Privatizing the Highway system

[jsanchez]

I was just reading a report of how Japan is looking into privatizing its equivelant of the Interstate highway system and some of its other major bridges and road projects. Reason being this will save taxpayers money, create more balance between modes, the private sector can build new highways more cost effectively. Considering how many billions of dollars of U.S. tax dollars have been squandered on Pork barrel road projects such as the big dig, expressways to no where in Pennsylvania and many other states, and high maintenance due to generous truck weights, maybe it is time for the U.S. to look into this, Have any other countries tried this?

James

[thirdrail1]

There are already private limited access highways in the US, including one in the Los Angeles area that is profitable. The Vanderbilt Parkway on Long Island was built as a private toll road when the ICC would not let the New York Central build a rail line to compete with the PRR's Long Island Rail Road. The city and state took it over in the Depression and abandoned much of it.

[edahrenhoerster]

Just drove from Milwaukee, WI to Akron, OH for a family wedding, about a 550 mile trip. Took I-94 from Milwaukee to Illinois state line, about 60 miles. Then took Illinois tollway around Chicago, then Indiana tollway, then Ohio Turnpike to Cleveland, then last 30 or so miles on I-77. Only about 90 miles of the trip on "free" highways. You don't have to go to other countries to see how "pay per use" highways work. I don't know about Indiana or Ohio, but you can buy stock in the Illinois tollway.

[Anonymous]

I work in that industry. It appears that you will see more toll roads in the not too distant future. However, I would be surprised if we started paying less taxes at the pump as a result. I have mixed emotions about this issue, apart from my professional link.

I believe free market economics leads to the best solution in most cases. Therefore, I like the concept of privatizing the highways. Private industry will only invest in the high volume roads where they will receive a generous return. The public will be stuck with paying for the feeder system. Can you see any parallels to the big railroad industry developing?

I don't like to get political, but I believe a disproportionate cost is being absorbed in the environmental craze that is popular today. That and the other political dimensions cause most of the financial burdens.

One thing I like to remind people of is that the Feds rule with an iron fist by giving you back the fuel tax money you paid at the pump. But they give it back with all kinds of conditions. In most states, the highway department is the big cash cow (education is frequently another big cash cow, but it is managed on a local level). Other state entities envy the highway department for that and they seek to get a little slice of the pie for their use. I doubt many would be shocked to hear some of the things your highway tax money is spent for.

Anyway, I believe we will start seeing more toll roads.