Optimizing Returns: The Economic Advantage of Electric Vehicles in Transportation Tunnels

Optimizing Returns: The Economic Advantage of Electric Vehicles in Transportation Tunnels

This article delves into the financial benefits for car manufacturers producing electric vehicles (EVs) designed for use in Transportation Tunnels, compared to those operating such tunnels on a toll basis. As a result, it's likely that toll road operators will levy concession fees on auto manufacturers for permitting their vehicles to utilize these tunnels.

For instance, constructing a $1.5 billion, 100-mile tunnel in Los Angeles could yield a net profit of approximately $5 billion for the toll transportation tunnel operator, while the auto manufacturer(s) producing vehicles for that specific tunnel could realize profits of about $20 billion. In essence, the tunnel operator could achieve a return on investment (ROI) of approximately 330%, whereas the ROI for the auto company purchasing the tunnel would soar to nearly 1,300%. When combined, the total ROI approaches nearly 1,670%, an unprecedented margin for conventional business enterprises.

Tesla Gigafactory Berlin (One electric vehicle manufacturer capable of building vehicles for Transportation Tunnels)

Take, for example, the Tesla Gigafactory Berlin, a prime example of an electric vehicle manufacturer capable of producing vehicles tailored for Transportation Tunnels.

It's important to note that these figures pertain to a single tunnel constructed in the Los Angeles area. While similar tunnels built elsewhere might not yield such lucrative returns, there are approximately a thousand potential locations worldwide where comparable profits could be realized. Until these tunnels are widespread, there remains substantial profit potential, with car companies poised to secure the lion's share.

However, auto manufacturers are likely to reap immediate profits, while Transportation Tunnel operators stand to generate substantial revenue streams for decades, if not centuries, through toll revenue. Therefore, it would be prudent for auto companies to diversify their operations by incorporating toll tunnels.

The Benefits of Transportation Tunnels for Commuters

In contemporary society, many individuals spend a significant portion of their workday commuting. In densely populated urban areas, commutes spanning 10 to 30 miles often entail traversing congested freeways at speeds averaging 30 miles per hour or slower during rush hour, resulting in hour-long commutes.

Source: New York Times reporting on BART

Some commuters opt for longer but less stressful commutes involving public transportation systems like the Bay Area Rapid Transit (BART) in the San Francisco Bay Area. However, the emergence of Transportation Tunnels presents an enticing alternative, offering both stress-free travel and reduced commute times.

Within these tunnels, vehicle travel is fully automated, akin to trains or planes, allowing commuters to relax or engage in other activities while their vehicle navigates the tunnel system. With speeds reaching 120 miles per hour, a commute from Walnut Creek to San Francisco, typically lasting an hour, could be completed in less than 14 minutes via Transportation Tunnels, effectively reducing commute times by a factor of four compared to surface freeways.

While initial apprehensions may arise regarding tunnel travel, similar concerns were dispelled with the introduction of BART. Over time, the convenience and efficiency of such systems become widely recognized and embraced by the public.

The Importance of Electric Vehicles in Transportation Tunnels

Source: X / Twitter

One notable feature of Transportation Tunnels is the provision of a 90-mile-per-hour tailwind to vehicles, reducing energy consumption during tunnel travel. However, this necessitates the exclusion of internal combustion engine (ICE) vehicles, as their emissions would quickly compromise air quality within the tunnel.

To address this, only zero-emission vehicles, such as electric vehicles, equipped with full self-driving capabilities are permitted within Transportation Tunnels. Notably, modern self-driving systems, like those found in Tesla vehicles, are adept at navigating tunnels at high speeds, ensuring both safety and efficiency.

Moving Forward: Maximizing Benefits and Adoption

To fully leverage the benefits of Transportation Tunnels, users must acquire electric vehicles equipped with the necessary technology for tunnel navigation. This shift presents a significant market opportunity for auto manufacturers, with an estimated one million electric vehicles anticipated for a 100-mile tunnel route like I-405 in Los Angeles.

While initially, some commuters may be hesitant to embrace this transition, the financial incentives, combined with the tangible benefits of reduced commute times and stress, are poised to drive widespread adoption.

Source: UK zero emission goals

Moreover, as countries worldwide implement deadlines as early as 2035 for transitioning to 100% zero-emission vehicles, Transportation Tunnels offer a compelling incentive for early adoption, independent of environmental concerns. In Norway, for example, they plan to have only zero emission vehicles by 2025 and are already at 80% sales rate. Transportation Tunnels will speed this transition.

Ultimately, Transportation Tunnels present a pragmatic solution to alleviate traffic congestion and streamline commuting, while simultaneously accelerating the transition to zero-emission vehicles for personal and societal gain.