Parsons Selected as Lead Engineer to Add Express Toll Lanes to State Route 400 in Georgia

Rhea-AI Summary

Parsons (NYSE: PSN) has been selected as the lead engineer for the State Route 400 (SR 400) Express Lanes Major Mobility Investment Program (MMIP) Project in Georgia. This $4.6 billion project will add new express lanes along a 16-mile section of SR 400 from the North Springs MARTA Station to north of McFarland Parkway. The project, led by SR 400 Peach Partners, includes a 50-year concessions period and will utilize electronic tolled express lanes, advanced traffic management systems, and a digital twin asset management system.

The initiative aims to improve mobility and reduce congestion in northern Atlanta, with projections of 144,000 more residents and 114,000 more jobs by 2050. The project also incorporates a $100 million state bond investment for MARTA's Bus Rapid Transit line, enhancing public transportation connectivity. Parsons brings extensive experience in transportation infrastructure, having worked on over 10,000 miles of roadways and 4,500 bridges globally.

Positive

• Secured a major contract as lead engineer for a $4.6 billion infrastructure project
• Project includes a 50-year concessions period, providing long-term revenue potential
• Opportunity to showcase expertise in advanced traffic management and digital twin systems
• Potential for future contracts in the growing Atlanta metro area

Negative

• None.

Insights

Transportation Infrastructure Expert

This $4.6B project represents a significant investment in Georgia's transportation infrastructure, addressing critical congestion issues along SR 400. The 16-mile express lane addition is poised to have a substantial impact on traffic flow and regional economic development. The inclusion of dynamic toll systems and Cellular Vehicle-to-Everything (C-V2X) technology showcases a forward-thinking approach to traffic management.

The 50-year concessions period indicates a long-term commitment to maintaining and operating these lanes, which could provide stable revenue streams for the private partners. The integration with MARTA's Bus Rapid Transit line further enhances the project's value proposition, potentially increasing public transit ridership and reducing overall congestion.

However, the success of this P3 model will depend on accurate traffic projections and effective toll pricing strategies to ensure financial viability over the concession period. The project's scale and complexity also present execution risks that will require careful management.

Financial Analyst

For Parsons (NYSE: PSN), securing the lead engineer role in this $4.6 billion project is a significant win. While the exact contract value for Parsons isn't disclosed, projects of this magnitude typically represent substantial revenue opportunities over multiple years. This aligns with Parsons' strategy to expand its infrastructure portfolio and could positively impact its backlog and future earnings.

The project's 50-year concession period suggests a steady, long-term revenue stream for the P3 consortium. For Parsons, this could translate into ongoing consulting and maintenance contracts beyond the initial construction phase. The inclusion of advanced technologies like C-V2X and digital twin asset management systems may also open doors for Parsons to showcase and expand its technological capabilities in future projects.

Investors should monitor project execution and any potential cost overruns, as these could impact Parsons' profitability and reputation in the infrastructure sector.

Urban Planning Specialist

The SR 400 Express Lanes project is a strategic response to Atlanta's rapid growth, with projections of 144,000 more residents and 114,000 more jobs by 2050 in the corridor. This forward-looking approach is commendable, addressing future needs rather than just current congestion issues. The integration of express lanes with MARTA's Bus Rapid Transit (BRT) line is particularly noteworthy, as it promotes a multi-modal transportation solution.

The $100 million state bond investment in the BRT components demonstrates a commitment to public transit, which could help mitigate the induced demand often associated with highway expansions. The project's focus on reducing emissions through improved traffic flow aligns with sustainability goals, though the long-term environmental impact will depend on usage patterns and potential shifts to public transit.

Urban planners should closely monitor how this project influences development patterns along the SR 400 corridor, as it could potentially accelerate suburban sprawl if not managed carefully with complementary land-use policies.

CHANTILLY, Va., Aug. 27, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the Georgia Department of Transportation (GDOT) and the Georgia State Road and Tollway Authority (SRTA) have selected a team that includes the company as lead engineer for the State Route 400 (SR 400) Express Lanes Major Mobility Investment Program (MMIP) Project. The project is led by a Public Private Partnership (P3) awarded to SR 400 Peach Partners consisting of Acciona Concesiones, ACS Infrastructure, and Meridiam as the lead operations, maintenance, and toll operations providers. Dragados and Acconia Construction will serve as the lead construction contractors, and Indra USA will serve as the toll systems integration contractor. Parsons will serve as the lead engineer for the construction contractors.

This $4.6B project will add new express lanes in both directions along an approximately 16-mile section of SR 400 from the North Springs MARTA Station in Fulton County to approximately 1 mile north of McFarland Parkway in Forsyth County. The team will utilize electronic tolled express lanes with a 50-year concessions period, state-of-the-art traffic and incident management systems, and a digital twin asset management system. Further growth is forecasted for the corridor, with 144,000 more residents and 114,000 more jobs projected by 2050. Dynamic toll systems will improve traffic flow, reduce congestion and polluting emissions. The project will install Cellular Vehicle-to-Everything roadside technologies that will allow for Connected and Automated Vehicle supervision and orchestration.

“Parsons is proud to be a member of SR 400 Peach Partners, the team selected to partner with GDOT and SRTA on a significant roadway transportation project that will improve mobility and reduce congestion in the northern Atlanta metro area,” said Mark Fialkowski, president of Infrastructure North America for Parsons. “As leaders in design-build, our experts are helping deliver a better world through innovation in design and project delivery.”

The project also includes a $100M state bond investment for major components of MARTA’s Bus Rapid Transit (BRT) line, which will utilize the Express Lanes. The BRT line will begin at the North Springs MARTA Station and extend northward to the Windward Parkway MARTA Park and Ride, providing a seamless connection to MARTA’s Red Line train.

Parsons has decades of experience designing, delivering, and protecting the infrastructure that connects our communities around the world, including roads and highways; bridges; passenger and freight rail; public transit; airports; and ports and waterways. Our experience includes more than 10,000 miles of roadways, 4,500 bridges, and more than 50 advanced traffic management system deployments that help cities and states improve safety and travel efficiency while also reducing emissions and energy costs to enhance the quality of life in the communities we serve.

To learn more about Parsons’ transportation expertise, visit https://www.parsons.com/transportation/.

About Parsons
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.

Media Contact:
Lexus K. White
+1 470.510.6690
Lexus.White@parsons.com

Investor Relations Contact:
Dave Spille
+ 1 703.775.6191
Dave.Spille@parsons.us

FAQ

What is the value of the SR 400 Express Lanes Project that Parsons (PSN) is involved in?

The SR 400 Express Lanes Project that Parsons (NYSE: PSN) is involved in as lead engineer is valued at $4.6 billion.

How long is the concessions period for the SR 400 Express Lanes Project involving Parsons (PSN)?

The SR 400 Express Lanes Project, which Parsons (NYSE: PSN) is part of, has a 50-year concessions period.

What is the length of the new express lanes being added to SR 400 in the project involving Parsons (PSN)?

The project involving Parsons (NYSE: PSN) will add new express lanes along an approximately 16-mile section of SR 400 in Georgia.

How much is being invested in MARTA's Bus Rapid Transit line as part of the SR 400 project with Parsons (PSN)?

As part of the SR 400 project that Parsons (NYSE: PSN) is involved in, there is a $100 million state bond investment for major components of MARTA's Bus Rapid Transit line.