infrastructure 2011

8/6/2019 Infrastructure 2011

1/90

Infrastructure2011A S t r At e g i c P r i o r i t y


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A S t r A t e g i c P r i o r i t yInfrastructure2011


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i i

2011 y h Urban Land InstItUte and ernst & YoUng.

Pi i h Ui s amic. all ih . n p hi k my puc i y m y y

m, lcic mchicl, iclui phcpyi ci, y y imi il ym,

wihu wi pmii h pulih.

rmmn bblapal lsn:

U L Iiu e & Yu. Inrastructure 2011: A Strategic Priority. Whi, d.C.: U L Iiu, 2011.

ULi caal Numb: I22

iSBN: 978-0-87420-159-8

c: op i Fuy 2010, h u pi i ci i guzhu, Chi, i ai ui i ym,

cyi 800,000 p ily. (Kl Fjllm/ItdP)

AUthor

Jnathan D. Mer

ULi PriNciPAL reSeArcherS ANd AdviSerS

Maureen McAve

Executive Vice President

Iiii gup

Tm Murph

Senior Resident Fellow

Iiii gup

Ed McMahnSenior Resident Fellow

Iiii gup

Rache MacCeer

Managing Director

Iucu Iiii

Ue Brandes

Vice President

Iiii gup

Sarah J Petersn

Senior Research Associate

Iucu Iiii

Sarah Jaad

Research Associate

Iucu Iiii

Amath Gms

Intern

Iucu Iiii

erNSt & yoUNg AdviSerS

Hard Rth

Global Real Estate Leader

Macm Barst

Global Construction and Inrastructure Leader

Rc Snuer

Global Real Estate Markets Leader

gll rl e C

J Magure

Marketing Manager

gll rl e C

ProdUctioN StAff

James A. Mugan

Managing Editor/Manuscript Editor

Bets VanBusr

Creative Director

Crag Chapman

Director, Publishing Operations

Jhn Ha Desgn Grup

Beverly, Massachusetts

www.jhhlli.cm


4/90

i i

Iucu 2011: a sic Piiy i h h i i ulp cpuc y h U L Iiu e & Yu. ech y, w iucu

plicy iiii i h Ui s u h wl, mi uu , cm-

m ppch iucu im i hlp l l-m il wh

ppiy. th p i iiw wih iucu p, plu imi h

iucu um up-- ch.

Cover Letter

thi y, w pl hw my i, i, cii

uli lp c cy iuc-u plici whil u y chlli cl lii

u ci, wll h c iucu h

i f i auli, i i h Mil e,

h hquk umi i Jp. a my -

m ch piii, mp-up pi

c picipi mi- im icipli

likly will cm m il i ui w m-

il ym wll m u pi

mic. n upiily, m pp h

chc ucc wh hy iiy cici

, lp l- il il pl hm, h y pulic pi

uc u pjc.

I hi p, w hihlih iucu ciiy c i

ci, wih pcil cu mj U.s. mpli

mk. I 2011, m amic cii c h chic i

cii which iiii c pc hw chi

h lu m ci u. ai, m plc

h h, pcilly h wh il plii-

cl cu h chi upp iucu

pm c pi cpil.

o h y, ULI/e&Y p h f h p-lm p y um U.s. iucu pp

h mulic lui ll pic

lcl ucc. W h h ul Chi

chmk-i piu 9 pc gdP

iucu, cmp wih l h 3 pc

i h Ui s w eup cciiy p-

m lik p il, ih, ym whil

lwi c mii. ou p h l

hw C auli h lp h Uis i ci i cumli wk, wll

mplyi pulic/pi phip.

I 2011, U.s. plicy mk, l y Pi om, c-

ily pp m w h iucu iu cu-

m i piu p. bu u u whh

hy c k miul -m ci whil chi

m u hll uci . dpi

w hul l im, h ppuiy ill i

mk m p. bu m l, h ui

cmmuiy, h pulic l mu i cu

cci uc pjc h mk h m ui h i uu cmic ucc

ll cmpii.

Patrc Phps

Chie Executive Ofcer

U L Iiu

Hard Rth

Global Real Estate Leader

e & Yu LLP


5/90

iV


6/90

exeCUtIve sUMMarY V

b i ch iiw wih iuyl, hi p uy ll iucu ciii i 2011 (p I),

h mi i ph cu U.s. iucu plicy h ulk mi

h i iic pi uili chll (p II). th U.s. ci -

c pil p h l y, ck ip i

mj pjc i h cuy pimy mpli , cmm

ppch cmi uil pliicl cl cl.

OverviewHpi i hl i pily li ll mkplc, m li cu-

i h m iucu pi lpm hih im

ic piii i 2011, u ul ui hll. Whh i cu-

i wih mu cmi cpi i m m c cmic l-

um hi m iu mi-mk cmpi ki uh c,

m ui l liz h cui wll-lih, il

iucu pm plici i il uu ucc ppiy.

I l, m c i chic i hi u il

mic uil pi w ym whil h m im clli ll

piu i ci u im. sm pjc mhll

h p h, whil pulic ci icily lk pi uc

ui ci. Cui pp i wh hy c cu m

ExecutiveSummary

The Seattle Center Monorail connects downtown Seattle with Lower Queen Anne, the citys

entertainment center.


7/90

InF rastrUCtUre 2011Vi

w-lki pl h i iucu icly cui uu cmic , i-

i hm h iliy ic ui m iclly cily.

th Ui s ly ciu l i ll cmpiili wihu il iuc-

u pl, lcki pliicl cu, ci wih l, , lcl u ci

h limi pi. sm mpli pp pii wh hy c pl pl

uc w i li ym c mulipl juiici. s wih ci pcu-

m pm plici ii p m hi iliy i pulic/pi p-

hip (PPP). g lil c h cuy ii k ic uccul

ppch lk p m h m pmii lpm c i.

