Spanish firm to build and run new PFI toll road in Texas

International Construction Review ^ | 25 August 2006

[AnimalLover]

Grupo Ferrovial, Spain’s construction, infrastructure and services giant, had a busy summer acquiring airports in the UK and Peru. Now it has a concession to build and operate a Texas superhighway.

Construction of the new toll road project, designed to develop an alternative route to Interstate 35 as part of the planned Trans-Texas Corridor is due to start early next year.

This is has been agreed by the Texas Department of Transport under a comprehensive development deal with the Spanish company Cintra - Concesiones de Infrastructuras de Transporte, a member of the Ferrovial group.

Cintra’s partner for the five-year road building programme is the San Antonio-based contractor Zachry Construction Corp, but Ferrovial’s construction company Agroman is getting a share in the business.

Zachry joined with Cintra in a scheme to provide private investment worth $6 billion. The assignment is to design, build and operate a four-lane toll road covering the 500 km distance between Dallas and San Antonio, bypassing the State capital at Austin.

For this concession Cintra is paying the State of Texas $1.2 billion. It gives them the right to build and operate this initial segment of the intended Trans-Texas Corridor.

This would be part of the ‘super-highway’ spanning the United States from the Mexican border at Laredo, making its way through Texas, Kansas and Oklahoma and connecting with the Canadian highway system north of Duluth, Minnesota.

Because it would provide a connection all the way between Canada and Mexico, the project is also described as the North American Free Trade Area (NAFTA) super highway.

The project as conceived by Cintra and its partners and endorsed by the Texas transport department is certainly ambitious. They have talked about developing a corridor providing two lanes for high speed trucks and three for passenger vehicles in each direction, plus high speed and freight railway lines, possibly also telecommunication cables and oil, gas and water pipelines in an adjacent utilities corridor.

But a corridor of this overall width – maybe as much as 360 m - has alarmed people who stand forced to surrender property in land and buildings to the project. This concern has been sharpened by the disclosure that, citing a recent U.S. Supreme Court ruling, the developers intend to exercise the principle of ‘eminent domain’ in land acquisition proceedings on the grounds that they are acting as agents of a public authority.

The developers apparently believe that such rights, once established in Texas, could then be applied across the entire 6,500 km length of the NAFTA highway. Whether that proves to be so depends on the outcome of any challenge that might be launched against such a claim.

The Cintra-Zachry partnership is however in a strong position because they have already secured an agreement granting them the right to develop the new highway in Texas. They have also put money down for the privilege.

The first concession within the Trans-Texas Corridor has already been awarded to Cintra. According to a statement by parent company Ferrovial, construction is expected to start early in 2007 once environmental and other permits have been obtained.

These initial contracts, to build two segments of the new toll road 64 km between Austin and Seguin will be performed 50 per cent each by Ferrovial’s construction subsidiary Agroman and Zachry, which has won around $180 million worth of road contracts already this year from the Texas Department of Transport.

Total construction investment in the new contracts is said to be $1.3 billion.

“The new highway”, the statement explained, “will offer an alternative to I-35 between San Antonio and north Austin, making it possible to avoid the highly congested area of central Austin on medium and long-distance journeys.

“The new high capacity road will absorb growth in long-distance truck traffic expected as a result of trade agreements between the United States, Mexico and Canada.”

Cintra has also recently taken over management of the Indiana Toll Road (ITR) after paying $3.8 billion to the State’s finance authority for the transfer of the asset. In a 50:50 consortium with the Australian bank Macquarie, Cintra now has charge of this 250 km highway which links Chicago with the eastern seaboard of the United States.

The concession will run over 75 years.

The company commented: “The project reinforces Cintra’s presence in the U.S., a strategic market for the company: it has a 99-year concession to operate the Chicago Skyway ($1.83 billion) which links with the Indiana Toll Road, and it is a strategic partner of the State of Texas for 50 years to develop the Trans-Texas Corridor, one of the most ambitious infrastructure projects ever undertaken in the United States.”

[AnimalLover]

I had no idea this had gone as far as it had. How is it possible for our President to commit our country to to such change without OUR consent?

Apparently everything is signed, sealed and delivered - construction starts next year and this foreign company has a 50 year lease.

One other article that is a MUST read is

The NAFTA Super Highway by Phyllis Schlafly

http://www.eagleforum.org/column/2006/aug06/06-08-23.html

[peyton randolph]

Given what the Spanish cowards did in Iraq, not a time to reward them with this government corporate welfare project.

[Dallas59]

Don't we have Americans that would build things?

[ruination]

Leaving aside questions about the SPP, why would any foreign company be given the right to collect tolls on this highway for FIFTY years?

[John Valentine]

First, this looks like a Texas deal. What does the President have to do with it? Or is this a case of "it's all Bush's fault?"

What exactly is giving you the most grief? You don't like roads? You don't like TOLL roads? Or you don't like foreign owenership? Because it is the last on the list, the solution is easy. An all American consortium needs only to come up with the cash and the deal's theirs.

Finally, who are you that you think a businees deal needs your (or even my) consent?

[peyton randolph]

Finally, who are you that you think a businees deal needs your (or even my) consent?

---

It isn't just a business deal. It is corporate welfare...and Texas taxpayers will pick up the tab...particularly the eminent domain takings for the space to build the albatross. Of course, that raises the issue of Texas property rights that will be taken through eminent domain...and who profits by the concessions to build along the new tollway...who loses with loss of traffic on other roads...and the politicians' pockets that will be lined for all of the above.

[trickyricky]

"Finally, who are you that you think a businees deal needs your (or even my) consent?"

You're absolutely right.
The United States of America and everything and everyone in it is "FOR SALE"
to the highest bidder.
Always has been, always will be. Amen.

[hadaclueonce]

Bush had nothing to do with this. It is all that RINO Rick Perry's doing.

[Marius3188]

Looks like the Canadian's aren't too happy with Spain over their Toll Roads.

http://www.nupge.ca/news_2004/n13au04a.htm

From the article:
" An arbitrator ruled earlier this year that the consortium has the right, spelled out in a 600-page contract negotiated and signed by the Harris government, to set whatever tolls it likes until the deal expires in 2098."

Ouch! Sir, that will be $30 use 'our' toll road.

[Paul Ross]

Finally, who are you that you think a businees deal needs your (or even my) consent?

Two words: Eminent Domain.

President Reagan observed in his farewell address to the nation:

Ours was the first revolution in the history of mankind that truly reversed the course of government, and with three little words: "We the people." "We the people" tell the government what to do, it doesn't tell us. "We the people" are the driver, the government is the car. And we decide where it should go, and by what route, and how fast. Almost all the world's constitutions are documents in which governments tell the people what their privileges are. Our Constitution is a document in which "We the people" tell the government what it is allowed to do. "We the people" are free. This belief has been the underlying basis for everything I've tried to do these past eight years.

..............

That is fundamentally opposed by what W and the globaloney despots are up to. They are fundamentally opposed to "We the People." Reagan never was. He also led a great tradition, unlike W, and now you... of stopping runaway governments that get too big for their britches...as he said in that same speech:

But back in the 1960s, when I began, it seemed to me that we'd begun reversing the order of things — that through more and more rules and regulations and confiscatory taxes, the government was taking more of our money, more of our options, and more of our freedom. I went into politics in part to put up my hand and say, "Stop." I was a citizen politician, and it seemed the right thing for a citizen to do.

I think we have stopped a lot of what needed stopping. And I hope we have once again reminded people that man is not free unless government is limited. There's a clear cause and effect here that is as neat and predictable as a law of physics: As government expands, liberty contracts.

I don't think we need to belabor that W totally rejects this classical Founders formulation of governance and liberty. His Big Govermentism...and his "One Family" North American Unionism trumps all other concerns.

And this isn't just Texas. Bush has had extensive talks with Fox and the Canadian Presidents on this...and has given millions of Federal Money to subsidize planning the Texas Corridor Project.

[Paul Ross]

Bump!

Interesting find.

