ARTBA Washington Newsline

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NewslineWashington

LoTransTM Virtual Conference Set for September 18-20

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Weak Economy Reduces Congestion, Report Says

ARTBA Chairman’s Message on 2012 Convention

A D V E R T I S E M E N T

Marsh and ARTBA Launch Heavy Highway Insurance Program. Contact ARTBA’s Rich Juliano at 202.289.4434 for more information.

Traffic technology firm INRIX released its annual “Traffic Scorecard” May 22 revealing a 30 percent drop in traffic congestion during 2011 in 100 U.S. cities. Unfortunately, the decline was not due to improved infrastructure, but rather lackluster employment gains and high gas prices.

“The news in the report shouldn’t be a cause for celebration,” ARTBA President

LōTrans™ 2012, happening September 18-20, is the first-of-its-kind “Local Transportation Asset Management Virtual Conference & Innovation Showcase” featuring “Best Practices in Work Zone Safety.” It is being organized by ARTBA’s Transportation Officials Division and the National LTAP Association to meet the information needs of one audience—

local transportation agency professionals. With tight budgets, they can’t travel. So we are breaking down that barrier by going to them—with a state-of-the-art virtual conference and trade show they can visit for free at their desktops!

Watch this brief video to see how it all works.

There will be more than 25 educational sessions.

LōTrans™ also offers an excellent opportunity to showcase your company’s products before scores of industry and agency decision makers.

View the exhibitor prospectus for more information. Among the exhibitors so far:

Our theme is “Talkin’ in Memphis.” And we want you to join us for the conversation!

Register today for the 2012 ARTBA National Convention, scheduled for September 11-14. If you take action before July 1, we’ll take $110 off the price as part of ARTBA’s 110th anniversary special.

2 ARTBA Washington Newsline

Upcoming EventsVisit our Events Page for more information.

Federal Issues Program & TCC Fly-InMay 29 - 31 Washington, D.C. [Add to Calendar]

TransOvation WorkshopJuly 25-27Leesburg, Va. [Add to Calendar]

National ConventionSeptember 11–14 Memphis, Tenn. [Add to Calendar]

LōTrans Virtual Conference & Innovation ShowcaseSeptember 18 - 20[Add to Calendar]

P3s in Transportation ConferenceOctober 11–12 Washington, D.C. [Add to Calendar]

4th Annual Construction Law & Regulatory ForumOctober 24-25Washington, D.C.

Western Regional MeetingNovember 27-28San Francisco, Calif.[Add to Calendar]

Central Regional MeetingNovember 29-30Chicago, Ill.[Add to Calendar]

Southern Regional MeetingDecember 3-4Atlanta, Ga. [Add to Calendar]

Northeastern Regional MeetingDecember 5-6Boston, Mass. [Add to Calendar]

2012

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LoTrans

The iconic Golden Gate Bridge in San Francisco officially opened to traffic on May 28, 1937. The bridge took four years to build. The story behind how it got its name: The Golden Gate Strait is the entrance to the San Francisco Bay from the Pacific Ocean. The strait is approximately three-miles long by one-mile wide with currents ranging from 4.5 to 7.5 knots. It is generally accepted that the strait was named “Chrysopylae,” or Golden Gate, by John C. Fremont, captain, topographical engineer of the U.S. Army circa 1846. It reminded him of a harbor in Instanbul named Chrysoceras, or Golden Horn.

Learn more: www.goldengatebridge.org.

Happy 75th Birthday, Golden Gate Bridge

• Federal Highway Administration• 3M• “Better Roads”• Caterpillar• HCSS• Honeywell Safety Products• National Steel Bridge Alliance• National Association of County

Engineers• National Local Technical

Assistance Program Association• National Work Zone Safety

Information Clearinghouse• “Roads & Bridges”• Transpo Industries

Contact ARTBA’s Ed Tarrant or Peter Embrey at 202.289.4434 to become an exhibitor.

