A Trans-Texas Corridor Primer

Plan Moves Forward with Consortium Selection

By Eileen Schwartz

The nation's top highway official, Mary E. Peters, recently joined Gov. Rick Perry and Ric Williamson, chairman of the Texas Transportation Commission, in Austin in announcing an agreement between the state and a private consortium of firms known as Cintra-Zachry. The agreement represents a major milestone in meeting the state's goals for the future of transportation in Texas and formalizes a partnership to develop TTC-35, the first element of the Trans-Texas Corridor from Oklahoma to Mexico.

David Zachry, Rafael del Pino and Michael Behrens sign the comprehensive development agreement between Cintra-Zachry and TxDOT.

Standing left to right: Ric Williamson, chairman of the Texas Transportation Commission, Mary Peters, Administrator of Federal Highways Administration, Texas Governor Rick Perry and Robert Nichols, commissioner of the Texas Transportation Commission.

Sitting left to right: David Zachry, CEO of Zachry Construction, Rafael del Pino, executive chairman of Grupo Ferrovial, Cintra’s parent company and Michael Behrens, executive director of the Texas Department of Transportation.

A Comprehensive Development Agreement between Cintra-Zachry and the Texas Department of Transportation was signed on March 11 that authorizes a master development and financial plan to be developed for the Oklahoma to Mexico/Gulf Coast element of the Trans-Texas Corridor known as TTC-35.

The master plan will include road, rail and utility projects along with funding alternatives for the entire 600-mi. length of TTC-35.

Federal Highway Administrator Mary E. Peters focused national attention on the project when she attended the contract signing between TxDOT and a private consortium known as Cintra-Zachry in Austin.

"Texas is a national example for all states and a leader in unleashing the resources, innovation and efficiency of the private sector to bring transportation improvements to the public faster and at less cost to American taxpayers," Peters said. "Public-private partnerships in transportation hold great promise in cutting the congestion that's choking our economy and keeping families apart from one another."

So what exactly is a Comprehensive Development Agreement? Where will the Trans-Texas Corridor be built and when? Texas Construction spoke with representatives of TxDOT and Cintra-Zachry to get some clarification.

The Trans-Texas Corridor plan outlines a new vision for transportation in Texas. Rendering courtesty the Texas Department of Transportation.

What is the Trans-Texas Corridor?

The Trans-Texas Corridor is a proposed multiuse, statewide network of transportation routes in Texas that will incorporate existing and new highways, railways and utility right-of-ways. The long-range plan calls for building a 1,200-ft.-wide statewide corridor with separate passenger and freight roads, commuter and freight rail lines and dedicated zones for water, electric, telecommunications and other utility lines.

With the master plan, Cintra-Zachry and TxDOT are taking the vision that was the Trans-Texas Corridor and making it a reality.

Cintra-Zachry's proposal is to help build TTC-35, the first stretch of the Trans-Texas Corridor from Oklahoma to Mexico.

A separate environmental study is under way for a second stretch that extends from northeast Texas to the Mexico border. This route incorporates the federally planned Interstate 69 corridor.

When the decision was announced by the Texas Transportation Commission in December to accept Cintra-Zachry's initial proposal, Gov. Rick Perry released the following statement:

"[The] action by the Texas Transportation Commission will go down as one of the most significant days in the history of transportation. Three years ago next month, I presented the most visionary transportation plans this state has ever seen. Not only will the proposal presented by Cintra move the Trans-Texas Corridor from concept to reality, it likely will forever change the way we build roads in Texas."

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What is Cintra-Zachry and what is its role?

Cintra-Zachry represents a coalition of Texas, national and international transportation experts with decades of experience in constructing, operating and managing major public and private roadway systems.

The team includes Ferrovial-Agroman, Earth Tech Inc.; PriceWaterhouseCooper LLP; JP Morgan Securities Inc.; Pate Engineers Inc.; Rodriguez Transportation Group; and Bracewell and Patterson.

Cintra is headquartered in Madrid, Spain, and is one of the world's largest private-sector developers of transport infrastructure.

Zachry is headquartered in San Antonio. The company provides a variety of services including construction, project development and construction management.

Cintra-Zachry is in the beginning stages of developing a master plan and building the first section of the corridor.

How will the TTC-35 be funded?

The Cintra-Zachry contract includes an investment of $6 billion to fully design, construct and operate a four-lane, 316-mi. toll road between Dallas and SanAntonio as the initial segment of TTC-35.

The contract also includes a payment to the state of $1.2 billion for operating the initial segment as a toll facility, which the state may use to fund improvements or high-speed and commuter rail projects along the Interstate 35 corridor.

The agreement authorizes Cintra-Zachry to begin the master development and financial plan. This plan will guide the development of a new system of roads, rail and utilities. The cost of the planning effort is estimated at $3.5 million and will take approximately 12 to 15 months to complete.

Cintra-Zachry's package also includes funding options for a route connecting southeast San Antonio to State Highway 130, a $1.5 billion project that is currently under way and is the largest single highway project in the state's history. TxDOT is partnering on the new tollway with a private consortium known as Lone Star Infrastructure to build the 49-mi., Austin to San Antonio corridor.

While SH 130 is not officially part of the TTC-35, it could become an element of it or stand alone. There have been discussions in both arenas. Indications from a variety of sources are that SH 130 is the first leg of the Trans-Texas Corridor.

But TxDOT cautions that it will not know that until the environmental work for TTC-35 has been completed.

What is a Comprehensive Development Agreement and how does it assist with project delivery on TTC-35?

A Comprehensive Development Agreement, which was authorized by the Texas Legislature in 2001, is an umbrella agreement that includes several project delivery options TxDOT may use to develop individual segments of TTC-35.

These options include traditional design-bid-build methods, design-build, and design-build-operate-maintain and concessions. TxDOT may choose to develop these segments with Cintra-Zachry or other groups. The term of the CDA can be up to 50 years.

Cintra-Zachry proposes developing the first phase of the corridor through a CDA. The method of project delivery not only leverages the strength of the Cintra-Zachry team, it allows the final project to be delivered with enhanced speed.

The CDA authorizes a master development and financial plan to be developed for the TTC-35 Oklahoma to Mexico/Gulf Coast element. The master plan will include road, rail and utility projects along with funding alternatives for the entire 600-mi.stretch of TTC-35. (To read more about CDA legislation and the TTC see this month's legal column.)

Where will the TTC-35 routes be?

The first phase of Cintra's proposal calls for developing $6 billion in new roadways roughly paralleling IH-35 by 2010. This includes building 316 mi. of new four-lane divided highway from Dallas to San Antonio.

According to the proposal, pending environmental clearance and the public-involvement process, construction could begin immediately after right-of-way acquisition.

Near-term projects proposed between 2005 and 2010 include a Dallas to San Antonio toll road and Union Pacific Railroad relocation in Austin.

Midterm projects between 2010 and 2025 include adding toll lanes on Interstate 10 from Seguin to southeast San Antonio and adding car-only toll lanes to SH 130 from Georgetown to Austin.

Long-term projects after 2025 include a Dallas to Austin freight rail, Dallas to Austin high-speed rail, Hillsboro to Fort Worth toll road and San Antonio to Rio Grande Valley toll road and rail.

When will construction begin?

The final alignment of TTC-35 will be determined only after public input and completion of rigorous federal environmental impact studies. TxDOT and the Federal Highway Administration are responsible for these studies, which will determine final alignment.

The studies are currently under way, with the first phase expected to be completed by spring 2006. No final alignment for TTC-35 has been selected. Additional environmental studies are required to determine the final route alignment before construction can begin.