The Link: LINK

The Story: Last year VDOT received three plans to construct the new highway 460 running from Hampton Roads to Petersburg, south of Richmond.  When those plans were received they contained provisions for massive amounts of public money to make them a reality.  VDOT is now asking those bidders to revisit their proposals to potentially reduce the amount of public money required.  While making 460 a toll road was a possibility in the first round of proposals, it will almost certainly be a component of the revised bids.

The Analysis: Few realize just how vital highway 460 is to the economy of Virginia.  In addition to being an additional hurricane evacuation route, it is a critical link in the global supply chain that comes through the Port of Virginia.  While Interstate 64 might seem like the logical way for containerized goods to leave the area, anyone who has attempted to traverse the bridge-tunnel at 3pm knows it can be a slow process.  460 offers a convenient way for trucks to leave the area without having to go through that bottleneck.  Before you start complaining, yes, 664 is better but still not great.

America’s global supply chain is a very low margin business where every penny matters.  VDOT needs to be very careful that they don’t price 460 out of the market.  Any additional cost associated with getting goods through the Port of Virginia is a competitive disadvantage.  Planning 460 as a toll road could have the unintended effect of pushing more trucks through the tunnel or pushing port business further south to Charleston or Savannah.

Highway 460, if done correctly, has the potential to be a significant relief valve for Hampton Roads traffic.  If tolls are the answer, I would hope that VDOT would at least make some considerations for fast toll lanes and/or a toll exemption for trucks.