News Roundup

The Trouble With Transportation
Business Week Online (09/08/08) Holahan, Catherine

The high price of gas and the slumping economy are forcing many drivers to begin taking mass transit to work in an effort to cut their commuting costs. As a result, publicly-reported traffic forecasts for highways such as the Chicago Skyway are completely different now than they were a year ago, according to George Bilicic, a managing director at the New York-based private equity firm Kohlberg, Kravis, Roberts. The lower traffic forecasts have in turn dampened private equity investors' enthusiasm for investing in infrastructure projects such as toll roads. Many investors have lowered their bids on long-term public infrastructure leases, and have demanded that governments allow the firms that will manage leased highways to raise tolls or adopt measures such as peak toll pricing, a system in which tolls rise as traffic increases. Some government officials have been hesitant to accept these demands because they did not want to hit voters with higher commuting costs. However, officials recognize that that they need to find some way to pay for the $1.6 trillion cost of repairing the nation's infrastructure. John Mica, the ranking Republican on the U.S. House Transportation & Infrastructure Committee and one of the attendees at a recent panel discussion on the issue of private investors' involvement in public infrastructure projects, said something needs to be done to address the nation's infrastructure problems. "It's hell trying to get around any city in America today, from sea to shining sea. We are just at a stall in congestion," he said. "Some people think I have been smoking the funny weed and hanging out with college students when I say we need more than a trillion dollars. But we have got to do something."
(http://www.businessweek.com/bwdaily/dnflash/content/sep2008/db2008094_029386.htm)

Taking a Toll
Baltimore Sun (09/07/08) P. 1; Dresser, Michael

Several leading road projects in the Washington, D.C., area will open in the coming five to 10 years that will involve tolls. To drive on the Intercounty Connector being constructed in Maryland's Prince George's and Montgomery counties, motorists will have to pay the state toll authority. In addition, Maryland will charge tolls for driving the new express lanes on Interstate 95 northeast of Baltimore. Meanwhile, to access "express" lanes that circumvent backups on three congested interstates in Northern Virginia, motorists will have to pay a toll to the private operator that helped fund the construction. A recent study estimated the price of a congestion-free drive from the Pentagon to Dumfries, Va., in the scheduled high-occupancy toll (HOT) lanes of Interstates 95 and 395 at over $20 each way for the approximately 35-mile trip. A similar drive on the Capital Beltway from Springfield to Tysons Corner, Va., could be just as expensive. Any highway project, however, that depends on what is called "congestion pricing" cannot completely do away with backups in the other lanes. As such, some officials and agencies are shifting away from toll lanes as a way to fund leading projects, including the Maryland Department of Transportation, which removed tolls from studies of how to expand the Baltimore Beltway.
(http://www.baltimoresun.com/news/traffic/bal-md.tolls07sep07,0,3520810,full.story)

Maryland Agency to Sell $425M of Garvees for Toll Road
Bond Buyer (09/08/08) Vol. 365, No. 32960, P. 3; Funk, Lynne

The Maryland Transportation Authority (MdTA) intends to offer $425 million of grant anticipation revenue vehicles in a competitive agreement Sept. 10, signifying the second and last tranche of Garvees being employed to fund the continual building of the state's Intercounty Connector (ICC), an 18.8 mile toll-road project costing $2.4 billion. Public Financial Management Inc. and Davenport & Co. are the deal's financial advisors, while McKennon Shelton & Henn LLP is bond counsel. Standard & Poor's has given the issue an AAA rating with a stable outlook. Garvees are usually decreed by state governments to fund the building of transportation initiatives and are paid back with future federal transportation grant money. The ICC will offer an east-west traffic connection between Montgomery County's I-270 and Prince George's County I-95. The MdTA will possess, manage, and maintain the project, and will be responsible for establishing the tolls. The project, which is on schedule for completion by 2012, is also being funded by $264 million from Maryland, $180 million from the state Department of Transportation, and $1.2 billion of promised toll-revenue bonds from the MdTA.
(http://www.bondbuyer.com)

