In a short-sighted attempt to fill holes in their budgets, some states have been selling the control over their toll roads to private foreign investors. The most famous case is the Indiana Toll road 75-year lease that started back in 2006. During the first five years of control, the company in charge more than doubled the toll for five-axel trucks from $14 to $32. That same company has been buying up control of U.S. toll roads since 1999 and now controls 6 major U.S. roadways.
Spanish company Cintra Concesiones de Infraestructuras de Transporte (or Cintra) just signed a deal with the state of Texas worth $1.38 billion where it will operate two future portions of the North Tarrant Express in Dallas/Fort Worth.
While previous deals signed by Cintra have been for up to 99 years of control, this new deal only gives them control for 43 years. The lease will start from the date of completion which is estimated to be in mid-2018.
The company has proudly declared that lanes that are currently toll-free will remain toll-free. Given that they will be taking control of primarily new lanes, this is not particularly comforting. The new roads will be built alongside the old overly-congested roads, but in order to use the new roads, drivers must pay tolls that increase based on the level on congestion. The more traffic there is in the free area, the more you’ll pay to get into the paid area. There has been no word yet on how much Cintra plans on charging for access to their “premium” roadway, or how much that price will fluctuate based on traffic.
Cintra hopes to grow their total tally to seven toll roads in the near future. A new deal is being drawn up by Cintra’s parent company, Ferrovial, in hopes of building a new toll road parallel to U.S. 460 in Virginia’s port region.
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Tim says
This is one of America’s most brilliant moves since Steward. Do these foreign investors really think the American transportation mega-system is going to look the same 30 years from now? They’re banking on a future that’s about as likely to occur as someone on a $15K salary paying off a 30-year $500K mortgage at 10% compound interest.
Steve says
Yeah, brilliant. Sooner than not, we’ll be just like Mexico, three to six bucks to take any road going anywhere. Better not think of driving cross country. Hey, let’s privatize everything! Who needs money in their pocket! Inflation isn’t real!
Ron says
This needs to stop now.We have a nutcase in Ohio trying this now and its just keeps getting worse by the day.The people in charge ran the state like the money would never end and now that it has .We are being told we need to sell ourselfs off to survive.Please there are better ways its just that no one in state,city or Government wants to really cut back to fix the problems like most people do running a real budget.
jack says
The state of GEORGIA is now taking one lane of a several lane highway and tolling jus that one lane.The toll is based on traffic use and times of day.It can be as small as 5 cents to during a rush hour, I have seen it $6 to go about 10 miles.
Gary Crawford says
The government in Ontario did exactly the same thing by selling it’s only toll road (407 ETR) that goes around Toronto and also to a Spanish company…probably the same one. They also have an agreement with the Ministry of Transport that if you do not pay your toll when it comes to renew your licence and plates you won’t be able to unless you pay your bill first plus interest. They also regulate who police the road and who can tow broken down vehicles or accident vehicles. They’re collection agencies are ruthless. There are so many cases of mistaken invoicing they have ruined the credit rating of several people (hundreds) who either didn’t use the toll road and in some cases they don’t even own a vehicle! It costs them a fortune to get out from under this and the only compensation they get from the toll road operators is “oops, we’re sorry!”
Flower child says
Sadly, when our societies get to the point where the population starts to thing socialist policies and entitlement programs are the answer SOMEONE has to pay because “eventually you run out if other peoples money!”
This is what’s happening and as long as we are breaking ourselves in the name of “fairness”, “diversity” etc then this is what you get……..shafted!
Darrell Williams says
Great deflection, must blame the poor the rich have done nothing wrong, charging people various daily fees to drive is the problem not the poor. Typical
Chris Thomas says
You’re daft to translate good ‘ol boy mafia tactics to social welfare. Stop letting your Fox news, special interest talking points divide us, when we need force.of numbers to basically stop theft, piracy, looting and extortion.
Ron says
The American government is selling out this country to outsiders. I remember years ago the Russian leader at the time told President Regan that “I can take over your country without firing a shot”. The other countries have gotten into our country’s money,and took it over. They WILL pull the plug,and shut us down…you can bet on that.
James North says
As someone that actually lives in the D/FW area near the North Tarrant Express I can tell you the statement about the foreign company building new roads alongside the old ones is not true they are completely redoing the old road by widening it and adding one new free lane each way in addition to the two new “toll lanes”. I have seen first hand the improvements in traffic in the area and the road isn’t even halfway finished. We have been trying to get this stretch of highway widened for more than 25 years. I really don’t care who paid to get this road fixed as long as it is getting fixed.
Darrell Williams says
You will pay for the next 43years. Wakeup
rockytop says
Your fuel tax should have all ready paid for improvements wake up!
Liz says
I have read that all the toll roads in north Texas are owned by China! Seriously why would a state sell their toll roads. I was always under the assumption that when you paid a toll at some point in time the tolls would stop when it was paid off. In San Diego when the Coronado Bridge was paid for there were no more tolls. The tolls will never go away if you sell them to another country!😡
Tim Ho says
to James North: Good observation. The question needing answered is ‘Why can the Texas DOT provide the same “service” at a more reasonable price to the final consumer … the taxpaying voter???’