Global ProgressI m h lp wl i my mi mk, cui h cmmi ullli

iucu il uii hci lii i icily cm-

pii ll mkplc. a l c l m wh ccui c h l, my cu-

i c hi iucu chll h :

n dpi uiy u, h U.K. h cmmi Us$326 illi (200 illi) h

y ciu il iucu pjc cu il, y puci,

cc, wih mphi uci h i c mii huh im

i wl y.

n eup Ui cui lly iw iucu piu ul wi hlpi imu-

l lwly ucii cmi mizi ym u l-m cmmcil

wh. Fc, gmy, spi, Ily ciu uil u hih-p il ih -

wk w mj cii c- p lik whil mpi lw c-

pi i li wih e.U. jci. Hw, my e.U. cui ill m ii

m upp mk PPP uly il.

n auli i wki h up ii iucu whil i il piii uu

im; pi p, hii il li, li u c ci

k pcc.

n C i pi i PPP iiii h mpi i cilii.

n Fluh wih ch m i l p-i mucui pwhu, Chi i mi h

wih wi-i iucu pm, iclui cmpli upc 10,000-mil

hih-p il wk y 2020. nwly cuc ip, p, uwy ym i Chi

mj c cili h cuy wh i h wl c-l cmy hlp i

l wih mui ci m ui u ppuli.

n Ii i wki h c m pi ci ply iucu u-

u pii ll cmic lhip, whil h Ui a emi Kuwi ciu

u il wlh uil u p hu k y-ci lui uu pw

w .

n bzil i ccli , i, w pjc ccmm i ui cmy

u hc i h wl ; i w ippi ppl iii

h 2014 Wl Cup h 2016 summ olympic.

tumil lui i h Mil e nh aic h l mpily pik -

fucui y pic icmi ll ici i uci lic il

imp i m i. Ci cui, pcilly i h eup Ui, i h

y ly i c c mii huh li y uc lik wi


8/90

CHaPter 1 / gLobaL overvIeW V

pw ucl y, wll y pi m i il ym pi li

c l. th plici l c hlp uc ci, which ly p cmic p-

uciiy, u l ic pllui i my u c.

America StrugglesI c wih i ll cmpii, h Ui s i luchi l plmic cup-

illy li iil u. a m h 30 y cpicuuly uui iucu

c wih l u ci, ici um il lcl l h cm ciz

icu hw l wih i plm. bu pliiclly cu m h mu lil

ppi c h ui chll, which iclu i im $2 illi ju uil

ii wk. opi y hi pl li cycl, h ym iclu , i,

w li, w m pl, m i h i pimy cmic c.

alhuh Pi om k iucu hi miii p h wi h

uu iiii (h wih uci ii), h chc i cui

il piii pp ui i pi u hw cu pl-

i m . Pl mil wkil hih-p p il, w

lcic i i y-i chli, --h- lli i c cl ym

plc l iwill ply ly, p ck, hl.

dpi h i umplym w, h j-ci pil iucu pjc i

i ick y cc u m pi ppi pil c u.

rl m uci c piy cici ipc m

plmic i y uc l ili i much ci. th ii umli

lck i upp uili h cuy iucu mi impl pulic ic

pyi m h ymih huh hih u . alhuh im

h p iu m l ic w pjc, C pilly

u i h l li llw pu w ll i hihwy, which

cul hlp mp up ui m i li pi ii hihwy i.


9/90

InF rastrUCtUre 2011Vi i i

C h l il c uhizi h l uc pi ill.

saFetea-LU, h 2005 pi uhizi lili, hul h pi ly w y

u h limpi l wih umu i. Cu u wh hul plc

saFetea-LU, h pppi l l i pi iucu, wh m h

m pi cy m lui plicy mk.

Wh m cl i h h ppi uiy will m p-w l pi

u, w cmmim mchi u piu, l-u

ilu h Hihwy tu Fu. I h c willi ic h li i

u i h wy, wh hi will m h u i l l ui yhi m

il.

Mpli sys cii, which u m ci um l, ppy, li l

c h ph-u l imulu my h ppc uh cli i l ui.

M lcl cil i m pliiclly pll uc iucu u h cll

hik, m cml ill ll. a ul:

n

My l cii pu h k w pjc, u ill c uh my u mypi i ym.

n Mpli lik d, Mipli, sl, sl Lk Ciy h ucc i l-

izi w p iiii wih lcl ci wki h m piii.

n Muli i wih yzi cy ucu ppl cfici

lck cu hw llc pciu ll.

n Cii i h pi li u l u upp m i

my h chic u puh lih-il pl i lim.

n M will lch PPP ml c w pjc; viii Fli c pi-

c wih ll hih-ccupcy-ll (Hot) l pi ml.

a Ph Fwrl p my ill pil i w hwk cc m h limi ui ill

mi- pjc wih iic il il cmic m ci

mi hi wkl phip wih pi p huh imp pcum

pcl. th i i ii cc pi cpil pi huh PPP hul ccl

pulic ui uc imiih. ocil liz h ci c hlp uc piu i

uili / mi ci yp pjc cci. sm lcl -

m wily ii uk liic li-cycl ui pi miii

ym, which c ul i lw c cici im.

thi p l cmm:

n cui i mki cy pi up ii ym;

n lpi il iucu pl, h ui rc h tp ml ui mi- pjc h lcl ll h il wih h cuy ll cmic piii;

n cci pi h i pimy mpli , i picul h ll

wy mk wh ppuli ui ciiy cc, h m im

ii iucu l u pli i cici;

The Gerald Desmond Bridge illuminates a lumber transport acility at the Port o Long Beach in Caliornia. (Tom Paiva/Taxi/Getty Images)


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CHaPter 1 / gLobaL overvIeW ix

n pii l-m ciy l ui upp pli cpil pjc;

n iiui l iucu k hlp upp pjc ci, iclui pulic/

pi phip;

n phi i u hlp u iucu iiii ciui i.

F 2011, h Ui s h ply wlwi cmpy i cmi ip wih iucu

mii ly i wh c u chlli cicumc. th m

wcli mii, i m wih l, i ci lui, ii iclly.


