Have you ever felt the rumble beneath your feet? That’s the Chicago Skyway Toll Bridge vibrating with the constant flow of traffic. This isn’t just any bridge. It’s a 7.8-mile-long ribbon of concrete and steel connecting Chicago to the Indiana Toll Road since 1958. It’s a vital artery for commerce and a testament to human engineering.
The Chicago Skyway Toll Bridge wasn’t an instant success. Initially its traffic was far less than predicted. Motorists preferred the free I-94. For years the city struggled to pay back the bonds used to build it. Tolls increased from a mere twenty-five cents to two dollars. But the Skyway eventually became self-sustaining in 1989. It was then rehabilitated in the late 1990s.
Then came a bold move in 2005. The Chicago Skyway Toll Bridge was privatized. It was the first time an existing toll road in the US was sold to a private company. The city received a massive $1.8 billion upfront payment from Skyway Concession Company LLC. This company is a partnership between Cintra Infraestructuras and Macquarie Group. They signed a 99-year lease. This allowed Chicago to invest in its people neighborhoods and businesses.
The deal wasn’t without controversy. Toll increases were significant. To pay back their initial investment Skyway Concession Company increased tolls dramatically. For cars it went up by 80 percent. For large trucks the increase was a whopping 201 percent. Even before these increases the Skyway was one of the most expensive interstate toll roads.
Despite the hefty toll increases daily traffic dropped. In 2005 there was an average of 48422 vehicles daily. By 2013 this had fallen to 41249. Some blame the toll hikes. Others point to the 2008 recession. The increased tolls did boost revenue for the concession company. They went from $50.4 million in 2005 to $80.7 million in 2014. This helped offset the massive cost of repaying their debts.
The Chicago Skyway Toll Bridge’s privatization is a complex story. It’s a lesson in innovative financing and the challenges of balancing public needs and private profit. It’s a story etched into the concrete and steel of this remarkable bridge a story we see unfold every time a car crosses it.