Recent Bankruptcy Filing of the South Bay Expressway Proves Idea Would Not Work in NJ
(TRENTON) — After learning that the South Bay Expressway LP — the owner of California’s Public-Private-Partnership (P3) South Bay Expressway — recently filed for Chapter 11 bankruptcy, Assembly Transportation Committee Chairman John S. Wisniewski (D-Middlesex) issued the following statement:
“The failure of California’s P3 highway experiment proves that our toll roads cannot be operated as for profit entities and be expected to survive.
“California’s failed experiment proved what every New Jersey commuter already instinctively knew: allowing private companies to run our toll roads would price them right out of business.
“Subjecting our transportation infrastructure to the whims of economic ups and down to gain access to a one time infusion of revenue — no matter how large — was not a fiscally healthy idea even before the economic recession.
“California’s case proves, once and for all, that privatizing toll roads is just another example of government killing the goose that laid the golden egg.
“I hope this is a lesson that isn’t lost on Gov. Christie’s privatization task force.”
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