Copyright 2002 Commonwealth Business Media  
Journal of Commerce - JoC Week
May 20, 2002
SECTION: LOGISTICS; Pg. 32

LENGTH: 757 words

HEADLINE: Time for TEA;
Freight interests are optimistic that a unified voice will yield results

BODY:
when the Transportation Equity Act comes up for reauthorization next year BYLINE: BY R.G. EDMONSON

Congress won't begin reauthorization of the Transportation Equity Act for the 21st Century (TEA-21) until the start of the 2003 legislative session early next year. But groups already are lining up with their wish lists for the huge transportation bill that predominantly covers maintenance of the nation's highways.

That includes advocates for freight and intermodal transportation. As transportation bills such as TEA-21, and its predecessor, the Intermodal Surface Transportation Efficiency Act, have made their way through Congress in the past, the freight lobby felt its voice was not heard. As a result, many believe that as trade volumes have boomed, infrastructure to accommodate that growth has languished. This time, freight interests believe they will be heard.That includes advocates for freight and intermodal transportation. As transportation bills such as TEA-21, and its predecessor, the Intermodal Surface Transportation Efficiency Act, have made their way through Congress in the past, the freight lobby felt its

"We'll be more vocal and more organized going in. A broader base of support is critical," said Jean Godwin, executive vice president of the American Association of Port Authorities. "The more we come in with a consensus position, the more likely we'll be put in somebody's bill."

Godwin speaks for the "freight stakeholders," a group of transportation trade groups representing shippers, truckers, railroads, liner shipping and intermodal transportation companies. The stakeholders have agreed on nine items they would like to see in the bill that replaces TEA-21. But shippers and carriers will not be a lone voice. Godwin said freight issues have been raised in virtually every meeting the Department of Transportation has conducted since ISTEA passed 11 years ago.

"This issue has come up every time DOT has brought it up. There are problems that haven't been addressed," Godwin said. Two years ago DOT published a study outlining the growth in container traffic through ports. The study concluded that without improvements in the "last mile" -- the intermodal connections between ports and the highway system -- the U.S. transportation network will be unable to cope with the increase in container traffic over the next 10 years.

When planning transportation improvements, the time to start building the freight infrastructure is now, or even yesterday, advocates say. The question, however, is where will the money come from? Intermodal connectors are part of TEA-21 "formula" funds that the DOT disburses to states for highway projects, putting them in competition with all other highway improvements. Godwin said a reauthorized TEA-21 should have enough money to improve port-highway connections. The DOT is not so optimistic. Revenue for TEA-21 is expected to remain flat over the next few years. The department is encouraging local governments to seek "creative financing" for projects.

For example, the Alameda Corridor rail project connecting the ports of Los Angeles and Long Beach to downtown intermodal railyards is the DOT's model for creative financing. In the Northwest, the Freight Action Strategy for Seattle-Tacoma (FAST) Corridor projects are aimed at improving freight transportation between Seattle, Tacoma and Everett, Wash. and the rest of the U.S.

Henry Yates, manager of federal government relations for the Port of Seattle, said a partnership of federal, state, local governments and private industry has successfully steered the progress of FAST Corridor. "We've been able to agree among ourselves where, how and when money should be spent," Yates said.

Other groups are looking at ways to come up with more money for TEA-21. The American Association of State Highway and Transportation Officials has begun to discuss the Transportation Finance Corp., a government-chartered financial institution modeled on Fannie Mae. That entity would be a way to channel private capital into TEA-21 transportation projects, said Jack Basso, the AASHTO's director of management and business development.

Godwin said that with allies like AASHTO and DOT, freight stakeholders have a better chance of getting congressional attention for more efficient freight transportation.

"The mantle is being taken up by the people on the Hill. Getting on their radar screen is the hardest part. We're on the screen now. Congress knows there's congestion out there," Godwin said.

LOAD-DATE: May 22, 2002