The value of tolls in Hampton Roads

You won’t find Hampton Roads on any map. It’s neither a city nor a town, yet it’s home to 1.7 million people. In actual fact, Hampton Roads is the name given to the metropolitan area of southeastern Virginia that is comprised of ten cities and five counties. Over 60 per cent of the population of the United States is within 750 miles of this stretch and it’s this locational advantage that gives businesses in the area a strategic edge.

The area includes the cities of Chesapeake, Newport News, Norfolk, and Virginia Beach and is home to one of the largest harbors in the world. While the harbor and waterways have stimulated a local economy that is driven by maritime, military, and tourism activities, the area’s highway network is equally important providing the interior of the United States with access to the goods and services they require.

This network includes many bridges and tunnels which come with high maintenance and rebuilding costs, as well as the expense of increasing their capacity. The region has confronted these financial challenges by incorporating tolling as a way to advance projects. Real progress has been made, and Steer Davies Gleave has been involved in three area toll facilities that will help improve the mobility of Hampton Roads.

Midtown Tunnel / Downtown Tunnel / MLK Expressway Extension Project

The project, also known as the Elizabeth River Tunnels project, is a P3 that will widen the Midtown Tunnel, provide maintenance and safety improvements to the Midtown and Downtown Tunnels, and extend the MLK Expressway providing a high speed connection between the Midtown and Downtown Tunnels. The P3 agreement is in place between Virginia Department of Transportation and Elizabeth River Crossings (partnership of Skanska Infrastructure Development and the Macquarie Group). The Midtown and Downtown Tunnels connect the cities of Norfolk and Portsmouth, providing access to the employment center in Norfolk. The project reached financial close in 2012 and ground breaking took place in January 2013. SDG served as the traffic and revenue advisor to Elizabeth River Crossings.

South Norfolk Jordan Bridge

This project is a P3 between Figg Bridge Developers and the City of Chesapeake to replace the old Jordan Bridge which included a lift and was closed in 2008, with a new fixed-span bridge that is sufficiently high to avoid bridge openings. Similar to the Midtown and Downtown Tunnels, the Jordan Bridge crosses the Elizabeth River, in this case providing access to the Norfolk Naval Shipyard. The bridge has been built and opened to traffic in October 2012. SDG served as the Traffic Advisor to BBVA who provided debt funding.

Dominion Boulevard Project

Dominion Boulevard is one of two toll facilities that make up the Chesapeake Transportation System, along with the existing Chesapeake Expressway. The project includes the widening and conversion of US 17 to a limited access highway with the construction of a new fixed-span bridge over the Southern Branch of the Elizabeth River. The project was developed by the City of Chesapeake and funded through toll revenue bonds and a loan from the Virginia Transportation Infrastructure Bank. Steer Davies Gleave prepared the traffic and revenue forecasts included in the bond’s Official Statement.