1st Half 2008
Shed no tears, please, over the final demise of a plan to transform Interstate 81 into a massive, eight-lane scar on Virginia’s landscape.
The public-private widening plan had been limping along in scaled-back form since late 2006. State transportation officials pulled the plug Wednesday.
This provides an opportunity to start again and pursue a better solution to the interstate’s crowding and safety problems. Such a solution will almost certainly involve a blend of road improvements and increased utilization of freight rail. State leaders need to explore and fund this alternative.
The state started kicking around plans to improve the interstate several years ago. The highway is crowded and carries a far greater load of tractor-trailers than it was designed to handle – about 5 million a year. The result is a white-knuckled ride in which cars must jockey for position among the big rigs.
The problem is obvious, but an agreeable solution has been elusive.
In 2004, the Department of Transportation entered into an agreement with STAR Solutions – a road-building consortium that included Kellogg, Brown & Root (now KBR Inc.) – to use the highway as a pilot project to test the concept of adding separate truck lanes to existing interstates.
The STAR proposal involved spending $13 billion to widen the road to eight lanes from Bristol to Winchester. Tolls and federal highway pork were expected to pay for most of it.
Opposition was swift and broad. Opponents included environmental groups, historic preservationists, rail proponents, local governments and private citizens.
The project might have moved forward in spite of the opposition, but there were funding problems, as well. The bulk of the federal money didn’t materialize and the state’s highway repair and construction budget remains perpetually underfunded.
The final straw came when KBR, formerly a subsidiary of Halliburton until KBR’s recent restructuring and public offering, pulled out of the STAR consortium in December. KBR officials blamed a corporate restructuring, but the nature of KBR’s no-bid contract to build truck climbing lanes was under scrutiny.
With KBR’s departure, the STAR plan is dead. Transportation officials shouldn’t look to resurrect it, but they must move forward with more than $700 million in urgently needed safety improvements. The state first identified these problems a decade ago.
State and federal funding is available for some of this work, but it isn’t clear that it will be enough to make all the upgrades, given the increase in construction material costs in the past year. If more funds are needed, state lawmakers should provide them. I-81 improvements shouldn’t be slighted because of the legislature’s focus on road work in Northern Virginia and its aversion to a gas tax increase to pay for construction and repairs.
Virginia needs a predictable and dedicated source of income to keep its roads in acceptable condition.
Meanwhile, as the state prepares to fix obvious safety flaws, it also must work with Norfolk Southern, which is proposing rail corridor upgrades that it says could divert 1 million trucks a year from I-81 – although that total is for the length of the interstate, not just the Virginia portion.
Given rising fuel costs and environmental concerns about greenhouse gas emissions from motor vehicles, it makes sense to pursue a rail alternative. It might even make sense for Virginia to invest in this project with Norfolk Southern, although further investigation is needed to determine if such a move would serve the public interest.
The end of the STAR Solutions project should not be the end of work on this vital highway.
News-Leader, Staunton
Local representatives content with halt of 1-81 widening plan
| Local representatives aren't mourning the official death of a proposal to widen Interstate 81 from four to eight lanes. The Virginia Department of Transportation announced Wednesday that it will not continue negotiations with Kellogg Brown and Root, the lead contractor in the STAR Solutions consortium, a group of corporations and private contractors hired in 2004 to solve congestion problems on the interstate. STAR Solutions' original proposal would have added toll stations to fund a four-lane expansion, a plan that was controversial among members of the trucking industry and Valley legislators. "We've been fighting this battle for six years," said Del. Chris Saxman, R-Staunton. "I'm very pleased that it's finally over and we can move on to some realistic solutions for I-81." Saxman said he has opposed the plan since its early stages in 2002. All three local delegates said the plan would have hurt the Valley financially. The project would have caused freight costs to rise for all local industries, potentially costing thousands of jobs, Saxman said. Major manufacturers would go elsewhere, and it would be difficult to attract new companies, he said. The toll booths would have had a negative impact on local trucking companies and Valley residents, said Del. Steve Landes. There would be toll booths at the I-64 interchanges in both Staunton and Lexington, he said. "People in our area would be getting hit even more so," he said. The plan did not guarantee that trucks would be able to get off at every exit, which would have caused businesses at the inaccessible exits to suffer, said Del. Ben Cline, R-Lexington. The delegates also agreed that the proposal would have damaged the Valley's scenic beauty. "It would have destroyed thousands of acres of open space and paved over most of the median along 81," Cline said. The state legislature and VDOT evolved past the original STAR Solutions proposal some time ago, but was still considering contracting with the consortium for some smaller improvement projects, said state Sen. Emmett Hanger, R-Mount Solon. The projects now will be competitively bid, he said. In a letter sent to the VDOT in December, Kellogg Brown and Root said it would no longer serve as the lead contractor for the consortium, according to a VDOT press release. VDOT will move forward with proposals to add truck-climbing lanes in its Staunton and Salem districts, the release states. The transportation department will solicit bids from contractors for a project in its Staunton District starting Tuesday. Landes said he supports widening I-81 to three lanes on each side. "I think it would be less invasive and I think it would also deal with the growth along the interstate," he said. There needs to be at least one additional lane throughout the length of I-81, Hanger said. The state legislature is working on projects to accomplish this goal, he said. Hanger said the top priorities will be adding truck-climbing lanes and safety alignments in critical areas such as the U.S. 33 cloverleaf interchange. Though he is not supportive of building a new rail line up the I-81 corridor, Hanger said he favors using smaller improvements to rail infrastructure to move some of the freight off the interstate. Saxman, Landes and Cline also said they support finding rail solutions. "That's the long-term solution," Cline said. "We need to provide incentives for companies to ship more freight by rail." |
Daily News Record, Harrisonburg
Negotiations For I-81 Improvements End Planning To Better Highway Continues |
| By Kate Prahlad |
HARRISONBURG - Part of a $13 billion project to address the long-term needs of Interstate 81 is dead, but spot improvements for the aging highway are still part of the Virginia Department of Transportation' VDOT announced that it ended a four-year negotiation process with KBR Inc. on Wednesday, after the company requested to withdraw from the project, department spokesman Jeff Caldwell said. "There are still needs out there, and we'll still pursue development projects," he said. "But we're not going to talk to that particular firm about it anymore." The Negotiations In 2004, VDOT began negotiations with STAR Solutions, a consortium of transportation- KBR has since separated from Halliburton, its parent company and a STAR Solutions partner, to become a publicly traded company, according to a VDOT press release. The company cited "a need to manage its business profile very carefully" for its request to withdraw, the press release said. Because negotiations are separate from engineering studies, VDOT continues with evaluations as to "what the needs truly are and what makes sense" for the road, Caldwell said. Improvements Still Slated Caldwell said that VDOT still has "about $730 million lined up for about 80 projects along the I-81 corridor" in its current plan, which runs through 2013. KBR will not be a part of those improvements since negotiations ended. Preliminary planning for truck-climbing lanes in the Staunton area also will continue as early as next week, he said. Transportation Commissioner David Ekern has "determined that these recommendations are in the public's interest because they allow for .... improvement to I-81 to be completed in a timely manner," according to the release. Dead, But Not Forgotten A local group that opposes the road-widening said Valley residents should be aware that the project did not die with the negotiations. Kim Sandum, executive director of the Community Alliance for Preservation, said the environmental documents needed to proceed with the large-scale widening are still being filed. In December, the Shenandoah Valley Network, a conservation group of which the alliance is a member, filed a lawsuit against the state. The groups said the VDOT road-widening study contained gaps and flaws, yet the planning process continued. "It's true that spot improvements are moving ahead, but it's also true that the large widening proposal is still moving," Sandum said. "People need to understand that even with this new announcement that the widening is not dead." Contact Kate Prahlad at 574-6277 or kprahlad@dnronline. |
Delegate Ben Cline
Delegate Ben Cline, (R-24), made the following comment Friday (Jan. 18, 2008) regarding the decision of the Commonwealth Transportation Board (CTB) to end discussions with STAR Solutions on its proposal to widen I-81.
Richmond Times Dispatch
Interstate 81 project falls through
Company withdraws from toll-based venture to fix road
Thursday, Jan 17, 2008 - 12:09 AM
By PETER BACQUE
TIMES-DISPATCH STAFF WRITER
The joint public-private project to widen Interstate 81 is dead.
KBR Inc. has withdrawn from the multibillion-dollar I-81 project, and state Transportation Commissioner David S. Ekern has ordered VDOT to end its involvement in the toll-based effort to improve the highway corridor.
The collapse of the once $13 billion proposal leaves the state without the means for a complete fix for the aging, overburdened road, the Main Street of western Virginia, state officials said.
However, the state has set aside $730 million over the next six years for 87 spot-improvement projects on the 325-mile highway.
And Ekern yesterday directed VDOT to go ahead with two truck-climbing lane projects -- one in Rockbridge County and one in Montgomery County -- to ease the impact of tractor-trailers on I-81 traffic.
"This change does not slow down the planned safety improvements on I-81," the commissioner said in a statement, "it will just change the method through which we deliver these projects."
That work, which will be awarded by conventional bidding, will cost an estimated $146 million.
Formerly a subsidiary of Halliburton known as Kellogg Brown & Root, KBR indicated that its Star Solutions I-81 project no longer fit the company's business.
Last year, KBR separated from Halliburton and became a publicly traded firm, KBR's Government and Infrastructure unit President Bruce A. Stanski wrote to VDOT on Dec. 18.
"KBR has an obligation to its shareholders to manage its business profile very carefully," Stanski said in telling the highway agency the construction giant was withdrawing from the I-81 project.
According to state officials, after four years of trying, VDOT and KBR simply could not reach a mutually satisfactory deal.
"We followed the [state's public-private venture] process," said Malcolm T. Kerley, the Virginia Department of Transportation's chief engineer, "and it didn't work out."
Traffic on I-81 has tripled in the past two decades, VDOT says, reaching nearly 70,000 vehicles a day in Roanoke County, which has the highest traffic volume on the highway. On some parts of I-81, truck traffic nearly equals car traffic.
"We don't have right now a financial plan to make the improvements that really are needed to make 81 work and be safe," said James A. Davis of Winchester, a member of the Commonwealth Transportation Board.
Opponents of the much-criticized Star Solutions plan to add separated, toll-financed truck lanes to I-81 were pleased to see the end of the deal but worried the huge project still has life.
"Only the separated, toll truck-lane project is dead," said Megan Gallagher with the Shenandoah Valley Network. "We're still battling a massive widening that's much too big, costly and destructive."
"KBR's plan is dead," said Stewart Schwartz with the Coalition for Smarter Growth, "but not VDOT's."
Bristol Herald Courier
Lack of funding halts I-81 expansion in Virginia
Thursday, Jan 17, 2008 - 02:00 AMÂ
BY BRENT CARNEY
BRISTOL, Va. – Plans to expand Interstate 81 have hit the skids.
A large-scale development project for the interstate is dead after Virginia lawmakers failed to find money for the project, Virginia Department of Transportation officials said.
The announcement to halt the project comes on the heels of news that the principal business in a group selected for the job informed VDOT it did not plan to move forward with development plans.
VDOT ended its relationship with Kellogg, Brown and Root on Tuesday after the company alerted the state in December that it did not wish to continue to be a part of the I-81 development plan.
KBR officials confirmed their decision to withdraw from the project.
"The terms and conditions offered in the VDOT interim agreement for the development of certain I-81 corridor safety and operational improvements were such that KBR respectfully declined to participate in this opportunity as currently structured," Heather L. Browne, director of Corporate Communications, said in an e-mailed statement.
KBR was a part of Star Solutions, a consortium of seven companies whose concept for expanding I-81 was chosen by the state in 2004.
Star’s original proposal called for large-scale expansion, including the construction of additional lanes throughout the commonwealth where traffic is expected to double during the next 30 years.
However, the inability to find resources to pay for the project kept plans grounded, VDOT officials said.
In 2006, VDOT announced plans to scale back the project and began reworking plans with KBR.
"There’s nothing [planned] on the large scale," Fred Altizer, VDOT’s head of the I-81 project said. "A lot of people believe we’re going to do something on 81, but until we find the funding, it won’t be."
In the past, the state has considered placing tolls on the Virginia stretch of the interstate to help pay for the project. Altizer officials believe tolls aren’t the answer right now but will continue to leave the option open for the future.
An aging interstate system has left many highways over crowded and in need of changes. While the state recognizes the need for improvements to I-81, other interstates in Virginia have similar problems, making the allocation of state and federal dollars a difficult process, Altizer said.
Presently, the state will continue with $730 million dollars worth of routine, "low-hanging fruit" projects that are part of the plan developed in 2006.
A new private group will also be sought to replace Star and to head up the design and construction of truck lanes in Montgomery and Rockbridge counties.
Attempts on Wednesday to contact state Sen. William Wampler, R-Bristol, and Delegate Joe Johnson, D-Abingdon, for comment were unsuccessful.
BRENT CARNEY is a Media General multimedia intern and can be reached at (276) 645-2568 | bcarney@bristolnews.com
Roanoke Times
State and builders part ways over I-81
A VDOT spokesman said this move doesn't necessarily delay highway safety work.
By Jeff Sturgeon
981-3251
Virginia has dismissed a highway construction team brought in four years ago to improve the safety of Interstate 81.
"The procurement process with Star Solutions has ended," Jeff Caldwell, spokesman for the Virginia Department of Transportation, said Wednesday.
While that might sound like a huge setback, Caldwell said that no date or commitment to widen the interstate had existed.
For that reason, the loss of the Star Solutions initiative will not necessarily delay highway work.
The state chose Star Solutions -- a consortium of professional firms -- in February 2004 to lead Virginia's effort to relieve congestion and heavy truck traffic on I-81, which runs for 323 miles in Virginia, from Bristol to Winchester.
During the nearly four years that have passed, the players completed numerous environmental studies but were a long way from deciding the details of a major interstate fix, Caldwell said.
That's not to say the project was behind schedule. Time frames in the highway improvement game are extremely long, with VDOT budgeting its funds up to six years in advance.
A variety of isolated highway improvements that were advancing will stay on track, Caldwell said. VDOT plans on Tuesday to offer design and contracting firms a shot at adding truck-climbing lanes in the Shenandoah Valley. In the fall, the state plans to invite firms to step up to build truck-climbing lanes in Montgomery County.
These are among $730 million worth of proposed I-81 projects in the pipeline through 2013.
"We're going to still work to find solutions for I-81," Caldwell said.
The lead Star Solutions contractor, KBR Inc., a Houston engineering and construction company, told VDOT last month it was pulling out of the partnership.
KBR, which severed ties with its former parent company Halliburton in April, said in its Dec. 18 withdrawal letter that it had to "manage its business profile very carefully."
A brief company statement Wednesday shed little additional light.
"The terms and conditions offered in the VDOT interim agreement for the development of certain I-81 corridor safety and operational improvements were such that KBR respectfully declined to participate in this opportunity as currently structured," the statement said.
As a result, state transportation commissioner David Ekern terminated the Star Solutions relationship. He shared that news Wednesday in a public meeting in Richmond.
Caldwell said he did not know how much money had been paid to Star Solutions so far.
Northern Virginia Daily
Key player's exit puts brakes on I-81 plan
VDOT ends talks with Houston company
By Garren Shipley -- Daily Staff Writer
The biggest player in a six-year effort to widen Interstate 81 has backed out, effectively bringing an end to the project — for the time being, at least.
The Virginia Department of Transportation has ceased all negotiations with Houston-based KBR, better known as Kellogg, Brown and Root, the main company in the STAR Solutions construction consortium, according to VDOT spokesman Jeff Caldwell.
KBR "sent us a letter in mid-December asking to remove themselves as the lead entity in the STAR Solutions [consortium]," which was still in negotiations to build two truck climbing lane projects after its initial proposal for a massive widening of the 323-mile highway ran into trouble.
On Wednesday, VDOT Commissioner "David Ekern briefed the [Commonwealth Transportation Board] and shared with them a letter that he sent yesterday, instructing VDOT to terminate all negotiations with KBR for those improvements on the I-81 corridor," he said.
STAR Solutions had been negotiating with the commonwealth to ex-pand the truck-crowded highway since 2002, when it first announced its plan to use Virginia's Public-Private Transportation Act to build its vision of a truck tollway from Bristol to Winchester.
In the end, the two just couldn't come to terms, according to KBR spokeswoman Heather Browne.
"The terms and conditions offered in the VDOT interim agreement for the development of certain I-81 corridor safety and operational improvements were such that KBR respectfully declined to participate in this opportunity as currently structured," she said.
STAR's proposal first ran into trouble in 2005, when $1.6 billion in federal funding for the project didn't materialize as expected. Instead, Congress earmarked $141 million for safety improvements — including truck climmbing lanes the company was negotiating to build when talks were called off.
Now, "we are likely to move a design-build procurement with another firm or firms that will use allocated federal funds to provide the truck climbing lane improvements the CTB authorized in October 2006," Douglas Koelemay, the Northern Virginia District representative on the board, wrote in an e-mail Wednesday afternoon.
The demise of STAR's proposal is a "very pleasant surprise," said Del. Todd Gilbert, R-Woodstock.
Expansion of the highway has drawn criticism from day one. Opponents sued to stop the project in federal court late last year.
"We've never felt that the Shenandoah Valley should be turned into a conduit for trade from Mexico to the Northeast," Gilbert said. The second-term legislator said he was in the process of introducing legislation to make it more difficult to have tolls on the interstate when the announcement came down.
"Although I favored the idea of public private partnerships," the STAR deal was "applied in such a way that it virtually guarantees a lack of competition we expect on big public works projects," Gilbert said.
The need for more capacity on I-81 hasn't changed, Caldwell said, and the agency has spent significant time and effort on the widening effort in the form of environmental studies and planning.
Now it's now up to the Commonwealth Transportation Board to chart the way forward.
"Those needs still exist. We've put a lot of work into looking at the projects through the environmental process, so the big question is, where do we go from here?" she said.
Some expansion is warranted, Gilbert agreed. "I've never had a problem with the idea that perhaps we needed a lane in each direction," Gilbert said. "But four lanes in each direction? That's just overkill."
* Contact Garren Shipley at gshipley@nvdaily.com