Currently viewing the tag: "Privatization"

This is a great blog post from the NY Times about the economic structure of our transportation network.

Gilles Duranton and Matthew Turner’s “Fundamental Law of Traffic Congestion: Evidence From the U.S.” states that vehicle-miles-traveled increases roughly one-for-one with miles of roads built. More highways mean more drivers, so we are never going to build our way out of traffic congestion. People will keep on driving until they are made to pay for that privilege.

Privatization, in principle, offers the possibility of working on both the engineering and economics fronts.

Private road operators or airports will charge higher fees during peak periods to cut down on congestion, and they have incentives to innovate technologically to attract customers and cut costs. Mr. Winston notes that capsule, or pod, hotels, “which enable fliers to nap between flights,” happen to be “available in private airports, but none is available in the United States.

Because the public sector controls almost all roads, airports and urban transit, we see the downsides of public control on a daily basis, but we don’t experience the social costs that could accompany privatization. A private airport operator might try to exploit its monopoly power over a particular market or cut costs in a way that increases the probability of very costly, but rare, disaster.

The complexity and risks of switching to private provision means that Mr. Winston is wise to call for experimentation rather than wholesale privatization. An incremental process of trying things out will provide information and build public support.

Yet many of Mr. Winston’s recommendations are incremental and can be done without privatization or much risk.

Private jitney operators could be permitted to compete freely with public bus lines in urban markets (In New York City, the Metropolitan Transportation Authority is already testing this idea.) New York could also implement a congestion charge (as Mayor Bloomberg has proposed on several occasions, to clamorous opposition). Tolls could be increased on busy commuting highways during peak hours and lowered off-peak. Airports — especially those in the New York area — could raise the landing fees during peak periods.

This issue is all the more relevant here in Miami where elected officials struggle to provide even a basic level of public transit. While privatization might bring unknown social costs, a social cost is already being incurred because of our deficient transit system. The lack of convenient and frequent mass transit opportunities exacerbates problems of social inequity. Not owning a car in Miami-Dade County is a barrier to employment, yet Commissioners do nothing to advance premium transit expansion. At the same time MDX is planning a multibillion dollar highway expansion through some of our last remaining natural preserves and pushing through ‘lexus lanes’ on our only physically separated and dedicated bus transit line. Who are these people serving? This type of planning demonstrates that our leaders continue to be poor stewards of public lands, and have little interest in providing the residents of Dade County with a balance of mobility options. I for one would welcome a private enterprise that could help ease the burden on the County as it struggles to ‘right-size’ both its transit system and highway network.

Despite widespread opposition, our state legislators are moving forward with a plan that would privatize alligator alley for the next 75 years.  The state would “reap” the short term benefits of privatization, gaining about a billion dollars in these “tough economic times” with which to infuse money into our fledgling roadway/transit infrastructure (with a heavy emphasis on roadways…) The Transportation budgetary shortfalls, a national problem as well, is the result of an antiquated, unsustainable gas tax, which has taken a serious hit with the recent hikes in gas prices (combined with the highly subsidized nature all roadways demand.)

The potential lease of Alligator Alley is part of a larger trend toward privatizing major infrastructure assets in the United States.

The federal highway trust fund, which pays for roads, bridge repairs and mass transit, is running multi-billion dollar deficits and on the verge of bankruptcy.

The orgy of Congressional earmarking politics has drained billions from needed construction and maintenance jobs toward lesser priority pork.

Gas taxes haven’t kept pace with inflation. Nobody in Washington was willing to raise taxes when gas was $1.50 or $2 a gallon; they certainly won’t do it when prices are closer to $4.

But $4 a gallon gas has actually accelerated the funding issues. People are driving less. Less gas consumption equals less money for highway construction and mass transit.

”Our approach to funding transportation is broken,” U.S. Transportation Secretary Mary Peters said during a recent visit to South Florida. “It is time for a better approach.”

The privatization of a profitable roadway in Florida is worrisome and extremely short sided.  Even more troubling perhaps, is the way in which our government has gone about this privatization plan – holding interest group meetings in places as far away as Orlando.  As a planner, I too have had professional difficulties establishing the role of public input when it comes to policy issues, but what can be said when our policymakers not only defy the voice of the overwhelming majority but go so far as to complicate the public involvement process?  Could this perhaps be the work of a governor who is trying to make a name for himself on a more national stage?

FDOT will be hosting focus groups on the privatization plan on September 16th and 17th at the Hyatt Bonaventure, 250 Racquet Club Rd., Weston.

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