On
the pot-holed highway to hell
As the debates over highway funding continue as outlined
in the article to the left, it is interesting to watch
the perspective of other nations’ as they look
at the status of US infrastructure. The article below
is from the British newspaper, Financial Times, and
looks at the overall negative economic impacts that
poor infrastructure has on the US economy. It also points
out some of the absurdities of the US election season,
particularly the proposed “gas tax holiday”
that has been promoted by both Republican Presidential
nominee John McCain and Democratic candidate Hillary
Clinton despite the looming shortfall in the US Highway
Trust Fund.
The
article also illustrates how poor the US is beginning
to look for investors as this quote indicates:
“The state of transport and communications
infrastructure is a symbol of a nation’s economic
development and the US is starting to look like a
third world country. In fact, scratch that. Many developing
countries look and feel better. Of course, they are
in a different phase of development. The US
invested 10 per cent of its federal non-military budget
in infrastructure in the 1950s and 1960s as it built
the interstate highway system – at the time,
the envy of the world. While US investment has fallen
to less than 1 per cent of gross domestic product,
China has been matching its double-digit postwar record.”
Finally
the article highlights what is the most difficult piece
of the transportation funding puzzle, the fact that
thus far, the US has refused to embrace the right funding
mechanisms to build its transportation infrastructure
back up.
To
read the full article, please visit:
http://www.ft.com/cms/s/0/c54f4258-1c5f-11dd-8bfc-000077b07658.html
Pennsylvania
Gets Turnpike Bid From Abertis, Citi
Last week as part of the ongoing highway funding saga
in Pennsylvania, state officials indicated that a $12.8
billion bid from Citigroup Inc. and Abertis Infraestructuras
SA won an auction to lease the state's only toll road
in what would be the biggest agreement of its kind in
the U.S.
New
York-based Citigroup, the biggest U.S. bank by assets,
and Barcelona-based Abertis, which operates toll roads
in Europe and Latin America, topped two other offers.
The next-highest bid was $12.1 billion by New York's
Goldman Sachs Group Inc. and Transurban Group, Australia's
second-largest toll-road operator.
Pennsylvania
Governor Edward Rendell wants to lease the 537-mile
(864-kilometer) turnpike for 75 years if the U.S. government
rejects the state's application to put tolls on Interstate
80. Money from a turnpike lease would help the state
close a $1.7 billion gap in transportation funding.
For more info, please visit:
http://www.bloomberg.com/apps/news?pid=20601103
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