[Marius3188]

Paul

More about Spain, oh yeah, they mention $6Bil for the TTC. big surprise in that one.

http://www.technologyreview.com/microsites/spain/toll/docs/Spain_infrastructure.pdf#search=%22spain%20toll%20roads%20pdf%22

[Paul Ross]

Though Cintra won the bid,Spanish companies accounted for all four of the companies qualified to bid for the road. Cementing its leadership position in the U.S. thus far, Cintra also was chosen as a strategic partner with the state of Texas for the development of the Trans- Texa s Corridor. At first analysis of the needs of the planned corridor, Cintra has proposed developi ng at least five toll roads and investing approximately $6 billion.

Agreed, big surprise...

[raybbr]

ping

[Koblenz]

Leaving aside questions about the SPP, why would any foreign company be given the right to collect tolls on this highway for FIFTY years?

Because they are building the highway. If not that many people use the highway, then the company, and not the local government, loses money.

[raybbr]

Bush had nothing to do with this. It is all that RINO Rick Perry's doing.

Smartass it would seem 'hadaclueonce" needs some information.

[lonestar]

I didn't see the President mentioned in the article, so why blame him?

This is a Texas deal; do you not believe in states' rights?

As long as it's private money and doesn't cost taxpayers, they can do whatever they are capable of doing.

[hadaclueonce]

No thank you. I have all the information I need from Mr "Mofo" I need. I live and breath his BS everyday here near the "peoples republic of Austin."

Thank you for the offer.

Write this on the Wall. Someone will be going to jail before this project is complete.

[chatham]

After the "BIG DIG" in boston which started at 2 Billion and is now Uncompleted at 15 Billion it doesn't appear we have Americans who can do the Job.

[chatham]

Bush seems to be selling off the Country to any foreign power who has the money.

"Emminent Domain" is shaping up as the reason for a second American Revolution.

Save up your Tea Bags.

[raybbr]

No thank you. I have all the information I need from Mr "Mofo" I need. I live and breath his BS everyday here near the "peoples republic of Austin."

Hmmm.... Do you think Bush has had nothing to do with this? If you do then you need more information.

I don't think anyone will go to jail. It's all about business now not soveriegnty or even patriotism. Bush and his cronies believe in the one world concept especially when it comes to the Americas.

If you doubt me read this. Not just the quote but go read the whole speech.

We are now one of the largest Spanish-speaking nations in the world. We're a major source of Latin music, journalism and culture.

Just go to Miami, or San Antonio, Los Angeles, Chicago or West New York, New Jersey ... and close your eyes and listen. You could just as easily be in Santo Domingo or Santiago, or San Miguel de Allende.

For years our nation has debated this change -- some have praised it and others have resented it. By nominating me, my party has made a choice to welcome the new America.

As I speak, we are celebrating the success of democracy in Mexico.

George Bush from a campaign speech in Miami, August 2000.

You can read the speech here.

Here is an excerpt of a good critique of that speech:

In equating our intimate historic bonds to our mother country and to Canada with our ties to Mexico, W. shows a staggering ignorance of the civilizational facts of life. The reason we are so close to Britain and Canada is that we share with them a common historical culture, language, literature, and legal system, as well as similar standards of behavior, expectations of public officials, and so on. My Bush Epiphany By Lawrence Auster

The Path to National Suicide by Lawrence Auster (1990)

An essay on multi-culturalism and immigration.

[1rudeboy]

Don't we have Americans that would build things?

Sure we do. But they tend to bid too highly on government projects. My understanding that the second-place bid on the Indiana Toll Road project was double or triple the winner's.

[1rudeboy]

Something was wrong with that Toronto/Canadian contract. I've never found out the real story. Cintra's 99-year lease of the Chicago Skyway allows for the toll to be doubled to $5 by 2017, and adjusted for inflation thereafter.

[Paul Ross]

..this looks like a Texas deal.

The Texas Republican Party has explicitly rejected it, the whole concept...with extreme prejudice, Republican platform calls for scuttling Perry's Trans-Texas Corridor Delegates back border barrier:

Texas Republicans wrapped up their two-day convention in the Alamo City on Saturday by adopting a party platform demanding that a "physical barrier" be built along the Rio Grande.

