Transportation In The News

In the Sept. 20 editorial ("Privatizing roads may boost infrastructure"), The Detroit News editorial board supports the Michigan House's efforts to authorize public-private partnerships in road building, which would allow private companies to build and operate toll roads in Michigan. In other states, these partnerships have produced decidedly mixed results.

In Texas, the state was forced to pay an inflated price to buy back the privately funded Camino Columbia Toll Road after the road failed financially and was sold to a company that closed it to all traffic.

Closer to home, an analysis of the Chicago Skyway and Indiana Toll Road privatization deals found that private investors will likely recoup their investments in less than 20 years -- even though the private operators will charge tolls for 99 and 75 years, respectively.

Proper legislation could avoid these sorts of problems, but the public-private partnership bill currently in the Michigan House fails to include any such safeguards. It contains no requirement that all deals be cost-advantageous to the state in comparison with publicly funded projects, or that the public retain control of transportation planning and management.

If the state pursues privatized highways, it must do so with legislation that provides greater public protections. Road privatization can look like a hard-to-resist "quick fix" for state budget and transportation challenges, but poorly done privatization holds hidden costs and big potential downsides for the public.

Kara Rumsey, Advocate

Public Interest Research Group in Michigan

Ann Arbor