Free Republic

Pension funds and other asset owners increasingly are investing in U.S. infrastructure, often buying the assets from infrastructure money managers. This could be a win-win. Investor interest comes at a time when the first crop of infrastructure funds raised in the U.S. in 2004 and 2005 are coming to the end of their 10-year life span. Managers are expected to bring more transactions to market to take advantage of growing interest by direct investors. Industry insiders expect more infrastructure core projects to change to institutional investor ownership. Investors prize the core projects, even though returns generally are lower than investments...

It was disappointing, but not surprising, to learn from the Indianapolis Business Journal (Oct. 10-16) that both John Gregg and Eric Holcomb endorse public-private partnerships (P3s). These candidates for governor are experienced in the ways of our Indiana government. Mr. Gregg has served at the highest level of the legislature while Mr. Holcomb is our Lt. Governor. P3s are agreements between governments (national, state, or local) with private companies to assume control, but not ownership, of public assets. Hoosiers know them in the form of the new bridge over the Ohio River, connecting the east end of Louisville with Clark...

Officials with the Spanish toll road operator Cintra have announced that the company has secured $430 million in loans from the U.S. government to build and operate two segments of a toll road in central Texas. Cintra officials announced the company’s financial plan for the $1.36 billion Highway 130 segments on Monday, March 10. OOIDA Senior Government Affairs Representative Mike Joyce told Land Line that the Association does raise red flags when federal dollars are used to subsidize private investors. Officials with the Owner-Operator Independent Drivers Association are not, however, categorically opposed to a state using future toll revenue to...

Nearly a fifth of America's roads are now considered in poor shape and about one-in-four bridges is rated "structurally deficient." The U.S. Department of Transportation estimates that the cost to fix these problems is a staggering $460 billion. The tab grows far larger when you add in the hundreds of billions to build the new transportation infrastructure that's needed to handle the country's growth. Part of the problem is that big increases in state and local spending for politically popular programs, especially Medicaid and education, as well costly public employee pensions and benefits, have crowded out infrastructure -- even as...

The nation's transportation experts have identified their top three priorities: a national freight network, urban congestion and connecting new urban centers with the interstate system. The American Association of State Highway and Transportation Officials, meeting in national conference last month, heard futurists predict that the cost of meeting the transportation needs would be $3.1 trillion over the next 25 years. State and local governments are turning to "public-private partnerships," or PPPs, to produce the funding. The city of Chicago was happy to partner with a Spanish-Australian group that paid $1.83 billion for a 99-year lease to operate the Chicago Skyway....

AUSTIN — Gov. Rick Perry doesn't like a transportation bill Texas lawmakers sent him and threatened Wednesday to call them back to address the issue if no solution is reached before the legislative session ends May 28. "The good news is, there's still time to fix it .... if not, I have no other option as the leader of this state than to bring the Legislature back until we address these issues and we get Texas back to where it can have a vibrant transportation infrastructure," Perry said. Though a two-year moratorium on private toll road contracts is a major...

President Bush has announced that he intends to appoint an official with toll-road investor Macquarie to be the general counsel of the U.S. Department of Transportation. David James Gribbin, IV, of Virginia is currently the division director for Macquarie Holdings, a Washington, DC, company under the umbrella of the toll-road investor Macquarie Infrastructure Group of Australia. Before that private sector job, Gribbin was chief counsel of the Federal Highway Administration. Current Transportation Secretary Mary Peters also worked at FHWA at that time. Bush’s announcement may draw anti-privatization sentiment from U.S. senators during the confirmation process, according to Toll Road News,...

Ric Williamson, a former state legislator and longtime pal of Gov. Rick Perry, runs the monthly meetings of the Texas Transportation Commission like a traffic cop. Staff members give brisk status reports before Williamson dismisses them so the next bureaucrat can take the podium. If members of the public embark on a diatribe, Williamson will let them prattle on with an air of friendly indulgence. Then, rounding his shoulders and leaning forward—using body language no doubt perfected when he and Perry were freshmen state representatives harrying their elders—he’ll pleasantly announce that their time is up. As commission chairman, Williamson sits...