[palmer]

Now, for the market to be truly free. A second company, say Bectel (sp.), decides that the market supports a second roadway, parallel and close to Cintra's roadway. Bectel would have to be given the same eminent domain power that were used to allow Cintra to build their highway.

Thanks for the straw man. I gave you an example in another thread of a real world private toll road. Not Texas sized of course, just 14 miles through Loudoun County Virginia. There's plenty of incentive to keep the parallel roads up to snuff since they support a number of rapidly growing commercial outlets. The same will be true in Texas, the alternative roads will support alternative commercial and political interests and they will get their share of funding.

But you didn't answer my question. What is wrong with a single private toll road setting the toll rates given that there already are and will continue to be publicly funded alternative roads?

[BobL]

"But you didn't answer my question. What is wrong with a single private toll road setting the toll rates given that there already are and will continue to be publicly funded alternative roads?"

It's a leap of faith that true alternatives will exist. We simply do no know the extent of the protections being offered to Cintra.

And, yes, I could be full of it, and our governor outsmarted Cintra, and got a very good highway for a cheap price. But Cintra's record elsewhere shows that they are very shrewed negotiators, with a lot of experience, and I seriously doubt that any governor in Texas, from any political party, can go toe to toe with them in secret negotiations.

As to your example, keep in mind that highway was a disaster at the beginning, and nearly went (or did go) bankrupt in 1996. But, overall, why couldn't the road have been built by the government (and thus no corporate entity siphoning toll money out of the state - or even out of the country) - and no monopolistic protections - an the possibility of it becoming a freeway (in my lifetime - as happened in Kentucky).

After all in, the Houston area, the counties were just as capable of building overpriced toll roads as any private company.