data Request Overruled
Houston Chronicle (12/20/07) Fikac, Peggy

On Thursday, Texas District Judge Orlinda Naranjo decreed that toll-road opponents cast too large a net in pursuing information from the state Department of Transportation in a lawsuit. Texans Uniting for Reform and Freedom (TURF) argues that the Keep Texas Moving toll-road effort breaches a Texas ban on state officers or workers utilizing their power for political reasons. TURF also claims the agency has illegitimately lobbied elected authorities. Meanwhile, the transportation agency has contended it is operating legally and that TURF does not have the power to file the suit. Naranjo concurred with the analysis by Assistant Attorney General Kristina W. Silcocks, representing the transportation entity. Over objections by Texas, however, Naranjo lengthened the time that TURF has to obtain data after the groups' attorney, Charles Riley, stated he wants to try once more with a limited request for agency papers. A hearing on the matter is not expected before March.
(http://www.chron.com/disp/story.mpl/front/5395889.html)

Toll Road Plan Marinating
Myrtle Beach Sun News (SC) (12/22/07) P. A11; Jones, Steve

The North Carolina Turnpike Authority states the proposed Interstate 74 connection between Brunswick County and Horry County, which would be a toll road, needs major restructuring before it can become a reality. The retooling of the plan would include a non-tolled I-74 between Columbus County and U.S. 17 in Supply that will channel the traffic the toll road requires to become its own road. The toll interstate that would link to S.C. 31 is probably at least 10 years off. It could take even longer to build if the state General Assembly does not action to fix North Carolina's highway-financing problem. A big, statewide highway contribution bond is a likely action the 2008 Legislature will sanction, say members of Brunswick County's legislative coalition. In addition, it may investigate supplementing or replacing the gas-tax revenue with a roads-user charge. Meanwhile, North Carolina could also approve the toll I-74 as an extension of I-140, which would connect Brunswick County with I-40 and is already on the Department of Transportation's building schedule.
(http://www.myrtlebeachonline.com/142/story/290789.html)

Transurban in the Fast Lane With $1.75bn US Toll Road Contract
Australian (12/22/07) P. 23; Ferguson, Adele

On Dec. 21, Australia's Transurban Group increased its presence in the United States when it signed an agreement to construct and manage the world's largest high-occupancy toll (HOT) lanes on Virginia's Capital Beltway, worth $1.5 billion. While the agreement was initially announced in April 2005, it has taken until now to obtain environmental and financial approval from Virginia to build and manage HOT lanes on Washington, D.C.'s Capital Beltway. The project will be financed via debt and equity, and will be overseen by Transurban's American-based co-investment vehicle, DRIVe. Transurban and its DRIVe co-investors will invest $315 million in equity, drawing down during five years. This comprises 90 percent of the project's equity. Fluor Corporation will own 10 percent of the equity. Overall, Transurban will invest $263 million in equity over five years, which will be financed through its distribution reinvestment initiative. Under the deal, Transurban and Fluor will construct two extra lanes in either direction on a 22.5-kilomter stretch of the road, with the lanes to be operational during 2013's initial quarter.
(http://www.theaustralian.news.com.au)

Infrastructure Meets Bumps in Financing
Wall Street Journal (12/17/07) P. C5; Haywood, Kate

European investors seeking financial safety in deals for bankrolling such infrastructure projects as toll roads and utility companies can take comfort in the fact that most of those scheduled for the new year will move forward as planned despite the ongoing credit crisis. However, bankers warn that the sector has expanded to include less-classic businesses, including highway services and waste-disposal companies, and that these deals may not be completed unless they include strong protections for creditors. The debt financing for these and other less-traditional infrastructure projects, which tend to be more sensitive to the broader economy, may end up more costly for borrowers. Michael Wilkins, head of infrastructure finance at Standard & Poor's London office, comments, "The nontraditional infrastructure assets are good businesses, but they are just not in the same league as pure infrastructure assets. This will be reflected in the structure and pricing of the related debt more and more." Infrastructure financing entails building and acquiring such assets and then packaging them into funds for investors. Infrastructure assets range from roads and railways to airports, ports and power plants. They may also include educational, health-care, and retail and industrial facilities as well as housing.
(http://online.wsj.com/article/SB119785603226832909.html)

Study Sees Progress in Filling Big Dig Leaks
Boston Globe (12/18/07) Bierman, Noah