3ARTBA Washington Newsline

Products & Services

State Transportation Officials to Attend TransOvation 2012

Connect with Industry Leaders: Advertise in ARTBA’s Digital Buyers Guide

Promote your firm’s products and services before a wide audience of material suppliers, manufacturers, design firms and contractors.

Contact ARTBA’s Peter Embrey for more information.

American Road & Transportation Builders Association (co-chair) • Associated General Contractors of America (co-chair) • American Coal Ash Association • American Concrete Pavement Association • American Concrete Pipe Association • American Council of Engineering Companies • American Subcontractors Association • American Iron and Steel Institute • American Society of Civil Engineers • American Traffic Safety Services Association • Asphalt Emulsion Manufacturers Association • Asphalt Recycling & Reclaiming Association • Associated Equipment Distributors • Association of Equipment Manufacturers • Concrete Reinforcing Steel Institute • International Slurry Surfacing Association • International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers • International Union of Operating Engineers • Laborers-Employers Cooperation and Education Trust • Laborers’ International Union of North America • National Asphalt Pavement Association • National Association of Surety Bond Producers • National Ready Mixed Concrete Association • National Stone, Sand and Gravel Association • National Utility Contractors Association • Portland Cement Association • Precast/Prestressed Concrete Institute • The Road Information Program • United Brotherhood of Carpenters and Joiners of America

www.transportationconstructioncoalition.org

Highway & Transit Bill Conference Committee Members, it’s time to step up to the plate.

American workers are looking to you to

“bring them home.”

Pass a Surface Transportation Bill that Boosts the U.S. Economy and Supports Jobs!

After 31 months and 9 Highway & Transit Program Extensions…

Runners are finally in scoring position.

The Transportation Construction Coalition (TCC) has developed this baseball themed print ad to catch the eye of House-Senate transportation bill conferees and urge them to produce a final bill before the June 30 deadline. The ad first appeared in the Capitol Hill newspaper “Politico” May 24 and will run May 30 and 31 in both “Politico” and “Roll Call” during this week’s ARTBA FIP and TCC Fly-In.

In addition to learning from a dynamic set of innovation thought leaders and gaining “bring back to the office,” practical ideas that can fuel growth, attendees at this year’s ARTBA TransOvation Workshop will have the opportunity to collaborate with state transportation officials to develop new infrastructure strategies for reducing deaths and injuries from motor vehicle crashes on the nation’s highways.

The Federal Highway Administration’s (FHWA) Center for Accelerating Innovation recently committed to sending a “change maker” from dozens of state transportation agencies to participate in the July 25-27 event at the Lansdowne Resort and Conference Center in Leesburg, Virginia.

TransOvation is a limited-space, interactive event designed to help transportation design and construction

executives foster innovation in their firms. On the final day, groups will present

their proposals to FHWA Administration Victor Mendez and top industry leaders.

To register visit: www.transovation.org.

4 ARTBA Washington Newsline

Overheard

“ ”

TRB Newsletter: May22Highlighting new research, technologies, industry best practices and information resources available to the transportation design and construction industry.

A service of ARTBA’s multi-modal councils, it features current transportation developments making news across all modes and regions. Contact: Caitrin Reed to become a subscriber.

Fostering Innovation

MultimodalNews

Legislative & Regulatory News

ARTBA News

As Economy Recovers, Congestion will Increase

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“I do want to say, from what I know, I think [finance negotiators] have found a very sweet spot, a good way to pay for this that will gain very, very broad support among Republicans and Democrats.”

Senate EPW Committee Chair Barbara Boxer (D-Calif.) May 23 discussing the status of the highway & transit bill.

“I’m hopeful that the negotiators can complete work on a conference agreement that includes Keystone and other energy measures to address high gas prices and create jobs; as well as meaningful infrastructure reforms that ensure that taxpayer dollars are spent effectively and efficiently on roads and bridges across this country.”

House Speaker John Boehner (R-Ohio) in a May 23 statement.

Pete Ruane said. “As INRIX points out, rising fuel prices and a continued weak economy were key reasons for the congestion decline. With more than 6.2 million fewer people in the U.S. workforce today than in 2007, it’s not surprising there is less traffic.”