11/90

Contents

A construction worker collects cement or a highway project in Mexico City. (Bloomberg/Getty Images)

Pa i: Wl vw / 2CHAPTER 1: GloBAl oVERViEw / 4

Chi: spi L Fc Chll / 6

SiDEBAR|guzhu bu rpi ti / 7

Ii: tyi Cch Up wihu Flli bhi / 9

bzil: Kicki i Hih g / 11

U.K.: Pmi ecmic Iucu / 12

oh eup Cui: Miii sic Piii / 13

auli: Fl th M P / 15

C: syi h Cu, rmpi up PPP / 16

Mil e: Ch-rich spi h Fuu / 18

suh aic: Fii sil (bu rpi) ti slui / 18


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Pa ii: Un Sas / 20CHAPTER 2: NATioNAl oUTlook / 22

M rpiiliy Fll bk s Cii / 26

sh tm u L tm / 29

simulu: sck gi / 29bui h sili / 31

CHAPTER 3: METRo oUTlook / 32

al: g Ii / 35

b: Lii o g Fu / 37

Chl: shll dil ti Pl / 38

Chic: tki PPP bh / 39

dllF Wh: bi Pjc, sm Pi dll / 40

d: Ftck Hi sp bump / 41di: tw Pjc o Hp / 42

Hu: Lih-ril Pl ty g bck tck / 43

Iipli: a b PPP Pp / 44

L al: Mi by h C / 44

Mimi: Ui Pulic/Pi Phip Cuc Mj Pjc / 45

Miplis. Pul: Pli ruc Lih ril / 46

nw Yk Ciy: s My n, s My aci / 46

SiDEBAR|nw Yka bi: rui ou tim / 47

oklhm Ciy: dww Im / 48Phillphi: Pyi rpi / 48

Phi: ti rlck / 49

sl Lk Ciy: all a / 50

s Fcic: nw ol, Limi opi / 51

sl: Full sp ah / 52

Whi, d.C.: Icui nw suu Ml / 52

CHAPTER 4: THE wAy FoRwARD / 54

Hw h Pc Cul Ul / 56si slui / 58

SiDEBAR|e C P Up: di I n euh / 62

CHAPTER 5: iNVESTMENT DiSCiPliNE / 64

Pulic/Pi Phip: nw Mmum ely Mi / 66

a Fil thuh: Cp dim / 72


13/90


14/90

Construction workers carry

materials to the site o a

new bridge over the Hugli

River in India. (Andrea

Pistolesi/Getty Images)


15/90

4


16/90

CHaPter 1 / gLobaL overvIeW 5

My m c h wl k i-ucu plicy m hi cc. thy mul il pl, cu

l-m i, pc u m cuck i icul cl im, i

m c ccl pi. th i mizi iucu

ciicl uu cmic cmpii / cucil ccmmi p-

i ppuli i uizi im. thy l l i i h c

pcum, yi cc m pi cpil m cily mk up p

i m ui, y iiw. a pcilly i w eup, cu-

i icily i l u plicy iucu i i ycici mp w hu mii.

Implmi i pl will cm m pic i u uc

ui i pi cpil uc mk up pc cli i -

m h. gm wy pu l ik pi u,

pcilly w pjc, iiw y. th h ly wy c i ll

m pi u, iuc cmpi, im k. I u, i

hul i wih l-m, y, lil pmc . thy c

y lki up u. nw, hi i uwy cu m

uiy cl mply i ci i. I will i chl-

l u h u.

I, ll im iucu pi quim h qu

cuy l m h $50 illi.

GlobalOverview1

In an eort to reduce energy use, the old lights on the Sky Tower in Auckland, New Zealand, were replaced

with light-emitting diode (LED) lights in 2009.


17/90

InF rastrUCtUre 20116

chiNA|Spending Leader Faces ChallengesLly uc y c ll cmic il, Chi hiic upc iucu

uili p i mpi h. th ai pwhu i mi cl cmpli h wl

l hih-p i wk, 10,000-mil hycm liki mj cii c p imi-

l i iz h Ui s. bu h i ly mll p illi-ll plu h i l c-

uci iwi ll hihwy ym, cmpl U.s. i; 1,900 mil w u

Natna inrastructure Prgrams

suc:

cun Pam dspn

Ausala inasuuAusala

thi pm w lih i 2008 k il ppch iucu pl-i, ui, implmi. th 11-mm Iucu auli cucil hlp lupi il iucu piii, pi li cmmpjc h hul u, i h m h llci a$20illi (Us$20.2 illi) buili auli Fu.

Bazl gwAlan

Pam

thi ic im pm pp iiii pulic wkim. PaC, h ph h pm luch i 2007, i $349 illi

i , iclui y, u iucu, ii, pi. PaC-2 i $900 illi i h PaC pm 20112014.

canaa inasuucanaa

I 2002, h Iucu C ui w lih wihi h dpm t-p, Iucu, Cmmuii l m iucu. thui i pil buili C, h m C$33 illi (Us$33.5 illi),-y iucu pl, l wih u C$5 illi (Us$5.1 illi) i ui iy iucu pm.

cna 12 f-yaPlan

th 12h Fi-Y Pl, which i 2011, i llci m $1 illi i iucupi y. th pm i lp y h Cl Cmmi wih hlpm h Miiy Hui U-rul dlpm. Much h im will w uili hih-p il, wih cy mphi w upply, lciciy, hihwy.

ina 11 an 12

f-ya Plans

th 11h Fi-Y Pl, which i 2007, i lp implm y Ii

Pli Cmmii. o h pl im $500 illi i l iucu i-m, -hi will fw , iclui pjc up, hili, wimj hihwy i Ii. th will p i, w, lciciy, hiucu c. th cuy 12h Fi-Y Pl, which u m 2012 2017, willul h mu p iucu $1 illi.

