10 Years of Progress: How the TEXpress Lanes are Shaping the Future of Infrastructure and Growth

Rhea-AI Summary

Ferrovial celebrates the 10-year anniversary of the TEXpress Lanes in Dallas-Fort Worth, a successful public-private partnership (P3) project. The TEXpress Lanes network, including NTE, NTE 35W, and LBJ Express, has significantly improved traffic congestion in the area. Key achievements include:

• 74% of drivers report a positive experience on express lanes
• 65% of drivers spend under $20 per month on tolls
• $20.2 billion economic impact on the region
• 104,500 FTE jobs supported
• $5.9 billion in earned wages

Ferrovial CEO Ignacio Madridejos highlights the company's 20-year track record in delivering complex projects across the U.S., replicating the TEXpress model in North Carolina and Virginia. The company's integrated model and value-oriented approach have resulted in a 12% annual total shareholder return over the past decade.

Positive

• $20.2 billion economic impact on the Dallas-Fort Worth region
• 104,500 FTE jobs supported by the TEXpress Lanes project
• $5.9 billion in earned wages generated
• 74% of drivers report positive experience on express lanes
• 65% of drivers spend under $20 per month on tolls
• 12% annual total shareholder return over the past 10 years

Negative

• None.

Insights

Infrastructure Investment Analyst

The TEXpress Lanes project showcases the power of public-private partnerships (P3s) in infrastructure development. With a $20.2 billion economic impact and 104,500 jobs created, it's clear that this model can drive significant regional growth. The 74% positive driver experience and 65% of users spending under $20 monthly on tolls indicate strong user satisfaction and accessibility.

Ferrovial's success with TEXpress has implications for future infrastructure projects nationwide. Their integrated model, combining financing, design, construction and operation, offers a blueprint for tackling complex infrastructure challenges. The 12% annual total shareholder return over the past decade demonstrates the financial viability of this approach.

For investors, this project underscores Ferrovial's strong position in the infrastructure sector, particularly in P3s. The company's ability to replicate this model in other states suggests potential for continued growth and expansion in the U.S. market. However, investors should also consider the long-term nature of these projects and potential regulatory risks associated with P3s in different jurisdictions.

Urban Development Specialist

The TEXpress Lanes project exemplifies how targeted infrastructure investment can transform urban mobility and stimulate economic growth. By addressing congestion in one of the most traffic-heavy metros in the U.S., this initiative has likely improved productivity and quality of life for Dallas-Fort Worth residents.

The project's success in creating jobs and generating economic activity ($5.9 billion in earned wages) demonstrates the multiplier effect of large-scale infrastructure investments. This could serve as a model for other rapidly growing urban areas facing similar challenges.

From an urban planning perspective, the TEXpress Lanes showcase how innovative financing and operational models can help cities adapt to population growth without overburdening public budgets. The positive user experience suggests that this approach can deliver high-quality infrastructure that meets community needs.

For long-term investors, Ferrovial's involvement in such transformative urban projects positions it well to benefit from ongoing urbanization trends and the increasing need for smart infrastructure solutions in growing metropolitan areas worldwide.

An open letter from Ferrovial CEO Ignacio Madridejos

AUSTIN, Texas, Oct. 15, 2024 /PRNewswire/ -- As Ferrovial celebrates the 10-year anniversary of the TEXpress Lanes in Dallas-Fort Worth, we've been taking some time to reflect on the project, specifically, the impact of express lanes, public-private partnerships, and Ferrovial's integrated model on the rapidly growing city.

Texas partnered with the Ferrovial-led consortium to finance, design, build and operate the North Tarrant Express (NTE), which officially opened in 2014. The success of the project led to the development of the TEXpress Lanes network–NTE, NTE 35W, and the LBJ Express. The TEXpress Lanes have majorly impacted what used to be the highway ranked no. 14 on the list of most congested metros in the United States.

Public-private partnerships (P3s) like TEXpress allow local governments to have access to the technical expertise, innovation, and experience that is not typically available within the public sector. P3s also bring in private capital needed to fund these large-scale projects to expand the capacity for growth. By creating local jobs, supporting local subcontractors, and stimulating further economic activity, these infrastructures serve as economic engines for communities.

TEXpress has effectively improved the highway experience for drivers across the region with 74% of drivers on the express lanes reporting a positive experience and 65% of drivers on these lanes managing to spend under $20 per month on tolls. TEXpress has had an economic impact of $20.2 billion on the region, with 104,500 FTE jobs supported, and $5.9 billion in earned wages.

I'm proud to say that Ferrovial has a 20-year track record of successfully delivering complex projects across the U.S., replicating the TEXpress model in both North Carolina and Virginia.

Our distinct business model allows us to tackle the most complex projects in a way that creates the most value. We have a strong understanding of project risks and how to mitigate them. We have achieved a 12% annual total shareholder return in the last 10 years as a result of our value-oriented investment process, financial discipline, and best-in class capabilities.

We look forward to continuing our work with leaders who have a vision for the future of infrastructure, helping their communities flourish as their populations grow.

Ignacio Madridejos
Ferrovial CEO

About Ferrovial

Ferrovial (Nasdaq: FER) is a leading global infrastructure company transforming highways, airports, and energy infrastructure across North America and around the world. With approximately $27 billion in market capitalization, Ferrovial is North America's largest listed road and airport infrastructure company. The company has operated in North America for more than 20 years building and managing toll roads in Ontario, Texas, Virginia, and North Carolina, and is currently developing the New Terminal One at JFK International Airport in New York. Ferrovial is present in more than 15 countries, with global headquarters in Amsterdam and U.S. headquarters in Austin, Texas. For more information, visit Ferrovial on LinkedIn and X @ferrovial, and at ferrovial.com

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SOURCE Ferrovial

FAQ

What is the economic impact of the TEXpress Lanes project in Dallas-Fort Worth?

The TEXpress Lanes project has had an economic impact of $20.2 billion on the Dallas-Fort Worth region, supporting 104,500 FTE jobs and generating $5.9 billion in earned wages.

How has the TEXpress Lanes project improved traffic congestion in Dallas-Fort Worth?

The TEXpress Lanes have significantly improved traffic congestion in Dallas-Fort Worth, with 74% of drivers reporting a positive experience on the express lanes and 65% spending under $20 per month on tolls.

What is Ferrovial's (FER) track record in delivering infrastructure projects in the U.S.?

Ferrovial has a 20-year track record of successfully delivering complex projects across the U.S., replicating the TEXpress model in both North Carolina and Virginia.

What has been Ferrovial's (FER) shareholder return over the past decade?

Ferrovial has achieved a 12% annual total shareholder return over the past 10 years, attributed to its value-oriented investment process, financial discipline, and best-in-class capabilities.