We have written frequently about the potential for new transportation-related public-private partnerships (P3s). Recent posts on the topic have discussed Amtrak, UniversityCity at FIU, and PortMiami, among other area transportation-related P3s.
Increase in Transportation P3s in 2014
A recent report reflects that these examples are part of a much larger national trend. The Fitch Ratings report predicts an increase in transportation P3s in the coming year, in part because “governments are increasingly looking to P3s for transportation projects where the economics make sense,” according to Scott Zuchorski, Director at Fitch’s Global Infrastructure Group. Fitch also points to the size of future capital needs as a reason why transportation P3s are expected to increase in number in the coming year.
P3 for Red-Light Cameras
In addition to providing transportation infrastructure, P3s can be used to provide other government services related to transportation. A local example is the solicitation recently issued by Miami-Dade County for proposals to provide a red-light camera program. The solicitation explains that running red lights has been a deadly and unfortunately common occurrence in Miami-Dade County and seeks proposals from the private sector to operate a red-light camera program at the intersections that have seen the most collisions due to running red lights. The private partner will provide, install, and maintain the cameras, issue citations and process payments, and provide a public-awareness program, all at no cost to the County, which will retain a minimum of 60% of the revenues collected. Although red-light cameras are sometimes dismissed as only a means to collect revenue, the solicitation provides that the program will begin on a small scale, at the most dangerous intersections, and will only be permitted to expand if accidents are shown to decrease significantly. Thus, the program is designed to provide a real government service at no cost to the County, and to the benefit of the private partner as well, and therefore has all of the hallmarks of a successful public-private partnership.