Inside World Trade: A Second Tier Transportation System
by Neil Shister
May 1, 2008
The National Transportation
Policy Commission—created by Congress in 2005 to draft a comprehensive approach
to American surface transport—released its report in January. To remarkably
little public notice. Surprised?
If the Commission’s mandate was grand (“to preserve and enhance the surface
transportation system to meet the needs of the United States for the 21st
century”) and the gravity of its conclusions sobering, the prospects for action
on its recommendations is unlikely.
Jack Schenendorf, Vice Chairman of the Commission (and a long-time veteran in
Congressional budget politics), recently underscored to an American Association
of Port Authorities audience just how bad things are. “We’re at a crisis and a
cross-roads,” he said. “If we continue to go as we are going, we’ll have a
second- or third-tier transportation”
Even advocates of shrinking the
federal government recognize the magnitude of the danger. “It’s just too big a problem
to hand off to state and local government and the private sector and be able to
look out twenty years to see systemic improvement,” noted Schenendorf (a
Republican who served as chief of the transportation part of the Bush-Cheney
transition team).
To cut to the chase, what will it take to insure first-tier transportation? An
annual spend of $225 billion (federal, state and local) for the next fifty
years! And our current spend? Eighty-seven billion dollars. In other words, for
every dollar that goes to roads and rails today, there needs to be three.
Turns out that since the 1956 authorization to build the Eisenhower interstate
system (which, as we speak, has reached its designed capacity and life span),
funding for transportation has remained at essentially the same level, “it’s
only been making changes at the margin,” says Schenendorf.
So how bad are things? Here’s a sampling of factoids from the
report:
• Cargo
growth projections for container ports anticipate a doubling or tripling of
throughput growth in the next 15 to 20 years with additional demands on eastern
ports and congested freight facilities.
• Despite
the growth in demand for freight rail services over the past decade, today’s
railroad system is about half the size of the system that existed in the
1900s;
• Twenty-nine
percent of the nation’s 585,500 bridges are deemed structurally deficient or
functionally obsolete;
• Average
Daily Percent of Vehicle Miles Traveled (VMT) under congested conditions has
increased from 25.9 percent in 1995 to 31.6 percent in 2004.
Not a pretty picture.
The Report posits an action agenda—consolidating the 108 federal transportation
programs into ten. Among the mandates of these ‘super agencies’ would be to
restore the existing infrastructure to a state of good repair, to facilitate
freight transport through investments in interstate highways and intermodal
port connections to ‘avoid adding time and cost to the supply chain,’ and to
reduce vehicle congestion 20 percnet by 2025 (in part through the deployment of
inter-city passenger rail).
Will any of this happen?
The test comes next year, when the existing Highway Trust Fund appropriation is
up for renewal. With the public uninterested in the issue (and ill-disposed to
the tax hikes reform will entail), “elevated support by orders of magnitude
from the past” is going to be required,” says Schenendorf.
“Continuing on the current $87 billion path means underinvestment and slow
degradation. And, to repeat, you can’t have a first-rate economy without a
first-rate transportation system.”
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