And they blamed the federal government, which has been under full Republican control since the 2002 elections, for neglecting border security.

...In the state GOP platform... Republicans also called for scuttling Gov. Rick Perry's chief transportation initiative, the Trans-Texas Corridor.

The platform now says the mammoth system of highways, tollways and rail lines would infringe on private-property rights.

Sounds like the REAL TEXANS have already made up their mind against this.

What does the President have to do with it?

As to the scope of the Federal involvement, it sounds like it has already hit $500 million committed. And the likelihood of Eminent Domain abuse for this project is extremely high based on how it has already been pushed ahead:

The TTC was specifically excluded from the recently adopted law that otherwise prohibits the use of eminent domain for economic development purposes. TxDOT can and will use eminent domain to acquire property for the TTC which will be operated as a commercial for-profit enterprise. The concessionaires are private businesses that will use the TTC to generate a profit. It appears from the limited information made available to the public that Cintra Zachry will have a monopoly on at least the toll road portion of the TTC. Providers of service facilities located within the TTC must negotiate with a single entity. The result is monopoly that will drive provider location costs well above the real market value. This is not unlike other turnpikes, airports or sports stadiums. The result is also equally common, highest bidder gets the location and the consumer with limited options pays a premium for goods and services. When was the last time you went to the ballpark for dinner?

Contrast this with the existing Interstate 35 highway up to Duluth. Free the whole way, well-maintained, and yeah, no monopoly on service providers up and down the length. I will take the status quo over this TTC abomination.

[John Valentine]

I agree with you on the substance of the issue. This looks like something that Texas (and the nation) can do without.

But, building highways, even toll roads operated by concessionaires, is a traditional and seemingly proper use of eminent domain. Whether it is a SMART use is another matter.

[Jedi Master Pikachu]

NAU-slanted ping.

[Jedi Master Pikachu]

How did you indent in your post?

[1rudeboy]

blockquote
/blockquote
with the requisite "<>" symbols.

They are cumulative.

[Jedi Master Pikachu]

For the information on how to indent with HTML, much appreciated.

[jveritas]

I think many idiots do not understand that we are still a federal system and that States can do many things without the interference or approval of the Feds or the President.

[Toddsterpatriot]

Given what the Spanish cowards did in Iraq, not a time to reward them with this government corporate welfare project.

Corporate welfare where the "recipient" pays the state $1.2 billion and spends $6 billion in private capital. That's funny!!

[Toddsterpatriot]

why would any foreign company be given the right to collect tolls on this highway for FIFTY years?

They weren't given the right. They bought the right.

[Dane]

Uh foreigners(furriners in phylis schafley/pat buchanan speak) helped finance and build America's railroad system in the 1800's.

I guess you would have been against that also if you were living at that time.

[jpsb]

This highway/road is a dagger aimed at the heart of the USA. A 30 lane super highway, included rail, telecommunications and pipelines starting in central/coastal Mexico and running to Canada with branches going east and west in central continental USA. What more could an invader ask for? The purpose to the highway is to allow Chinese goods to be off loaded in Mexican ports and then shipped via truck rail to the USA. Seems Mexican ports and Mexican shippers are preferred over American posts and American shippers by the Chinese communists.

If you don't think the Bush Admin is involved in this "deal" you are smoking crack.

[1rudeboy]

Maybe the poster meant "reverse corporate welfare?"

[Toddsterpatriot]

Yeah, that's the ticket!

[Dane]

This highway/road is a dagger aimed at the heart of the USA. A 30 lane super highway, included rail, telecommunications and pipelines starting in central/coastal Mexico and running to Canada with branches going east and west in central continental USA. What more could an invader ask for?

Yeah and Gen. Ike is rolling in his grave at such a proposition. Yuh know President Eisenhower who gave America the current Interstate highway system, which of course you jpsb, never ever use.(/sarc)

[mewzilla]

Ferrovial has been busy...

