The Boring Company has officially secured a long-term agreement to build its next underground transit system — this time in Tennessee. On Wednesday, the Metropolitan Nashville Airport Authority (MNAA) unanimously approved a 40-year licensing deal that clears the way for construction of the “Music City Loop,” a tunnel connection between downtown Nashville and Nashville International Airport (BNA).
The agreement is valued at US$34 million in licensing fees, with the airport authority projecting an additional US$300 million-plus in operational revenue over the life of the deal, yet the project requires no upfront capital investment from the airport itself.
“This is a significant benefit to the airport authority because we’re receiving a new way for our passengers to arrive downtown at zero capital investment from us,” MNAA President and CEO Doug Kreulen said. “We don’t have to fund the operations and maintenance of that. TBC, The Boring Co., will do that for us.”
How the Music City Loop Will Work
The Music City Loop will use Tesla vehicles operating in underground tunnels to shuttle passengers between downtown and the airport in approximately eight minutes — a dramatic improvement over the typical 20-minute surface commute during light traffic.
The Boring Company will cover all construction, operations, and maintenance costs, estimated between US$200 million and US$300 million. The company has also agreed to reimburse MNAA US$600,000 for legal and engineering expenses incurred during negotiations.
Under the agreement, TBC will pay an annual US$300,000 licensing fee for use of airport property, increasing 3% each year. Once operational, the airport will also collect a $5 fee per passenger pickup and drop-off, similar to rideshare charges. Officials estimate this could generate roughly US$309 million over time.
If construction proceeds on schedule, the Nashville system could be operational as early as 2027.