Mx NanalinasuuPlan

Mic nil Iucu Pl w luch i 2007 will u y wihh l ici h c, quliy, cmpii Mic iucu.th pm h ii m h 300 iucu pjc i mulipl c, l-i $141 illi, c ui pulic/pi phip, wih iic Mi-c pulic c im. th pjc iclu im i p, ip, ,ilwy, w, y.

Nw Zalan NanalinasuuPlan

thi pm w lih i 2009 iw iucu piii pi c-m cii, pli, pi. th nil Iucu Ui ( uiwihi tuy), h nil Iucu aiy b (cmp mm uih cl m), h mii iucu ch wih lpi nil Iucu Pl, hihlihi nw Zl iucu h 20 y. nw Zl mi cu i hci il cciiy i hihwy ci c ci.

U.K. inasuu UK th pim mii lih Iucu UK i 2010 i h m l-m iucu . th pm i wki iiy c-cui iu, wih $320 illi iucu im pl h y i c h iclu y, pi, w. th mjiy ui will w m h pi c.

suc: ULI ch lyi iu uc.


18/90


i ym; mli h p mil hl h cuy p c, -

-h- ip. biji, shhi, guzhu w h m h m phiic

i p ym i h wl.

I ll hi mic iucu ciiy i uh, Chi l h mii uil hih-p

il li c ai Ii, ulimly cci eup ym. I ch cuci

h cil li, Chi wul k ul uc upp i iu ui

iui. th m h ly m l wih Mym lihium wih rui

-sii lik. th cuy i l i i pi i iucu uili pw

aic, suh amic, h Mil e, h Ui s.

bu Chi pi mi m lly ul/i cuy i u-i iuil

i i cui wi pi h pi 9 pc gdP ully iucu c

Guangzhous bus rapid transit(BRT) sstem pened n Februar 2010. wth a ength 14

mes (22.5 m), 26 statns, and da rdershp 800,000

passengers, the sstem has ns t ther mdes transprta-

tn, ncudng undergrund cnnectns t suba statns

and cntnuus be anes ang the rute. Guangzhus nte-

grated BRT and be-sharng sstem, hch ncudes 5,500

be parng spaces, n the insttute Transprtatn and

Devepment Pcs 2011 Sustanabe Transprt Aard.

operatng r mre than a ear, Guangzhus BRT s shatter-

ng rdershp recrds and changng perceptns bus trans-

prtatn. Ths ne carres mre da passengers than an

the cts ve metr nes. The sstems pea passenger f s

secnd n the rd n t TransMen, the bus rapd transt

sstem n Bgt, Cmba. Guangzhus BRT s an eampe

a strategc nvestment that prvdes custmers th mre

transt ptns and greater mbt.

guzhu bu rpi ti

Guangzhous bus rapid transit system helped unsnarl the citys trafc. These photos show the situation beore (let) and ater the opening o the

new BRT corridor. (Karl Fjellstrom/ITDP)


19/90


umu. Mj cii uli hl c ci Chi pi mil cl

kp uyi c i lum h w ym c hl. a 2010 IbM uy k biji

cmmu pi i h wl w wih Mic Ciy. vhicl mii l ciu h

mili pqu, yllw-y pllui hz h fic m u . I ii, h c u

Bejng and Mec Ct Bth Scre a 99 n iBMsinde Cmmuter PaniBM Cmmuter Pan inde

suc: IbM 2010 Cmmu Pi suy.

Beijing

M

exicoCity

Johannesburg

Moscow

NewDelhi

SoPaolo

Milan

Bu

enosAires

Madrid

London

Paris

Toronto

A

msterdam

LosAngeles

Berlin

Montreal

NewYork

Houston

M

elbourne

Stockholm

0

10

20

30

40

50

60

70

80

90

10099 99

97

8481

75

5250

48

36 3632

25 25 24 2319 17 17 15

Chna is lang Ras r Hgh-Speed Passengerlnes and FreghtChnese Rarad Cnstructn

suc: New York Times, Chi Miiy rilwy.

2006 2007 2008 2009

BILLIONSOFU.S.

DOLLARS

0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$22.7$26.2

$49.4

$88.0


20/90


h l cil i hih-p il lpm i qui u h cuci qul-

iy h pi ym.

a i h c i Mic, u p w ywh i Chibiji shhi iclu.

W quliy mi y hi wl, 21 cuy.

iNdiA| Trying to Catch Up without Falling Behindsuch i , much , my cmplici. C Ii pily uil cy i-

ucu pw, w, pi uh ui wh m i cmic p-

il? o will h i hul i u, ul upp i ppuli ui i wih

ic ic? succ will hlp m Ii i h wl 21-cuy cmic pw-

hu. Filu cm h cuy uh py.

ai m i l-immi ipu wih h ih Pki, Ii m pi cc

um- cmic quy il w imply cmi whlly iqu iucu:

n th Wl ecmic Fum Ii iucu 89h 133 uy cui.

n acci ll mm culi m McKiy & Cmpy, h cuy mu uil up

quil i iz Chic, ccmmi ly 3 milli ppl, ch y w

w 2030 iy pc m u hui cmmcil pc.

n 40 50 pc ui l h wy mk cu p m-

hckl il ym. Ii p mii mi 16,000 i 70,000 kilm hih-

wy wh ii .

n M h 600 milli Ii li wihu lciciy, 40 pc h cuy w i w i

ici mi, 11 pc u i 65 pc ul ill h

cc il.

Ne Deh Tps lst Ctes whse Drvers wudRather Be wrng

Percentage Drvers wh wud Chse t wr Mre Ther Cmmute Tme CudBe Sgncant Reduced

NewDelhi

Beijing

MexicoCity

Johannesburg

Paris

London

Milan

Toronto

Montreal

BuenosAires

SoPaulo

LosAngeles

Moscow

Melbourne

Berlin

NewYorkCity

Houston

Stockholm

Amsterdam

Madrid

PERCENTAGE

0

5

10

15

20

25

30

35

4040

25 2524

17 1716

15 1514 14

13

1210 10 10

9 98

5

suc: IbM 2010 Cmmu Pi suy.