Case for Private Role in Tunnels Gets Boost
New Zealand Herald (09/08/08) Dearnaley, Mathew

Supporters of a private investment to construct the NZ$1.89 billion Waterview motorway tunnels project in Auckland, New Zealand, are citing a new study concerning its advantages from Sydney, Australia's toll-roads infrastructure. Ernst & Young, a main adviser to the New South Wales and Queensland governments on public-private partnerships (PPPs) for large transportation projects, has predicted A$22.7 billion (NZ$27.6 billion) in direct financial benefits from Sydney's 110km orbital motorway system. The company claims that is 18 percent more than estimated and signifies a direct, net present value to New South Wales' from the infrastructure's eight tollways between 1986 and 2020. While that includes A$1.1 billion (NZ$1.34 billion) in environmental advantages expected from better-moving traffic, it does not encompass "network" benefits from the whole system. Ernst and Young Australian partner David Cochrane thinks these will total a yearly A$900 million (NZ$1.095 billion) by 2020 from A$600 million (NZ$730 million) in 2007, comprising around 30 percent of the infrastructure's total financial worth. Cochrane stated the formerly unstudied network advantages included additional financial stimulation from improved "connectivity" and the creation of new houses and workplaces to make use of the motorway system. The toll-road infrastructure has also offered social advantages, including more use of recreational facilities around less crowded area roads.
(http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10531032&ref=rss)

Toll Hike Plan Has More Objections Than Support
Daily Record (N.J.) (09/07/08) P. 5

Efforts to increase tolls on the Garden State Parkway and the New Jersey Turnpike are being challenged by politicians and environmentalists. Under the plan proposed by the New Jersey Turnpike Authority, fees would go up by 50 percent beginning in 2009. Turnpike tolls would rise by an average of 60 percent per passenger car in 2009, 90 cents more in 2012 and another 30 cents in 2023. Over the same period, parkway tolls would rise by an average of 15 cents in 2009, another 25 cents three years later, and another 8 cents in 2023. Some state lawmakers question the authority's judgment in having motorists foot the bill for a tunnel they would not benefit from. "I'm not sure why highway drivers should subsidize the rail tunnel," said Assemblyman Richard Merkt (R). Environmentalists object to the plan because it would feed urban sprawl. "Our concern is almost all of the money seems to be going toward widening the Turnpike and Parkway," said New Jersey Sierra Club Executive Director Jeff Tittel.
(http://www.dailyrecord.com/apps/pbcs.dll/article?AID=/20080907/NEWS05/809070332/1008/COLUMNISTS)

Transport Canada Study on Road Tolls Cancelled
Toronto Globe & Mail (Canada) (09/06/08) Laghi, Brian; Waldie, Paul

Canadian government officials have terminated a comprehensive study into the advantages of utilizing tolls, congestion fees, parking charges, and additional "urban transportation pricing mechanisms" to help lessen pollution in that country's biggest cities and finance more public transportation. The study, which had been recently commissioned by Transport Canada, was to have looked at "how pricing can be used as a tool to induce greater efficiency and sustainability in urban transportation," a request for tender document stated. Calgary, Edmonton, Montreal, Ottawa, Toronto, and Vancouver were the cities to have taken part in the study. Congestion charges may not be feasible in large Canadian cities because there are not any viable public-transit options, notes Conference Board of Canada director of research Mario Iacobacci. Earlier in 2008, he listed numerous factors that will have to be enacted before efficient road pricing can occur, including dependable public transit, an inexpensive plan that can be installed easily, limited opposition from companies, and "a powerful political champion." Transport Canada stated that road pricing has not been broadly enacted in Canada. It said that besides tolls and congestion fees, transportation pricing tactics can include parking stall and fuel taxes, as well as car-sharing initiatives.
(http://www.theglobeandmail.com/servlet/story/RTGAM.20080906.wlaghi0906/BNStory/National/?page=rss&id=RTGAM.20080906.wlaghi0906)

