Mark Your Calendars!

The 35th Annual Transportation Conference will be held January 10 & 11, 2013 at the Marriott Griffin Gate, Lexington, KY! We are looking forward to an awesome conference! Please make sure you plan to be a part of it! 

The May 8 and May 9 visit marks the 32nd consecutive year that KBT members have visited with the Kentucky Congressional delegation, and their staffs, to remind them that there’s a solid, even growing, support constituency for transportation investment.

On Tuesday afternoon, KBT members heard from seven transportation experts, representing all five modes, including Kentucky Transportation Cabinet Assistant to the Secretary, Russell Romine. Serving up the opening comments on behalf of KYTC Secretary Mike Hancock, Romine said “KBT makes our job of educating the public and educating elected officials much easier.”  In a personal comment, Romine said, “SAFETEA-LU expired some 950 days.  My son was 12 years old at that time, and he will soon be 15.  We need a full-term, 6-year, authorization, and soon.”

KBT attendees heard from representatives of the American Public Transportation Association, The Waterways Council, Charlie Grizzle, who represents the Louisville Regional Airport Authority, John Wetzel of the American Association of Railroads (AAR), and finally Rich Juliano and Dave Bauer of the American Road and Transportation Builders Association (ARTBA).

John Doyle, who represented The Waterway Council, complimented Kentucky U.S. Congressman Ed Whitfield for his leadership in filing H.R. 4342, the Water Resources Development Act (WRDA). While supposedly a biennial bill, the last bill was passed in 2007. Doyle noted that 13 co-sponsors have signed on to H.R. 4342, and that while the bill will not likely see action in the remainder of the 112thCongress, there is a growing understanding in both the House and Senate, for a bi-partisan bill to be enacted in 2013.

AAR’s Wetzel told KBT that the rail industry has opposed a “trust fund” approach to rail improvements in the past, and would likely do so in the future. Instead, the Class I railroads want to make their own decisions about spending their own capital. In 2010, railroads spent $9.8 billion in capital improvements. In 2011, $11.6 billion was spent on capital expenditure improvements. In 2012, it’s projected that $13 billion will be spent on capital improvements, and, when coupled with regular maintenance costs, the 2012 projected total will approach $22 billion to $25 billion for one year alone. In an extremely encouraging closing comment, Wetzel noted that a trucking company, UPS, is the largest single customer of the U.S. Class I railroads, making the point that intermodal transportation is increasingly important to the nation’s economy.

ARTBA’s Dave Bauer summarized the importance of the SAFETEA-LU Conference Committee meeting, which was holding its first public meeting while he spoke, saying (1) “get it done –it’s been over 950 days since SAFETEA-LU expired on September 30, 2009”, (2) “less money means less jobs”, and (3) “I urge you to talk about what transportation investment means to your county, your community and your state.”

On Tuesday evening, the KBT attendees attended a reception in the historic LBJ Room in the Capitol Building. Kentucky U.S. Congressmen Brett Guthrie (Bowling Green) and U.S. Congressman John Yarmuth (Louisville) spoke briefly to the transportation advocates. Other members of the Kentucky delegation sent word that they were forced to remain on the House and Senate floors for votes on important appropriations matters, which lasted until midnight.

On Wednesday morning at a breakfast in the new U.S. Capitol Visitors Center, Republican Leader Mitch McConnell, in his opening comments, was direct with the KBT audience, saying that he opposed the Senate MAP-21 bill, on final passage, because a negative amendment had been added on the Senate floor which limits the use of Public Private Partnerships as a financial tool for mega-projects. Kentucky U.S. Senator Rand Paul also voted “nay” due to the amendment to limit PPPs. It is believed that PPPs could be a useful financial tool in the construction of a new Brent Spence Bridge Project in Northern Kentucky, as well as a needed I-69 bridge near Henderson.  

When asked the possibility of a positive final outcome from the SAFTEA-LU Conference Committee, McConnell said, “I hope so”, but cautioned all of those in attendance that at this preliminary point it was much too early to predict what might occur, and what might not occur. “Let’s not speculate,” he responded.

The Fly-In Attendees also heard from a member of the Minority staff of the Senate – Environmental and Public Works Committee, Kyle Miller.  Miller told the KBT members that in the first meeting of the Conference Committee, there were, essentially, three hours of very cordial, public, opening statements.

“I give it a 30% to 60% success rate,” he said. “The conferees can decide to move to the right and pass a bill, or they hold firm and not pass a bill. If they choose the later, the Highway Trust Fund will run out of money, again,” he said soberly. “We are trying to thread the needle here, through the political process,” he concluded.

