Would Privatizing the Operations of Massachusetts Turnpike Authority provide the Commonwealth with improved productivity, increased efficiency and an influx of much needed short-term cash?

It is no secret that construction of the Big Dig required the expenditure of a large percentage of the Commonwealth’s Federal transportation funding for the past decade. In addition, the repayment of bonds sold for the project will require the expenditure of a large portion of Federal Highway dollars for the next decade. This funding pressure has created challenges for state engineers who find they are working harder and harder to maintain the Commonwealth’s infrastructure using fewer dollars than are needed.

The need for a significant influx of funding to repair roads and bridges, combined with the previous governor’s directives to improve the management, operation, and accountability within the Massachusetts Turnpike, create a unique opportunity to consider a management alternative that would otherwise never be considered. That alternative is to sell the road. The road would actually be leased to the highest bidder. This action would potentially raise a very large amount of short-term capital and also (if proponents are to be believed) lower operational costs by improving management methods and thus increase productivity and efficiency.

This talk will first introduce the concept of privatization. It will then discuss the history of the Massachusetts Turnpike Authority and its recent traffic and fiscal situation. Examples of several other highways that have been leased will be introduced; chief among these will be the Chicago Skyway. The pros and cons of privatization will be looked at and applied to the Massachusetts Turnpike. A potential selling price will then be assigned. Finally, conclusions will be drawn and discussion will be encouraged from the audience.