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Demand for infrastructure is growing faster than public agencies can fund it, said Pepe Baraja, CEO for the U.S. and Canada at Ferrovial Construction.
In Texas, Ferrovial has recently achieved a $1.47 billion design-build contract to extend a key segment of infrastructure in southeast Houston. The Texas DOT tapped the Amsterdam-based infrastructure company to design, build and maintain the state’s B-1 segment of the 99 Grand Parkway. The scope also includes direct connectors and operational upgrades to State Highway 35.
The award reflects a new reality in infrastructure construction, Baraja said. As population growth drives demand for transportation capacity and public agencies face budget constraints, project stakeholders are increasingly evaluating delivery methods that can accelerate schedules.
That is where firms like Ferrovial intervene, he said.
Here, Baraja talks to Construction Dive about construction challenges, lessons learned from past infrastructure jobs, and other alternative delivery methods.
Editor’s Note: The following has been edited for brevity and clarity.
Construction Immersion: What construction challenges do you expect to be most difficult on the Grand Parkway Circuit and how are you planning for them now?
PEPE BARAJA: Southeast Texas presents a specific set of soil conditions that require careful planning from the outset.
The nearly 15-mile corridor crosses Brazoria and Galveston counties and requires extensive earthmoving to raise the corridor above area water elevations. This is alongside more than 2 million square feet of bridge structures, 10 million square feet of pavement and more than 1 million square feet of retaining walls.
Pepe Baraja
Courtesy of Ferrovial
We are navigating a combination of highly plastic soils, floodplain limitations, major utility impacts, and a railroad relocation. These conditions also inform how we think about the project’s larger goal of reducing travel times, improving hurricane evacuation routes, and supporting economic growth in Southeast Texas.
Coordinating operational upgrades to State Highway 35 alongside active traffic is another challenge that requires disciplined sequencing from day one. This is a live corridor, and maintaining a safe and reliable ride during construction is non-negotiable.
What lessons from these segments do you bring to this project for improvement?
Having delivered 52.8 miles of the Grand Parkway in Northeast Houston, we know how this region is built.
The drainage work, drilled shaft experience, and traffic management discipline we’ve developed in previous segments are directly informing how we approach B-1 from the start.
Many of the same challenges exist here. This experience helps us sequence work more effectively, coordinate closely with local partners, and respond quickly in the field when conditions don’t go as planned.
When it comes to cost control, knowing where risk is concentrated in a corridor like this allows us to generate more accurate estimates, make smarter acquisition decisions, and avoid the kind of surprises that cause schedule and budget overruns. This institutional knowledge is one of the strongest risk management assets we bring to this project.
Where do you see design-build and other alternative delivery methods creating more value in the coming years?
The demand for infrastructure exceeds what only public budgets can provide, and Ferrovial has spent two decades building the experience to meet this moment. The private sector has a critical role to play in closing this gap, and the structure of how projects are delivered matters as much as the construction itself.
Owners increasingly recognize that the structure of a contract shapes long-term results, and the design-build contract for Segment B-1 is combined with a capital maintenance term of up to 15 years.
This means we have a long-term interest in the performance of the asset, and the alignment between builder and owner is where alternative delivery creates lasting value.
Federal priorities are also shifting toward faster and more efficient infrastructure delivery, which is creating real momentum for public-private partnerships. Agencies are streamlining permits, modernizing the funding process and structuring projects. For owners navigating tight budgets, this environment makes the case for alternative delivery methods like P3s that much stronger.
Are there other infrastructure construction trends you’re keeping an eye on?
Population growth in high-growth Sun Belt cities is creating strong demand for complex transportation jobs. In 2030, 5 billion people will live in the world’s cities, and fast-growing regions like Southeast Texas are creating infrastructure needs that will define the region for decades.
We’re already seeing the largest managed rail pipeline to date, with opportunities in markets where Ferrovial has an established presence, such as Atlanta, Nashville and Charlotte.
This pipeline reflects a broader shift toward public-private partnerships as the primary vehicle for delivering critical infrastructure efficiently and at scale. Especially as property owners increasingly think of this infrastructure in terms of more than everyday mobility, corridors like Segment B-1 are being designed to address emergency evacuation needs. This dual purpose is becoming a more consistent part of how major projects are scoped and financed on the Gulf Coast and beyond.
