Infrastructure Council Policy Review
May Edition 2008
Study Finds U.S. Investment in Transportation Infrastructure Failing to Keep Pace with Economy, Population Growth
The Americans for Transportation Mobility Coalition released a sobering report in early April that finds the nation’s current and future transportation needs are far outpacing U.S. investment in that infrastructure. The U.S.’ ability to remain competitive in an increasingly global economy depends heavily on its ability to develop a sound and high-performing transportation network. As the Coalition’s study suggests, the current patchwork approach to transportation policy in the U.S. threatens to paralyze the nation’s ailing transportation system.
With the total U.S. population expected to grow by more than 80 million people between now and 2035 and the economy expected to more than double in that same time period, the study emphasizes that this growth places a tremendous strain on the nation’s water, rail, highway, and air transportation systems. The Coalition’s study offers some insight into exactly how much investment is necessary to keep pace with this growth, suggesting rail freight infrastructure is in need of $148 billion; airport infrastructure demands an additional $41 billion; and highway and transit programs require more than $90 billion just to restore purchasing power.
If the U.S. fails to provide for significant investment in these infrastructure areas, that growth will continue to translate into a higher transportation costs and further drain on the U.S. economy. Major U.S. business and industry sectors, such as manufacturing, retail, agriculture, and the services industry would all suffer devastating financial setbacks without more investment. The Coalition’s report ultimately urges policymakers to provide for a more strategic approach to planning and investing in the nation’s transportation infrastructure.
“Americans for Transportation Mobility Study Finds the Lack of a National Transportation Strategy and Investment Harms U.S. Economy”
For copy of the report, click here.
U.S. Railway Giants Announce Support for Canadian National Railway’s Plans for Chicago Revamp
In September last year, Canadian National Railway and U.S. Steel, which owns the Elgin, Joliet, and Eastern Railway (EJ&E) struck a deal to acquire the EJ&E rail system in order to bypass the city’s already congested railroad. The overall goal of CN’s proposed acquisition of the under-utilized railway is not only to reduce the time for cross-country hauling, but also free up rail capacity in the Chicago region. The proposal, however, drew almost immediate criticism from surrounding communities who feared the revamp would lead to an increase in noisy freight rail traffic through their neighborhoods.
The Union Pacific Corp. and Norfolk Southern Corp. - two of the largest railway companies in the U.S. - have now thrown their support behind rival CN’s proposal, claiming the acquisition goes beyond simply addressing the immediate congestion issues in the Chicago-area. The two railway giants argue that increased rail capacity is in the best interest of the nation’s increasing economic demands and local concerns “should not trump the importance of an efficient rail network to the U.S. economy.”
“U.S. Railway Heavyweights Back CN Plan”
New Tri-State Alliance Pushes State Capital Funding Needs
The nine year absence of a state capital bill in Illinois is not only proving problematic for state-only infrastructure needs, it is also having an impact on at least two bordering states. Earlier this month, government, transportation, economic development and business leaders from Illinois, Iowa, and Wisconsin teamed up to discuss the regions’ transportation infrastructure priorities. While the goal of the summit was to create a coordinated message to send to Congress about funding priorities that should be included in the federal 2010 transportation funding package, it was also aimed at targeting state funding issues.
All three states have a vested interest in seeing roads that connect the bordering states improved and rebuilt. A sound transportation infrastructure along the bordering states means increased opportunities for tourism and commerce. One of the routes identified as one of the costliest of the key projects is the restoration of a 50-mile stretch of U.S. 20 between Freeport, Illinois and Dubuque, Iowa. The stretch is one of the main travel arteries between the two states and is expected to cost upwards of $1 billion to rebuild.
The Alliance believes that the region’s ability to remain economically viable in an increasingly global economy depends on coordinating regional interests rather than competing against one another. Addressing those regional needs, however, may prove difficult, particularly with Illinois’ lack of movement on any capital funding. Illinois Congressman Don Manzullo has further accused Springfield and Governor Blagojevich as representing the “biggest roadblock to transportation improvements in northern Illinois.”
“Iowa, Wis., Ill. leaders Team Up in Search for Transportation Funds”
“U.S. 20 Listed as Key Travel Project”
Resolution to State Capital Funding Woes Does Not Guarantee Immediate Project Kick-Start
The Illinois Department of Transportation claims that most construction projects could not get started until 2009 if lawmakers are able to resolve their stalemate on a state construction plan prior to the end of May. This statement runs counter to a message the Governor has recently been relaying to communities around the state that a May agreement means long-overdue construction projects will get underway prior to July 4th.
Resolution on a statewide capital plan, however, still remains highly elusive. The Governor continues to tout the work of the Illinois Works Coalition, meeting with co-chairs SIU President Glenn Poshard and former U.S. Speaker of the House Dennis Hastert in mid-April to discuss revenue options. At the same time, meetings between the Governor and the four legislative leaders on this issue are still virtually non-existent. A continued lack of communication between the Governor, the Speaker, and the other three leaders could render any recommendations put forth by the Coalition moot.
The Coalition is expected to wrap up its scheduled listening session tour at the end of this month. No timeline has been identified for the release of their findings and recommendations, but with the legislative calendar five weeks away from its scheduled adjournment date, legislators will most likely demand a quick turn around on those recommendations.
“Blagojevich Underestimates Timeline on New Roads Projects”
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