Following the Wednesday morning breakfast, KBT members were invited to visit with House Congressional offices in small groups and discuss key legislative positions that have been adopted by the KBT Board.               

The 2013 KBT Washington D.C. Fly-In will be held on Wednesday, May 22 and Thursday, May 23, 2013.  The conference hotel will be the Hyatt Regency Capitol Hill, conveniently located on New Jersey Ave., at the base of Capitol Hill.  SAVE THE DATES AND JOIN US !    

We are delighted to introduce another new KBT member this week: The Paducah Area Chamber of Commerce.

Since 1938, the Paducah Area Chamber of Commerce has been one of the leading Chamber’s of Commerce in Kentucky. Paducah Chamber President Elaine Spalding has been a transportation supporter and advocate for a long, long, time.

Rightfully so.

Paducah is home to more than 20 leading-edge inland-marine barge companies, including KBT members Ingram Barge and Crounse Corporation.  But Paducah’s transportation assets are not limited to the waterways industry.

Paducah is also home to the Paducah & Louisville Railway, a KBT member, an important short-line railroad that supplies two electrical generating plants just outside Louisville, and is the only rail connection for the expanding Fort Knox in Hardin County.  In recent weeks, the Paducah & Louisville Railway has moved into a new multi-million headquarters building, a great sign of commitment to Paducah and McCracken County.

But Paducah also boasts an impressive regional airport with the real potential for expanding service, as well as its public transit agency, PATS, which is under the new leadership of  Arthur Boykin, its new Executive Director. PATS is another member of KBT.

But let’s not just inventory Paducah and McCracken County’s transportation assets. After all, the Paducah Area Chamber, in 2011, was awarded the highest achievement in the Chamber profession, recognizing excellence in financial performance, member programs and internal operations. In August, 2011, the Paducah Area Chamber was named “Chamber of the Year” for its mastery and application of core principles and techniques used by successful chamber of commerce across the United States.

The Paducah Area Chamber of Commerce has 1,000 members and is the largest business advocacy group in the Paducah and McCracken County region.  You may reach Chamber President Elaine Spalding at 270 443 1746, ext 205  or e-mail her at espalding@paducahchamber.org  They are located at 401 Kentucky Avenue, Paducah, Kentucky  42003. 

Welcome to the growing KBT family,  Paducah Area Chamber of Commerce !!    

Well, that’s certainly the case with this story….

Yesterday, Thursday, May 10, marked the 143rd anniversary of the joining of the Union and Central Pacific Railroads ---technically they joined their rails ----at Promontory Summit, in Utah. 

Was it a big deal?  Well, it forged the destiny of a nation.

Each year, a ceremony is held at the Golden Spike National Historic Site at Promontory Summit. Moments ranging from the celebratory, to the somber, mark the annual anniversary of the completion of the transcontinental railroad on Thursday, May 10, 1869. 

Each year, they re-create the joyful “Champagne Photo” taken when the railroads met head-to-head with their locomotives on May 10, 1860. But they also observe a thoughtful moment of silence, in memory of the hundreds of workers who lost their lives building the transcontinental railroad.

How important was it?   Well, in the early 1860’s there was discussion of delaying the construction, because the U.S. was involved in the Great Civil War.  But President Abraham Lincoln ordered it be built. For you see, lowering transportation costs would improve the nation’s economy as the Civil War ended.

Remember this: each time there has been a massive investment in transportation in the U.S., the costs of transportation declined.  It’s a simple fact that we cannot allow to be forgotten.

Those attending the 3-hour session were encouraged. Both House and Senate members were courteous and cordial. According to Congressional rules, the Conference Committee must meet at least once publicly. Well, that’s done. In reality, much of the work will get done, or not get done, behind closed doors, at the staff level. 

On Tuesday, the Conference Committee formally selected Senator Barbara Boxer (California) as the Chairman of the Conference Committee.

OK, what’s next?

There will likely be serious disagreement over whether or not the House participants can negotiate provisions that were found in their 5-year bill, H.R. 7, which failed to pass the House. According to Conference Committee rules, the Senate could demand the House negotiate only from the “shell” bill extension, H.R. 4348, which did pass the full House, but that bill contains non-transportation related items, such as the controversial Keystone XL pipeline.

It can be argued on both sides, but it would seem that the House is in a tough spot. The House conferees have gone to negotiate, but with just a handful….and a scant handful at that….of policy provisions while the Senate has a full transportation bill that carries the strong endorsement of more than 70 members of the upper chamber. So, beyond what the House bill expressly includes, the House negotiators are frankly limited to the status quo, the current law.

