Industry leaders and public agencies developing alternative project delivery projects or public-private partnerships (P3s) will tell you that not all projects should be advanced as a P3 project. I consider this important and sage advice to those with established alternative delivery programs and new public owners looking to enter into P3 development.
The financing of transportation projects using toll revenues has long been the province of toll agencies. With the increasing use and recognized benefits of tolled managed lanes, state departments of transportation (DOTs) and other agencies are more engaged in adopting innovative project approaches that apply the tolling principle and the ability to leverage toll revenues to advance much needed capacity improvement projects.
The need for increased investment in the nation’s infrastructure has been well documented. A 2016 infrastructure report prepared by the American Society of Civil Engineers assigned failing grades to virtually every category of public infrastructure in the US.
Managed lane projects are being developed nationwide as cost-effective congestion management relief tools. When developing an RFP, the agency should require close coordination between the toll system integrator and the design-build contractor. On many projects, the system integrator is hired under a separate contract from that of the contractor. But that could be detrimental. A coordinated approach benefits the project in four ways.
As tolling and toll facilities become a more popular transportation infrastructure improvement choice for state agencies and an investment opportunity for private entities, there are more options for customer interaction than ever before. Differing business rules, tolling systems, tolling facilities, hours of operation, pricing models, back office payment options, and numerous system account types have resulted in the creation of a diverse number of choices agencies are offering to attract and retain customers.Continue Reading →