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Industry News - May 2007

State DOTs Seek Federal Boost for Road Aid

By Tom Ichniowski

With highway programs squeezed by high construction costs, state departments of transportation say federal road funding must rise more than 80% by 2015 just to keep up with inflation. In a report released March 7, the American Association of State Highway and Transportation Officials says that hitting the $72.8-billion target in 2015 would require the equivalent of a 10¢-per-gallon, two-step hike in the federal fuels tax.

The report is the first of six that AASHTO plans to release as it lays the groundwork for the successor to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. SAFETEA-LU won’t expire until fall 2009, but transportation interests already are marshalling arguments to convince Congress to provide more money. Many observers are awaiting a congressionally mandated commission’s report on surface transportation finance and policy study, expected around the end of this year.

AASHTO’s report estimates the total cost to improve highway conditions and performance at $189 billion in 2015. Of that, about $83 billion would be federal funds if Uncle Sam’s share of overall highway capital spending remains at the 2005 level of 44%.

The U.S. Dept. of Transportation’s most recent look at “conditions and performance,” a summary of which was released March 2, estimates the average annual cost to maintain highways and bridges over the 2005-2024 period at $78.8 billion in federal and non-federal spending. That compares with $36.4 billion spent to rehabilitate the system in 2004, the DOT study’s base year.

It pegs the maximum economic benefit level for highway spending at an average annual $131.7 billion over that time period.

An increase would require the equivalent of 10¢-per-gallon fuel-tax hike.

Using tolls on highways is one financial tool to help get some roads built, state officials say. “But it is not a silver bullet that’s going to solve our problems in transportation in this country,” says Missouri DOT Director Pete Rahn.

State DOTs are trying various tactics to deal with costs that jumped nearly 30% from 2004 to 2006. “It’s a pretty significant bump that was never anticipated,” Arizona DOT Director Victor Mendez says.

Coping mechanisms only go so far. It’s been 14 years since the last gas-tax boost. What will prompt a new revenue hike? AASHTO Executive Director John Horsley says what will force the issue are projections that the Highway Trust Fund will begin running a deficit. “The trust fund is going to be in crisis one year from now,” he says.

Titan America Acquires Carolina Concrete Firm

Titan America of Norfolk, Va., announced it has completed the acquisition of S&W Ready Mix Concrete Co., a supplier of ready-mixed concrete in the coastal North and South Carolina markets. S&W has 26 ready-mixed plants.

S&W will operate as a subsidiary of Titan America. Harry Shaw, who served as CEO of S&W, will continue as its president.

Clemson University Students Win National ASC-AGC Competition

Teams from Clemson University in Clemson, S.C., took two of three first-place awards for the 9th Annual Associated Schools of Construction and Associated General Contractors of America National Student Competition. The event took place at AGC’s 88th Annual Convention, held recently in San Antonio.

Clemson’s Commercial and Design-Build teams each won first-place awards, as did the University of Cincinnati’s Heavy-Civil team.

Twenty-one teams from across the country were given approximately 24 hours to study and prepare plans to tackle real construction project scenarios. The teams then presented their plans to a panel of expert judges. Winners were chosen based on their estimating, bidding, planning, scheduling and presentation skills, creativity, understanding of sound construction techniques, and thoughtful methodology.

Central Florida Community Celebrates Excellence in Engineering

Central Florida engineering firms as well as local associations, government agencies and students celebrated excellence in engineering at the Central Florida Engineers Week Awards banquet held recently in Orlando.

The following awards were presented to outstanding local engineers, organizations and projects:

  • Outstanding Organization of the Year, Private Sector (Less than 100 Employees) – WBQ Design & Engineering
  • Outstanding Organization of the Year, Private Sector (More than 100 Employees) – CDM
  • Outstanding Organization of the Year, Public Sector – Center for Advanced Transportation System Simulation
  • Engineering Project of the Year – State Road 408 Widening, Orlando, Florida (Contract 252B)
  • Young Engineer of the Year – Loreen Choate
  • Leadership Excellence – Richard Acree
  • Technical Excellence – Pamela McCauley-Bell, Ph.D
  • Lifetime Achievement in Engineering – Roger L. Jeffery

The Central Florida Engineers Week Awards banquet is an annual event that recognizes National Engineers Week.

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