Congressional Rules Versus “Airdropping”

Technically, Congressional rules require Conference reports to contain only provisions that were originally present in the bills that either passed the House or the Senate. However, the reality is that totally unrelated provisions just show up in conference reports --- it’s called “airdropping”. But, it must be said, that “airdropping” is generally minor, modest items.  This situation would be Large Scale.

House Transportation & Infrastructure Chairman John Mica (Florida) isn’t bashful. “You can do anything in Conference,” he said in an interview with Politico. 

KBT’s message to the Conferees: It has been 953 days since SAFETEA-LU expired.  DO IT.

This writer is extremely familiar with this particular bridge, after living for many years near this structure.

But it seems like there’s a lot of investment in bridges these days, is this really necessary?

You bet.

The Ironton-Russell Bridge opened in 1922 --- that’s right, 90 years ago --- as the first highway bridge along the Ohio River between Parkersburg, West Virginia and Cincinnati.  Shortly after the early 1920’s, numerous other highway bridges were built across the Ohio River linking Kentucky and the Buckeye State. Those bridges included cross-river crossings at Ashland, Portsmouth, and Huntington.

The 90-year old light-blue cantilever bridge carries two lanes of traffic and a very narrow sidewalk.

In 2000, when the Ironton-Russell Bridge was 78 years old, ODOT released a report that recommended a full replacement of the narrow bridge.  In January 2003, a design was chosen for replacing the old bridge, but when the cost estimates came in at $110 million, well over the estimated costs, progress stalled.  The sharp rise in the cost of concrete materials and other petroleum-related products were the original “villains” cited for the runaway construction cost estimates.  In addition, Hurricane Katrina, which placed an inordinate demand on all construction materials, was blamed with increasing costs on all construction projects in the South.

But that was then.  This is now.

ODOT Director Jerry Wray was joined by KYTC Secretary Mike Hancock to commemorate the project’s start and pay tribute to the amazing long-life of the existing bridge. The Mayors of Ironton and Russell also joined the two Governors for a ceremonial groundbreaking at the Ironton Depot Square.

In January, ODOT awarded a contract to Brayman Construction Corporation, a Pennsylvania company, for the total completion of the four-year project. An interim completion is expected by the fall of 2015.

C’mon…what was the new price?   $81 million….amazing! 

The STB announced it was seeking public comment on its proposals “in an effort to promote greater use of alternative dispute resolution procedures for a wide range of issues. The Board believes that it will be to the mutual benefit of all stakeholders with business before the STB to reduce time and expense devoted to more formal litigation, and may provide enhanced access to the Board as well, particularly in matters involving relatively small disputes.”

STB Chairman Daniel Elliott said, “The more often we can get parties to settle disputes before formal action, the more often we can save parties the cost, time and uncertainty of that formal action.”

What a concept!

Also proposed by the STB is a new program “in which shippers and carriers could voluntarily agree to arbitrate certain routine disputes that come before the Board. The Board’s mediation proposals would provide more rapid resolution of certain controversies, and at a lower cost, through the mutual agreement of involved parties. The arbitration proposal similarly would involve less time and lower costs than current, formal adjudicatory procedures.”

The Assessment of Mediation and Arbitration Procedures, EP 699, is available for viewing and downloading and the Surface Transportation Board’s website:  www.stb.dot.gov 

Because this writer will be on vacation next week, there will be no KBT Transportation News next Friday, May 18. Rest assured, we will be back with timely, clever and irreverent transportation news on the following Friday, May 25.

We couldn’t help but notice that some of the rides….within just a few blocks of Capitol Hill….were absolute teeth-rattling rides.

Well, folks, there is a real cost to that.  As U.S. lawmakers negotiate how to pay the bill for mending some really battered roads, the average American Joe is paying a hidden car tax from torn tires, misaligned front ends and even bent axles.

About two weeks ago, The Road Information Program (TRIP), a Washington-based research group, announced that motorists pay $67 billion annually for increased fuel consumption, body dents, worn tires and premature wear brought on by pitted roads and poorly resurfaced roads.

In a spirit of disclosure, we hasten to add that TRIP’s board includes representatives from construction equipment makers like Caterpillar Inc. and John Deere & Co, as well as Vulcan Materials Company, a Birmingham based asphalt and concrete producer.  But their involvement doesn’t give KBT pause. In fact, it makes us want to read the fine print even more closely.

Well, at $67 billion annually, that works out to $324 per licensed driver, according to Frank Moretti, a director of public policy for TRIP. The $324 figure is an average of all vehicles and can vary widely between cars and large commercial trucks, which are prone to much costlier damage.

Transportation Matters.

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