Last month, we discussed how some states have been successful using Public-Private Partnerships (P3) as a tool to deliver transportation projects. South Florida’s Interstate 595 P3 project is one such project, finishing years ahead of schedule and achieving superior results for the Florida Department of Transportation (FDOT) because of this alternative solution.
Tolling agencies have adopted a fairly liberal approach to documentation requirements when sourcing new systems – the more documents, the better. But what is the right balance that protects the owner while allowing contractors to deliver projects in an efficient manner?
Why do Public-Private Partnerships (P3s) succeed in some states and falter in others? Success doesn’t come easy. The degree of each state’s or project’s success can be argued, but the following items have and will help pave the way for states to find more success when implementing P3 projects and programs.
Toll agencies often find themselves in a financial conundrum. This usually happens when you measure the costs associated with collecting tolls from customers who refuse to pay initially against the toll revenue and fees ultimately collected. If agencies don’t follow certain measures to control their spending, they may end up losing money versus gaining revenue.
As you begin developing a tolling or managed lane facility in a new area, the challenge becomes how to introduce tolling in a manner that will quickly gain acceptance. Introducing tolls and managed lanes to new markets can effectively be broken down into the following five steps.
There are many current initiatives driving technological advancements in the tolling industry that will affect the future of toll technology infrastructure, such as Vehicle to Infrastructure (V2I). It’s imperative that transportation authorities design and implement infrastructure that will accommodate future advancements. If agencies don’t plan properly, they will be at risk of losing time and money, as well as not improving congestion within their communities.
While conducting the high-level screening, public agencies should review key criteria and questions related to the scope and nature, risk levels, value to the agency and the financial/technical feasibility of the candidate project.
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 [...]