He added: “It should be a real wake-up call to political leaders and the public that it took the greatest economic downturn since the Great Depression to help reduce congestion. Once the economy fully recovers, millions more Americans will begin commuting to work again and we can expect traffic gridlock to rise again to pre-recession levels. That’s unacceptable. The goal shouldn’t be to accept the status quo. The goal should be to add the surface transportation infrastructure capacity necessary to move people and goods more efficiently, and to ensure America remains economically competitive in the global marketplace.”

Honolulu ranked first as the “worst traffic city” followed by: Los Angeles, San Franciso, New York, Bridgeport (Conn.), Washington, D.C., Seattle, Austin, Boston, Chicago. View the full report.

Transportation from the Eyes of Tomorrow’s Leaders

ARTBA’s Research and Education Division has launched a national student-produced video contest to document and demonstrate, from a young person’s perspective, views on transportation infrastructure, finance, operations and long-term needs. Two winners will be selected from a nationwide pool of submissions—with the top videos shown at ARTBA’s National Convention in Memphis, Tenn., this September.

Students of all ages are encouraged to offer their perspective while addressing any aspect of U.S. transportation. Some suggested topics include:

• U.S. Transportation Infrastructure 101.

• How infrastructure is built and paid for.

• What are the costs and financing needs of transportation infrastructure?

• What are the impacts of congestion and changing travel demands?

• What are the “man on the street” impressions of the industry versus reality?

• Recent transportation and urban design/development patterns.

Entrants should create an original 2-4 minute video.

One winner will be selected from each of the following categories:

• elementary, middle, and high school students

• students in a post-secondary program

Winners will also receive a $500 cash prize and be announced to national and trade media outlets.

For more information, contact ARTBA’s Lital Shair.

5ARTBA Washington Newsline

Download a PDF copy of the digital “Washington Newsline.”

It’s that time of year again for the ARTBA Planning & Design Division “Engineering Issues” events at all of the regional AASHTO meetings. Here are the locations and dates:

• NASTO: www.nasto.org (Baltimore, Md. – Renaissance Baltimore Harborplace Hotel – June 10-12) ARTBACEOBreakfast: Tuesday, June 12 from 7:00 – 8:30 a.m.

• WASHTO:www.washto2012.com (Colorado Springs, Colo. – Crowne Plaza Hotel – July 8-11)ARTBACEOLuncheon: Wednesday, July 11 from 12:00 – 1:30 p.m.

• MAASTO: www.maastoconference.org (Lexington, Ky. – Hyatt Regency Lexington – July 17-20)ARTBACEOBreakfast: Wednesday, July 18 from 7:00 – 8:30 a.m.

• SASHTO: www.sashto2012.org (Charleston, S.C. – Charleston Place Hotel – Aug. 25-29) ARTBACEOLuncheon: Monday, August 27 from 12:00 – 2:00 p.m.

Space is limited so RSVP soon to ARTBA’s Brie Johnson at bjohnson@artba.org

DEADLINESAWARD

TRAnSOvATIOn AWARDS

Deadline: June 12

Honoring innovative transportation infrastructure-related products, services, technologies and techniques introduced over the past five years that can be documented to provide a high return-on-investment by: improving transportation safety; saving transportation users and taxpayers time and/or money; or making our transportation infrastructure more environmentally sustainable.

WOMEn LEADERS In TRAnSPORTATIOn DESIGn AnD COnSTRUCTIOn AWARDS

Deadline: June 12

Honoring extraordinary efforts of individuals, companies and public agencies that have demonstrated leadership and dedication to innovation in the transportation construction field as well as the promotion of women leaders within the industry. Three categories: Lifetime Achievement, Company Awards, and Student Awards.

Contact ARTBA’s Holly Bolton with any questions.

