2009 May Lead to Big Changes for Transportation

The transportation industry is expected to fare well in the coming months due to the presidential change-over in January and a renewed focus on revitalizing the economy in part by increasing government funding for infrastructure projects.

"We'll create two million jobs by rebuilding our crumbling roads, schools and bridges," said President-elect Obama in an Oct. 13 speech outlining his plan for stimulating the economy and reported by Bloomberg.

Obama has urged lawmakers to pass an economic stimulus bill immediately after the election, which includes spending on highways and other transportation infrastructure. He has also called for an infrastructure bank to invest $60 billion a year on roads, bridges, and other projects over the coming decade.

“The presidential transition is good news for transportation,’ said Sandy Bushue, President of B&I Transportation Consulting and WTS International Appointments Co-Chair. “I do think President-elect Barack Obama will place more emphasis on transportation infrastructure to stimulate the economy. I see a greater focus on infrastructure, tunnels and especially rail. It will be an exciting time to see transportation issues get renewed attention.”

Federal funding of transportation projects can make all the difference between a proposed project and one that is executed. “Transportation is usually bi-partisan. That’s the one thing I love about transportation,” said Bushue. “Everyone agrees on the solution that new infrastructure needs to be built. The national debate is usually about funding and prioritizing the issues.”

In addition, traditional ways of paying for transportation projects is changing based on new technologies. For example, federal gas taxes usually pay for transportation infrastructure. However, that revenue stream is expected to decrease now that there is a new focus on alternative fuels and hybrid vehicles that can increase miles per gallon.

Bushue said that with the expected increase in government spending for infrastructure and a new administration, we may see less of an emphasis on public-private partnerships to fund projects. During the Bush years, public-private partnerships – or PPPs – have been successful resulting in the Greenway in Virginia, the Skyway in Chicago and Interstate-80 in Indiana.

“The idea of PPPs is just in the infancy stage and was starting to catch on. But I don’t see that trend continuing with the policies of the new administration and if federal funding is increased,” said Bushue. “Plus, these difficult times of economic uncertainty, PPPs can become a very risky option.”