21/90


th il m ciz i chll i cmmi uli iucu p-

i $1 illi h 20122017 pi u 9 pc gdP $100 illi

ul uly ic 2007. ocil hp h hl h u will i m h pi c,

hy i ll-u mki cmpi ii iiuil iucu u, i-

m k, lpm cium i h cuy u uil w hihwy, pw

pl, ip. aciiy h mp up much h ch- u ci 30 cmp-

i w lih i 2010 i Ii iucu-l ck.

Iiii h i piiu. rcly cmpl pjc iclu ulm u-

wy li i nw dlhi w m il ym i bl; w ip i Hy bl,

--h- ip mil i nw dlhi; i c-li p i Mu, r, gm,

Kihpm; lw pw pl c h cuy. th tp Miiy, mwhil, h

u miiu uil 12 mil p y, 30,000 mil h u y.

bu p i lli h i kpi up wih Ii pi ppuli, which i ly 1.2 il-

li ck up Chi h wl l y 2025. e up pi, uwy ym

ii m m: wpp pi h nw dlhi m, u lm hw h ciy cul

u my 20 iil li. similly, i immily wmp w mwy i ilck-

lik c pjc mul l hi chul. sw w li k lw piiy

mi iily uu.

Pii uci lil lciciy mi picul hul cuy h pm-

ii u pw-cumi hih-ch iui. th m Pw all mii ciu

ll h i l: p im h Ii will 160,000 mw iil cpciy y

2017, l ci $405 illi.

Ne Deh is Rapd Epandng its Cmmuter Ra Sstem

suc: dlhi M, 2008.


22/90


Fi cmpi ppuii pi p, ip, hihwy ll cci, u

u li wih Ii muly ici uuccy wih cmpmi cl pli

h l cii mki ciu mim cup m. Pl cu

h ii l c hmi l cquiii, cc c ll cu

ly h u cl. th cuy l lck uh kill lcici, cp,

wl, mchic, m wk pjc, ci chuli u i c. I

p, m p imp wk m Chi ll h p.

BrAZiL| Kicking into High Geara mi mk li, bzil h uil wh ppc h my hi hw i

w iucu c up. a 20092010 Wl ecmic Fum uy h

cuy p/lcic/w ym m h wl w. oly u -h bzil

p; much h hihwy w i w l cii, ri Ji s Pul, i

ly w l; u ip w ri bili, h cuy cpil, c k 17 hu. P

cc mi limi cu p iqu ih il, hli h cuy ii-

c p pil, cu pw puci c upp pi iuilizi.

Wii h ih h 2014 Wl Cup h 2016 summ olympic i hlpi kick h

cuy i cpiliz h -ppchi ll pi . I 2010, h il

m cmmi muliy, $900 illi iucu pl, which iclu $19 illi

hih-p il li m ri Ji s Pul, w pw pl, hylcic m, p

cuci. M w ih ilwy l will p h cuci i.

Chi cmpi li i i y y uyi mii li, uili c-

i, lpi w p cilii hlp i cc h cuy cmmii

ul uc.

I ri, pl cll upi h mj hihwy ci u pi i li liki

m u, ww, h uu, gl Iil aip, which will w uwy

mil. th ciy pl mp i P Milh iic y lli lpm ih

ui pc $1.7 illi i pc hlp hul lihi, , w, w li.

Prpsed Hgh-Speed Ra w ln R de Janerand S Pau

suc: J_Flip_C.s., 2009.

Rio de Janeiro

Galeo

Barra Mansa

Aparecida

So Josdos Campos

GuarulhosSo Paulo

Jundiai

Viracopos

Campinas


23/90


U.K.| Promoting Economic InfrastructureF 2011, h w biih m k ki pi pl, ly cui , uci,

cil pm i upc uiy u. schl uili, hpil i,

h cil iucu l i h u. bu h w l p w cmic i-

ucu. th U.K. cmmi $320 illi, -y il pl ciu ui ky p-

i pjc i L; p cc huhu h cuy; jump- ui-

l, c-ul y iiii, h wi ucl pw. th cii w upii, u

cui, hw cl il wih piii cu cmic i, y i-

iw. Wih ii y, w h pi c c up il.

th U.K. h cl-m pli iucu plicy, u uil

cly h cuy, lik h Ui s, h lc h c li mj impm

cmpl ui h pWl W II pi. Ppl upp h iiii uy i kpi

h cuy cmiclly cmpii. bu hy pc pjc cm i im u,

wily mm h Chul c u wll c PPP u wih piizi il-

uihi h L uu.

th hih-pl U.K. , uh wih ii chll, i Cil, eup m

pi pi pjc $24.5 illi. schul cmpli y 2017, hi 72-mil p-

il li will ul u cl L m Hhw, h ci ui ip, h

ciy hily ppul uu. I w, 37 i will pimy ciy ii,

iclui h ui cil iic u Cy Wh. Lik uwy, h cmmu

U.K. chancellor George Osborne (let) and London mayor Boris Johnson visit the uture site o a Crossrail

station. (AP)


24/90


il, h eu i Pi bul hul hlp mp c ci i h cuy

cmic c, cilii cciiy uci l im, wll uci c pllui.

I ii, h m h $12 illi impi il lik m h uh

L i cl-ciy i wih pl cci h w Cil u. th i-

ucu y l cmmi mi h y 2015 wih hih-p p il li h

m L bimihm, wih ppci pu Mch, L, ully scl.

th Hih sp 2 pjc, h i c ull i li h ppul Chul eu u

cil ii, culy u $52 illi cmpli. Uil w, h U.K. h il

gmy, Fc, Ily, spi uili hih-p ilwy.

th U.K. h l l e.U. pc i pl uc c pi pi -

cpiliy. bu w, y i cmi mj piiy, h cuy, which h p

mly cl il, lk cch up m e.U. m uci mii. th U.K.

l w c lic h cui cl y uc, iclui rui u-

l Fc lciciy m ucl pw. elcic hicl cmi p h ic

mi, , h m lk hw cili h uilu il wk chi

i. thi will ch. o h , h plicy l cll pii h

ic i h e.U. y 2015.

