Financing Underground Freight Transportation Systems in Texas: Identification of Funding Sources and Assessment of Enabling Legislation

Abstract

Freight transportation by trucks plays a significant role in the economy of a region, and at the same time contributes greatly to the deterioration of roads and highways. The majority of goods shipped in Texas are carried by trucks or by services that use trucks for part of the delivery. Construction of new intermodal transportation systems, such as underground freight transportation (UFT) systems by using underground tubes or tunnels for moving goods can mitigate the need for road widening or building new roads in areas bogged down by truck traffic. However, the gap between public service needs and the financial capabilities of the state governments has grown, and financing innovative infrastructure projects, such as UFT systems, has become increasingly challenging. Successful implementation of a large UFT system demands availability of appropriate funding sources. The objective of this paper is to identify and evaluate viable funding sources and appraise the eligibility of these sources for constructing UFT systems in Texas. An extensive literature review, analysis of codes and legislation, and case study analyses were used to achieve the research objectives. This research identified a variety of public and private funding sources, such as federal, state, and local funds, Transportation Infrastructure Finance and Innovation Act (TIFIA) loans, funds provided under the Fixing America’s Surface Transportation Act (FAST Act), revenue bonds, private activity bonds, and equity participation for financing UFT systems. The results highlight significant opportunities to qualify UFT projects with state or national significance for federal funding eligibility. It is also possible to identify UFT systems as projects that alleviate traffic congestion and improve safety to be eligible for Texas state funding programs.