Camino Columbia, Inc, owners of the 21.8 mile road, had counted on strong revenue from truck traffic stemming from the North American Free Trade Agreement but delays in implementation and a weak economy made it impossible to pay back $75 million in outstanding loans from 1999.
John Hancock Life Insurance Co., one of the investors, purchased the road after the Texas Department of Transportation would not bid higher than $11.1 million.
Investors were not only counting on increased NAFTA traffic but a worsening of congestion around Laredo to entice drivers. Despite increased traffic, however, many truck drivers chose routes around the road because they felt the $16 toll was too steep. Cars paid $3. The road, which connects Texas with the Mexican border state of Nuevo Leon, remains open but its fate is uncertain.
In addition to a $75 million loan from John Hancock and New York Life Insurance Co., the road was built with $15 million from local investors, including $6 million from the International Bank of Commerce.