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Referred to as TEXpress LBJ\/NTE\/35W, this private company manages about 43 of the 120 miles of TEXpress lanes in North Texas.\u00a0<\/p>\n
Azul Sordo\/Dallas Morning News<\/p>\n
North Texans know traffic. In fact, most motorists find themselves stuck in a stop-and-go flow at some point every day while driving on major roadways.\u00a0<\/p>\n
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The solution to reducing traffic and road congestion by major transportation authorities was to optimize the highways. This meant the creation of toll roads.<\/p>\n
The Texas Department of Transportation\u2019s toll lanes, better known as TEXpress lanes, have been a point of confusion for many North Texans. Misconceptions of foreign ownership and private funding have locals raising questions about where their toll money<\/a> goes, what it is being used for and who exactly owns these roads.\u00a0<\/p>\n Article continues below this ad<\/p>\n Here\u2019s what we found out.\u00a0<\/p>\n Who owns and operates TEXpress lanes?<\/p>\n TxDOT owns<\/a> all TEXpress lanes. However, the transportation authority is not responsible for maintaining three corridors: Lyndon B. Johnson Interstate 635, North Tarrant Express 820 and North Tarrant Express 35W.\u00a0<\/p>\n Referred to as TEXpress LBJ\/NTE\/35W, this private company manages about 43 of the 120 miles of TEXpress lanes in North Texas. Almost a third of all lanes operated by the company are managed, or tolled, lanes.\u00a0<\/p>\n Article continues below this ad<\/p>\n Why are some TEXpress lanes run by private companies?<\/p>\n For many years<\/a>, I-635 was ranked as one of the most congested <\/a>corridors in Texas. TxDOT wanted to address the problem at a time when state funding wasn\u2019t available. As a result, the transportation authority had to turn to public-private partnerships to help fund the multi-billion-dollar projects.\u00a0<\/p>\n The LBJ Infrastructure Group and NTE Mobility Partners represent a consortium of investors including Cintra, Meridiam Infrastructure and APG Asset Management. These groups make up the P3s selected to help fund the toll roads. The contracts were negotiated and agreed upon in 2009 between several transportation authorities, including TxDOT, the Regional Transportation Council and the North Texas Toll Authority.\u00a0<\/p>\n How are TxDOT and private partners involved with TEXpress?<\/p>\n Both TxDOT and the private partners are involved, but in different ways. Operating under the partnership model, each entity plays a specific role in running the three corridors.\u00a0<\/p>\n Article continues below this ad<\/p>\n \u201cEvery year, we have roughly 10 million drivers that use the projects,\u201d said Jon Takahashi, deputy chief executive officer at TEXpress LBJ\/NTE\/35W. \u201cEvery day, approximately 1 million trips are being made.\u201d\u00a0<\/p>\n TxDOT still owns the highways and sets the transportation policies to ensure the roads are in compliance with state-mandated laws. If necessary, they can contribute public funding to projects to supplement some of the costs.\u00a0<\/p>\n P3s allow for private concessionaires to operate and maintain the roads after assuming responsibility for the project, including funding. The three corridors were funded using private investors, loans and bonds, and the total cost of all three projects was about $6.8 billion, with $1.1 billion in public funding.\u00a0\u00a0<\/p>\n TEXpress LBJ\/NTE\/35W was in charge of designing and building the highways. In turn, the company can collect toll revenue for the duration of the contract, which expires in 2061.\u00a0<\/p>\n \u201cThese corridors were completely gridlocked,\u201d said Pablo Ferrando, CEO of TEXpress LBJ\/NTE\/35W. \u201cThese areas [surrounding the corridors] were not really growing, and now they\u2019re growing really, really fast. Our projects are a large contributor to that.\u201d<\/p>\n Article continues below this ad<\/p>\n Where does the toll revenue go?<\/p>\n TEXpress LBJ\/NTE\/35W uses toll revenue \u2013 collected from the three corridors \u2013 for all operational and maintenance purposes. From providing employee salaries to maintaining all lanes on the three corridors, the revenue collected is used to cover these expenses first. In addition, toll revenue covers the maintenance of the three corridors\u2019 general purpose lanes, frontage roads and bridges.<\/p>\n Once the operational and maintenance expenses are paid, the company uses the revenue to pay off the Transportation Infrastructure Loan and private activity bonds used to fund the projects. Referred to as a \u201ccash waterfall,\u201d the company has a list of 14 provisions they must pay before investors see a dime.\u00a0<\/p>\n \u201cWe have to make sure [the provisions] get paid first before anything is shared with the investors,\u201d Takahashi said. \u201cThey always have been, and always will be the last to get paid.\u201d<\/p>\n All revenue earned on the TxDOT-managed\u00a0TEXpress lanes goes to the transportation department.<\/p>\n Article continues below this ad<\/p>\n Why do toll prices change throughout the day?<\/p>\n