A recent Massachusetts Turnpike Authority (MTA) report reveals the number of leaks in the Big Dig tunnel fell from a few thousand to just 650, though the tunnel will take on and pump out the same level of water it did in 2006. The authority hopes to finish plugging the leaks by summer 2008, but the tunnel continues to collect 2 million gallons per day, and officials are concerned the problem may be more severe than first suspected. Though these types of tunnels normally have leaks, the situation in the Big Dig is more severe. Contractors and state workers have to find the leaks and plug them, ensuring they do not damage electrical rooms or creak icing situations for drivers. Robert R. Rooney, state deputy secretary for public works, says, "If the leaks are not regularly found and plugged, it could have long-term degradation on the steel." Leaks account for 40 percent of the water pumped out of the tunnel, with the rest of the water due to rainfall. Rooney advocates that the MTA create a water management program for the tunnels that focuses on monitoring, identifying, and plugging the leaks as well as measuring the water pumped out of the tunnel system.
(http://www.boston.com/news/local/articles/2007/12/18/
study_sees_progress_in_filling_big_dig_leaks/)

U.S. Department of Transportation Seeks Technology Solutions to Improve Safety and Reduce Congestion on Nation's Roadways
U.S. Department of Transportation (12/18/07)

The U.S. Department of Transportation's Research and Innovative Technology Administration (RITA) is soliciting information on commercially available technology that could be used to reduce congestion and increase the safety and performance of the U.S. transportation system. "The solution to today's traffic problems does not have to be just about building new roads and infrastructure," says U.S. Transportation Secretary Mary Peters. "By harnessing existing technology and adapting it for transportation needs, we can dramatically improve safety and reduce congestion." RITA will identify applicable technologies and form partnerships with interested stakeholders under SafeTrip-21, an initiative aimed at field testing the technologies scheduled for launching at the 2008 Intelligent Transportation Systems World Congress in New York City. The initiative will incorporate the lessons learned in current field testing taking place in Michigan, California, Virginia, Arizona, Florida, Minnesota and New York.
(http://www.dot.gov/affairs/rita0107.htm)

Irish-Owned Municipal Debt Firm Has Eye on S.A. Market
San Antonio Business Journal (12/17/07) Phinisee, Tamarind

Ireland's DEPFA First Albany Securities LLC is trying to infiltrate the San Antonio region. DEPFA managing director Vincent Matrone states the objective is to have an office launched in San Antonio by the initial quarter of 2008. DEPFA underwrites and dispenses securities at the national, local, and municipal levels for government-associated and nonprofit groups. Matrone notes that San Antonio is a draw for the company due to its growth history and its future growth possibilities. The Texas Bond Review Board claims that the state has $48.3 billion in overall outstanding municipal debt. Most of it--$31.31 billion--is held by a half-dozen cities, including San Antonio. Matrone adds that the upcoming launch of toll roads in San Antonio is a major attraction for a company such as DEPFA.
(http://www.bizjournals.com/sanantonio/stories/2007/12/17/story7.html?ana=from_rss)

Local Legislators Weigh in On Fed's Decision to Reject I-80 Tolling Proposal
Meadville Tribune (12/14/07) Shanley, Jean

A plan to enact tolls on Interstate 80 in Pennsylvania has run into problems. The Federal Highway Administration has sent back Pennsylvania's application for federal approval of the plan. "At this time, the application does not contain all of the information required for a Phase I provisional acceptance, as specified in our guidance, or a conditional provisional approval," wrote acting division administrator David Lawton. He added that a slot in the Federal Interstate System Reconstruction and Rehabilitation Pilot Program has not been set aside for Pennsylvania's application. The statement also said that there are questions concerning the employment of revenue that would be produced from tolling I-80 for reasons other than upkeep or upgrade of that road. In addition, the statement questions the set-up of the half-century lease deal between the Turnpike Commission and the state Department of Transportation.
(http://www.meadvilletribune.com/local/local_story_347223136.html)

Pa. Turnpike Turns Out SAP Project
Government Computer News (12/13/07) Walsh, Trudy

The Pennsylvania Turnpike Commission--which oversees a 536-mile superhighway with 60 toll collection facilities--has successfully completed the second phase of an SAP enterprise resource planning project known as PTC Readiness for an Integrated Decision-making Enterprise (PRIDE). During the second phase of the project, which is being undertaken with service partner Ciber, the SAP ERP human capital management and payroll functionality was implemented. The third and final phase of the project is scheduled to be completed in the first quarter of next year. That phase will integrate the business functions of financials, materials management, supplier relationship management, plant maintenance, project systems, electronic document management, and business intelligence. Once complete, project PRIDE will allow PTC to consolidate its multiple IT systems into one system, which in turn will simplify trend analysis and decision-making activities and increase business efficiency, said Ed Burns, president of Ciber's state and local government solutions.
(http://www.gcn.com/online/vol1_no1/45557-1.html)

