495 and 95 Express Lanes: Keeping Virginia Moving - Prepared for George Mason University | April 2019
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495 and 95 Express Lanes:
Keeping Virginia Moving
Prepared for George Mason University | April 2019
TRANSURBAN
Smarter ways to get around cities
$35B $19B $16B
market cap of key in financed
infrastructure toll road
TOP 15
delivered with projects in
government the last 12
listed company on ASX partners months
$1.6B
INNOVATION in supply chain spend
in projects – procurement –
financing – startup investment
$1.3M in community – operations – safety 20,000+
investment current indirect jobs
2nd 328,000 hours average
workday travel time savings
transportation company
globally
8.5M 1.5M
customers daily trips
in the Dow Jones
Sustainability Index
CAPABILITIES
Designing and managing infrastructure for the long-term
A TRACK RECORD OF PARTNERING WITH GOVERNMENTS TO DELIVER INFRASTRUCTURE
THAT MEETS THE LONG-TERM NEEDS OF GROWING CITIES’
Network Community Development/ Technology Operations Customer
planning/ engagement delivery and Safety management
forecasting
495 and 95 EXPRESS LANES NETWORK
A growing network that is supporting the region’s economy
2012
495 Express ECONOMIC AND TRAVEL BENEFITS
Lanes open
2014
95 Express
$6.3 billion
$4 billion+
Lanes open generated in economic activity
TRANSPORTATION
NETWORK
2017
95 S. Terminus
Extension opens
28,000+
jobs created
2019
3 million+
395 Express
Lanes opening
travel hours saved per year
2022
95 Fred Ex
opening
Beyond 2022
80-minute average
495 Northern travel time savings across the network
Extension
P3 RISK TRANSER
Value for state and taxpayers
2012
495 Express
Total Project Benefits Lanes open Total Project Benefits
$8.4B $7.3B
$3.7B
STATE $2.4B
STATE $2.0B $2.0B
CONTRIBUTION CONTRIBUTION
$82.6M $409.0M
Public Construction O&M Major Permit Fee Public Subsidy Construction O&M Major
Subsidy Maintenance Buyout Maintenance
Key risks transferred to private sector
No public sector risk Private partner faces Full appointment of revenue risk $15 million annual transit
of construction cost penalties if to private partner – with potential investment over life of
overruns completion is late for state to share in upside concession on I-395
EVERYDAY PARTNERSHIPS Minute-to-minute coordination, spanning a decades-long commitment
BUILDING AN INTEGRATED NETWORK
that responds to shifting economic and transportation needs
“How Virginia sealed the deal on Amazon's HQ2, 'the biggest economic
development project in U.S. history‘” – Richmond Times Dispatch
“I-95 express lanes extension deal will also fund northbound
Rappahannock River Crossing” – Free Lance Star
“Express-lanes cash to fund $2.7 billion (over time)
to N.Va. Projects” – Inside NoVa
395 EXPRESS LANES
Delivering fall 2019
2012
495 Express
Lanes open
8mile $15m $500m
extension of annual regional
95 to D.C. transit economic
line investment impact
FREDERICKSBURG EXTENSION
Breaking ground spring 2019
2012
495 Express
Relieve worst traffic Improve reliability for Enhance road safety &
Lanes open commuters and freight
hotspot in the nation* promote economic growth
Deliver 66% increase
in capacity during rush Provide faster and easier
hour periods access to Quantico and its
28,000 workers
10 mile extension
of the 95 Express Deliver improvements and time
Lanes south to savings to 95 general purpose Provide cash payments to
Fredericksburg lanes adjacent to the Express VDOT in 2019 and 2022 to
Lanes
buy out future revenue
sharing.
