Tennessee has taken a bold step towards modernizing their transportation infrastructure by introducing the concept of “Choice Lanes”, funded by municipal bonds. This revolutionary approach marks a significant shift from the state’s traditional method of paying for highways using already collected funds.
In April 2023, lawmakers in Tennessee passed the Transportation Modernization Act, which focuses on the development of tolled express lanes known as “Choice Lanes”. These lanes offer motorists the option to pay tolls to bypass congestion in regular lanes, with toll rates varying depending on traffic conditions. The objective behind these lanes is to maintain congestion-free travel by adjusting toll prices accordingly. Private firms will be responsible for designing, building, financing, operating, and maintaining these lanes, setting a new precedent for highway development in the state.
With Tennessee experiencing a population growth of 10.9% from 2010 to 2022, the need for an efficient transportation strategy is paramount. Governor Bill Lee’s administration recognizes the importance of keeping up with this rapid growth to ensure economic opportunities for both rural and urban communities. By investing in innovative projects like Choice Lanes, Tennessee aims to address current and future mobility challenges effectively.
While the concept of Choice Lanes has garnered support from organizations like Beacon Impact, there are dissenting voices within the state as well. State Senator Heidi Campbell has expressed concerns about privatizing parts of Tennessee’s transportation network, citing potential risks associated with private-sector involvement. Campbell emphasizes the need for a focus on public transit and multi-modal connectivity, rather than embarking on a “paving plan” as outlined in the Transportation Modernization Act.
Despite differing views on the privatization of infrastructure projects, experts like Joseph Krist view private-public partnerships (P3) as a viable solution for complex highway developments. Krist highlights the benefits of clear contractual structures that incentivize timely project completion, ensuring accountability on the part of private operators. While the use of private firms in highway construction has shown promise in the toll lanes sector, challenges have been observed in other industries, as seen in projects like the Denver International Airport terminal expansion and the Purple Line in Maryland.
Tennessee’s venture into using municipal bonds for highway construction represents a significant departure from traditional funding methods. By embracing innovative approaches like Choice Lanes and private partnerships, the state aims to create a robust transportation network that can accommodate its growing population and economic demands. As the project progresses, it will be essential to navigate the challenges and concerns raised by stakeholders to ensure the success of Tennessee’s modernization efforts in the transportation sector.