Selling pre-built highways to companies isn’t selling out the state’s future. Usually, the company only has it for a fixed duration, during which they’ll improve and expand the road based on profit and traffic (demand). Afterwards, the road reverts to state control (and all the improvements, too).
Secondly, non-competition clauses are d@#n near impossible to enforce, as it would only apply to another company buying another state road that goes to the same places as the first one. And how many states have multiple state highways lying around that are going to the exact same places? Most don’t...
As for lack of bidding for the roads in the first place... that’s the only problem I see on this and could be easily fixed if people would inundate their politicians explaining that there should be open bidding for such projects.
“Selling pre-built highways to companies isn’t selling out the state’s future. Usually, the company only has it for a fixed duration, during which they’ll improve and expand the road based on profit and traffic (demand). “
Fixed duration, as in 50 to 99 years. Maybe no problem for lifespan, but I’m not too hot on it. Why do they need to operate it for THAT long, if it’s an existing highway - and no, it doesn’t take that long to recover the ‘investment’ in high tech tracking and surveillance, that only takes 6 months once the tolls are doubled.
Why should they expand a crowded highway to reduce congestion? The PROFITABLE thing to do if you have a monopoly is to raise prices. It add nothing to costs, but really helps out the bottom line.
“Secondly, non-competition clauses are d@#n near impossible to enforce, as it would only apply to another company buying another state road that goes to the same places as the first one.”
You, my friend, are an IDIOT if you believe that. Those non-compete clauses apply to ANYONE, private or government, that undertakes ANY improvement to a nearby road (such as widening, and possibly repaving) that will cause traffic to leave the private highway. They are VERY EASY to enforce, as was learned the hard way in both California (SR 91 Toll Lanes) and Ontario (407 ETR). Repeating the same thing and expecting different results is the definition of...
“As for lack of bidding for the roads in the first place... that’s the only problem I see on this and could be easily fixed if people would inundate their politicians explaining that there should be open bidding for such projects.”
The private companies will not even allow their contracts to be made public, much less their proposals. They aren’t idiots, they know what kind of reaction people have when they can finally read what’s in them, and how badly they got screwed by a governor with good hair (or no hair). Obviously the governors know the same and agree to the terms. That was one of the biggest issues with the Trans Texas Corridor.