In The News

Governor could auction off Ohio Turnpike

Ohio Gov. John Kasich could announce a plan this week to lease the state turnpike to private investors, similar to what Indiana did in 2006. The governor is scheduled to announce his state budget plan on Tuesday, March 15, and it is likely to include privatization of prisons, the turnpike and other state-owned assets.

Kasich recently told economic development groups and the Ohio Newspaper Association that leasing the Ohio Turnpike could generate $3 billion to pay for a variety of programs.

In 2006, Indiana Gov. Mitch Daniels leased the 157-mile Indiana Toll Road to private investors for $3.85 billion. It was the largest privatization plan in history involving a roadway.

The lease awarded control and toll revenue to a Spanish-Australian consortium consisting of Cintra and Macquarie for 75 years. The Indiana lease, the largest ever involving a roadway, won’t expire until 2081, long after the $3.85 billion is spent on Daniels’ statewide transportation plan.

Other roadway leases of note are the Chicago Skyway and the 407 Express Toll Route in Ontario, Canada. Both of those roads are controlled by Cintra-Macquarie-owned groups, while Macquarie separately operates the 14-mile Dulles Greenway in the Washington, DC, area.

An Australian group called Transurban paid $548 million in 2006 to operate and collect the tolls on the Pocahontas Parkway in Richmond, VA.

In 2008, then Gov. Ed Rendell of Pennsylvania attempted to put the Pennsylvania Turnpike out for bids and attracted a $12.8 billion offer from Spanish firm Abertis and New York-based Citi Infrastructure Investors, but state lawmakers stalled the plan in committee.

Former New Jersey Gov. Jon Corzine also made an attempt to “monetize” the New Jersey Turnpike, but that too was shot down by lawmakers.

Kasich is next in line to face a pushback from highway user groups.

OOIDA is opposed to the privatization of public roadways. The Association belongs to a coalition called Americans for a Strong National Highway Network, which also advocates against this form of privatization.

www.LandLineMag.com