ARTBA PLANNING & DESIGN DIVISION “ENGINEERING ISSuES” EVENTS

Check out the latest March/April issue of

“Transportation Builder”

Mar.-Apr. 2012 TransportationBuilder 1

builder®ANNUAL SAFETY SOURCE

March-April 2012

Work Zone Safety Clearinghouse

15th Anniversary!

We’ve got a slate of top notch speakers, including Scott McKain, one of only 150 living members of the Professional Speakers Hall of Fame and an expert on brand differentia-tion. As a best-selling author of several business books, he will reveal how to create more compelling connections between you and your customers, and how to stand out and move up, regardless of the economic climate.

Bill Logue, president and chief executive officer of FedEx Freight Corporation, will share the company vision for the nation’s transportation network. He’ll also provide the “in-side scoop” on how FedEx is able to move 1.5 million pack-ages daily, on 42 miles of conveyor belts, at its hub at the Memphis Airport. John Schroer, Tennessee’s transportation commissioner, will be on hand to provide a report on the state’s infrastructure plans and potential market opportuni-ties. Finally, we will also have two days of education training during the September 11-12 “Safety Leadership Workshop.”

Our convention hotel is the Peabody Memphis, a magnifi-cent Forbes Four-Star, AAA Four-Diamond, historic prop-erty, which has been described as “legendary, charming, elegant and grand.” It’s located just steps from key attrac-tions like the Memphis Rock ‘N Soul Museum, National Civil Rights Museum and Sun Studio. The world-famous Peabody Ducks will be on hand as they march to and from the Grand Lobby daily at 11 a.m. and 5 p.m., in a time-honored tradi-tion dating back to 1933.

Elvis will be in the house, too! Well, not really. But we will be in his when we visit Graceland for the ARTBA Political Ac-tion Team Reception. 2012 marks the 35th anniversary of the King’s death and his daughter, Lisa Marie, has just unveiled a new exhibit of items to mark the occasion. You will have the opportunity to tour the mansion.

Finally, on a very special Thursday evening, September 13, Tennessee contractor Steve Wright will be installed as the new ARTBA chairman. This is a major milestone in ARTBA history as Steve becomes the first graduate of the Young Executive Development Program to be elected chairman.

Special thanks to our host, the Tennessee Road Builders Association and its chief executive, Kent Starwalt, for their financial support and outstanding leadership in developing this year’s convention and spouse programs.

My wife, Anita, and I look forward to seeing you in the Blues City!

Paul Yarossi, 2012 ARTBA ChairmanPresident, HNTB Holdings Ltd., HNTB Corporation

Register: www.artbanationalconvention.org 1

SEPTEMBER 11–14

CONVENTIONNATIONAL

2012Talkin’ In Memphis

FeaturingSafety Leadership Workshop

ARTBA 110th Anniversary Special Discount: Register By July 1

www.artbanationalconvention.org

Register at: www.artbanationalconvention.org

Inland waterways quietly keep the nation’s economy flowing as they transport $180 billion of coal, steel, chemicals and other goods each year — a sixth of U.S. freight — across 38 states. Yet, an antiquated system of locks and dams threatens the timely delivery of those goods daily.

The outage, which began last July and is expected to end in August, will cost American Electric Power and its customers $5.5 million as the utility ferries coal and other supplies along the river for itself and other businesses, says AEP senior manager Marty Hettel.

As the economy picks up, the nation’s creaking infrastructure will increasingly struggle to handle the load. That will make products more expensive as businesses pay more for shipping or maneuver around roadblocks, and it will cause the nation to lose exports to other countries — both of which are expected to hamper the recovery. “The good news is, the economy is turning,” says Dan Murray, vice president of the American Transportation Research Institute. “The bad news is, we expect congestion to skyrocket.”

The ancient lock-and-dam system is perhaps the most egregious example of aging or congested transportation systems that are being outstripped by demand. Fourteen locks are expected to fail by 2020, costing the economy billions of dollars. Meanwhile, seaports can’t accommodate larger container ships, slowing exports and imports. Highways are too narrow. Bridges are overtaxed.

