Greg Cenac Steve HaikRoss Chapman Ronnie HarrisPerry Dufrene Marc MergenIvan Echegarrua Ken RobinsonMike Gray Dan Sleker

Harold Yeldell

TRANSPORT NETWORKS

Today’s Discussion

• Highway Construction• Railway Construction• Airport Construction• Port Construction• Conclusion/Recommendations

Highway Construction

Problem•Congestion is causing significant delays•Few new roads are being built

Highway Construction

Funding•Gasoline tax is used to fund highway construction•Current tax will only allow for maintenance

Strategy•Partner with U.S. Mid-Size Firm•Target New Construction to Gain Reputation

Highway Construction

Projects•Maintenance of current infrastructure•In La., Interstate 49

Railway Construction

Problem• Rail increased the volume of freight it carries by 50%

since 1980 and a 45% increase projected by 2020, up to 2.5 billion tons

• North American Free Trade Act (NAFTA) increased rail traffic across U.S. borders with Canada and Mexico together with congested US air and highway transportation systems.

Railway Construction

Funding• Railroad infrastructure is funded through private capital

investment• National assistance needed to fund rail intermodal

development • Transportation Equity Act for the 21st Century fund

Intermodal and HSGTStrategy

• Increase in rail intermodal service, both piggyback and containers

• High Speed Ground Transportation (HSGT)• Alternate solutions to the aviation system capacity problem. • Offers social, economic, and environmental benefits

Railway Construction

Projects• California Global Gateways Program• New Jersey International Intermodal Corridor and the

Port Authority of New York and New Jersey's Port Inland Distribution Network

• The Chicago Cross-Town Project• The Mid Atlantic Rail Project• The Washington State FAST Corridor Project

Airport Construction

Problem• Aviation Infrastructure is currently near capacity

Airport Construction

Funding• Typical financing for airports are large airports tax-

exempt bonds and small airports federal grants

Strategy • Research indicates that airports will be more regional and

intermodal transportation alternatives will expand• Homeland security initiatives • Private firms will develop airports to exploit local

deficiencies

Airport Construction

Projects• O’Hare International (Chicago) $6.6 billion• Hartsfield Airport (Atlanta) $5.4 billion• George Bush International (Houston) $2 billion• Louis Armstrong (New Orleans) $1 billion

Port Construction

Problem• 35 deep-water ports support 65% of U.S. imports and

exports.• 88% will need a 50% capacity increase in the next 10 years.• 19% will need a 100% capacity increase in the next 10

years.• 30 years to start from scratch

Port Construction

Funding• Operating revenues are less than half of funding for

port projects.• Revenue bonds make up most of the rest.• Loans and grants make up 15% of total.• These independent entities can solve the problem.

Port Construction

Projects• Port of South Louisiana projects strong growth with most

occurring with private.• Millennium Port Phase I The Napoleon Street Wharf

Conversion and Tchoupitoulas Corridor Upgrade are coming to completion.

• A barge capacity oriented mouth of the river container handling facilities called Sea Point dramatically increase capacity and decrease cost to the heartland of America.

Conclusions/Recommendations

Conclusion Ports and Airports will be privately funded with foreign

investment Highways and High Speed Ground Transportation

(HSGT) will be funded thru SAFETEA legislation

Recommendations Concentrate on Port and Airport construction for US

penetration Monitor Government programs in Highway and Rail

construction through congressional lobbyist, focusing on new projects