The consortium headed by Ferrovial through subsidiary Ferrovial Agroman, in conjunction with American Infrastructure, has signed the contract to design and build the new US Route 460 highway in Virginia. The total project cost is 1.393 billion dollars (around 1.070 billion euro).
Ferrovial, through subsidiary Ferrovial Agroman and in consortium with American Infrastructure, has achieved financial close to design and build the new US Route 460 highway in Virginia, which will measure 55 miles. The consortium, which was chosen in October by Virginia Department of Transportation, has signed the 1.393 billion dollar contract (around 1.070 billion euro).
“This contract represents further progress in Ferrovial’s strategy of increasing its presence in the transport infrastructure construction sector in the US, where we already operate in Texas. This is our first operation in Virginia”, said Alejandro de la Joya, CEO of Ferrovial Agroman.
Although the project is being implemented as a public-private partnership, US 460 Mobility Partners, the Ferrovial led-consortium, will not contribute funds directly; however, it has undertaken to procure 243 million dollars (net amount) in funding through bonds.
US 460 Mobility was chosen for the project following a selection process that included more than two years of reviews and evaluations by Virginia authorities. American Infrastructure is a leader in civil construction and asphalt materials in Virginia.
Design work will be carried out in 2013, and construction will commence in 2014, with completion anticipated in 2017. The toll road will be operated by a public corporation created by the State of Virginia.
The project consists of a four-lane toll road between the cities of Petersburg and Suffolk, both in southeast Virginia. It will run in parallel with the existing US 460 and will connect with seven other roads. The new US Route 460 will improve the connection with the Port of Virginia from inland Virginia and increase freight traffic.
The new infrastructure will be a key driver of the region’s economic development. Independent reports estimate that the project will have a positive economic impact on the region of more than 7.300 billion dollars per year. It will create more than 4,000 jobs during construction, and more than 14,000 long-term jobs.
Ferrovial in the US
Ferrovial has been operating in construction and through concessions in the US since 2005, in Illinois, Indiana, Texas and Virginia. Its headquarter offices are in Austin, Texas, and its US companies and investees have a workforce of more than 2,500. Through its subsidiary Cintra US, Ferrovial manages five toll roads. In the construction industry, in addition to Ferrovial Agroman the company operates in the US via Webber. Construction projects in the US accounted for 16% of Ferrovial total revenues and 32% of the backlog in 2011.