Effects‘sneakingup’

The shortcomings were partly masked during the recession as fewer Americans worked and less freight was shipped, easing traffic on transportation corridors. But interviews with shippers and logistics companies show delays are starting to lengthen along with the moderately growing economy. “I call this a stealth attack on our economy,” says Janet Kavinoky, executive director of transportation and infrastructure for the U.S. Chamber of Commerce. “It’s not like an immediate crisis. It’s something that’s sneaking up on us.”

Freight bottlenecks and other congestion cost about $200 billion a year, or 1.6% of U.S. economic output, according to a report last year by Building America’s Future Educational Fund, a bipartisan coalition of elected officials. The chamber of commerce estimates such costs are as high as $1 trillion annually, or 7% of the economy.

Yet, there’s little prospect for more infrastructure investment as a divided Congress battles about how to cut the $1.3 trillion federal deficit, and state and local governments face their own budget shortfalls. Government investment in highways, bridges, water systems, schools and other projects has fallen each year since 2008. IHS Global Insight expects such outlays to drop 4.4% this year and 3% in 2013.

The U.S. is spending about half of the $2.2 trillion that it should over a five-year period to repair and expand overburdened infrastructure,

says Andrew Herrmann, president of the American Society of Civil Engineers.

Inland waterways, for example, carry coal to power plants, iron ore to steel mills and grain to export terminals. But inadequate investment led to nearly 80,000 hours of lock outages in fiscal 2010, four times more than in fiscal 2000. Most of the nation’s 200 or so locks are past their 50-year design life. A prime example is an 83-year-old lock on the Ohio River near Olmsted, Ill. Congress set aside $775 million to replace it and another nearby lock in 1988. The project began in 1993 and was scheduled to be finished by 2000 but still isn’t complete, in part because of engineering modifications intended to save $60 million. Now, the cost has ballooned to $3.1 billion, and the new lock won’t be ready until 2020 or later.

The cost overrun leaves little money for other projects. About $8 billion is needed to replace 25 locks and dams in the next 20 years, says Michael Toohey, president of the Waterways Council, an advocacy group. But Congress allocates only about $170 million a year, with the government and a 20-cent-a-gallon tax on tow operators each funding half. Toohey says $385 million a year is required to fund all the work. “We’re the silent industry” because waterways are less visible, he says.

The biggest railroad bottleneck is in Chicago. A third of the nation’s freight volume goes through the city as 500 freight trains jostle daily for space with 800 passenger

trains and street traffic. Many freight rail lines crisscross at the same grade as other trains and cars — a tangle that forces interminable waits. It takes an average freight train about 35 hours to crawl through the city. Shipping containers typically languish in rail yards several days before they can be loaded onto trains.

Manufacturers, in turn, must stock more inventory to account for shipping delays of uncertain length, raising product costs about 1%, estimates Ken Heller, a senior vice president for DSC Logistics. Caterpillar has built two multimillion-dollar distribution centers outside the city to increase its freight volumes so it can get loading priority at rail yards.

About $3.1 billion in projects are planned, underway or complete, such as separate intersecting roadways and rail lines, but only a third of the money has been approved. Highways, meanwhile, suffer from Congress’s failure in recent years to assure long-term funding for a federal trust fund that pays for upgrades. The fund kicks in about $42 billion a year, but that goes largely to maintenance, and the fund is expected to temporarily run out of money in 2013.

Among those affected is UPS. The giant courier says that if each of its 95,000 U.S. vehicles is delayed an average five minutes a day for a year — a realistic figure — it costs the company $103 million in added fuel costs, wages and lost productivity. Con-way, one of the largest trucking companies, often builds an extra day of travel into shipping schedules

Monday, May 21 by Paul DavidsonUSA’s creaking infrastructure holds back economy

The article below compellingly highlights the deficiencies in the nation’s transportation network and the resulting costs to American taxpayers. It’s a “must-read.”

to ensure it meets customers’ exacting just-in-time delivery demands, says Randy Mullet, head of government relations. Customers pay a premium for that.

