From Ports To Highways: Selling Out Nation's Infrastructure?

31 March 2006 - 6:00am

In Indiana, selling a 157-mile toll road to Spanish and Australian investors joins the growing trend of selling pieces of underfunded U.S. infrastructure to foreigners.

"Earlier this month, in a triumph for Gov. Mitch Daniels, Indiana's House narrowly approved his proposal to lease the 157-mile Indiana Toll Road, which spans the northern part of the state, for $3.85 billion to a joint venture of Cintra, a Spanish company, and Australia's Macquarie Bank."

"The state needs billions of dollars to invest in new roads. Getting the cash upfront will allow Daniels to speed up construction on needed infrastructure projects, create new jobs, and fund his Clintonian Major Moves initiative...And by raising the cash from foreigners, he's doing his part to rein in the pernicious current-account deficit."

"What's in it for the foreign companies? Huge potential profits. Gigantic, steady profits."

"I think the uneasiness [of Americans about selling infrastructure to foreginers] has more to do with what it says about the peculiar fiscal climate in the United States. How is it that in the richest nation on the earth, localities simply don't have the cash to do necessary maintenance on basic infrastructure, the political will to raise such funds, or the competence to run such easily profitable operations? Why are they being forced to sell off long-term cash cows for short-term cash?"

Full Story: Lost Highway
Source: Slate, March 29, 2006
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For the past half century we have been building communities for the wrong reasons. We built them to sell cars. This created all sorts of problems.