Why It Matters
Tennessee has committed to a half-century toll-lane expansion project that will reshape commute patterns and traffic flow in the Nashville metropolitan area. The state’s decision to outsource design, construction, and operation of these lanes to a private consortium signals a shift toward public-private infrastructure partnerships and could serve as a model—or cautionary tale—for other states weighing similar toll projects.
What Happened
The Tennessee Transportation Modernization Board voted unanimously Wednesday to award a $9.2 billion contract to DriveTN, a six-company partnership, to build and operate toll lanes serving the Nashville-to-Murfreesboro corridor. The consortium—composed of Transurban (Australian), Tikehau Star/Infra/Capital (French), Ferrovial (Spain-based), Cintra (U.S. subsidiary), AECOM (global engineering firm), and Webber (American construction company)—will design, construct, operate, and maintain the lanes for 50 years.
The project will add toll lanes to Interstate 40 east of downtown Nashville, Interstate 440 south of downtown, and create a new corridor connecting downtown Nashville to Murfreesboro. Governor Bill Lee endorsed the bid and signed an executive order Wednesday establishing a board of lawmakers and officials to oversee future toll-lane projects.
Under the agreement, DriveTN will pay Tennessee $1.5 billion upfront. The state will receive additional payments over the 50-year contract period, totaling $25 billion in state revenue. Construction is slated to begin in 2027 and span up to eight years, with some portions opening before the full project is complete.
The project includes provisions protecting two landmarks: DriveTN agreed to preserve Pan-Asia Supermarket and Noble Place Townhomes and to eliminate the need to rebuild the Hickory Hollow Parkway bridge.
By the Numbers
$9.2 billion — DriveTN’s proposed investment in design, construction, operation, and maintenance of the toll lanes
$25 billion — total revenue the state expects to receive from DriveTN over the 50-year contract
$1.5 billion — upfront concession payment DriveTN will make to Tennessee
$7 billion — the concession amount offered by the other bidding group
2027 — expected year construction begins
8 years — estimated duration of construction
Zoom Out
Tennessee’s 2023 Transportation Modernization Act authorized the state to pursue toll-lane projects with a maximum contract term of 25 years for major interstate-type infrastructure. The DriveTN deal extends that framework significantly—a 50-year commitment reflects growing reliance on private capital to fund major transportation work in an era of constrained public budgets.
Toll lanes have proliferated in recent years across the United States, particularly in Texas, California, and Florida. They typically charge variable rates based on demand and congestion. According to State Representative John Ray Clemmons, toll rates in other states range from $20 to $47, underscoring the potential cost to drivers in Tennessee.
The project could expand. Future phases might extend toll lanes through Murfreesboro along Interstate 24 and portions of Interstate 840, farther east on I-40 toward Lebanon, and northbound into downtown Nashville along the I-65/24 corridor.
What’s Next
DriveTN and the state will finalize engineering and environmental assessments before construction begins in 2027. Some toll-lane segments are expected to open before the full eight-year buildout concludes, allowing the state to begin collecting toll revenue sooner. The newly created oversight board will monitor project compliance and future toll-lane proposals under the modernization framework.
Opposition exists. State Representative John Ray Clemmons, a Nashville Democrat, characterized the project as “not modernization,” signaling that legislative and community scrutiny will likely continue as design and construction plans are unveiled.