In defense of ARTBA - response to editorial

James Weinstein senior VP of DMJM Harris Aecom writes in defense of ARTBA:

"There’s an old axiom in politics that an “attack unanswered is an attack believed.” The editorial assault launched by “TollRoadsNews” on the American Road & Transportation Builders Association (“ARTBA-“A Dysfunctional, Destructive Lobby,” 6/3) was so off the mark and did such a great disservice to your readers and advertisers that I felt compelled to respond.

"As a long time ARTBA leader and the current president of the association’s Public-Private Ventures (PPV) in Transportation Division, I can tell you that your description of ARTBA’s vision for the future of the nation’s surface transportation programs was factually challenged and incomplete.

"ARTBA’s plan, available at www.artba.org, consists of two components of equal priority. It makes crystal clear that all transportation financing options should be on the table.

"ARTBA calls for an expanded and more efficient “core” highway/transit program to improve regional mobility and protect past infrastructure investments. ARTBA is advocating a minimum 10-cents per gallon increase in the federal motor fuels and indexing it to inflation to finance new transportation improvements. AASHTO and numerous other industry groups are also pushing for a user fee increase. The American Trucking Associations is calling for an even larger increase in the federal gasoline tax—a clear recognition by the business community of the need to more boldly address our transportation challenges and keep pace globally with the investments being made by China and other countries.

"You summarily dismiss the recommendations in the ARTBA report, which call for expanded toll financing options, including congestion pricing, high occupancy toll lanes and truck only lanes. Bonding and debt financing are also part of the mix.

"The second part of ARTBA’s vision, which you didn’t even mention, includes creation of a 25-year “Critical Commerce Corridors” (3C) construction program focused on adding multi-modal infrastructure capacity to help facilitate the safe and efficient movement of freight. It would be financed with dedicated freight-related user fees. Public-private partnerships (P3) and debt financing would also play key roles in supporting the program. 3C represents a huge market opportunity for the transportation industry and, more importantly, for the users of our surface transportation system.

"ARTBA must be getting something right since 3C has been endorsed by five national construction associations and numerous industry publications. It was also included in a “top 10” recommendation in a July 2007 AASHTO report, “A New Vision for the 21st Century.” In April 2008, the U.S. Chamber of Commerce Foundation recognized 3C as a potential freight solution. And the January 2008 report from the congressionally-chartered National Surface Transportation Policy & Revenue Study Commission also endorsed the need for a national freight program.

"The fact is the nation’s transportation needs are so great that without proactive steps we are rapidly approaching crisis stages. The only way to realistically address this situation is to wisely utilize a full range of traditional financing options and alternatives that are available to build, maintain and operate our complex transportation system. There is no one single financing solution. And to suggest that in less than two years some new form of financing is available to be implemented nationwide to close the $19 billion annual gap between documented highway and bridge needs and available revenues is bunk. It is equally unrealistic to suggest the gas tax alone can solve all the nation’s surface transportation needs. That is why ARTBA is a strong proponent of increasing federal Highway Trust Fund revenues AND expanding the use of P3. Only through a combination of these approaches can meaningful progress be truly achieved.

"ARTBA has been around for more than 106 years and its track record of success on behalf of transportation design, construction professionals and the users of the surface transportation system in America is unmatched. ARTBA was also the first industry association to see the value and importance of P3 and innovative financing methods. In September, the association will host its 20th Annual PPV in Transportation Conference in the Nation’s Capital for nearly 400 industry professionals from around the nation and several foreign countries. This premier event is one of the many tangible benefits my firm receives from its ARTBA membership.

"I encourage your readers to attend the conference and get the full story about ARTBA’s leadership in the P3 arena. They’ll see why ARTBA “advances the interests of the U.S. transportation construction industry.” END OF LETTER

The editorial being criticized is at:

http://www.tollroadsnews.com/node/3578

COMMENT: ARTBA can be a proponent of more tax based grants for construction and more toll financing, but this is Washington lobby politics at its most absurd. It is like simultaneously providing free booze while urging sobriety. The one inexorably undercuts the other.

States and local communities - where project decisionmaking lies - won't make use of toll financing if there is the prospect of grant money. Increased grant money will kill toll financing - public and private tolls alike. People and their elected officials only agree to paying tolls when there is no grant money available - when the option is no road or a toll road.

Weinstein doesn't address ARTBA's disingenuous use of the huge toll-based roadbuilding programs in China and India to call for increased tax-&-grant programs here in the US. Those impressive Asian programs have been made possible by the absence of tax-&-grant. We should emulate them if we wish for larger and more efficient road programs and not just richer lobby groups in Washington DC.

As for conferences on private public ventures or P3s there are nowadays so many of these one could do nothing else but attend them. They have done not a jot to get the officers of ARTBA to see the need for a U-turn in policy to get out of the dead-end of tax-&-grant. EDITOR

TOLLROADSnews 2008-06-06