Tuesday, September 21, 2010

High speed pays well

The new private toll road in Texas will have a clause in its contract that allows higher toll revenue for higher speed.
85mph for TTCs

Phil Russell director of the turnpike division of TxDOT says they are working on design standards for the Trans Texas Corridors (TTC) which would make them as safe at 85mph (137km/hr) as regular expressways are at 70mph (113km/hr). If TX130 is incorporated into TTC35 - as seems likely - it might be eligible for 85mph signing though that decision would ultimately be made by the Texas legislature. The concessionaire has no control over speed signing.
Irresponsible not to ask more for taxpayers for higher speed

Russell says that since higher speed on TX130-South would boost the concessionaire's revenue and profitability it would be irresponsible for the state not to seek a share of the extra revenues on behalf of taxpayers - which is what the speed-concession fee/revenue sharing provisions of the concession do.

Safety freaks judge speed according to the technology of 1920. The technology of 2010 allows us to drive cars at speeds of 100 MPH plus. Current technology has lane guidance, collision avoidance and other driver assistance. If the vehicle has the technology then let move at very high speeds for a price.

Also from Toll Road News is a positive financial impact about a Washington DC plan to sell high vehicle occupancy lane space. They project a 50 billion price tag to acquire toll lanes on most expressways in the DC area. Seems like too high a price tag to me, but the reports expects $2.5 billion/yr in tolls with 1,650 lane miles (2580 lane-km) of priced lanes. That is $31 million/mile. Too expensive, someone is rigging the contracts as only 800 miles are new. I would skip the new lanes and just convert existing lanes to toll, and squeeze whatever income can be gained there.

Another TollRoad report shows returns from tolling roads can be 5-8%/yr in mediocre traffic settings.

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