Drive TN Consortium reaches commercial close on Nashville’s I-24 Choice Lanes
The Drive TN Consortium, comprising Ferrovial, Transurban and Tikehau Star Infra, reached commercial close on 1 October 2026 to deliver Tennessee’s I-24 Southeast Choice Lanes project in Nashville. The milestone establishes the contractual framework for the 26-mile managed toll road and sets the pathway toward financial close, anticipated by mid-2027. Transurban’s equity contribution is expected to be funded using existing balance sheet capacity over time, with the gearing and capital structure to be finalised by financial close.
The I-24 Choice Lanes selection was announced in August 2026 when the Drive TN Consortium was named best value proposer, at that stage subject to government approvals and with the capital structure still to be finalised before commercial close could be reached.
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What the I-24 project will deliver
The I-24 Southeast Choice Lanes project will add managed lanes in both directions along one of the Nashville region’s most congested corridors. The consortium, operating as DriveTN, will design, build, finance, operate and maintain the new infrastructure under the contractual framework.
Key project details include:
- 26 miles of managed Choice Lanes added in both directions
- Corridor runs along I-24 between Nashville and Murfreesboro
- Choice Lane users are anticipated to benefit from more reliable travel speeds
- Free general-purpose lane users are expected to see reduced congestion
- Future extensions along the I-24 corridor are contemplated under the project framework, to be developed over time
Understanding managed toll lanes — what investors need to know
Choice Lanes are managed toll lanes that run alongside free general-purpose lanes on the same road. Drivers choose to pay a toll for access to the managed lanes, which are operated to maintain more reliable travel speeds during peak periods.
The defining feature of these assets is dynamic pricing. Toll rates adjust in real time based on traffic conditions, ensuring flow within the managed lanes remains consistent. This mechanism makes the lanes more attractive to time-sensitive users and helps maintain the quality of service that justifies the toll.
For infrastructure operators, this model generates long-duration revenue streams tied directly to traffic demand.
Investment implications for Transurban shareholders
Commercial close is a meaningful milestone for Transurban investors. It confirms the group’s position within the DriveTN Consortium and establishes the legal and contractual foundation from which the project will advance. Key considerations for shareholders include:
- Commercial close confirmed — the contractual framework is now in place, reducing early-stage project execution risk
- Financial close targeted mid-2027 — this represents the next material catalyst for the project and the primary milestone for shareholders to monitor
- Equity funded from existing balance sheet capacity — no capital raise has been flagged, indicating no near-term dilution risk for existing shareholders
- Gearing and capital structure not yet finalised — these details will be confirmed by financial close
- Future I-24 extensions contemplated — additional growth optionality exists beyond the base 26-mile project scope
| Item | Detail |
|---|---|
| Project name | I-24 Southeast Choice Lanes |
| Corridor | I-24 between Nashville and Murfreesboro, Tennessee |
| Project length | 26 miles |
| Consortium partners | Ferrovial, Transurban, Tikehau Star Infra |
| Next milestone | Financial close anticipated mid-2027 |
Tikehau Star Infra is the infrastructure division of Tikehau Capital North America, a subsidiary of Tikehau Capital.
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