Skip to content
Search AI Powered

Latest Stories

fastlane

The continuing infrastructure fiasco

Eight in 10 Americans support infrastructure spending. So why can't our leaders get it together?

It's been all talk and no action when it comes to fixing the nation's infrastructure. Despite a spate of articles, calls for action, and attempts at legislative fixes, we seem to be no closer to a solution than we were 10 years ago.

In 2012, President Obama signed into law the "Moving Ahead for Progress in the 21st Century" Act (MAP-21), which provided funds for highway expansion. But that ultimately proved to be more of a patch than a solution. Part of the problem was a lack of a comprehensive plan and funding mechanism. Although he discussed infrastructure numerous times, President Obama seemed to view the issue largely as a job creation opportunity. It was a flashback to 1936, when Franklin D. Roosevelt created the Works Progress Administration (WPA), which provided jobs for several million Americans. During the WPA's eight years in existence, WPA laborers built 651,087 miles of highways and roads, built or repaired 124,031 bridges, and constructed thousands of other public facilities. The problem then, as now, was that there was no comprehensive plan, other than to put people to work.


So when President Trump hinted that he'd make a big infrastructure announcement in his Feb. 28 address to Congress, we pricked up our ears. During the campaign, he had repeatedly vowed to address the problem, and we were looking forward to hearing about his plans. But in the end, we were disappointed. In a speech that devoted only 139 of 5,006 words to this critical issue, Trump simply restated what he has said before: "I will be asking Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States ... creating millions of new jobs. Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports, and railways gleaming across our beautiful land." As for financing, he is proposing that the work be funded through public/private partnerships (referred to as P3s). That, of course, translates to "tolling our interstates," which is currently illegal (the practice was banned under the legislation that authorized the interstate highway system in 1956).

Concurrently with all this, Congress has refused to raise the fuel tax, which has not been adjusted in 24 years. Most industry organizations and experts, including the American Trucking Associations and the U.S. Chamber of Commerce, have advocated for an increase, but congressional leaders apparently would rather have a root canal than raise fuel taxes. This is in spite of the fact that recent surveys have shown that 79 percent of adult Americans approve of infrastructure spending.

In the meantime, several states have raised their fuel taxes to pay for their own projects. On March 2, the U.S. Conference of Mayors also weighed in on the subject, pressing the federal government to distribute infrastructure funds directly to cities, bypassing the states. In short, the entire problem has gotten out of control. There still is no sign of an overall plan for the needed improvements. And the funding issue is far from resolved. Many of our needs will not be attractive to investors. And even if private investors step up to finance specific road and bridge projects, they will have to be repaid, which means the costs will ultimately be passed on to users. We could easily find ourselves paying tolls and user fees, plus increased state taxes, leaving us in a worse position than we would have been in if Congress had simply raised fuel taxes in the first place.

And as far as the "new roads, bridges, tunnels, airports, and railways gleaming across our beautiful land," good luck with that one.

The Latest

More Stories

team collaborating on data with laptops

Gartner: data governance strategy is key to making AI pay off

Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.

"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”

Keep ReadingShow less

Featured

dexory robot counting warehouse inventory

Dexory raises $80 million for inventory-counting robots

The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.

A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.

Keep ReadingShow less
container cranes and trucks at DB Schenker yard

Deutsche Bahn says sale of DB Schenker will cut debt, improve rail

German rail giant Deutsche Bahn AG yesterday said it will cut its debt and boost its focus on improving rail infrastructure thanks to its formal approval of the deal to sell its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for a total price of $16.3 billion.

Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.

Keep ReadingShow less
containers stacked in a yard

Reinke moves from TIA to IANA in top office

Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.

Reinke will take her new job upon the retirement of Joni Casey at the end of the year. Casey had announced in July that she would step down after 27 years at the helm of IANA.

Keep ReadingShow less
NOAA weather map of hurricane helene

Florida braces for impact of Hurricane Helene

Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).

While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.

Keep ReadingShow less