You wouldn’t know it from the myopic punditry regarding the transportation debate in Virginia, but a revolution in transportation financing is sweeping the world. According to Kenneth Orski, editor/publisher of Innovation Briefs, tolls and privatization represent the future of highway construction funding.
Quasi-socialist Europe is way ahead of the United States. Writes Orski in his May/June issue:
In Europe, virtually all major toll road authorities have been privatized. Italyโs state-owned toll authority, Autostrade SpA, was sold to private investors in the late 1990s (and will soon be merged with Spain’s Abertis, creating a vast 6,700 km (4,200 mile) network of private toll roads throughout Western Europe). In France, the three largest toll enterprises in which the government had retained controlling interest, Autoroutes Paris-Rhin-Rhone (APRR); Societรฉ du Nord et de l’Est de la France… ; and Autoroutes du Sud de la France… were put up for sale in late 2005; their privatization is currently in process of being completed. By the end of the year, 8,175 km (5,109 miles) of France’s toll roads will be in private hands, according to the French toll road association, AFSA. In Spain and Portugal, all major toll roads are likewise in private hands.
As far as I know, House Speaker William J. Howell R-Stafford, is the only elected official to be actively pushing privatization. So far, the idea has been a non-starter in Virginia. No question, a number of prickly accountability and governance issues need to be addressed. But as other nations gain experience with privatization, Virginia could learn from them. Meanwhile, Orski cites these practical benefits of privatized roads:
Private sector involvement may also benefit the public interest in other ways. Private toll road operators are likely to bring a higher standard of customer service, achieve more timely and cost-effective completion of planned improvements and introduce a higher rate of innovation into their operations. They offer access to private equity capital which can speed up project delivery by many years. And they can raise toll rates to control demand or fund needed improvements without being influenced by fear of a negative political reaction (although they will be constrained by the terms of the toll rate-setting schedule in their concession agreement).
The proper role of the state is to oversee the transportation system: to ensure that roads and rail facilities are being built and maintained to proper service and safety standards, to ensure that all pieces of the system fit seamlessly together, and to match transportation capacity with human settlement patterns. There is no compelling reason, other than inertia, for the state to be in the business of operating the system.




