As the South experiences rapid economic and population growth, it also faces transportation issues related to severe weather events. To address these challenges, Arkansas, Louisiana, Mississippi, and Oklahoma are directing significant resources toward modernizing and strengthening transportation networks, boosting safety, and reducing traffic congestion.
Over the past three years, the departments of transportation in these four states collectively awarded over $16.7 billion in projects, significantly impacting the construction and transportation industries. Increased investment is fueling demand for skilled labor, construction materials, and engineering expertise, while also putting pressure on supply chains and regulatory processes.
Beginning July 1, 2023, the Arkansas Department of Transportation (ARDOT) started receiving revenue from the permanent, half-cent sales tax approved by voters. This stable source of funding allowed ARDOT to establish the Renew Arkansas Highways Program, focused on bringing the highway system into a state of good repair, along with major capital and congestion-relief projects designed to promote economic development. In fiscal year 2024, that included 135 projects totaling approximately $1.4 billion.
Arkansas also takes a proactive approach to maintaining and promoting the scenic byways that showcase the state’s diverse natural beauty and support local economies. In addition, with the state’s location along major waterways, including the Mississippi and Arkansas rivers, water transportation remains a crucial component.
Going forward, with truck volumes expected to grow across the state, efficient freight movement remains a key challenge. Increasing population and employment will also result in increased transit ridership in urban centers and more vehicle miles traveled across the state.
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Key Projects
- Connecting Arkansas Program: This $1.8 billion initiative, focused on widening major highway corridors to four or more travel lanes, has completed 30 projects covering over 160 miles. The last project to widen Highway 67 in Pulaski County will finish in 2026.
- I-49 Extension: This $1.3 billion, multi-phased project in western Arkansas will extend a 14-mile segment of the interstate, connecting major freight networks to enhance commerce and improve mobility in the transcontinental corridor.
- Springdale Northern Bypass: Completed in four phases at a projected cost of nearly $1 billion, this project will extend Highway 612 with a four-lane, 21-mile-long interstate in northwest Arkansas.
When looking at the firms awarded Arkansas transportation projects over the last three years, the top 20 contractors have won a large majority of jobs (79 percent). The difference between first- and second-place bidders in the state averages 7 percent.
Louisiana faces multiple challenges with its transportation network. The state’s high humidity, frequent rainfall, hurricanes, and soft, swampy soil contribute to the rapid deterioration of roads and other infrastructure. In addition, primary funding for the Louisiana Department of Transportation and Development (LaDOTD) comes from fuel taxes — and at 20 cents per gallon, Louisiana’s gas tax ranked 43rd among U.S. states as of January 2024.
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Sparked by Governor Jeff Landry’s executive order, LaDOTD is now in the midst of the Transforming Transportation with Transparency and Teamwork program. Multiple initiatives were undertaken in 2024 to address issues identified by Boston Consulting Group’s review of LaDOTD operations, with more efficiency, reliability, and transparency efforts planned for 2025. LaDOTD is also updating its 30-year Statewide Transportation Plan.
For the near-term, the state legislature approved $1.11 billion for 343 highway construction projects to be bid in the 2025-2026 fiscal year.
Key Projects
- Mississippi River Bridge South: This $3 billion project will provide additional redundancy in the Greater Baton Rouge cross-river transportation network, creating new access across the river and new connectivity between LA 1 and LA 30.
- I-10 Calcasieu River Bridge: A public-private partnership is designing and constructing this $2.3 billion megaproject in Lake Charles to replace the existing 70-year-old bridge with a wider, safer structure.
- I-10 Baton Rouge: As the largest urban interstate reconstruction project in LaDOTD’s history, this $872 million project from LA 415 to Essen Lane will improve safety and mobility with an additional lane and modern interchanges.
Louisiana’s 20 winningest contractors over the last three years account for 72 percent of transportation project awards. The difference between first- and second-place bidders averages just 5 percent.
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Fiscal year 2024’s $1.2 billion in approved transportation projects surpassed the state’s previous benchmarks by over $255 million. For fiscal year 2025, the Mississippi Department of Transportation’s (MDOT) budgeted expenditures total approximately $1.44 billion.
Federal funds and state motor fuel taxes provided 79.1 percent of MDOT’s funding for fiscal year 2024, with the balance coming from truck fees, vehicle tags, the 3.5 percent contractor’s tax on certain highway construction contracts, and other categories. Funds from the state lottery also support many statewide paving projects to improve road safety and usability.
In addition to highway and bridge projects, MDOT invests in improvements for airports, railways, public transit, and the state’s 16 ports to increase transportation safety, mobility, and economic development across the state.
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Key Projects
- U.S. 82 Greenville Bypass, Phase 2: With 16 miles of new highway, this $216 million Washington County project will enhance road safety, alleviate congestion, and divert hazardous truck traffic away from residential areas.
- SR 57 Widening: This $212 million project in Jackson County will expand the hurricane evacuation route for Gulf Coast residents while improving safety, easing congestion, and creating new business opportunities along the route.
- Highway 15 Ripley Bypass: This $195 million initiative in Tippah County will enhance safety and economic growth through widened roadways and a new connector.
A large majority (88 percent) of infrastructure projects awarded in Mississippi are going to the top 20 contractors in the state. The difference between first- and second-place bidders averages 11 percent.
In 2004, Oklahoma ranked 49th in the nation for bridge conditions. After nearly two decades of planning and effort, the state broke into the top 10 national bridge ranking and now maintains a goal of 1 percent or less of the state’s bridges at a rating of structurally deficient.
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With the focus on bridge infrastructure now in the sustaining phase, the Oklahoma Department of Transportation (ODOT) turned its attention to a highway surface preservation program. In addition, ODOT’s eight-year Construction Work Plan contains 964 miles of improvements to rural, two-lane highways with deficient shoulders. These routes play a key role in the state’s agricultural and energy-based economies, but many were not designed for today’s truck traffic and higher speeds. The improvements aim to reduce crashes and fatalities caused by vehicle lane departures and overcorrections.
The state’s transportation funding traditionally comes from federal sources, state fuel taxes, and the Rebuilding Oklahoma Access and Driver Safety Fund, which has now reached its cap, requiring new efforts to meet future transportation needs.
Key Projects
- I-44/U.S. 75 Interchange: With federal grants accelerating the timeline, this $252 million project (ODOT’s most expensive to date) combines three phases of construction to increase safety and decrease congestion near Tulsa.
- I-35/I-240 Interchange: In Oklahoma City, this six-phase project will replace the outdated junction with a multi-level interchange to address safety and capacity issues. With two phases complete and one under construction, ODOT has invested $140 million so far.
- I-35/SH 9W Interchange: This $82 million project is constructing the third diverging diamond interchange in the state to reduce crash rates and improve efficiencies.
In Oklahoma, the top 20 contractors in the last three years account for 80 percent of project awards. The difference between first- and second-place bidders averages 7 percent.
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Infrastructure investments in the south central U.S. are critical to sustaining regional economic growth and efficient nationwide freight transport.
While these projects offer new business opportunities, they also present challenges related to material costs, labor shortages, and regulatory complexities. Addressing these issues through workforce development, supply chain resilience, and technological innovation will be key to ensuring the long-term benefits of infrastructure spending in the region.
Editor’s Note: Graphics are based on analysis of 2024 data from state department of transportation project awards.
