Name: Florida Department of Transportation/Florida’s Turnpike Enterprise
Date: 2000 – Present
Project: Enterprise Valuation and Strategic Governance Assessment
Summary: IMG carried out a valuation of the Florida’s Turnpike Enterprise for a possible privatization or public-private partnership. In addition, IMG assessed strategic options for the organization and recommended management changes
Issue: The Florida Turnpike Enterprise, formerly one of the “districts” of the Florida Department of Transportation (FDOT), was under review due to questions over the Turnpike District’s ability to fully leverage its financial capacity and operate cost-effectively while remaining a part of FDOT. The Turnpike commissioned IMG to investigate these issues and to position Florida’s Turnpike to assist the FDOT in meeting its expanding transportation needs.
Solution: IMG assessed strategic options regarding future ownership, management, financing, and operations of the Turnpike Enterprise. Options included sale or lease of the Turnpike and enhancement of Turnpike capabilities within the FDOT. IMG’s major tasks included: a performance evaluation of the Turnpike; a peer comparison of Florida’s Turnpike with other similar toll entities; a valuation of the Turnpike under a variety of transfer scenarios including a public-private partnership; the identification of the policy, program, systems, economic, financial, institutional, and legal implications of each option for State decision-makers; and a comparison of each study option, based on its capital program, financial, environmental, customer service, and organizational impacts.
Value Created: IMG’s analysis showed that due to the Turnpike’s significant capital program over the next decade, it did not make financial sense to enter into a privatization or long-term concession for the entire Turnpike Enterprise. IMG did recommend changes to the organization, allowing it operate more effectively, improve customer service, and enter into public-private partnerships for specific projects. IMG’s recommendations, which included changing the name of the organization from the “Florida’s Turnpike District” to “Florida’s Turnpike Enterprise,” were approved by the Florida legislature.