Plan to Toll Interstate 80 Opposed by State Farmers
Pittsburgh Post-Gazette (09/06/08) P. B-1; Barnes, Tom

The Pennsylvania Farm Bureau, along with food industry executives, agribusiness companies, and farm equipment dealers, spoke out on Sept. 5 against the proposed tolls for Interstate 80, which are being pursued by the state Turnpike Commission but which still have to be sanctioned by federal transportation authorities. The tolls' opponents asked Pennsylvania lawmakers, who are to set to come back to the Capitol Sept. 15, to locate other ways to generate $1 billion annually to repair disintegrating highways and bridges and assist financially struggling mass transit systems. "The grim reality is that the tolling of I-80 will impose a terrible toll on agriculture and our food industry, which generates $45 billion to the state's economy each year," contended farm bureau president Carl T. Shaffer, who has a farm in Columbia County that is split by four-lane I-80. The I-80 tolls were one of a pair of revenue-generating initiatives listed in Act 44 of 2007, which was approved by the Legislature in July of that year. The second method is increasing the tolls on the Pennsylvania Turnpike by 25 percent in January. Combined, these measures were meant to yield around $950 million annually for roads, bridges, and mass transit. Federal Transportation Secretary Mary Peters must first approve any changes to the I-80 tolls.
(http://www.post-gazette.com/pg/08250/909904-85.stm)

A Plan to Raise N.J. Tolls ? Take Two
Newark Star-Ledger (NJ) (09/05/08) McNichol, Dunstan

The price of driving on New Jersey's Turnpike and Garden State Parkway would increase more than twofold by 2012 in a series of toll increases that would start in 2009, the state Turnpike Authority announced on Sept. 4. The plan was forwarded on that day to Gov. Jon Corzine and is expected to be proposed at a public meeting the week of Sept. 8. If implemented, it would mean the price of a 23-mile trip on the Turnpike would jump from $1.20 to $1.80 in 2009 and to $2.70 in 2012. Garden State Parkway would increase at a similar rate, with the present average of 35 cents a passenger car rising to 50 cents in 2009 and 75 cents in 2012. The increases would be the initial ones since 2000 and would be utilized to expand the Turnpike and Parkway, invest $1.25 billion in a new rail tunnel underneath the Hudson River, and fix and replace old bridges. Although the Turnpike Authority can enact the toll increases without any action by the Legislature, Senate President Richard Codey (D-Essex) noted that legislators may delay hearings on the plan. The recommended toll increases signal the disintegration of Corzine's plan to utilize large toll hikes to generate $40 billion to pay down New Jersey debt, purchase open space, and fund several transportation upgrades. That plan would have increased the toll for driving the length of the Turnpike from $6.45 to $48 by 2022. Under the new concept, that drive will cost $16.13 by 2023.
(http://www.nj.com/news/ledger/topstories/index.ssf/2008/09/a_plan_to_raise_nj_tolls_take.html)

Toll Road Chief Stays Upbeat
Courier Mail (AU) (09/04/08) P. 63; Grant-Taylor, Tony

Incoming BrisConnections CEO Ray Wilson is devising ways to facilitate the Australian toll-tunnel company's A$4-billion project. Wilson is dismayed by the performance of BrisConnections' divisions since they were listed on the stock exchange at the start of August. The A$1 partially-paid stock, on which two additional installments are due during the coming 18 months, fell to a low of 11 recently. However, Wilson, who has worked on a half-dozen toll-road projects, strongly believes that the BrisConnections Airport Link will eventually succeed. Contractors Thiess and John Holland, both subsidiaries of Leighton Holdings, are putting together their operations teams, and the designs have been completed. The digging will start around January. Wilson predicts the project will cost A$100 million to A$150 million per month during the year to 15 months it will take to erect the road. Due to the toll-road's links from Brisbane's CBD to the northside airport, he thinks it will be well-used by motorists, as they can circumvent 18 sets of traffic lights. In addition, the connection will include Brisbane's TradeCoast and meet up with leading east-west routes.
(http://www.thecouriermail.com.au)

