The Texas Department of Transportation plans to terminate its contract with the private entity currently operating the state Highway 288 toll road.
In a news release, TxDOT said shifting control of the toll road in Harris County to the state will allow future toll rates to be “significantly less” than the current agreement.
It will also enable the addition of future free lanes on the toll road.
“Building roads, reducing tolls, and saving taxpayer money are top priorities,” said Gov. Greg Abbott. “All three are achieved with the Texas Department of Transportation terminating the SH 288 Comprehensive Development Agreement. It will allow the state to receive over $2 billion in added valuation. I thank TxDOT for making it easier and cheaper for Texans to travel that route.”
Blue Ridge Transportation Group was contracted to operate the toll road for 50 years. However, reported issues with construction as well as costs of operation are being pointed to as TxDOT moves toward termination eight years into the agreement.
Texas transportation officials said the public could see a reduction of average daily toll rates by 50% in the next few years.
TxDOT plans to begin construction of free lanes on portions of the SH 288 toll road no later than 2030.
The buyout of the current toll road agreement with Blue Ridge Transportation Group is $1.7 billion. That cost is below the value of future toll revenues even with the anticipated reduction in toll rates, said the TxDOT news release.
“Securing a more than $4 billion asset for just $1.7 billion will not only benefit Texas drivers, it will also enable TxDOT to continue investing in and advancing crucial roadway projects across the state,” Lt. Gov. Dan Patrick said.
By ending the current agreement, the state believes it can pay off debt at least 10 years earlier and remove future tolls.
Texas DOT says it intends to assume operations of the toll road in October and says drivers should not see any notable changes in maintenance, operations or billing outside of lower rates and future additional lanes. LL
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