Now that we have some information regarding this lease, it appears that the figure is well below the approximately 30 billion anticipated by the Governor. PD’s arguement suggesting that Rendell’s motive is to force timely action on I-80 tolls certainly has some merit as we have seen this tactic before from the Governor. However, he is a leading advocate of PPP’s, which is evident by his statements at NGA and National Transportatoin Safety Board (NTSB) meetings, so this may be more than simply lighting a fire under the Legislature.

Finally, there is a reason the operation, maintenance, and construction of transportation infrastructure finds its home in the public sector. If the operation of the system provided a significant ROI a private entity would already be running the system. Walmart probably would have purchased all of I-80 by now. In order to provide a sufficient ROI tolls will need to be raised much higher than they will be via the Turnpike Commission. Pennsylvanians will incur a much larger cost if a significant portion of the motoring public cannot afford to use the roadway, as we will: 1) Simply not be able to drive on the road ,or 2) be forced to provide a subsidy to the private operator in 2011 when the tolls are due to increase to keep the roadway affordable, especially to truckers.

To solidify my point, Morgan Stanley’s analysis predicted a 5.5 annual toll revenue growth a year for 50 years begining in 2010. The remaining 25 years would see an increase of 3 percent. Staying with the same study,the current one-way toll of $19.75 for the 359-mile main section eastbound could increase to $287.20 after 50 years. While this 287.20 figure assumes no growth in traffic, I believe it sheds some light on just how high tolls may need to raised to provide a significant ROI for private investors.

JM