Ferrovial (FER) Status update summary

Commercial close and project scope

• Commercial close with TDOT completed Sep. 30, 2026; TDOT selected the Drive TN consortium in August 2026, including Transurban and Tikehau Star Infra.

• The 26-mile project between Nashville and Murfreesboro adds two Choice Lanes in each direction alongside four toll-free general-purpose lanes under a 50-year DBFOM concession, starting when operations begin.

• Estimated construction cost is $9.2bn over eight years; first-phase service is targeted for 2034 and full service for 2035, with groundbreaking expected in early 2029.

• Financial close is contractually due by July 2027 and expected earlier.

• The project is Tennessee’s largest single capital investment and the state’s first public-private partnership.

Corridor demand and design

• Nashville MSA population was 2.2m in 2025; regional population grew ~2% annually over the prior decade, 2015–24 real GDP CAGR was 4.6%, and median household income was $88.8k.

• I-24 carries 150k–190k vehicles daily, with 8–11 hours of daily congestion, peak speeds below 20 mph and delays up to 36 minutes.

• Freight, commuting, airport traffic and development support demand; heavy vehicles are 12%–16% of corridor traffic, and ~178m sq. ft. of development occurred along the corridor from 2020–26.

• Forecast 2025–34 CAGRs are 1.0% for population, 2.1% for real income per capita and 2.8% for real GDP; capacity constraints, suppressed demand and gradual user adoption inform traffic assumptions.

• Design connects 15 interchanges versus 7 in TDOT’s reference design and increases corridor coverage to 95% of in-scope trips; outside lanes and direct connectors aim to improve access and limit community impacts.

Pricing and operating framework

• Dynamic tolling has a $1.60/mi soft cap and, at lower volumes, a $0.80/mi cap; rates escalate annually by the greater of 2.5% or the average of Tennessee GDP growth, U.S. CPI and 3%.

• Uncapped pricing may be triggered by traffic above 1,500 passenger-car equivalents per lane per hour or speed below 55 mph; triggers apply by segment and may extend to the preceding segment.

• Toll revenue sharing with TDOT begins above $3.20/mi: 50% from $3.20–$4.80, 25% from $4.80–$6.40 and 10% above $6.40; thresholds escalate.

• Heavy-vehicle toll multiples range from 3x to 8x; operating assumptions draw on a 60-asset managed-lanes portfolio, with NTE 35W the closest comparable.