Whil h m will c h il li wll mic up ky

i, pi ci will cucil h y i cciiy iiii. I m-

wh ucl hw h m will c ll h pi, y iiw. F , w

g Im bk, cpiliz wih $1.5 illi i m my, hul hlp c

cly h y . thy u $23 illi i lw-c pjc, i will h

l pi uc up h hih, u i . o l pc m ipii

pulic pi i lik h $1.9 illi l h hih-p il li m L

huh h Chl tul. Ci pi u uh h li i nm 2010.

th il pl plc cil mphi li-cycl ui lii h

lu my ppii. I cm w ii pimum ml, pp pcum,

i, y iiw. th iucu pl lk ii icicyw ym, h h ju ui mi pm. Picul i will cu

mlii pc pi up cui. thy wk cl qu cuy

Cil, y iiw, i k m h c Hhw tmil 5, w-

i hu ll l h wy.

o ww mm, h m mk h cll, cppi pjc lk-

i pi ui w wih 11 h.

other eUroPeAN |MaintainingcoUNtrieS |Strategic Priorities

L oc, h swi cmpl i huh h l ch wh will cm h wl

l il ul, 35-mil u u h alp i h h eup. th $10 illi pjc will

hlp cc hih-p il li m rm, h nhl, g, Ily, pily hl

h um uck li l mui whil pi c fw uci i-

ml impc. a h m im, Fc spi cmpl lyi hih-p il ck

h cy Py h will cu l im w Pi bcl hl hu y

2013. o h c, w eup cmmcil c cul lik y w hih-

p il li i m h el vi npl.


25/90


P ii i hih-p il ih i ym i ply h m i-

il pc h e.U. i -eup p wk (ten-t) y cc h

ci p wk, il, hippi l pm ly im ici

cmic puciiy, u l ci mii hu . eup i much -

ji up.

ac cil eup, h uli PPP mk ciu imp, w iucu

u c cpil cm ck i h mk. a wih 48 illi (Us $65 illi) i l

ium i 2009, h eup Im bk (eIb) i ciui i il l hlpi e.U.

cui c pjc, ci pi im ifuci h cui miu

plicy impi, iclui uci ul cumpi, limii c lck, hiki c-

pi, implmi w chli. Wih cmic cy pc, h eIb u

my lw iicly i w.

bu m iucu pi pjc i m il u, culy ci y

h cl h im wcki m eup i, 20092010 imulu ui i ii

y up. Cui cii c uh chic. F mpl, wk my h ly h

l-pl si Mi bi liki mil Ily sicily. bu cl $8 illi,

h p wul h l upi i i h wl. spi h pp ly lm

200 pjc. I gmy, su i pi 4 illi (Us$5.6 illi) pjc

plc h ciy -u miu i wih uu huh-i l p-

i l-ic il il ic uc l im. amm h cu i iuc-

u pm y m h Us$1 illi (690 milli), ypicl my mj cii. auiy impc

i eup, wh cui lik h Czch rpulic, Huy, buli

h chic i hui w , il, ww pjc. I ii, mi ckl

pi qui i c h ci.

dpi hi cil il, eup cui p iucu i i hi cmic

m pl. spi i iw imuli cmi, pii l-m

wll j, m pm i plc will ciu ui.

a cui cp wih ci il u, im ply pc m limi i-ucu cu k m pi ci il pjc, which c pi li l-m

u. eup Im bk ilm c mp ik uili mi i-

m hul, hlpi uc ci c ci m pi mi.

e gmy, e.U. uli y mci PPP, my lk h pi c hlp ll i-

ucu u p. sic 2007, l hihwy PPP pjc h uccully i

gmy. a w w ly z hihwy PPP pjc h ly hi h mk.

th gm l m, mwhil, h cmmi 1.7 illi (Us$2.2 illi) ciu

il lih-il pm cii huh 2014 up iucu i h m e

gmy. th gm l h m lcic miliy hih iuil iucu piiy:

cmi ll l i c y chly wul hc cmic wh, whil cuc-

i wk chi i wul hlp pp m wip u hyi lcicc. th, h m i hci h cuy lcic i wk.

Fc, spi, Ily ciui p hi hih-p il u i i m

uci wk pi, hi pm, ici . I eup, m

iw iucu wihy piiy. Fc i picul i mpi up cili i-

ucu PPP y pii m u . bl-ihi m w p

i i my.


26/90


AUStrALiA| Floods Threaten Modest ProgressAgng netrs and sstems, mst but n the pst wrd war ii era. . . . increasng cngestn

n majr ctes mpacts ecnmc prductvt and snars trac. . . . Under undng nrastructure

prgrams n recent decades appears t cnstran grth prspects. . . . lac crdnatn

beteen edera, state and ca gvernments ncreases csts and dscurages prvate nvestment.. . . Epert anass pnts t needs r massve ne nvestment e bend estng budgets.

I hi humil cipi U.s. iucu?

n, i i ummy i m p y ei auli i 2005 h h ci-

i h cuy ym ll C+. (Cicilly h y, h amic sciy Ciil

ei pulih m chi cc h cii U.s. iucu, i m

ym d w).

bu auli l m k h i i i wkup cll. by 2008,

il k c, cll Iucu auli, w m hlp il piii, iiy u-

ly m, uili ci m pi cpil. th up w l ch wih

cmmi imp pjc h cul m h i jci pplli cmic wh,

pmi uiiliy, impi h quliy li. th m l c m

Australias Port o Newcastle has the worlds largest coal terminal but struggles to handle the heavy volumes

o coal now coming through the port.