Buyers Interested in State's Bridges
Providence Journal (RI) (12/13/07) Thayer, Bob

Financial groups have repeatedly asked the Rhode Island Turnpike and Bridge Authority if they could purchase or lease the Mount Hope and Pell bridges, according to officials. Separately, the authority published a consulting study claiming it will have to deal with a long-term deficit of more than $200 million because its primary revenue source--tolls--probably will not keep abreast with the price of maintaining the bridges. The authority's consultants provided with several options, including hiking tolls for the initial time since the Pell Bridge opened in 1969. Authority members have convened with representatives from numerous companies, including Goldman Sachs and Morgan Stanley. The firms mentioned numbers in the range of between $250 million and $300 million, although they did not appear interested unless somebody would consent to a big and ongoing toll hike, stated authority chairman David A. Darlington. A possibility the study provides would increase the basic cash toll from $2 to $3; that and several other toll hikes could generate between $119 million and $149 million over the next two decades. The consultants also talk about privatizing the authority by hiring private firms to handle all of its operations and maintenance jobs, although that would not likely yield significant cost savings. Other options the study mentions include doing away with toll discounts, which would provide $17 million, and raising tolls in the summer, which would produce $21 million.
(http://www.projo.com/ri/woonsocket/content/BRIDGE_DEFICIT_12-13-07_GM886G0_v16.246f130.html)

NRA Rejects Criticism of Plan to Increase M50 Toll
Irish Times (12/13/07) P. 3; Cullen, Paul

Ireland's National Toll Roads Authority (NRA) has opposed criticism to its intentions to raise toll fees for numerous drivers utilizing the M50 when barrier-free tolling is launched in 2008. The NRA will make 80 million euros annually from this tolling, although the system will only cost 25 million euros to run. This means the NRA will recover the 484-million-euros price of purchasing the West-Link bridge on the M50 from National Toll Roads in under 10 years. Six groups at the Dec. 12 hearing--including the National Consumer Agency (NCA)--are against the proposal. Automobile drivers will have to pay as much as 3 euros a trip under barrier-free tolling, versus the present toll of 1.90 euros. The NRA hopes the majority of drivers will purchase an electronic tag to track use and allow charges to be debited from their account, something the NCA contends will entail substantial hidden fees for consumers. NCA CEO Ann Fitzgerald noted that tag providers charged monthly administrative fees. She added that drivers who did not register ahead of time would just have 12 hours to pay the toll or receive a penalty of 3 euros.
(http://www.ireland.com/newspaper/ireland/2007/1213/1197411732374.html)

Aid for Toll Road Project Sought
Advocate (12/12/07) P. B1; Blanchard, Kevin

On Tuesday, members of the Lafayette, La., Expressway Commission stated they intend to ask the Legislature for assistance with constructing an $800-million toll road. The planned loop around Lafayette Parish is one of numerous "megaprojects" throughout Louisiana listed for financing via the Louisiana Mobility Fund. Although the Legislature established the fund a few years ago to offer a state match to area tolls for big transportation projects, it has not actually contributed money for the fund. The plan would be to provide several hundred million dollars in new revenue to the fund, which could then be sold as bonds for between $6 billion and $7 billion. Projects like the Baton Rouge area loop and related megaprojects in other urban regions would be eligible to get Mobility Fund money, so long as they provide matching toll revenue. The bill that established the Expressway Commission to study the expressway asked for the road's boundaries to just be in Lafayette Parish. Some of the suggested routes now being considered, however, actually go through sections of Iberia and Vermilion parishes. The Expressway Commission is supposed to receive a report in early 2008 describing the economic feasibility of a toll road.
(http://www.2theadvocate.com/news/12396931.html)

Federal Funding Available to Ease Traffic Congestion
County News (12/10/07)

The U.S. Department of Transportation is soliciting applications for funding of metro-area congestion reduction demonstration (CRD) projects. The CRD initiative, while similar to DOT's Urban Partnership Agreement (UPA) program that has allotted about $850 million toward traffic congestion mitigation in five cities, differs in three key ways. First, though it retains the option for a formal partnership between DOT and the metro areas, it does not mandate it as does the UPA program. Second, when compared to the UPA program, the application process has been greatly streamlined; only a single application is necessary to qualify for any of several funding discretionary programs. Also, CRD projects do not have to include the telecommuting/flex scheduling components that are key to UPA funding.
(http://www.naco.org/CountyNewsTemplate.cfm?template=/ContentManagement/ContentDisplay.cfm&ContentID=25887)

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