Report Contradicts Water Quality Study
Los Angeles Times (09/04/08) P. B-3; Rosenblatt, Susannah

The Transportation Corridor Agencies, which is supporting a proposed toll road through California's south Orange County, published a report on Sept. 3 contending that the new road would satisfactorily protect San Onofre State Beach's water quality. Plans suggested by the agency to shield the San Mateo Creek watershed and Trestles surf break from contaminated storm water and erosion "should do as good a job as needed," states Derrick Coleman, a senior project manager with environmental consulting company Tetra Tech. Coleman, who performed the toll road agency-financed review, called a water quality study financed by the Surfrider Foundation--an environmental organization that is against the 241 toll-road extension--purposely confusing and "less than objective." The Tetra Tech study is the latest weapon being used in the ongoing controversy between toll-road activists pushing for traffic relief and conservationists worried about the environmental impacts of the $1.3-billion project. The recommended 16-mile extension of California 241 would cut through the state park's watershed, linking Rancho Santa Margarita with Interstate 5 close to Basilone Road in north San Diego County. The four- to six-lane highway would significantly harm the "pristine" watershed, making it more vulnerable to erosion, contends Mark Lindley, senior associate with the environmental hydrology company that performed the water quality study for Surfrider. The Transportation Corridor Agencies has plans set up to restrict polluted water infiltrating the watershed, including catch basins that gradually release storm water and concrete blocks to disperse flowing water, explains Paul Bopp, the group's engineering manager. While the California Coastal Commission opposed plans for the road in February, a federal Commerce Department hearing to appeal that decision is set for Sept. 22.
(http://www.latimes.com/news/local/la-me-tollroad4-2008sep04,0,4532348.story)

China Strengthens Regulation on Toll Road Rights Transfer
Xinhua Economic News Service (09/04/08)

Chinese Ministry of Transport recently released a Regulation on the Transfer of Rights and Interests of Toll Road in cooperation with the National Development and Reform Commission and the Ministry of Finance. According to the regulation, the charging rights on toll roads cannot be transferred if two thirds of toll collection period has passed. The overall toll collection period of government-funded roads shouldn't exceed 20 years, with maximum toll collection period of for- profit roads no longer than 25 years. This regulation will take effect starting from October 1, 2008.
(http://www.xinhuanet.com/english)

Running Out of Money, Cities Are Debating the Privatization of Public Infrastructure
New York Times (08/27/08) Anderson, Jenny

Numerous financial institutions, among them Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley, and Credit Suisse, have obtained around $250 billion to fund a bevy of transportation infrastructure projects in the United States and in other countries. Their tactic is becoming increasingly popular in this country as federal, state, and regional governments grapple with growing deficits that have limited their ability to upgrade poor roads, bridges, and airports with taxpayer funds. This autumn, Midway Airport of Chicago could become the initial airport to move into private investors' possession. In addition, Florida recently granted approval to a half-dozen groups that included JPMorgan, Lehman Brothers, and the Carlyle Group to solicit a 50- to 75 -year lease on Alligator Alley, a toll road that runs for 78 miles down I-75 in South Florida. Private investors earn back their money by optimizing revenue, either by improving the infrastructure to permit for more vehicles, or by increasing tolls. The American Society of Civil Engineers predicts that the United States must invest a minimum of $1.6 trillion over the coming five years to maintain and widen its infrastructure. As such, certain U.S. pension funds forecast an investment opportunity. However, the return on these investments can take a while. The privatization of Chicago's Midway Airport was part of a pilot plan enacted in 1996 by the Federal Aviation Administration to enable five U.S. airports to be privatized. Just a single airport--Stewart International Airport in Newburgh, N.Y--has fulfilled that objective, and it was resold to the Port Authority of New York and New Jersey.
(http://www.nytimes.com/2008/08/27/business/27fund.html?_r=1&partner=rssnyt&emc=rss&pagewanted=all&oref=slogin)

