The Privatization of Roads and Highways - Ludwig von Mises Institute

232 The Privatization of Roads and Highways
owner of the highway, the politician, is usually able to give the
customer poor service and does not need to satisfy the voter in
order to receive money. If the public enterprise is sued for negligence,
the person in charge does not directly pay; all monies
come out of general tax revenues. In the case of private ownership,
the owner must pay. Thus there are much higher incentives
for the private owner to provide good service.
Today it is difficult to imagine a private highway system
because the government has owned almost all roads for most of
the twentieth century. But in Anaheim, California, over 30,000
drivers are using the new 91 Express Lanes, a ten-mile automated
toll road.
The 91 Express Lanes was developed, financed, and operated
by the California Private Transportation Company (CPTC) in
response to motorists’ frustration with the amount of traffic on
the Riverside Freeway (route 91). The toll road was built without
a dollar of state or federal funds. It is the world’s first fully automated
toll road, it is the first example of congestion pricing in
America, and is the first toll road to be privately financed in the
United States in more than fifty years. “We’re seeing a steady,
upward trend both in the use of the Express Lanes and in growth
of our customer base,” says CPTC General Manager Greg
Husizer.
Yes, private owners should be able to manage the highway
system and provide the same level of efficiency as they are able
to do in other aspects of our lives. With Express Lanes 91, we may
see in microcosm the improvement that could be achieved with
private ownership of highways.