27/90


a$20 illi (Us$20.2 illi) buili auli Fu m u uplu llci cmi-

clly ciicl , il, p, lpm. sp ui uwy impi

ii h i p, ih huli, u pli h h cuy c mp

ccmm pjc ppuli wh cmmcil pi.

s , ly a$8 illi (Us$8.1 illi) h u m buili auli ky pjc

c h cuy, m w il lik i nw suh Wl Qul pcuci

wk h Mlu M p pi i dwi. a wki up h m hwy

i ci mwk PPP h will hlp u m iu lu--my lyi ci-

pcum plici lcl pjc ki l ciui.

I l 2010, w ei auli m ci h m mki p

hlpi chck uh cli, huh i ll auli iucu hl C+. bu h

p ly pi u h Iucu auli h ii a$83 illi (Us$83.8 illi) i

illy iic iucu pjc cy uc lck li ci,

h h cuy h l wy i mki up im a$700 illi (Us$707 illi) i

piu uim. a C i fc iucu h i ly qu i mj

ch; h i ill much wk w c mj chll, y h p.

Cmplici m, h cuy w mu l wih ci m h Juy 2011 Qul

f, which i hi-l ciy, bi, quii pilly illi ll i

pi plcm y , il li, w pw ym. th m

likly will c h cuy i i ui piii, l i h h m.

Qul i, auli p i picul qui cil w im pi.

a h p-w cilii il lik cul i p u m i , cl,

h cmmii i y ai mucui i, l y Chi. th wl l cl -

mil, lc nwcl, h ul pci cc lum, mim l hip

quu m h p. Iqu il cpciy cky li m m l ly h

hipm i ky h cilii p.

Impi auli wk i h hih piiy: h cuy i p k

ly 30h i h wl. dli wih mic w h h c lpm piliizi pl. a iil pi i syy, h i l ciy, wh i

pp il i pjc h ll huh, ui cmmu ki li m hic

c ci.

th fi i, i piii, pliicl ihi cul il chc mk p-

iucu hlh uci ciu k pcc qui mk

h hih-pic- wih-li pjc lik h up wk.

cANAdA| Staying the Course, Ramping up PPPsUi C$16 illi (Us$16.2 illi) i c imulu ui, C i mki hwy i -

i iu i iucu. th cuy h up c uili w ym

i h 1950 huh h 1970. th imulu pm um iiii l y -y

C$33 illi (Us$33.7 illi) buili C u, u i 2007, which cu hi up

lc p, w upply, ww m, ip cilii. I i i ci,

h l m l mi i pci iucu m h u ki, iw-

i h pi ly cy upp uu wh puciiy, u l h-

m j c im wh umplym h ucmly hih.

a lppy y , C w l ck h h cu h Ui

s i piculi i implmi pulic/pi phip. I yu w l


28/90


u PPP, h, y iiw. Ci pic muiciplii h uccully

ucu ililiy pym l u li-cycl ui wih pi p hi ik

pppily i w pjc c. Plicy l cu ui lcl il m i

cci wk, which c ciu upp pjc pi iil

lcl cmi. a il cucil PPP, cmp m pi p, h

hlp pic cmm u pcum h pcic, ci iz-

i pcy u l.

bu C ill l i i i -ich pulic pi u i i il iucu.

th u c hih [lw-] yil ui h cuy wh h m l ucm-

l i l hih-il-ii yil. th p i pci. th im Ci

pi pl i U.K. hih-p il li i 2010 iiclly hihlih h l ppuiy: C h

hih-p il i i pli.

epi m i, pcilly i C pmi ll wy t, will cm

m pi piiy. a y quli uili i ti Ciy lih-il y-

m m h h uu, t w my cpp h -u wk i

il uwy li, which pp y wul cy ci h um ppl cily

hih c. t ii 43-mil pi i ym ly 1 milli p ily, u

h pi ppuli i uwi ym uui uu, lcl cm-

pli wi L alyl c jm. I vcu, ppi h 2010 Wi

olympic uiuly l pi m i, iclui w ip lih-il cci

ww h c lm 100,000 i ily.

A new rail line will link the port cities o Dubai and Abu Dhabi in the United Arab Emirates.


29/90


MiddLe eASt | Cash-Rich Spending for the FutureFm Liy au dhi, Mil e y h ui il pc uil u i-

ucu i mp miz iiy. bu c im ch pliicl umul cul

ick iiii i m cui.

a cuci lii w hih-i cmmcil c lilly u, h Ui

a emi i mki i l i-ick pjc $11 illi, 930-mil ilwy w i

w pimy p cii, dui au dhi. I h mi cil cllp llwi w

l uili, dui h pc wih cmpli w ip wk

m i, wll w ym.

a y uii, Liy h llc m h $100 illi iucu hui,

uilii, il, u h pl h up l mpily y h uk

ciil iuci. Kuwi sui ai l uili u cii, Q mu pp h h

2022 Wl Cup. I hi il-mi i, my m hily uiiz c-ul pj-

c h y wh il u u.

scui hui w cily k ici impc ppuli p i

pch cii, which y c m cmmc. bu hy lic y-ii lii-

zi pl i iml cc ly c mii, u l c pllui.

I Il, w cly ic 40 pc py hih y c l lii-

zi pl. th Ili lk cm wl l i cuci lcic c chi -

wk, uili u chi i c h cuy. sh-hp ii ic mk h cuy

wll-ui u lcic c, which c qui y ch ly 50 mil.