Spanish flier makes daring approach: In what could be the most audacious foreign bid for a British company, Ferrovial is lining up BAA. Richard Wachman asks if the deal will take off

[jpsb]

Big difference Dane, internal networks of highways not the same a continental superhighway that starts at foreign ports. To bad you have zero skills in military science. Folks that got upset at Chinese taking effective control of the Panama Canal will go (rightfully) ballistic over this lame brain idea, from a national security view.

The economic view is not much better, pipe lines good, 30 lane continental super highways bad.

I'm sure this idea will make the open border crowd very happy. Once finished any and all from parts WAY south will have a wide open road into the most of USA or Canada.

[Dane]

Big difference Dane, internal networks of highways not the same a continental superhighway that starts at foreign ports.

Uh jp, Eisenhower's Interstate system was a continental superhighway.

Just waiting for you to bring up the Phyllis Scafley/Buchanan/Bircher talking points that Eisenhower was an atheist any time now.

[Sandy]

Once finished any and all from parts WAY south will have a wide open road into the most of USA or Canada

What are you talking about? Why will this road be more "open" than any other border-crossing road?

[Comstock1]

Would it help if you were told that the article is wrong? They may have access to press release information from the Spanish companies, but on the Texas end none of this has been completed.

No plans for the TTC have been finalized. No land acquisition has started.

And even if it does happen, it is just a road. Maybe even a railroad. So what? We have all that now. Is one more gonna make all that much of a difference, except maybe ease some of the traffic on what is an already overcrowded freeway?

I have a lot of sympathy for the people who might lose some land, but that happens everytime something big gets built. These types of projects are why the taking by ED process exists.

[jpsb]

[jpsb]

yup that's why ED exists, so Texas land can be taken from Americans and given to Spanish developers for the benifit of Chinese communists. Welcome to the New World Order. Enjoy.

All your rights belong to us.

[1rudeboy]

OMG, the SuperCorridor will make Canada's Inuit territory turn magenta?

[Toddsterpatriot]

That's nothing compared to the Borg Super Corridor

[jpsb]

Well what do you know the Chicoms are here. Hi boys (and girls?).

[Toddsterpatriot]

Well what do you know the Chicoms are here.

Who's that?

[1rudeboy]

Hi. Have a lollipop:

Contention: The state will use eminent domain to take private land.
Reality: Under any scenario, the state will need to purchase land to build more roads over the next 50 years. The 5th amendment of the U.S. Constitution and state law require the state to pay fair market value when purchasing private land for public purposes. If a landowner doesn't believe an offer to purchase is fair, the law provides they can appeal to special commissioners and even a district judge who will decide what is fair.
Several other protections exist in state law to ensure that landowners are fairly compensated. Landowners may retain the development rights of any property purchased by the state, and state law also allows landowners to accept an equity interest in the road rather than a cash payment for their land. Landowners whose land is severed by the corridor are required to receive damages caused by the severance including inaccessibility.

Contention: Huge amounts of private land will be taken by the state through eminent domain for superhighway, train, and utility rights of way.
Reality: Over the next 50 years, the state, railroads, and utilities will all need to purchase private land for expansion. By using the Trans Texas Corridor to combine many of these rights of way into one corridor, less total land will be needed. The Corridor will ultimately result in the purchase of less public land than would otherwise be needed to keep up with growth, and all the needed land will be purchased during one process, instead of on a piecemeal basis as we need to build out infrastructure one project at a time.

Contention: The private companies helping to build the corridor will have the ability to condemn private property.
Reality: This is false. Only the government and common carriers have the power of condemnation.

Contention: The corridor will allow the state to condemn land and build restaurants, hotels, golf courses, and chemical refineries.
Reality: State law only allows the condemnation of corridor land for transportation purposes. Condemnation for any other purpose is illegal.

Office of the Governor [Texas]

[lewislynn]

Uh foreigners(furriners in phylis schafley/pat buchanan speak) helped finance and build America's railroad system in the 1800's.

What was the names of the foreign companies that owned them when they were finised and did they charge a toll?