Calif. Lawmakers OK Freeway Toll Lanes in L.A.
Associated Press (08/30/08)

California legislators have passed a bill that permits the Metropolitan Transportation Authority (MTA) to turn carpool lanes on two Los Angeles highways into toll lanes. Fees would be based on how heavy the traffic is, but the bill obliges MTA to offer discounted tolls for low-income travelers. MTA will use a $211 million federal grant for the initiative. The deadline by which Gov. Arnold Schwarzenegger must sign the bill into law is Sept. 30.
(http://www.signonsandiego.com/news/state/20080830-2105-ca-xgr-tolllanes.html)

Dashing Computer Interface to Control Your Car
ICT Results (09/01/08)

The European Union-funded Adaptive, Integrated Driver-vehicle interface (AIDE) project has developed a dashboard interface that can link and control the increasing number of information systems being incorporated into cars, such as GPS devices, mobile devices, PDAs, and other intelligent car technologies. Current car safety systems will soon be joined by lane assistance, hazard detection, and other information systems for safe and efficient driving. All these information systems, combined with entertainment systems such as the radio and MP3 players, could cause drivers to become overwhelmed or distracted by the number of in-car systems, says AIDE manager Angelos Amditis. The AIDE system is designed to prioritize demands on the driver's attention based on driving conditions. For example, if the car is approaching a difficult intersection or stretch of road, it can hold all calls and text messages, or suspend non-safety critical information. The AIDE system supports numerous functions and can ensure that drivers get the best possible use out of those functions in a safe and easy-to-use way. If the system detects the driver is distracted, it will issue warnings with greater intensity. The AIDE system also can adapt to different drivers, with customization available in the timing, intensity, and method of warnings according to a driver's profile.
(http://cordis.europa.eu/ictresults/index.cfm/
section/news/tpl/article/BrowsingType/Features/ID/89989)

Carbon Sequestration Along Highway Rights of Way: Piloting a Concept
Successes in Stewardship (09/08)

The Federal Highway Administration (FHWA) Office of Natural and Human Environment is performing a Carbon Sequestration Pilot Project (CSPP) to investigate the potential for reducing CO2 emissions by modifying state transportation agencies' vegetation-management practices in their rights-of-way (ROW). The CSPP's objectives include determining how much carbon can be sequestered using native vegetation management on DOT lands and calculating how much revenue could be produced via the sale of "carbon credits" on an emissions trading market. The New Mexico Department of Transportation (NMDOT) was chosen by FHWA to quantify and encourage the cultivation of existing trees, bushes, and native grasses growing in highway ROW that would naturally remove CO2 from the air. Factors that led to NMDOT's selection included National Highway System rural road mileage; total state acres of potential forest and grassland if permitted to grow naturally; NMDOT's expressed interest in potential participation; the presence of state policies or indicators that would encourage participation; information on the quantity of different vegetation types; and state membership in an emissions-trading platform. FHWA intends to collaborate with NMDOT to help ascertain and confirm the available acreage for carbon sequestration and to estimate the vegetation costs and potential value of marketable credits. The pilot should help NMDOT significantly in fulfilling its emissions reduction goals, lowering fuel costs from mowing and creating revenue. The vegetation that can sequester carbon has other potential benefits, including serving as a wildlife habitat, reducing storm water runoff, and preventing erosion.
(http://www.environment.fhwa.dot.gov/strmlng/newsletters/sep08nl.asp)

San Francisco Is Considering Congestion Fee
Bus & Motorcoach NEWS (09/01/08) P. 4

