Testimony Before the Senate Transportation, Highways & Public Works Committee Regarding House Bill 687.
Public-private partnerships have been used across the country to advance major infrastructure projects where traditional funding is limited. These agreements allow public agencies to transfer significant risks—such as construction delays, cost overruns, and lifecycle maintenance—to private partners, who are contractually obligated to meet performance standards over decades.
Louisiana House Bill 687 would authorize the Port of New Orleans to enter a public-private partnership (P3) to establish, design, construct, and finance the St. Bernard Transportation Corridor. This project is intended to support the Louisiana International Terminal, offer a reliable local and emergency route, and connect key freight and evacuation pathways.
A widely cited example is the Port of Miami Tunnel, completed under an availability payment (AP) design-build-finance-operate-maintain P3. The Port of Miami Tunnel P3’s goal was to reduce downtown traffic congestion by giving freight a dedicated route to the port. The project opened on time and on budget, transferred significant construction and financing risk, and has since delivered measurable mobility and freight efficiency gains, reducing truck travel times by nearly an hour and removing 80% of 18-wheelers from Miami’s downtown.
These results are made possible by contracts that align design, operation, construction, and long-term maintenance incentives. P3s also allow states and agencies to accelerate project delivery using milestone or availability payments, spreading costs over time while beginning construction much sooner than pay-as-you-go models allow.
For Louisiana, freight efficiency is a pressing concern. The state moves over $580 billion in goods annually, and the value of freight shipped to and from Louisiana is expected to grow by 78% overall and 112% for goods shipped by truck over the next two decades. Roadway improvements that reduce traffic congestion and increase access to port infrastructure can directly impact shipping costs, job growth, and regional competitiveness.
HB 687 includes important safeguards: all agreements affecting state roads must be approved by the Department of Transportation and Development, and contracts must include bonding, oversight, and long-term maintenance responsibilities. These provisions mirror best practices in successful P3 legislation across the country.
While many delivery models can work, public-private partnerships offer a pathway for delivering major infrastructure on time, with less public-sector risk, and with the potential for long-term savings.