91 Express Lanes Finally Out of Red

An increase in riders over the last six months has enabled the privately funded 91 Express Lanes to break even for the first time since the state’s first toll road opened three years ago, officials said Tuesday.

California Private Transportation Co., L.P., owner and operator of the 10-mile tollway along the Riverside Freeway, reported revenue of $10 million during the first six months, enough to cover operating and debt expenses.

The latest figures represent a milestone for the struggling system. Last year, investors had to raise an additional $6.6 million to close a budget deficit.

“Obviously, we’re very pleased with the turnaround. This is a significant accomplishment for a project of this type and magnitude,” General Manager Greg Hulsizer said. “This shows that this project has long-term financial and profit viability.”

According to company officials, the $10 million collected from January to June is just $4 million shy of the total revenue collected for all of 1997. The 1998 collections are $3 million more than the toll road took in for all of 1996.

Although the toll road was designed to ease congestion during the morning and afternoon commutes, motorists also are using the toll lanes more during non-peak hours, Hulsizer said.

“That’s the increased use that we’re talking about. Our customers tell us they like to use the [toll] lanes even when traffic is moving well on the freeway because of the comfort and security level that comes with using the toll road,” he added.

The 91 Express Lanes run between Orange and Riverside counties. Officials said that an average of 32,000 trips are taken on the toll road each weekday. The $130-million project, completed in December 1995, is the only privately financed tollway operating in California.

About 110,000 transponders have been sold to toll road users to date. The transponder--an electronic device that fits on a dashboard and debits tolls automatically--sells for $40 if purchased with a credit card and $50 if bought with cash or check. Cash- and check-using customers are also required to post a $35 security deposit for the transponder.

Last month, some Orange County Transportation Authority board members raised the possibility of purchasing the right to operate the tollway. Some officials believe the lanes could be better managed by a public agency.

Hulsizer said his company has not talked to the OCTA about purchasing the lanes.

“We’re happy with what we’re doing. We feel that the latest figures show that we are operating [the tollway] efficiently. . . . The new figure proves it,” Hulsizer said.

He said company officials have been approached by other suitors interested in buying the rights to operate the toll road, though he would not identify them.

“But nothing that has been discussed to date made any sense to us,” Hulsizer said.

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Traffic Grows

Customers made 8.6 million trips using the 91 Express Lanes last year, according to tollway officials.

Transponder Sales

1997

4th Quarter: 106,918

Vehicle Trips

For six-month periods ending:

June 1996: 2,320,000

Dec. 1996: 3,500,000

June 1997: 4,105,000

Dec. 1997: 4,515,000

Source: California Private Transportation CO., L.P.