INDIANA Profit up at Indiana pike

INDIANA

Profit up at Indiana pike

The Indiana pike reports a strong improvement in its finances in 1997. Toll revenues rose 5.3% to $74.3m and concessions receipts rose almost 30% to $5.7m, so receipts overall were up 6.5% to $80.8m. Expenses declined by 9% to $38.7m so there was a surplus of $42m compared to $33m the previous year.

In 1995 and 1996 some officers close to the top resigned, were fired, and in a couple of cases convicted of fraud and thieving (see TRnl#9 Nov 96 p8), so the turnaround may reflect in part the return of the pike to more honest management.

The East-West Indiana turnpike, an old 2x2-lane interstate route across the north of the state between Ohio and Illinois opened in 1956. It was created by an independent turnpike authority but was returned to the state Department of Transportation in 1983 where it has been a source of stories of patronage, special favors and plain larceny. Last time around these involved special deals with concessionaires and phantom employees on the payroll.

Happily its financial report suggests the pike may currently be in a healthier state, returning more to the state’s taxpayers. After payment of interest on bonds the pike made $27m in 1997 compared to $20m in 1996.

The annual report for 1997 reports traffic of 49.1m vehicles for the year, an amazing 13.3% increase. Trips were a bit shorter on average and car traffic increased more than trucks. The turnpike gets just 60% of its revenue from heavy trucks, being part of one of the heaviest truck routes in the world between Chicago and New York/New Jersey. Officially designated I-80/90 for most of its length (it hives off I80, as an untolled road just 34km short of the IL border) it carried an average 23,400 trucks/day last year. They pay an average 7c/km where as cars pay under 3c/km.

The pike completed a new $14m toll plaza and interchange at Elkhart East in the middle of the state and did minor paving and bridge improvements last year. The turnpike was originally built with 12 interchanges in its 274km length. It now has 21 interchanges, and 5 food/fuel service plazas each direction. It tolls by the trip using magstripe tickets that record the entry point and which are presented on exit — like turnpikes to its east. (Contact Michael Puro 219 674 8836)