Virginia broke ground on a plan to improve and expand 30 miles of High Occupancy Toll lanes along a stretch of the state's I-95 corridor.
Like the 495 HOT lanes, the I-95 Express Lanes will be located adjacent to the regular, non-toll lanes, giving drivers a choice: take the chance of getting stuck in traffic or pay a dynamically-priced toll for a faster ride. The goal is to enhance existing lanes while adding a third HOT lane to 14 miles in the northern most stretch of the corridor and two new lanes to the nine miles at the southern end.
The $1 billion project is scheduled for completion in December 2014. The I-95 Express Lanes are the result of another public-private partnership between the state and Fluor-Transurban, the company that is building the soon-to-be completed 495 HOT lanes. Transurban is paying for nearly 90 percent of the project while applying for a federal loan of $300 million to assist in the financing.
Under the agreement, Virginia gets an expanded commuting corridor with fully electronic toll lanes connecting Fairfax to Stafford County for contributing less than 10 percent of the project’s cost, while Transurban will receive the toll revenues for 75 years. The state's financial exposure is limited.
“The contract we signed with the state is a very equitable contract. We are taking the traffic risk,” said Transurban General Manager Tim Steinhilber. “Once we build the road, if no one comes to use the road then we don’t make any money. We lose money.”
Naturally, Transurban expects to turn a profit. If profits exceed a certain threshold, the state may share in toll revenues. At the other end of the spectrum, if HOV-3 carpoolers exceed a thirty-five percent threshold under certain circumstances, the state would have to subsidize those trips to ensure Transurban doesn’t take a bath on the free rides. There is a similar safety net in the 495 HOT (high occupancy toll) lanes contract.
“Traditionally across the country, HOV lanes are underutilized. We are working with the state to encourage carpoolers because that takes cars off the road and reduces congestion for everyone,” said Steinhilber. “If we get to the point where the state would start [subsidizing] the HOVers, it’s a win-win.”
At a groundbreaking ceremony at the Dale City rest area Tuesday, state and federal officials -- including Virginia Governor (and possible Republican Vice Presidential choice) Bob McDonnell -- touted the project’s estimated economic benefits: 500 construction personnel with an overall impact of $2 billion by supporting 8,000 regional jobs. One thousand trees will also be planted along the corridor that is designed to eventually seamlessly connect to the Capital Beltway at I-495, quickening trips to job centers in Tysons Corner, Va. Express buses will also have free access to the toll lanes.
“If you can’t move people and you can’t move goods quickly to market, you are not going to get businesses coming here and you aren’t going to get tourists. It’s going to impair the quality of life for all of us,” said Gov. McDonnell.
When asked by Transportation Nation if northern Virginia is becoming overly reliant on highway expansion projects to solve its dreadful congestion problems, McDonnell responded that the state is trying different solutions.
“We are trying to do everything,” he said. “We are going to have a number of projects up here that will use mass transit. We’ve been advocating rail to Dulles.”