Market Update: $3+ Trillion to Keep Up with Infrastructure Repairs

Posted by PLS Logistics January 24, 2017 at 10:00 AM

Ports and surface transportation must be able to accommodate the country’s growing population and freight volumes. The US DOT predicts that by 2045, freight volume will increase 45% and America’s population will grow by 70 million people. America’s infrastructure has an average rating of a D+, ranking 12th worldwide in its health of infrastructure.

  • 65% of America’s major roads are rated “less than good condition”
  • In Pennsylvania, nearly 1 in 4 bridges are considered structurally deficient
  • Motorists spend $5.7 billion a year from driving on roads that need repair in Texas

As economic trends and federal policies change, so will the US freight market and infrastructure project prioritization. “Tax reform, trade, infrastructure: we have a role to play in all of those issues,” said Chris Spear, president and CEO of the American Trucking Association (ATA).

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Will America’s Next President Secure Infrastructure Spend?

Posted by PLS Logistics November 1, 2016 at 9:50 AM

A long-term funding plan to modernize America’s infrastructure has been extensively talked about in political circles. This election, it’s not different.

A recent CBS article says that Donald Trump and Hillary Clinton agree on this topic; that roads, bridges, airports and other US structural assets are in bad condition. Both Trump and Clinton argue that the country’s rundown roads, bridges and airports need rebuilding. And, both candidates say infrastructure programs will create new jobs.

Clinton’s idea is a five-year plan that calls for about $300 billion in direct spending on roads and bridges and another $25 billion for an infrastructure bank. She plans to pay for the plan from corporate tax reform, including a chance for companies to banish overseas profits. Trump wants to spend $1 trillion on a variety of infrastructure projects over 10 years, if elected. According to Yahoo Finance, $167 billion of the $1 trillion investment would be equity investment, while the rest would be raised by private partners.

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FAST Act will not be Fast Enough for U.S. Infrastructure

Posted by PLS Logistics May 4, 2016 at 10:30 AM

For decades, U.S. infrastructure has been supported by last-second, short-term funding that’s been far from adequate. The recent implementation of the Fixing America’s Surface Transportation (FAST) Act was a much-needed boost in funding, but shocking new statistics from the DOT have brought into question whether it will be enough to stabilize our crumbling infrastructure.

Freight Activity will Increase Dramatically

The DOT’s Bureau of Transportation (BTS) and Federal Highway Administration (FHWA) recently released data forecasting freight growth in the next few decades. The data reveals an extreme rise in freight tonnage and a healthy, vibrant economy.

The BTS and FHWA predict daily over-the-road (OTR) freight tonnage to grow 40% by 2045 to 25 billion tons, with the value of that freight increasing 92% to $37 trillion. Compare that to 2015, where 18.1 billion tons of goods valued at $19.2 trillion are moved via trucks daily.

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Is This the Last Short-Term Transportation Fix?

Posted by PLS Logistics May 11, 2015 at 8:00 AM

On April 30th, it was reported that yet another short-term fix to infrastructure will be implemented sometime in May.  Rep. Paul Ryan (R-Wis.) is creating a short-term bill worth between $8 – 10 billion, which is expected to last through the end of the year.  Ryan is working with Rep. Sandy Levin (D-Mich.), Sen. Ron Wyden (D-Ore.) and Sen. Orrin Hatch (R-Utah).

The current plan could be linked to Ryan’s ongoing tax reform project.  He is clear that gas taxes will not be raised for infrastructure funding, although it’s still unsure where they will find funds for this short-term fix.

Some states have already canceled large construction projects due to the uncertain future of funding for infrastructure.  The point of this bill is to provide enough funding to get through the summer construction season so states can continue projects as pl

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