The State Route 1 project in Louisiana began over 20 years ago and is expected to take another seven to complete. Funding for the project has required bonds and taxpayer assistance. If the Louisiana Transportation Agency’s (LTA) operating revenues continue to fall short, it may struggle to cover debt service payments on its bonds.
The LTA reported a 29% increase in operating revenue for 2024, reaching $6 million, which is up from $4.6 million in 2023, according to the Louisiana Legislative Auditor’s Office.
However, the revenue was not enough to cover debt obligations or reimburse the state for payments made on the agency’s behalf.
The initiative involves replacing the sinking State Route 1 highway near Leeville with an 18-mile bridge to combat coastal erosion and flooding that frequently disrupts access to Port Fourchon.
Phase one has been completed entirely and phase two is half complete. Phases three and four have yet to see any construction.
Bond financing has played a pivotal role in advancing the project. In 2013, the LTA issued a series of bonds to refinance older debt and fund construction, with subsequent refinancing in 2021 to reduce costs further.
The project will eventually connect Leeville to Golden Meadow and Port Fourchon via 19.3 miles of elevated expressway. The second phase began in 2022, with an estimated completion in 2027.
"The LA 1 corridor is a vital roadway for the nation's energy sector," said Daniel Gitlin, spokesman for the New Orleans Area and Northshore Department of Transportation and Development. "When the roadway is out of service, it can cost America $550 million in GDP loss. The current highway is low-lying and often flooded by hurricanes, making the new elevated bridge crucial for economic stability and safety."
The project was broken into two phases to manage funding, with each phase costing millions. The total project is expected to exceed $700 million.
Source: LTA, The Center Square
