Dallas’ LBJ Express Has Blazed Trails and Enhanced Mobility in North Texas

When the Texas Legislature authorized Public-Private Partnerships (P3s) – also known as Comprehensive Development Agreements (CDAs) – to fast-track critical infrastructure projects, it paved the way for transformational projects that would foster economic growth and reduce congestion. In a P3, the private-sector developer, rather than the state, assumes the financial burden and risk with the funding secured upfront through private equity, infrastructure loans, and bonds.

One of initial P3 projects to receive approval to advance in 2009 was the LBJ Express, a 16-mile project in north Dallas County along Interstate 635. Developed by LBJ Infrastructure Group – a consortium led by Cintra, a Ferrovial company, including partners Meridiam and APG Asset Management – the project officially opened months ahead of schedule on September 10, 2015. At the time the $2.6-billion LBJ Express was under construction, it was the largest P3 infrastructure project in the country.

The LBJ Express project was designed to address the meteoric growth in North Texas – and one of the region’s most-congested corridors – by reconstructing main lanes, building continuous frontage roads, and adding dynamically tolled lanes, known as TEXpress lanes or managed lanes.

But this wasn’t the first time that the LBJ Freeway blazed trails.

When the LBJ Freeway first officially opened in 1968, it marked a seismic moment in Dallas’ transportation history. Named in honor of President Lyndon B. Johnson, the corridor was designed to carry 180,000 vehicles per day, significantly improving traffic, opening up access within the region, and serving as the cornerstone for suburban development. (Today, the LBJ corridor carries over 250,000 vehicles daily.)

As the region grew, demand began to exceed capacity, precipitating the LBJ Corridor Study, which began in 1987 and continued throughout the 1990s. However, the public funds available to increase the capacity of the corridor fell far below the estimated costs.

The P3 approach, while still relatively new when construction on the LBJ Express began, allowed the project to advance more quickly; buoyed by upfront financing, the project reached completion within five years instead of 10 to 20 years with traditional construction. It also reduced the overall investment required by the Texas Department of Transportation (TxDOT); only 18 percent of the LBJ Express project was funded using taxpayer dollars.

“As groundbreaking as the original opening of the LBJ Freeway was in the late 1960s, the impact of the reconstructed highway corridor was equally, if not more, transformational for the city of Dallas and the North Texas region,” said Andrés Sacristán, CEO of project developer Cintra, a Ferrovial company. “The LBJ Express reflected innovation at every turn, from its financing to the construction methods, including the current managed lanes operation that offers safe, reliable transportation to support the North Texas region.”

Utilizing a private-sector developer also allowed for the sourcing of hundreds of local contractors, vendors and suppliers with the expertise and capacity to efficiently complete the work – whether relocating utilities, securing right-of-way, moving dirt, placing beams, building signage and toll gantries, or laying asphalt – at all points along the corridor simultaneously. The economic impact of construction alone was significant to the region, generating over 35,000 jobs and $6.8 billion in economic output.

The LBJ Express project showcased new design and technological innovations as well, including the implementation of a cantilevered design on the LBJ/635 managed lanes, some of which were constructed underground. This unique approach, which allowed for much-needed expansion within a tight geographic footprint, saved $1 billion in total construction costs.

The introduction of new technologies did not end with the opening: Technology still plays a crucial role in the project’s ongoing operations and maintenance efforts, which are directed and monitored 24/7 through a real-time traffic management center on the corridor.

Unique to the managed lane network, drivers have a choice as to whether to drive in the TEXpress lanes. Choice, trip reliability, and safety are all important considerations and underscore the role P3s play in enhancing mobility in the region, and the P3 model has proven successful. “Our true success here can be measured by the traffic congestion relief at the lowest possible cost to taxpayers, allowing Texans greater options for efficient, reliable and most importantly, safe transportation,” said Nicolas Rubio, Meridiam partner and CEO Americas.

As the developer/operator marks the 10^th anniversary of the reimagined highway corridor, the rest of the country is taking notice. The P3 model in Texas is gaining attention from states like Tennessee, North Carolina, Virginia, and Georgia, which are seeking to accelerate infrastructure projects while reducing public funding. The LBJ Express project demonstrates that expanding mobility, easing congestion, and fostering economic growth are achievable through public-private partnerships.