In an effort to reduce traffic, smog, and global-warming, San Francisco city officials are thinking about making their city the first in the nation to require drivers to pay a rush-hour congestion fee. Drivers could be asked to pay between $1 and $4. According to the San Francisco County Transportation Authority, which is conducting an 18-month study on congestion fees, such practices have lightened rush-hour traffic in London, Rome, Stockholm, and Singapore by 20 to 30 percent. "We're trying to manage a scare resource, our roads," says Tilly Chang, the deputy director for planning at the transportation authority. "There are power and gas rates that put a premium price on use during peak demand. Why not roads, too?" Options for deployment include the hiring of a contractor to collect fees through use of electronic tags in a four-square-mile area that includes the Financial District, Civic Center, and South of Market neighborhood; cars without the tag would be identified by a license plate photograph and billed by mail. Another option calls for fees to be collected as drivers enter the city at peak drive times. The San Francisco Board of Supervisors, which governs the authority, plans to make a decision by 2009.
(http://www.busandmotorcoachnews.com)

Tele-prompting
Transportation Management & Engineering (07/08) Vol. 13, No. 3, P. 16; Kabirdas, Sathya

Currently, OnStar and ATX Group Inc. lead the telematics market; however, in the future, more telematics service providers will likely emerge and new systems will offer a greater variety of services. Next-generation systems will be based on real-time, historical, and predictive traffic so that they can automatically pinpoint the fastest and least-crowded route to get drivers to their destinations on time. The systems will also predict traffic and road conditions and direct drivers to where they are going based on their preferences and automobile requirements. Results will either be displayed on liquid-crystal display screens or automobiles' windshields. Newer systems will also likely boast broadband connectivity, allowing the Internet to be accessed inside the car at all times. Next-generation remote vehicle diagnostics will tell drivers how long their cars have been idling, the fastest speed at which they have traveled, average fuel economy, and when an oil change is required. Drivers will also be notified of any emergency situations that might be detected. The need to take the vehicle to the shop may be eliminated, as service dealers may be able to wirelessly transmit software updates based on the error codes and distantly resolve any issues. In-vehicle voice and video applications will also be a feature in the newer systems. Drivers may seek answers about weather conditions, sports scores, and stock prices. Another feature OnStar is incorporating into its systems is stolen vehicle slowdown. If a police officer spots a stolen automobile, the service provider can bring the accelerator to a halt while still allowing the driver control over the brakes and steering wheel. Future telematics systems will also boast vehicle-to-vehicle and vehicle-to-roadside infrastructure communications to alert drivers of any possible hazards or high-traffic situations. Some providers also hope to provide vehicle tracking in upcoming systems, which would allow owners to monitor anyone who may be driving their vehicle, such as their child.
(http://www.roadsbridges.com/Tele-promting-article9460)

Intelligent Transportation Systems In A Real-Time, Customer-Oriented Society
Bridge (08/01/08) Vol. 38, No. 2, Sussman, Joseph M.

Though Intelligent Transportation Systems (ITS) are characterized by highly advanced technology linking vehicles and infrastructure, they go beyond technology to producing a whole new way of thinking about surface transportation. ITS technology includes vehicle sensors in the roadbeds, GPS and cellphone networks, and other ways of gathering and transmitting information from vehicle to vehicle and between vehicles and infrastructure. There are already a number of advanced traveler information systems (ATIS) available or under development, allowing drivers to get real-time information on navigating the transportation network. Transportation system engineers can also use this information for improving the performance of the transportation network via advanced transportation management systems (ATMS), allowing them to deal quickly with disruptions to get traffic flowing again. There are also available technologies in the infrastructure and in vehicles that would allow for dynamic pricing of transportation services, such as through HOT lanes. Price allows transportation network users to be sorted by how willing they are to pay, which can lead to other ways of dealing with congestion. This has also pointed up the possibility of universal road pricing, charging for using the roadway via such variables as location, time of day, congestion level, environmental conditions, and vehicle characteristics. In addition to this, ITS can also have an impact on the safety of the road system, and will change the environmental impact of the road system as well.
(http://www.nae.edu/nae/bridgecom.nsf/weblinks/MKEZ-7FPKWA?OpenDocument)