PORTSMOUTH, Ohio – The Ohio Department of Transportation and the Portsmouth Gateway Group have completed the state's first full public-private partners (P3). 

The Portsmouth Bypass, or Ohio 823, or the Southern Veterans Memorial Highway was opened to motorists in mid-December. 

• $634.4 million project is the first, full P3 project in Ohio
• The Portsmouth Gateway Group will maintain the highway for the next 35 years
• ODOT will make payments to PGG and clear snow and ice from the highway

It's a 16-mile, limited-access, four-lane highway that connects U.S. 52 in Sciotodale with U.S. 23 in Lucasville. 

It is Ohio's first P3 to include all phases of a project, known as DBFOM or design, build, finance, operate, and maintain. 

Other P3 projects in Ohio only include one or two aspects such as design and build. 

The Portsmouth Gateway Group (PGG) is made up of several investors, contractors, and construction companies. 

The $634.3 million project started in 2015 and took 3 ½ years to build. Had ODOT done the entire project itself, it would have been completed in three phases and only the first phase would be completed by now. 

ODOT estimates the P3 allowed the project to be completely finished approximately ten years ahead of schedule. But that timeline is only accurate if ODOT would have been able to secure the funding for additional phases, something they likely would not have been able to do. 

“We were only financed through phase one construction,” said Kathleen Fuller, ODOT District 9 Spokeswoman. “And so with the P3 we were able to take advantage of an independent financing company to come in and basically build the route for us all at once. So we got all three phases built at one time. We can have it opened to traffic all at once rather in phases. And we can shorten the timetable to get the route open to traffic.”

The project itself cost around $450 million but ODOT will pay out roughly $200 million over the next 35 years. The only responsibility ODOT has for the road is clearing snow and ice. PGG will maintain the road over the next several decades as part of the agreement. 

“The public, the traveling public, as well as the community as a whole gets to enjoy the benefits and advantages of having the route opened all at once instead of phases,” said Fuller.

PGG is made up of several companies, including equity partners ACS Infrastructure Development, InfraRed Capital Partners Limited, and Star America. Other partners include Dragados USA, The Beaver Excavating Company, and The John R. Jurgenson Company. The lead engineering firm is “ms consultants.”

A new Portsmouth Bypass has been talked about in Scioto County since the early 1960's. ODOT completed a feasibility study in the early 2000's and in 2013 started the bidding process. But ODOT decided to see if any companies were interested in a P3, given the size and scale of the project. 

Fuller said there was no shortage of interest.

“...immediately we did have some potential contractors, developers and companies coming to the plate saying this is one we'd be interested in doing.”

The new bypass could also be big for economic development in the region. To the south of Sciotodale along U.S. 52 is an area targeted for economic development. Parts of south-central are Ohio have seen economic growth on par with state and national statistics, but the new highway could accelerate opportunity. 

“I'm hoping the bypass will give us some of that opportunity to see things grow at greater rates than the state and national numbers,” said John Hemmings, Executive Director of the Ohio Valley Regional Development Commission. 

The Greater Portsmouth Regional Airport, which sits outside the small town of Minford and is approximately 300 yards from the new bypass, could be the biggest benefactor. 

“We are already in conversations and are working on applications for grants at the airport to create that opportunity there now that the bypass is in place,” said Hemmings.

Hemmings couldn't provide specifics due to ongoing negotiations, but there is significant land near the airport that could be developed. 

In October, before the bypass opened, Scioto County Commissioners approved several projects at the airport that will include renovation of the terminal, parking lot improvements, and the building of additional airplane hangers. 

Hemmings said the OVRDC is already in the works with airport and county officials to improve a nearby county road in support of future economic development. 

Not to mention, there is 16 miles of highway that could support gas stations and restaurants, factories, and other new business. 

It's just about targeting companies that have transportation needs the area can now support. 

Portsmouth and the surrounding communities and counties all border the Ohio River. There is a significant rail presence, too. 

The bypass project was also one of the Ohio's biggest earth-moving endeavors to date. Nearly 20-million cubic yards of dirt was moved to build the highway. A lot of it was repurposed for the project. 

The new bypass cuts down 30 minutes of travel that used to take motorists through several towns like New Boston, Portsmouth, and Lucasville – which, of course, also meant traffic lights. 

The highway opens up a direct, easier route for freight traffic from Columbus to south-central Ohio and beyond into Kentucky and West Virginia. The new State Road 823 is the last leg in Ohio on the Appalachian Development Highway System. 

Previously, some truck traffic would have to travel west to I-75 or east to I-77 before heading south. The bypass now eliminates nearly 70 miles of travel, according to ODOT.