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Private Highway Private highway A private highway is a highway owned and operated for become more important as the rise of gasoline-efficient profit by private industry. Private highways are common hybrids causes a decline in gas tax revenues.[4] in Asia and Europe; in addition, a few have been built Many highways are constructed under a "build-operate- in the United States on an experimental basis. Typically, transfer" model in which ownership ultimately goes to the private highways are built by companies that charge tolls government. for a period while the debt is retired, after which the high- way is turned over to government control. This allows governments to fulfill immediate transportation needs de- spite their own budget constraints, while still retaining public ownership of the roads in the long term. 3 Around the world An obstacle to private highways is that government regu- lation can stifle price flexibility and introduce negotiation 3.1 Asia and paperwork requirements that increase operational ex- penses, while having to compete against free public roads. As of 2003, the Hong Kong government was planning to In addition, private highways lack some advantages that securitize five toll tunnels and a toll bridge through bond governments have, such as sovereign immunity against li- issues.[5] India also has a private highway between the two ability for accidents, the use of eminent domain power to cities of Bangalore and Mysore in the state of Karnataka. acquire private property for roads and the ability to issue In Indonesia, all toll roads are built by private companies, tax-exempt securities.[1] and private toll roads are being built in Bangladesh. Free-market roads are advocated by libertarians, who consider them more efficient, safer, and more cost- [2] effective than public roads. 3.2 North America Mexico has some highways operated by private 1 History companies.[6] The 108 km Highway 407 ETR through the Greater Toronto Area is operated privately under a The Interstate Highway System provided for in the 99-year lease agreement with the provincial government. Federal Aid Highway Act was a federally funded, non-toll The highway uses electronic toll collection. Users who do system. According to Simon Hakim and Edwin Black- not have a toll tag (called a transponder) in their vehicle stone, “by 1989, [private] roads comprised just 4,657 are tracked by automatic number plate recognition, with miles (7,495 km) of the 3.8 million miles of streets and the toll bill being mailed to the address of the plate on roads in the United States and only 2,695 miles (4,337 file. There are also some private highways in the United km) out of the 44,759 miles (72,033 km) of the inter- States. state system.”[1] 2 Recent trends 3.3 Europe Of the 11,000 kilometers of France’s highways, 8,000 km The National Center for Policy Analysis and the Cato are under private concession. 3,120 kilometers of Italy's Institute have proposed that the Demsetz auctions com- highways (comprising 56% of the country’s toll roads) are monly used to award franchises be replaced with Present controlled by Autostrade Concessioni e Costruzioni Au- Value of Revenues auctions in order to reduce risk and [3] tostrade. According to Forbes, “Autostrade was an early thus required rates of return by private highway owners. Electronic Age entry, computerizing to its highway sys- Under this system, contractors would bid an amount equal tem in 1988”.[7] The M6 Toll was the first private toll to the present value of cash flows from user fees they are motorway in the United Kingdom.[8] The project was de- willing to accept for the project. The lowest bid would scribed by urbantransport-technology.com as a “43 km win. dual three lane (plus hard shoulder), £485.5 million mo- Boarnet and DiMento believe that private highways will torway” with six toll stations.[9] 1 2 7 EXTERNAL LINKS 4 See also • Private road • Private highways in the United States • Road pricing • Shunpiking • Toll road • Toll roads around the world 5 References [1] Hakin, Simon & Blackstone, Edwin (August 1, 1999). Making inroads in private highway construction. Ameri- can City & County. Retrieved on January 10, 2008. [2] Free to Choose, Milton Friedman [3] National Center for Policy Analysis (January 17, 2003. New Auctions Could Improve Private Highway Fran- chises. Retrieved on January 10, 2008. [4] Stanek, Steve (February 1, 2005). California Law Pro- vides Lessons for Private Transportation. Budget & Tax News. [5] Hong Kong Plans Massive Privatization | National Center for Policy Analysis [6] PRIVATE HIGHWAY MANAGEMENT COMPANIES TEMPORARILY REDUCE TOLLS TO ATTRACT CARGO TRUCKS | SourceMex Economic News & Analysis on Mexico | Find Articles at BNET.com [7] Heller, Richard: The Fast Lane, Forbes, April 15, 2002. [8] Judge Orders Discovery of Secret BNRR Deal, Alliance Against the Birmingham Northern Relief Road. [9] Birmingham Northern Relief Road, United Kingdom, urbantransport-technology.com. 6 Further reading • Samuel, Peter: Virginia bureaucrats finally OK toll hike for Dulles Greenway Virginia, Toll Roads News, July 8, 2004. 7 External links • IBTTA, International Bridge, Tunnel and Turnpike Association. • Privatized Highways: A Toll Too Far?, The Growth Management Institute, May, 1996. • A state-by-state tally of highway privatization projects in the United States, Mother Jones maga- zine, Jan 2007 3 8 Text and image sources, contributors, and licenses 8.1 Text • Private highway Source: https://en.wikipedia.org/wiki/Private_highway?oldid=679535664 Contributors: Paul Weaver, Charles Matthews, Snickerdo, Rorro, Connelly, Bobblewik, Rich Farmbrough, Bobo192, SPUI, Klafubra, Omgee, Joolz, Stephan Leeds, Saxifrage, ^de- mon, Tabletop, SDC, Rad Racer, Baeksu, Alaney2k, G Clark, Aure1ius9, Gaius Cornelius, Rsrikanth05, Sun Chips, Jpbowen, Sturmovik, Flix2000, Intangible, SmackBot, Chris the speller, Araker, Wootendw, Captain Zyrain, WaldoJ, Ryulong, Dr.K., HelloAnnyong, JHP, Octane, Eastlaw, CmdrObot, Cydebot, Nbound, Bobblehead, RobotG, Gregalton, Jt 200075, Albany NY, NWO-Wolfpac, Canjth, Jerry, Blood Oath Bot, Everything counts, Larklight, Zjeffz, Struway, Martha p, Triadian, Dawdler, Cambrasa, Drmies, Alexbot, Sarsaparilla, DumZiBoT, Zenwhat, Addbot, Ask the panel, Synergisticalism, Lightbot, Synchronism, AnomieBOT, Adam9389, Full-date unlinking bot, Damien.b, AutoGeek, The Banner Turbo, Bronx Discount Liquor and Anonymous: 27 8.2 Images • File:Ambox_globe_content.svg Source: https://upload.wikimedia.org/wikipedia/commons/b/bd/Ambox_globe_content.svg License: Public domain Contributors: Own work, using File:Information icon3.svg and File:Earth clip art.svg Original artist: penubag • File:High_Five.jpg Source: https://upload.wikimedia.org/wikipedia/commons/5/59/High_Five.jpg License: CC BY 2.0 Contributors: http://www.flickr.com/photos/fatguyinalittlecoat/2909850055/ Original artist: austrini 8.3 Content license • Creative Commons Attribution-Share Alike 3.0.
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