Congress Targets Highway Privatization
The trucking industry and congressional Democrats are seeking to slow states’ efforts to lease toll roads to private investors, Bloomberg reported.
Led by trucking companies such as U.S. Xpress Enterprises, House Democrats are considering withholding highway funds from states whose leases with companies fail to meet proposed federal standards, Bloomberg reported Sunday.
Critics of leasing say private investors are more likely to raise tolls than government authorities and that private investors would also find it easier to fire toll collectors and other employees, Bloomberg said.
New federal restrictions could make investments in the $1.7 trillion of public roadways less attractive to private interests, and the mere fact of congressional attention might have a chilling effect on such deals, Bloomberg said, citing financial analysts.
Pennsylvania, which says it faces a $1.7 billion shortfall in transportation funds during the next 20 years, could raise $12 billion to $18 billion by leasing the 537-mile Pennsylvania Turnpike, while New Jersey Governor Jon Corzine (D) is considering leasing state toll roads to raise money for highway construction and maintenance.
Many of the deals under consideration involve foreign consortia. Last year, Indiana signed a $3.8 billion, 75-year lease of the Indiana Toll Road to a Spanish-Australian group.
