News Release for August 12, 2008
For More Information:
Mark Latti, Public Information Officer - 207-624-3030

MaineDOT to Suspend Paving Operations

The skyrocketing price of liquid asphalt is forcing MaineDOT to suspend paving projects that were scheduled to begin later this year.
The price of liquid asphalt, the primary component of paving materials, has more than doubled since January. Liquid asphalt sold for $307.50 per ton in January, it now costs $765 per ton as of August 4, and the price is expected to continue to rise. In July alone, one of the busiest months for paving in Maine, the price of liquid asphalt rose by 39%. Over the course of a year, the department uses over 57,000 tons of liquid asphalt. The escalating cost of asphalt has led to a similar increase in the cost of paving projects already underway or recently completed by MaineDOT statewide. Due to the higher cost of these projects, MaineDOT is unable to afford paving projects that were scheduled to go out to bid later this month.

“The extraordinary inflation of liquid asphalt has left us little choice but to suspend future paving projects,” said David Cole, MaineDOT Commissioner. “We can not afford to continue with paving projects that are scheduled for later this year, nor would it be a wise use of funds to do so.”
The difficult but financially necessary decision ends MaineDOT’s advertising for new paving projects earlier than planned. The department has stopped awarding paving contracts, and will not advertise asphalt-intensive projects for the remainder of the year. All signed paving contracts will be honored.

It is important to note that future projects have been suspended, not cancelled. Depending upon state and federal funding levels, MaineDOT hopes to advertise these suspended projects next spring. Asphalt prices typically decline during late fall and winter months.
“We will be monitoring the market, and when liquid asphalt prices stabilize and the funding picture becomes clearer, probably next spring, we intend to advertise these projects again,” said Cole. “It is similar to a homeowner deciding whether to lock-in on heating oil prices. The prudent decision is to wait when prices are at historic highs and to monitor prices since they will likely go down in the future. Of course, there are no guarantees, but we believe this is the best decision given fiscal and market trends.”

MaineDOT originally planned to pave about 825 miles of road this year at an anticipated cost of $105 million. Due to asphalt price increases, MaineDOT has or will spend about $107 million, but will get only 740 miles of road paved. This means the average cost per miles of paving has increased about $20,000 – or 15% - in just a few months. The decision to stop now means about 85 miles of road, with an estimated cost of about $13.6 million, will not be paved this year.

Other projects which are not primarily asphalt-based, such as bridge rehabilitation and road reconstruction, are unaffected by this action.

MaineDOT 2008 Pavement Program
Projects Advertised, But Not To Be Awarded
Towns Title Funding Length
Portland PORTLAND, STEVENS AVENUE $ 162,043 0.23
Portland PORTLAND, STEVENS AVENUE $ 206,710 0.3
Windham WINDHAM, US 202 $ 284,386 0.53
Gorham, Windham GORHAM, US 202 $ 254,602 0.41
Portland PORTLAND, OCEAN AVENUE $ 211,695 0.42
Scarborough SCARBOROUGH, US 1 $ 743,695 1.86
Scarborough, South Portland SCARBOROUGH, PAYNE ROAD $ 349,255 0.71
Gardiner GARDINER, WATER STREET $ 244,704 1.1
Litchfield, West Gardiner LITCHFIELD, ROUTE 9 $ 767,747 3.99
Portland PORTLAND, OCEAN AVE. RTE 9 $ 438,900 1.03
Saco SACO, RTE 1 (ELM ST.) $ 204,000 0.4
Auburn AUBURN, ST RTE 11 $ 583,000 1.62
Biddeford BIDDEFORD, ROUTE 111 $ 475,858 0.97
Biddeford BIDDEFORD, ROUTE 9 $ 424,000 0.95
Monmouth MONMOUTH, ROUTE 9/126 $ 1,100,000 0.75
Saco SACO, NORTH ROAD $ 332,000 1
Litchfield LITCHFIELD, ROUTE 9/126 AT HALLOWELL-LITCHFIELD RO $ 50,000 0

Subtotal $ 6,832,596 16.27

Projects Scheduled, But Not To Be Advertised
Towns Title Funding Length
Portland PORTLAND, BRIGHTON AVENUE $ 30,650 0.08
Portland PORTLAND, PARK AVENUE $ 158,156 0.14
Portland PORTLAND, DEERING AVENUE $ 197,000 0.63
Portland PORTLAND, FOREST AVENUE $ 83,000 0.18
Lewiston LEWISTON, MAIN STREET $ 231,602 0.54
Lewiston LEWISTON, MAIN ST $ 85,779 0.2
Lewiston LEWISTON, EAST AVENUE $ 370,824 1.28
Lisbon LISBON, UPLAND ROAD $ 150,000 0.35
Yarmouth YARMOUTH, ROUTE 88 $ 639,222 1.63

Subtotal $ 1,946,233 6.03

Projects Total $ 8,778,829 22.30

Statewide Maintenance Surface Treatment (MST) $ 4,800,000 63.00

Total Amount Suspended $13,578,829 85.30

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