Private entities must pay more to “leverage” funds to build roads than government bonds cost, they must charge more for layers of supervision / loss prevention not to mention paying the State for auto registration data for billing, liason with state costs, and of course … profit plus funds to pay dividends to stock holders.
…. The answer is that elected officials lack the intestinal fortitude to tell voters it costs more to build / maintain highways thanks to inflation and stupid contract decisions … that voters REALLY understand and it is actually okay to say those elected officials voted to (oh my gosh) “raise taxes” because it is necessary and actually a GOOD DEAL for the public.
Various OMB/CBO/GAO/PIRG studies all confirm tolling is ‘rarely’ in the best interest of the final user – who is also a voter BUT looses ALL say when elected wimps sign contracts conveying property interests to toll road companies
Jay Privette says
As long as politicians think they can solve their financial problems by raising taxes instead of showing some responsibility in spending, we are doomed. In Charlotte, NC a state Republican administration, of all things, approved toll lanes for Cintra that will cost our region tens of billions over the 50-year contract on the excuse we have no money. Now they are contemplating six billion $’s to expand a light rail system that will carry a fraction of the commuters. It is too lengthy to get into here, but it really boils down to pay-offs to politicians for contracts. No politics here, I’m a lifelong conservative Republican, but the local Republicans here aren’t anything but crony capitalists looking to line their own pockets.
Tray says
It’s a glorified Ponzi scheme. Cintra is building toll lanes in Charlotte NC. It would cost me 20 dollars a day to use them to and from work. These hot lanes will only increase the gridlock. Trucks cannot use them because the lanes are not being built thick enough to handle them. These hot lanes have to make more money than any other toll project in the country but one to turn a profit. That will never happen. NC has to pay Cintra 75 million dollars if Cintra doesn’t make their projected profits. And NC has to pay a million dollars a year to Cintra for maintenance. Then there’s the bonus (bribe) money. Cintra will do what they almost always do….file for bankruptcy and not pay a dime towards the principal. That leaves the citizens on the hook for millions to possibly billions of dollars. They aren’t going to pay off the TIFIA loans.
Anette Powell says
My opinion is NO foreign company should control an Interstate EVER. The Interstates were originally built to transport the military. This is treasonous and must stop. Cintra must be getting the goods on politicians to force them to comply. And our Federal govt is full of idiots who grant TIFIA loans to a company like Cintra who have a history of bankruptcy. Their parent company Ferrovial, also of Spain, has been indighted and is on trial for bribery charges for the Denver airport contract! This is not the first time for bribery and corruption charges for Ferrovial. There have been several. Even their own toll road consortium went bankrupt for toll roads in Spain!
Bankruptcy was written in the NC contract and Cintra comes out strong should they go bankrupt. Who pays for TIFIA loans? Every US tax payer if they go BK.
It is incredulous that Spain is charging over bribery in the US and the US is not. What has this country come to?
Truckers Associtation you need to come out against the I77 horrendous Cintra contract and Road Plan that leaves truckers STUCK in only two lanes for 50 years for 25 miles that can take an hour 1/2 or longer to get through as any alternative side road (1-2) will be one-lane roads and get jammed up along with I-77. We need your help to get this stopped. RICO suit? Our govt is just too stupid to figure this out on their own and act accordingly.
Jaffo Nerr says
All the more reason to have someone riding shotgun who can shoot.
Jenna Morris says
This is what happens when you have a culture of privatization of what should be government ran entities. Just look at what a disaster the privatization of prisons, military, (Blackwater and other contracting groups) are. Whats next our police and firefighters? There is way too much selling to foreign conglomerates and Americans are being denied any sense of accountability!
TheOldRanger says
Anytime the government is involved in anything, it costs the taxpayers more, plus there is such a history of poor managing by government entities. Privatizing would work, if the government wasn’t involved in their poor system of supervising. If you really want to screw up a good system, let the government and politicians run it.
Joy DeVercelly says
No one ever said politicians are smart. Selling our roads is selling out the American people. I am ashamed of Texas for becoming involved in this selling off parts of America. Maybe we need to take part of their authority and charge them their salary for payback to the people. The roads are part of this country and selling them to other countries is selling something that doesn’t belong to the political morons.
Bill says
It is unbelievable that Americans would allow for Foriegn countries the audacities to build Toll Roads on US soil for profit. Borrowing money from US citizens then claiming bankruptcy or even suing the State because they did not turn a profit. In Austin TX The I 130 runs from San Antonio Tx to Round Rock, TX.
It is a toll, my business sence tells me if the toll road charges every truck $20. A month to cross over Austin, they will make a huge profit. Imagine 600 rigs at $20= $12,000.00 per month this 144000.00 per year. It will lesson the traffic load on Austin I35 corridor. However the foreign company is hungry for money. The more they charge the more they gain. By charging a lot of money to cross Austin the push everyone on the non toll roads which complicates the traffic jams.
