TRANSPORTATION

Blogging from Kabul, Seattle Times reporter Hal Bernton is struck by how the post-Taliban proliferation of private vehicles has boosted smog and air pollution, threatening public health. Now picture the possibilities in places such as China and India, where rapidly multiplying populations are enjoying new opportunities and car ownership is seen as an important step on the economic ladder. The small, affordable, fuel-sipping Tata Nano is a success story in India, yet The New Delhi-based Center for Science and the Environment recently warned of carbon emission risks posed by a growing percentage of bigger vehicles in the nation’s fleet, combined with a failure to set fuel economy standards. (Open Microsoft Word doc. after clicking here). The Times of India confirms the sport utility vehicle market there is heating up. In addition to the tiny Nano, Tata Motors, India’s largest auto manufacturer, makes many types of mid-sized and larger rides, including SUVs such as the Safari Dicor, the Sumo Victa, the Sumo Grande and the Xenon XT pick-up (pictured, right). Plus commercial trucks, now enjoying a sales boom in India. The “50 By 50 Global Fuel Economy Initiative” report highlights a projected tripling of the world’s light vehicle fleet by 2050, with 80 percent of that growth occurring in rapidly developing countries.
The report concludes that improving the average fuel economy of the global car fleet 50 percent by that year will “mainly involve incremental change to conventional internal combustion engines and drive systems, along with weight reduction and better aerodynamics.” Important aims to be sure, but “50 By 50” unfortunately consigns the eventual wide adoption of green vehicles such as plug-in hybrids and all-electrics to “icing on the cake” status, and largely sidesteps environmentally beneficial congestion reduction measures. In contrast, The Economist’s approach to controlling greenhouse gas emissions from a growing global fleet of light vehicles starts with a strong call for a carbon tax calibrated to vehicle type, and includes other economic incentives and electrification.

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But Lessons Learned Will Bring Changes
Andrew Bary’s recent piece “The Long and Binding Road,” in Barron’s  has been widely noticed. “The credit market collapse and political opposition have all but killed the U.S. highway privatization trend,” the respected commentator opined in his article.  What is more, Bary wrote, the Indiana Toll Road deal “was one of the most illogical prices paid for any major piece of transportation infrastructure during the bubble period of 2005 to 2007,”  suggesting that Macquarie made a huge miscalculation.  Gov. Mitch Daniel’s comment  (“It was the best deal since Manhattan was sold for beads…”) did not help, implying that the State got the better of the naive Macquarie. The article concluded, “for toll road investors, what had promised to be a pleasant ride has turned into a painful trip,” citing Macquarie’s shares tumbling 50% in the past year.

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The National Journal’s transportation blog asks what’s the proper role, if any, for public-private partnerships? Among the replies from their expert panel, two stand out. Steve Heminger, executive director of the nine-county (Bay Area) Metropolitan Transportation Commission, writes: The debate about the wisdom of greater private investment in our surface transportation system is almost always contested on theoretical or ideological grounds, and that may be enjoyable for the debaters but it is completely unenlightening for the rest of us. I suggest instead that we try to answer the following practical question: what part of our investment shortfall are PPPs most likely to address? It is probably not deferred maintenance (about 50% of our total shortfall), because there’s not much money Read More ›

(Article as published at Crosscut) When California recently resolved its mammoth budget deficit, it presciently moved to ease restrictions on transportation public-private partnerships, which over the long run could help control costs to taxpayers of improving overloaded roads, rails and freight facilities. P3s, as the arrangements are called, draw from among construction, engineering, highway management firms – plus infrastructure investment groups often funded partly by public employee and building trades union pension funds – to form consortiums that get important transportation projects built more efficiently, and sooner versus later or never. A P3 consortium may provide consolidated services such as designing and building a toll bridge or highway section, and can also provide upfront capital if public funds are constricted, Read More ›

Transportation public-private partnerships should not be used to plug holes in a government budget. The proceeds should be directed to transportation capital investments. But the Chicago Tribune reports that under a new agreement starting January 1, the City of Chicago will lease for 75 years its 36,161 metered parking spaces to a Morgan Stanley partnership for $1.1 billion, with the proceeds going, variously: to patch the city budget through 2012; to a special fund to offset city revenue shortfalls tied to the economic downturn; to a special reserve fund; and to city programs for low-income individuals. I won’t say this sort of, ah, creative attempt to breach city fiscal gaps smells exactly like the thousands of dead alewives that used Read More ›

The need for public-private partnerships to help rebuild the nation’s overburdened and underfunded surface transportation network is growing. Even before gas prices spiked and gas tax hike prospects dived, the Washington State Transportation Commission was calling for P3s. They did so in this January 2007 report, and then again here. The January, 2007 report states that P3s should be closely examined as a potential strategy for completing planned major projects including the SR 520 floating bridge replacement, I-5 Columbia River Crossing, the State Route 167 extension to the Port of Tacoma, I-90 Snoqualmie Pass improvements, the State Route 704 Cross-base Highway in Pierce County, improvements to the state ferry system’s busiest dock, in downtown Seattle, Colman Dock, and for other Read More ›

Funding infrastructure with private capital, a practice widely used abroad, has had its tentative beginnings here at home, but its domestic long-term future is still clouded. We interviewed a diverse group of individuals of varying political persuasion, on public-private partnerships in U.S. surface transportation. They included state legislators, congressional staffers, senior U.S. DOT officials, state and local transportation officials, members of the two congressionally-chartered transportation commissions,  executives of trade and professional associations, and analysts on Wall Street, in think tanks, academia and private consulting firms.   Support for Public-Private Partnerships is Growing Total reliance on public resources and the fuel tax to fund future investments in transportation infrastructure is no longer a realistic option. Such, in essence, is the considered judgment of a great majority of participants in our survey. State officials Read More ›

Last week’s fast foot ferry demo and regional foot ferry discussion forum in Seattle, organized by Cascadia Center, stoked the fires again. KOMO 4 TV, The Kitsap Sun and The Peninsula Daily News all weighed in with coverage. Participants came away energized by the ride on All American Marine’s 50 mph River Gorge Explorer (right); determined to find a way to fund a regional network of state-of-the-art passenger-only ferries; and understanding that Puget Sound’s health must be maintained at the same time. The common thread is the huge population growth headed our way in coming decades. Before we delve into last week’s events, let’s set the stage. Off, Then On Again The speedy passenger-only state ferry running between Bremerton and Read More ›

Clinton, Obama Co-sponsors The problem of infrastructure deficit received prominent attention from the governors and state officials meeting in Washington during the month of February. But aside from agreeing that the needs for infrastructure funding are great, that present resources are inadequate, and that earmarks are a poor way to deal with the problem, few solutions were offered as to how to meet the revenue shortfalls. That’s why a March 11 hearing by the Senate Committee on Banking, Housing and Urban Affairs took on special significance. The hearing focused on a bill sponsored by Senate Banking Committee Chairman Christopher Dodd (D-CT) and Sen. Chuck Hagel (R-NE) to create a National Infrastructure Bank (S. 1926). Described by Sen Dodd as a Read More ›