1. Transportation Finance Summit November 15-17, 2005 Key Moment In Highway History  50th anniversary of the Interstate: Era of “free roads”  Reauthorization: Federal Commissions on the Future of the Interstate System and the Highway Trust Fund  Current trends in toll applications  The Next 50 years? TOLL ROAD TRENDS AND FUTURES

2. Transportation Finance Summit November 15-17, 2005 Focus: Tolling As Significant Program  Toll roads as localized/niche product? or  Significant part of future nationwide highway service? TOLL ROAD TRENDS AND FUTURES

3. Transportation Finance Summit November 15-17, 2005 TOLL ROAD TRENDS AND FUTURES Other Taxes and Fees <$1 $3 $4 $8 Investments/Other <$1 $3 $5 $8 Bond Issue Proceeds - $9 $5 $14 Grand Total Receipts $30 $68 $40 $138

4. Transportation Finance Summit November 15-17, 2005 Change Drivers  Congestion vs. current program credibility  New financial/entrepreneurial resources  Demonstration effect of success  Technology enablers  Leadership TOLL ROAD TRENDS AND FUTURES

5. Transportation Finance Summit November 15-17, 2005 Survey Data  What is the state of play?  Available material  Focus –Project velocity –Quantities in context –Typology –Implications TOLL ROAD TRENDS AND FUTURES

6. Transportation Finance Summit November 15-17, 2005 What We Found TOLL ROAD TRENDS AND FUTURES Not including TTC

7. Transportation Finance Summit November 15-17, 2005 What We Found TOLL ROAD TRENDS AND FUTURES

8. Transportation Finance Summit November 15-17, 2005 What We Found TOLL ROAD TRENDS AND FUTURES

9. Transportation Finance Summit November 15-17, 2005 What We Found TOLL ROAD TRENDS AND FUTURES

10. Transportation Finance Summit November 15-17, 2005 What We Found  Players – > 20: Texas, Florida –10-15: California, Colorado, Virginia –Others: Alabama, Georgia, Maryland, North Carolina, Oklahoma, Pennsylvania, Oregon TOLL ROAD TRENDS AND FUTURES

11. Transportation Finance Summit November 15-17, 2005 What We Found  Private sector development (of 129 projects) – 69 are public – 21 committed to private development/finance – 39 not committed either way – Impact of PAB legislation/SEP 15? TOLL ROAD TRENDS AND FUTURES

12. Transportation Finance Summit November 15-17, 2005 What it Implies  Federal/State revenues: $100B (2003) to $130B (2010)  Toll revenue share from $5B to $6.5 to stay even  Added toll miles projected (2015): 4900 current plus 1440 added (600 HOT) = 30-40% increase suggests $7B-$10B (toll rates?)  With Interstate deregulation & more conversion: Current toll revenues X 3+ $15 = 10%+ of total F/W revenues

13. Transportation Finance Summit November 15-17, 2005 Future Scenario Issues (FHWA study)  Transportation Institutions with candid focus on mobility  Demonstration of priced network benefits  Full deregulation for toll applications  Institutional innovation – public and private TOLL ROAD TRENDS AND FUTURES

14. Transportation Finance Summit November 15-17, 2005 Program Futures TOLL ROAD TRENDS AND FUTURES

15. Transportation Finance Summit November 15-17, 2005 Finance Futures TOLL ROAD TRENDS AND FUTURES

16. Transportation Finance Summit November 15-17, 2005 Institutional Futures TOLL ROAD TRENDS AND FUTURES

17. Transportation Finance Summit November 15-17, 2005 Implications  1939: The Federal establishment decided to focus on “free” roads, not toll roads (based primarily on lack of traffic)  2006: Beyond “Business as Usual”: Mainstreaming of tolls and pricing?  A true paradigm shift: in finance/development & roles/relationships, public & private TOLL ROAD TRENDS AND FUTURES