Foreign-Owned Company Wins Key Contract
A Singapore-based company with ties to China has won the E-ZPass contract for the New Jersey Turnpike, a decision that has sparked concerns over national security and data privacy. The New Jersey Turnpike Authority (NJTA) awarded the contract to TransCore, a Nashville-based firm owned by Singapore Technologies Engineering (ST Engineering), for $1.73 billion. The contract value surpasses the $1.479 billion bid by Conduent, Inc., a Newark-based company that has managed the system for over two decades.
Following the decision, Conduent filed an appeal, questioning the rationale behind awarding the contract to TransCore and raising concerns over its parent company, Temasek Holdings. Temasek, a Singapore government-owned investment firm, has historical ties to China, leading to worries about potential security risks associated with the deal.
Links to China and Data Security Concerns
Temasek’s former board member, Fu Chengyu, previously chaired major Chinese state-owned oil companies and has been associated with the Chinese Communist Party’s political influence operations. Though Fu stepped down from Temasek’s board shortly after Conduent’s initial protest, he continues to serve as a director in one of the firm’s China-related subsidiaries. Critics argue that these connections highlight the risk of foreign influence over sensitive data collected through E-ZPass transactions.
The U.S. Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) had previously reviewed ST Engineering’s acquisition of TransCore in 2021. While the company asserted that it operates independently of the Singaporean government, security analysts raised concerns that the data collected by TransCore could be accessed by foreign entities. E-ZPass contract systems store personal information such as addresses, credit card details, driver’s license numbers, and vehicle registration data, making the potential for data exposure a significant issue.
National Security Implications and Ongoing Dispute
Former U.S. Senator Robert Torricelli, a consultant for Conduent, has voiced strong objections to the contract, describing it as a more significant risk than past concerns over foreign-owned digital platforms. He emphasized that the New Jersey Turnpike is a critical transportation route, frequently used by government officials and commercial entities transporting essential goods. If TransCore assumes control, Torricelli warns that movement patterns of high-profile individuals and sensitive shipments could be tracked, raising national security concerns.
The NJTA has refrained from commenting on the ongoing contract dispute, stating that Conduent’s appeal is still under review. Meanwhile, TransCore’s CEO, Whitt Hall, has defended the company’s track record, asserting that it maintains full transparency regarding its ownership and adheres to stringent U.S. cybersecurity and data protection regulations. Hall also highlighted E-ZPass contract that TransCore manufactures all its tolling products in the United States and complies with a National Security Agreement (NSA) established with U.S. government agencies.
The dispute continues to unfold, with growing calls for further scrutiny over the implications of awarding critical infrastructure contracts to foreign-owned entities with potential ties to adversarial nations. The outcome of Conduent’s appeal could set a precedent for how similar cases are handled in the future.
