Privatization Backlash

Fight disinformation. Get a daily recap of the facts that matter. Sign up for the free Mother Jones newsletter.


At the direction of New Jersey Governor Jon Corzine, the state has been studying the possibility of privatizing various public assets to pay down its mounting debt for close to a year. Among the assets potentially on the table was the state’s 148-mile turnpike, a long-term lease on which, some analysts believe, could fetch more than $20 billion. Back in January, Jim Ridgeway and I explored the growing toll road privatization trend, and found it, in many cases, to be a dicey proposition that was being pushed by investment banks, particularly Goldman Sachs, where, incidentally, Corzine once served as chairman.

Under fire from New Jersey residents and state lawmakers—when I drove the Turnpike a couple weeks ago I saw a billboard blasting the privatization option—Corzine said yesterday that he won’t seek to privatize the state’s roads. “New Jersey’s roadways will not be sold; and they will not be leased to a for-profit or foreign operator,” he said in a statement.

Coincidentally, or maybe not, Corzine made this statement on the same day that the Spanish toll road operator Cintra (which, with its partner, Macquarie Infrastructure Group, currently holds leases on the Chicago Skyway and Indiana Toll Road), lost its bid to overhaul and operate a highway in Texas to a public entity. As Reuters notes, this development could “stall road privatization plans in other states.” This could prove seriously problematic for a number of companies, including Cintra and Macquarie, who have positioned themselves to take advantage of toll road opportunities in North America. Nor does this bode well for the investment banks, including Goldman, that have raised multibillion dollar infrastructure investment funds on the assumption that a private highway boom was imminent.

HERE ARE THE FACTS:

Our fall fundraising drive is off to a rough start, and we very much need to raise $250,000 in the next couple of weeks. If you value the journalism you get from Mother Jones, please help us do it with a donation today.

As we wrote over the summer, traffic has been down at Mother Jones and a lot of sites with many people thinking news is less important now that Donald Trump is no longer president. But if you're reading this, you're not one of those people, and we're hoping we can rally support from folks like you who really get why our reporting matters right now. And that's how it's always worked: For 45 years now, a relatively small group of readers (compared to everyone we reach) who pitch in from time to time has allowed Mother Jones to do the type of journalism the moment demands and keep it free for everyone else.

Please pitch in with a donation during our fall fundraising drive if you can. We can't afford to come up short, and there's still a long way to go by November 5.

payment methods

ONE MORE QUICK THING:

Our fall fundraising drive is off to a rough start, and we very much need to raise $250,000 in the next couple of weeks. If you value the journalism you get from Mother Jones, please help us do it with a donation today.

As we wrote over the summer, traffic has been down at Mother Jones and a lot of sites with many people thinking news is less important now that Donald Trump is no longer president. But if you're reading this, you're not one of those people, and we're hoping we can rally support from folks like you who really get why our reporting matters right now. And that's how it's always worked: For 45 years now, a relatively small group of readers (compared to everyone we reach) who pitch in from time to time has allowed Mother Jones to do the type of journalism the moment demands and keep it free for everyone else.

Please pitch in with a donation during our fall fundraising drive if you can. We can't afford to come up short, and there's still a long way to go by November 5.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate