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Tolls Are Cut To Boost Use Of SR 125

— It's called the South Bay Expressway, and it was built and run by private companies that hoped to make a good return on investment. But State Route 125, a north-south freeway east of Interstate-805, has gotten little use by south-county motorists, thanks to a slumping economy and drivers' reluctance to pay the pricey tolls.

Aired 6/25/12 on KPBS News.

San Diego planners hope public ownership of the South Bay Expressway will mean that more people use it. Lower tolls begin on Saturday.

The South Bay Expressway (SR 125) has seen its use increase after SANDAG lowered the tolls.
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Above: The South Bay Expressway (SR 125) has seen its use increase after SANDAG lowered the tolls.

Officials at SANDAG, San Diego's planning agency, hope that will change as the agency takes over ownership of the freeway and reduces tolls by 30 to 40 percent.

Gary Gallegos is executive director of SANDAG, which has bought SR 125 for $341 million. He said the toll road's lack of use has jammed up I-805, south of I-8.

"You are seeing a lot of traffic on 805 because people are using the 805 to go around the toll road," said Gallegos. "And we're optimistic that by lowering those tolls it will provide the most mobility for South Bay."

SANDAG staffers anticipate their plan will add close to a million more trips per year on SR 125. Gallegos said SANDAG bought the freeway for $341 million, less than half the cost it would take to build it.

He said the original plan to privatize this freeway didn't work well for the private sector, which lost money in litigation and through lack of use. But it did work for San Diego.

"I think it worked out great. We got a road and, you know, somebody took a risk on it and we're still serving customers," said Gallegos. "I don't know that it worked out well for the private sector in this case."

This Saturday (June 30, 2012), SANDAG will put the toll reductions into effect. Tolls will be waved on Saturday between 9 a.m. and 2 p.m. to promote the event. Gallegos said once the debt on the road is paid off, the South Bay Expressway will be free for drivers to use.

Comments

Avatar for user 'Derek'

Derek | June 25, 2012 at 8:29 a.m. ― 1 year, 9 months ago

If the reduced tolls can be removed when the debt is paid off without creating gridlock, then even the reduced tolls are too high.

Tolls shouldn't be set according to how much money needs to be made. They should be set just high enough to eliminate traffic congestion, but no higher.

If money needs to be made, close down lanes until demand justifies a higher price.

Supply and Demand is explained in Economics 101. It's unfortunate that SANDAG doesn't know how to responsibly spend tax money.

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Avatar for user 'hopeheadsd'

hopeheadsd | June 25, 2012 at 11:45 a.m. ― 1 year, 9 months ago

Derek, I dont understand your comment. SANDAG purchased this basically 'on sale' even by todays construction rates I presume to build it out right.

I dont know if you live in Chula Vista or South Bay, but with the planned development in that area and access to the 125, 94, 8 etc this is a solid alternative than what currently exists.

I dont see this as being any different to the old Coronado Bridge toll which was paif off in a bond. Amortized payments to pay off an asset seems pretty straightforward to me. Actually there may even be a return on investment depending on the amortization schedule.

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Avatar for user 'Derek'

Derek | June 25, 2012 at 12:49 p.m. ― 1 year, 9 months ago

If they can remove the toll without creating traffic congestion despite the resulting increase in demand, then it means that the existing level of demand is far below the current level of supply. That by definition means there's a surplus, and a surplus represents a waste of taxpayer owned resources.

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