In Texas, worsening delays on Interstate 35 between San Antonio and Dallas, much of which has only two lanes each way, forces regional grocery chain H-E-B to charge about 15 cents more for a gallon of milk, says Ken Allen, a former H-E-B executive and now a consultant for the company.

Bridgesunderstrain

The nation’s 600,000 bridges are also falling behind. Nearly a quarter are classified as “structurally deficient” or “functionally obsolete,” according to the Federal Highway Administration. As of the end of last year, more than one in 10 were closed or had weight limits that barred trucks. For Illinois corn grower Paul Taylor, such a restriction on the Pearl Street bridge in Kirkland means he must drive three extra miles to deliver his corn to a grain elevator, raising his costs by about 5 cents a bushel.

Many unrestricted bridges, meanwhile, are strained, especially at border crossings. The busiest in North America is the 83-year-old, four-lane Ambassador Bridge, the only direct link between Detroit and Canada. The bridge, already impaired by its capacity, often closes lanes for repairs and empties onto a busy city street in Windsor, Ont. Delays, typically lasting two hours, are exacerbated by a Customs checkpoint that’s not large enough for the traffic volume.

U.S. auto companies store extra parts at factories and closely space deliveries so that if one truck is sidetracked,

another isn’t far behind, says Kevin Smith, senior vice president for consulting firm Sandler & Travis. Ford Motor told a state legislative committee last fall that such maneuvers, along with extra freight expenses, add up to $800 to the cost of a vehicle. “This is one of the last remaining impediments” to business recruitment, says Sandy Baruah, CEO of the Detroit Regional Chamber of Commerce, noting that both taxes and union wages have fallen in recent years.

The Canadian government has proposed building a new bridge that skirts Windsor and connects to highways in Canada. But the Michigan legislature has rejected the plan amid a lobbying and advertising campaign by the Ambassador Bridge’s owner, 84-year-old billionaire Manuel “Matty” Moroun.

In Nogales, Ariz., snags cause several hours of delays at the Mexican border, where a customs plaza undergoing a $200 million expansion feeds into a two-lane road in each direction. That often translates into delays for about 200 local fresh produce importers whose customers require timely deliveries. The plaza work is to be completed in two years, but that’s expected to dump even more cars and trucks onto two-lane Mariposa Road. Officials only recently began to studywidening it.

Jaime Chamberlain, owner of J-C Distributing, says that several times a week, the snarls delay by as much as a day deliveries of his tomatoes, squash, bell peppers and other produce to U.S. wholesalers or grocers. He says he loses thousands of dollars in orders almost weekly and occasionally has lost the business of a major

grocery chain at a cost of several million dollars a year.

Far more revenue is jeopardized by outdated seaports on the East and Gulf coasts. A half-dozen ports can’t handle new larger ships with greater container capacity because the harbors are too shallow, says Paul Anderson, CEO of the Jacksonville Port Authority.

That raises shipping costs and delays exports of steel, factory machines and computers that may sit at docks for days. Delivery times and costs are also higher for imports of electronics, apparel and other goods , boosting retail prices. While some larger ships can dock at the port of Savannah during high tide, they can’t load to full capacity and must typically wait up to six hours for the tide to come in, says Curtis Foltz, head of the Georgia Ports Authority.

The need to accommodate bigger ships will become even more dire after the Panama Canal is widened in 2014, allowing big ships from Asia to cross from the West Coast to the Eastern U.S. There are plans to deepen several ports, but project studies by multiple federal agencies take about 13 years. By contrast, Brazil, India, China and Southeast Asia are dredging ports in as little as three years, including planning and construction, Anderson says. Meanwhile, U.S. and foreign companies often turn to countries with modernized ports.

Caterpillar, the world’s top maker of construction and mining equipment, has moved 30% of its exports and 40% of imports to Canadian ports in recent years, costing U.S. ports tens of millions of dollars a year in revenue. “We can get our exports and imports to market

faster and at lower costs,” Caterpillar Chief Financial Officer Ed Rapp says of the move.