THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, October 31, 1996 TAG: 9610310303
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DEBBIE MESSINA, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: 114 lines
State transportation secretary Robert E. Martinez said Virginia's road, rail and airport projects will no longer be built totally with government funding and government responsibility.
Instead, the private sector will take a greater role.
``Like it or not, straight government financing and control of the process is over,'' Martinez told a gathering of the Hampton Roads Chamber of Commerce Wednesday morning. ``This is a good thing, a challenge, not a threat, as it will lead to sounder investments.''
``You're going to see more mixes of public and private and the development of many new financial instruments.''
The secretary applauded Chesapeake's efforts to try to partner with a private company to build a new, wider Virginia Route 168, the main artery to the Outer Banks which is paralyzed with congestion in summer months.
Chesapeake was the first in the state, even beating out the Department of Transportation, to seek private companies to bid on a public road construction project.
The Route 168 project, a $100-million venture, has state and city financial support, but it has fallen about $40 million short. So the city is negotiating to establish a toll road that will be designed, built, operated and maintained by a private contractor.
``This is not business as usual,'' Martinez said.
Just days ago, VDOT received an unsolicited private proposal seeking to add a second tube to the Midtown Tunnel, Martinez said. The proposal suggests combining the public Pinners Point project - which will connect the Western Freeway in Portsmouth to the Midtown Tunnel - with a privately-financed second tunnel.
State officials have not had the opportunity to assess its merits, Martinez said.
Public-private partnering does not just apply to roads.
VDOT is looking for a private company to operate the Jamestown-Scotland ferry. And the state Department of Rail and Public Transportation is shopping for a company to construct and operate 1,000-space parking facility in Northern Virginia for Metro riders.
Virginia law, as of last year, allows both solicited and unsolicited proposals from the private sector. As a result, Virginia has received 11 unsolicited proposals like the one for Midtown Tunnel.
``The whole philosophy here is: Don't have government it its infinite wisdom be the only arbiter of what is a useful project,'' Martinez said.
``Let the private sector make suggestions that they think make sense and are viable in the marketplace. If their suggestions pass muster and serve the public purpose, so be it. Let's look at their proposals.''
The administration has made Virginia a business friendly state in other ways, Martinez said.
For example, 180 pages of regulations for the transportation of hazardous materials at bridge-tunnels have been boiled down to two pages. A 113-page hauling permit manual is now 17 pages.
This year, Martinez said legislation will be proposed that will seek to make Virginia the most attractive state for a trucking business.
``It's about deregulation and stretching available dollars, and it's about the market and free enterprise, when they are the providers of transportation,'' Martinez said.
``If this sounds like I'm blindly pro-business. You bet!''CHESAPEAKE - State transportation secretary Robert E. Martinez said Virginia's road, rail and airport projects will no longer be built totally with government funding and government responsibility.
Instead, the private sector will take a greater role.
``Like it or not, straight government financing and control of the process is over,'' Martinez told a gathering of the Hampton Roads Chamber of Commerce on Wednesday morning. ``This is a good thing, a challenge, not a threat, as it will lead to sounder investments.''
``You're going to see more mixes of public and private, and the development of many new financial instruments.''
The secretary applauded Chesapeake's efforts to try to partner with a private company to build a wider Virginia Route 168, the main artery to the Outer Banks. The road is paralyzed with congestion in summer months.
Chesapeake was the first in the state, even beating out the Department of Transportation, to seek private companies to bid on a public road construction project.
The Route 168 project, a $100 million venture, has state and city financial support, but it has fallen about $40 million short. So the city is negotiating to establish a toll road that will be designed, built, operated and maintained by a private contractor.
``This is not business as usual,'' Martinez said.
Just days ago, VDOT received an unsolicited private proposal seeking to add a second tube to the Midtown Tunnel, Martinez said. The proposal suggests combining the public Pinners Point project - which will connect the Western Freeway in Portsmouth to the Midtown Tunnel - with a privately financed second tunnel.
State officials have not had the opportunity to assess its merits, Martinez said.
Public-private partnering does not just apply to roads.
VDOT is looking for a private company to operate the Jamestown-Scotland ferry. And the state Department of Rail and Public Transportation is shopping for a company to construct and operate a 1,000-space parking facility in Northern Virginia for Metro riders.
Virginia law, as of last year, allows both solicited and unsolicited proposals from the private sector. As a result, Virginia has received 11 unsolicited proposals like the one for Midtown Tunnel.
``The whole philosophy here is: Don't have government in its infinite wisdom be the only arbiter of what is a useful project,'' Martinez said.
``Let the private sector make suggestions that they think make sense and are viable in the marketplace. If their suggestions pass muster and serve the public purpose, so be it. Let's look at their proposals.''
The administration has made Virginia a business-friendly state in other ways, Martinez said.
For example, 180 pages of regulations for the transportation of hazardous materials at bridge-tunnels have been boiled down to two pages.
A 113-page hauling permit manual is now 17 pages.
This year, Martinez said, legislation will be proposed that will seek to make Virginia attractive for a trucking business.
``It's about deregulation and stretching available dollars, and it's about the market and free enterprise, when they are the providers of transportation,'' Martinez said.
``If this sounds like I'm blindly pro-business- you bet!'' by CNB