People this is only Austin if they would do this for all states then they stand a chance to make a profit. But they don’t want to. Its beneficial to them to make more money by bank ruptcy and blame every thing on the States they service. Then the people of that state has to pay for the mess by increasing taxes.
We are Americans we have engineers and the financial ability to kick them foreign companies out. Suing them and their cohorts (Our state representatives) for placing our state in a bind of conspiracy against our will. Selling America out….
k jones says
“I can take over your country without firing a shot”…those are real words people. We are in deep all over this country. The masses are so busy buying tickets to the circus (we learn our news from our telephones – are you people kidding me? Talk about a nut show – watch the nut while we grab, move and eat the cheese!) we don’t see the elephant shitting on our noses. Walk into any room in the country and talk to your neighbor sitting at the table next to you. Chances are pretty good he feels the same way you do so why do the masses make NOOOO sound? Why do our voices go unheard yet these ARE OUR ELECTED OFFICIALS?
Unheard voices……natives trying to protect our water from pipelines that run along waterways across our country because it’s cheaper for the investors (the Donald and friends). Pipes don’t leak people….we don’t need to worry about toxic water! Who cares that the small remaining native people of these lands are trying to protect Mother Earth. Against odds in weather most of us couldn’t comprehend, the Native Americans at Standing Rock stood against all forces on ALL of our behalves to try to protect ALL of our children and yet the forces against them REMAIN while millions of people watch at home the happenings on CNN or better yet on their twitter feed. They are a proud people and I for one am grateful for their courage and strength.
President (can i call him that or should i refer to him as a social media punchline?) Donald Trump took the “rare” step of scaling back two sprawling national monuments in Utah – this sickens me-, declaring that “public lands will once again be for public use” in a move cheered by Republican leaders who lobbied him to undo protections they considered overly broad. This guy doesn’t have a decent comb-over but he can take a pen and swipe away the rights to “protected land?” He holds nothing sacred when he will cheat his own family for personal gain and this country elected him our voice of the people. What was the deal again? He called into Forbes way back as a dude posing as Barron (his son’s name today) and said he, I mean – Donald was worth billions and his worth shouldn’t be questioned. Seriously this guy?
But then prior to George W. Bush leaving office he quickly signed over favors, many of these radical and appeared to pay off big business allies (look closely how tied he is to the $money$) of the Republican party. One rule was to make it easier for coal companies to DUMP debris from strip mining into valleys and streams. The process is part of an environmentally damaging technique known as ‘mountain-top removal mining’. It involves literally removing the top of a mountain to excavate a coal seam and pouring the debris into a valley, which is then filled up with rock. That rule would make dumping easier plus they get to keep the minerals and pay us nothing on the national land they destroy – not that “I” would touch that money – leave the NATIONAL PARKS alone.
Another midnight regulation BEFORE he left office was to allow power companies to build coal-fired power stations nearer to national parks. PERFECT – way to protect our forests. So much for smokey the bear and they never did get the guy that threw the cigarette out the window? Was there a guy? Do we ever really hear how all these fire are set off? Yet another regulation allowed coal-fired stations to increase their emissions without installing new anti-pollution equipment. Hmmmm.
As Americans we can’t help the party they are tied to when they make these decisions on behalf of us all. We are all American’s. To say otherwise is to say that only republicans prefer to poison our waters and streams which is not true but these “two” republicans have clearly been motivated by special interest groups and the outcome – well, it’s the outcome.
Health care is in the shitter when the biggest money maker in the game is big PHARM, fighting in the streets, children without parents due to drug influence, our social programs are bust, the internal revenue service owns us because American’s needed to borrow money in 1862 to fund war debt owed to a handful of wealthy American families (what are the odds they ever want to be REALLY paid back – war = debt = income for a lifetime – not a lot of incentive there for those families, just spit balling here), the 50 somethings will never see social security (joke is on all of us who have paid in since our early teens), by the time we get to retire our retirement will have been stolen through identity fraud, and when we do look to the light of day it will be a fog over our heads because we have stood by and watched our country be polluted, stripped and torn to shreds – Constitution…..Ten Commandments……Anyone??? Buhler….. Anyone????
As children we looked at a colored world, in two generations they will be seeing everything in black and white. Surprise, our roads belong to foreigners now and our prisons are privately owned. Anything else we should know about as law abiding tax payers in the United States of America?
John Stagg says
What kind of evil corrupt politician would go along with this madness. The politicians that do are traitors to the USA and the American people. Toll roads are bad enough but selling out to foreigners is an abomination. No God fearing christian would pull such a stunt. These corrupt politicians who would sell out their fellow Americans are nothing but hell bound scum!
D.Lyons says
WE THE PEOPLE !!! NOT WE THE POLITICIANS??? The USA need to wake up and see that this should be voted on by the American people in order for the US citizens to have a say so in all this. We were told that once the tollroads were paid off it would become FREE to travel the roads????
The US needs to wake up lets see if we can go do the same in one of their countries ???
FRANCES BUTLER says
I had seen an article many years ago that the interstate were leasing the interstates to foreign investors. Is this true? What are the interstates they are leasing?
Susu says
They lie all the toll road money goes to china.. smh
Susu says
Thanks