An important component of Payments to be used for
the Atlantic Gateway additional improvements
Project throughout corridor
*Based on September 2017 Inrix study
EXPRESS LANES 101
How dynamic tolling works
2012
How the Express Lanes keep traffic moving 495 Express
Lanes open
1 4
Express Lanes On-road technology
Roadside equipment monitors
Operations traffic and toll prices are updated
Center as often as every 10 minutes to
The Express Lanes are adjust to changes in real-time
monitored 24 hours a day traffic conditions
2 5
Managing traffic Regular lanes
Dynamic tolls manage demand to Traffic on the regular lanes can
keep the Lanes moving also affect the toll price
3 • Toll-free for: 3+ people,
buses, motorcycles
Toll prices • Toll prices re-evaluated
Toll prices are displayed on every 10 minutes
variable message signs in • Drivers see the toll price on
advance of Express Lanes
signage before entering the
entry points
Express LanesRELIABLE TRIPS FOR A DIVERSE SET OF CUSTOMERS
Over three million hours saved annually
2012
495 Express
Lanes open
97K 800+ 100K
daily tolled trips daily bus trips across daily HOV users
across the network the network across the networkCUSTOMERS ARE MANAGING BUSY LIVES
Working families with young children
Customers use the Express Lanes for:
Majority of customers $5.40 to
$8.45
spend more on a single tank of Average
gas than tolls throughout the month. tolls
Commuting to Visiting family and Getting to the Vacation
work friends airport travel
53% have
children under
Frequent customers see value the age of 18
495 Express Lanes 95 Express Lanes
73% use
86%
86% See personal benefit
convenience
80% 76%
Positive impression
60% services like
83% 83% of frequent
Satisfied
customers Amazon at
make less
Frequent customers
than $100,000 least once a
top 2 reported vehicles + month
2018 State of the Lanes research study performed by APCO95 CORRIDOR TIME SAVINGS AND RELIABILITY
Predictable travel times in congested region
2012
495 Express
I-95 PM peak southbound Lanes open
180
160
140
120
100
80
60
56
40
Minutes of
20 average round
0 trip savings
Mon Tue Wed Thu Fri
14%
Average Savings Max Time Savings Max Worst GP Time Regular lane
Average GP Time Average EL Time reduction in
travel time
*On-road data from Q1 FY 2019READY FOR WHAT THE FUTURE HOLDS New technology is redefining urban mobility, roads are at the center of this revolution
POLICY OUTLOOK FOR P3s
Embracing a modern mix of funding solutions
Federal landscape
Building blocks in 2018 Trump infrastructure proposal were a positive first step forward for
P3 industry and Transurban – unknown what Congress can advance
New infrastructure grant program focused on leveraging federal Considers a federal asset recycling program
funding with state, local and private investments
Provides states more flexibility to toll existing interstates
Expands the Transportation Infrastructure Finance and Innovation
Act (TIFIA) and Private Activity Bond (PABs) programs Streamlines and shortens the environmental permitting process
Maryland
Virginia Governor champions bold Express
New administration in transition
Lanes project
Governor Northam administration brings stability on existing Plans for new Express Lanes to solve critical and politically
deals, with key officials staying on sensitive congestion issues
Focus on innovation, big data, competition post-66 Transurban supports the initiative shown in introducing this
project, which could be the largest P3 highway project proposed
Transurban is working with members of the Virginia House of
in the U.S.
Delegates to educate them on the success of the Express Lanes
and the benefits of P3’sFEDERAL INCENTIVES TO ATTRACT RIVATE INVESTMENT
Asset Recycling
“Asset recycling – something
Greenfield that we’re hoping will be
Government Government included in an infrastructure
infrastructure
owned asset controlled fund bill… it gives municipalities
projects
an incentive…”
Congressman Lou Barletta,
Robust business case Projects with strong ARTBA P3 Conference 2017
framework for investment cases that
investment decisions align with strategic
plans
Leasing or selling public assets to raise funds for new infrastructure
Many state governments are sitting on unproductive capital within their own assets. In a system known as asset recycling,
state governments lease their existing infrastructure to raise funds for greenfield infrastructure projects, freeing existing capital
for infrastructure investments.Thank you. Questions?
TRANSURBAN’S ROLE AS PARTNER
Value for state and taxpayers
2012
495 Express
• Partner with governments to deliver Lanes open
innovative transportation solutions
• Private partner taking the place of a “The 95 Express
traditional government service Lanes project is a
• Currently partnering with the Virginia model of how P3
projects should
Department of Transportation to operate
be done.”
the Express Lanes; recently acquired A25
Bridge in Montreal. Virginia Governor
Terry McAuliffe
• Pioneered the public-private partnership
(P3) managed-lanes concept in the U.S.
• Strive to be good neighbors and long-term
partners to the Greater Washington
community
• No public sector risk of construction cost overruns
• Private partner incurs significant penalties for late completion
• Full apportionment of revenue risk to private partner with revenue sharing opportunitiesYou can also read
