Virginia selects Ferrovial-led consortium for €1-billion route 460 highway contract

route 460

The State of Virginia has chosen the consortium US 460 Mobility Partners, comprised of Ferrovial Agroman and American Infrastructure, to design, build and finance the new 55 miles-long (around 88.5 kilometres) US Route 460 highway.

The project, worth 1.396 billion dollars (approximately 1.079 billion euro), is a four-lane toll road between the cities of Petersburg and Suffolk, in Southeast Virginia. It will run in parallel with the existing Route 460 and connect with seven other roads.

In 2000, the State designated the new Route 460 highway as a top transportation priority in view of the notable benefits the corridor would bring to the region. These include improving the connection with the Port of Virginia from inland Virginia and increasing freight traffic.

Financial completion of the project is expected to be reached within months, Ferrovial explained in a press release. The design and right of way work will be conducted in 2013 and construction will start in 2014, to be completed in 2018. The toll collection will be operated by a non-profit corporation.

“This contract will enable us to expand our presence in the transport infrastructure construction market in the US, which has major investment plans. Our capacity to develop complex projects, such as the LBJ and NTE highways in Texas, is positioning us in the US as a solid benchmark,” said Alejandro de la Joya, CEO of Ferrovial Agroman.

The Ferrovial-led consortium, US 460 Mobility Partners, was chosen following a selection process that included more than two years of reviews and evaluations by the State authorities. “Though it is legally a public-private partnership, US 460 Mobility Partners will not contribute money directly to the project’s cost,” the Spanish partner said, “but will be responsible for arranging the financing through bonds.”

The new infrastructure will be a key driver of the region’s economic development, state authorities noted. Virginia authorities estimate that the project will have a positive economic impact on the region of more than 7.3 billion dollars (around 5.64 billion euro) by 2020.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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