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Old 10-27-2006, 08:02 AM   #1
Luc X Saroufim
 
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Public Private Partnerships (PPP)

As far as public transportation is concerned, the United States enjoys the freedom of the open road more than any nation in the world.

We are used to the idea of free roads, and low gas prices.

We pay for the construction, rehabilitation, and maintenance of our interstates every time we gas up (an average of 18c/gal pays for the maintenance of America's infrastructure).

each year, there's anywhere between $32B - $36B to go around in gas taxes. the problem is, congestion is sky rocketing, and there's not nearly enough money to handle demand. think of handling America's infrastructure like a rubix cube - if you create more capacity, existing roads deteriorate. maintain existing roads, and congestion increases.

bottom line: the old fashioned way doesn't work anymore, and currently, there are more automobiles than drivers in the US.

so the US DOT is starting to do what the rest of the world has been doing for years - privatizing what was once public. overseas investors are going to start owning chunks of America's infrastructure (about 20% within the next decade).

in a certain light, everybody wins. we can build new roads that can add capacity, and maintain them, without paying for it. the toll owners will realize sizeable returns on their investments. even lenders in the US can benefit, which will help stimulate the economy.

this is something we're all going to have to get used to, because the old way simply isn't working, and PPP is being heavily advertised by the US DOT in 18 states.

how do you guys feel about not owning the roads you drive on?
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Old 10-27-2006, 09:47 AM   #2
Hogan
Join Date: Jul 2001
Posts: 106
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Re: Public Private Partnerships (PPP)

Quote:
Luc Saroufim wrote:
As far as public transportation is concerned, the United States enjoys the freedom of the open road more than any nation in the world.

We are used to the idea of free roads, and low gas prices.

We pay for the construction, rehabilitation, and maintenance of our interstates every time we gas up (an average of 18c/gal pays for the maintenance of America's infrastructure).

each year, there's anywhere between $32B - $36B to go around in gas taxes. the problem is, congestion is sky rocketing, and there's not nearly enough money to handle demand. think of handling America's infrastructure like a rubix cube - if you create more capacity, existing roads deteriorate. maintain existing roads, and congestion increases.

bottom line: the old fashioned way doesn't work anymore, and currently, there are more automobiles than drivers in the US.

so the US DOT is starting to do what the rest of the world has been doing for years - privatizing what was once public. overseas investors are going to start owning chunks of America's infrastructure (about 20% within the next decade).

in a certain light, everybody wins. we can build new roads that can add capacity, and maintain them, without paying for it. the toll owners will realize sizeable returns on their investments. even lenders in the US can benefit, which will help stimulate the economy.

this is something we're all going to have to get used to, because the old way simply isn't working, and PPP is being heavily advertised by the US DOT in 18 states.

how do you guys feel about not owning the roads you drive on?
I think they LEASE them, rather than own them outright, no?
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Old 10-27-2006, 11:28 AM   #3
Luc X Saroufim
 
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Re: Public Private Partnerships (PPP)

Quote:
John Hogan wrote:
I think they LEASE them, rather than own them outright, no?
true; i will re-phrase and state that toll revenues will go directly to the foreign party
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Old 10-27-2006, 12:57 PM   #4
Hogan
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Re: Public Private Partnerships (PPP)

Quote:
Luc Saroufim wrote:
true; i will re-phrase and state that toll revenues will go directly to the foreign party
Maybe reprase again?? Not necessarily "foreign"



Anyway, it doesn't mean our taxes will go down, just stay the same, if not increase, so it means nothing.
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Old 10-27-2006, 01:28 PM   #5
Luc X Saroufim
 
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Re: Public Private Partnerships (PPP)

we'll be paying more to drive, but be rewarded with better maintained roads.
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