Ferrovial, Transurban and Tikehau Star Infra have secured a $9.2 billion contract to design, build and operate choice lanes on Interstate 24 in Tennessee, the largest interstate choice lanes project in the United States, according to the announcement.
Choice lanes are tolled highway segments that allow drivers to pay for faster travel during peak congestion. Tennessee selected the consortium over competing bidders on August 19. The project spans 20 miles across the Nashville metropolitan area and surrounding counties. Ferrovial, a Madrid-based infrastructure firm with US toll road operations, leads the consortium. Transurban operates toll roads across the United States and Australia. Tikehau Star Infra, a French asset manager, brings project financing and long-term capital.
The contract extends 30 years, combining construction and operations into a single private concession. The consortium will fund the build phase and recoup costs through toll revenue over the life of the agreement. Interstate 24 carries roughly 200,000 vehicles daily in the project corridor, making it a high-traffic candidate for congestion pricing.
Choice lanes have expanded in recent years as states seek to manage congestion without widening highways. Virginia opened a choice lanes corridor on I-66 near Washington, DC in 2022. Similar projects operate on highways near Minneapolis and in the San Francisco Bay Area. The model transfers revenue risk and operational management to private operators, allowing state transportation departments to reduce upfront spending.
Tennessee pursued the I-24 project after a state feasibility study in 2023 identified the corridor as suitable for tolled express service. The state launched a request for proposals in early 2026 and received multiple qualified bids. The final selection process narrowed the field before awarding the contract to the Ferrovial-led group.
The consortium's capital partners, Transurban and Tikehau, hold significant toll road portfolios globally. Transurban manages $32 billion in asset value and operates in five countries. Tikehau Star Infra specializes in infrastructure equity and debt, backing transportation assets across Europe, the United States and Australia.
The contract structure ties toll revenue directly to traffic and pricing, meaning the consortium bears demand risk if congestion pricing fails to attract sufficient toll-paying drivers. Comparable choice lanes projects have generated strong toll revenue in high-congestion corridors, though pricing sensitivity varies by market and income levels of drivers in the region.
The 30-year term means the consortium will operate the lanes through 2056, betting on sustained traffic growth in Nashville and sustained driver willingness to pay for speed. If toll revenue falls short of projections by year five, the consortium's returns compress; this outcome would test whether private operators can sustain long-term infrastructure investment in mid-size metropolitan areas.
