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On August 19, Ferrovial (NASDAQ:FER) announced it had been selected to deliver the I-24 Southeast Choice Lanes, a 26-mile project running between Nashville and Murfreesboro.
It is the largest single capital investment in Tennessee's history and the state's first public-private partnership.
The price tag is $9.2 billion, though Ferrovial isn't carrying it alone, since its DriveTN consortium also counts Transurban and Tikehau Star Infra as partners.
Choice lanes are familiar ground for Ferrovial, which has replicated the model in Washington, D.C., Charlotte and Dallas-Fort Worth.
On Virginia's 66 Express corridor, similar lanes shaved up to 50% off peak-hour travel times.
That is the pitch for I-24, a stretch of highway that already ranks among the region's most jammed: drivers who opt in get steadier speeds, and those in the free lanes should see less traffic too.
The business behind the bid looks healthy, too.
Ferrovial's July 28 results showed adjusted EBITDA up 21.6% on a like-for-like basis to €746 million over the first six months of the year, with U.S.
Those roads are sending cash home as well, since Ferrovial received €357 million in dividends from North America.
And the construction order book reached an all-time high of €18 billion, so plenty of work is already in hand.
The pipeline keeps filling: Ferrovial bid on I-285 East in Georgia in July, and its D35 Highway bid in the Czech Republic was the most cost-effective submitted, with technical evaluation still underway.
Beyond the roads, the balance sheet looks sturdy.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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