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Public Works Management & Policy
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An Odyssey of Privatizing Highways

The Evolving Case of SR 91

Willard T. Price

University of the Pacific

Privatization of infrastructure systems has become politically fashionable. This is a story about a California experiment using a public-private partnership to develop and operate a private tollway in the median of State Route 91 in Orange County. The partnership began with apparent success, yet the private partner (California Private Transportation Corporation) soon filed suit against the public partner (the California State Transportation Department, or Caltrans) for violation of the "noncompete clause" of the original agreement. Although an out-of-court settlement agreement was eventually reached, there is still discussion about selling the private assets. In this commentary, privatization concepts are presented, and the following questions are discussed: Can toll and free lanes compete for traffic or "business"? Is the public interest served by a profit-making private tollway? Would a public or nonprofit agency be a better steward of tollway assets?

Public Works Management & Policy, Vol. 5, No. 4, 259-269 (2001)
DOI: 10.1177/1087724X0154001
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