SoUth |Finding a Sensible (Bus Rapid)AfricA |Transit Solutionsuwy il li c c illi ll uil, k my y cmpl i i-

upi cuci pm, qui milli ll m ully mii.C , mwhil, p puciiy ciu ii pllui ll. Hw ch-

p cii p m i hlp uc c jm, imp miliy, hik c -

pi whil ii ilci i ui?

au h wl, m p pl iw u pi i c-ci ci lu-

ip muliml mi mi ppl huh u . M h 40 ym

w p i suh amic, eup, ai, auli, nh amic. rcly, aic ji h

li Jhu, suh aic, p h ph $2.2 illi ym i im p

cw h 2010 Wl Cup mch. oh cii, iclui L, nii, d slm,

tzi, l uili cii pi u li wi ppuli l c-

mic wh.

th Jhu u pi i (brt) ym, cll r vy (W a gi), w pp i2006 i icipi h ll cc . th ph 33 i l 15 mil w p-

il ju h y l hul p w ium u. by 2013, h ciy ici-

p cmpli 150 i 72 mil li wih iil 150 mil u

chi i uu, iclui ul u u, il li, i/ cci. o im, h

jci i c ml pulic i wk l 190 mil , i 430,000 p-

ily cily chi h 85 pc h ciy 4 milli ppl wh li wihi

lck uk u ci.


30/90


dic r vy u l uil l ii pimy huh. ri uy ick i

c kik i cl cui i l quickly i 122-p hicl h i

h-miu il ui uh hu wihi miu ui -pk pi. bu h

piiy p huh ici, cl-m ipch ck u wih l-im ch-

li cmmuic wih i i limi ly.

Fm c-mm ppci, r vy lily lw-c m i li

h iliy hc u ic y pii cici ci wih lih il uwy, wihu

h c lyi ck uili i ul ym. I hlpi uc c c, h brt cul

cu c ii mii y 1.6 milli mic y 2020, cci ciy pjci. r vy

hul l hlp k w pi i hli ck cmic cm ppl li-

i i ulyi lck whip wh h iculy chi j i u h ciy cmmcil i-

ic. ocil l pc pp-up cmmcil wh u i l brt u.

alhuh brt ym h fuih i mi mk cii i Li amiciclui b,

Qui, Mic Ciy wll bl, Ii, guzhu, Chi, i ci huh-

u h Ui s h lw wih h ccp, i pmium il

ppch iilly ci wih -k u c. bu c y icmi cm-

ii cl ci mui ci, U.s. cii w m ily mc u

lw-c m i lui. I c, i cil cmplli upp brt ccp i

U.s. dpm tpi uy b hihly uccul tMili ym, which

u h 240-mil u wk cul cuc h m c 18-mil il li.

U.s. cii pi implmi i brt ym iclu b, Chic, L v, L

al, Mimi, sl, Whi, d.C., m h. epc m cm.

Sbu Ndebele, South Arican minister o transport, celebrates with others at the ofcial opening o

Johannesburgs bus rapid transit system, Rea Vaya, in 2009. (AFP/Getty Images)


31/90


32/90

A train races by the city

o Los Angeles. (Elena

Segatini/Getty Images)


33/90

22


34/90

In 2011, the U.S. eectivey shrugs o inrastructure in the ace oescaating government decits and cash-strapped taxpayers. Despite a wecome wave

o poitica rhetoric about its importance to the countrys economic uture and reated

worries about aing behind goba chaengers, a proactive U.S. inrastructure agenda

remains buried underneath a ong ist o other budget imperativesheath care, Socia

Security, deense, pubic saety, and education, as we as the need to service the swe-

ing government debt. No matter how desirabe, ongoing investment in systems to

eep the country competitive and unctioning easiy can get cast aside in the rush to

pug budget eas.

NationalOutlook2

The Phoenix Sky Harbor International Airport in Arizona is ramed by city lights.

Calls or More Investment

National SufaceTanspotationInfastuctueFinancinCommission

In Paying Our Way: A New Framework for Transportation Finance, reeased inFebruary 2009, the commission estimates that the annua gap between trans-portation needs and current investment by a eves o government rangesrom $172 biion tomaintain existing transportation inrastructure to $214biion toimprove system perormance.

Ameican Society ofCivil Eninees

In ASCEs 2009 inrastructure report card, the organization estimates that in-vestment o $2.2 triion over ve years is needed to maintain and upgrade thenations inrastructure. For transportation, the projected need was $930 biionover ve years, or $186 biion per year.

Mille Cente ofPulic Affais,Univesity of Viinia

In October 2010, a report prepared by a pane o 80 experts and chaired bytwo ormer secretaries o the U.S. Department o Transportation estimatedthat an additiona $134 biion to $262 biion must be spent per year through2035 to rebuid and improve the nations road, rai, and air transportationsystems.

CHAPTER 2 / NATIONAl OUTlOOk 2


35/90

INF RASTRUCTURE 201124

Every Decade between Now and 2050, More Than 30Million People Will Be Added to the U.S. PopulationU.S. Population Growth, Historic and Projected, in Millions

ADDITIONSTOU.S.

POPULATION

(BAR)

0

5

10

15

20

25

30

35

40

92106

123

439

406

374

341

310

281

249

227

203

179

151132

19001

0

19192

0

19203

0

19304

0

19405

0

19506

0

19607

0

19708

0

19809

0

19900

0

20001

0

20102

0

20203

0

20304

0

20405

0

projected

0

50

100

150

200

250

300

350

400

450

500

TOTALU.S.

POPULATION

(LINE)

16 14 17 33323231293322232429199

Source: U.S. Census Bureau.Note: Projections are rom 2008.

Inrastructure Spending as a Share o GDP Peaked at 3.1 Percent in theEarly 1960s, and Declined to 2.4 Percent in 2007Spending on Transportation and Water Inrastructure as a Share o U.S. GDP

Source: Congressiona Budget Oce, Public Spending on Transportation and Water Infrastructure, 2010.

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

PERCENTAGEOFGDP

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5


36/90


Instead o nding more doars to meet growing needs to serve a steadiy rising popuationcensus ore-

casts estimate there wi be amost 100 miion more peope in the country by 2040poiticians iey wi

budget ess (or not enough) and tae their chances in the years ahead. This approach probaby suits average

Americans just ne. Their more pressing concerns revove around hoding on to or nding good paying jobs,

maing mortgage payments to stay in their homes, or eeping up with rising medica insurance deductibes.

As or inrastructure, it is easy to brush bac numerous the sy is aing expertsmaybe the pic-

ture isnt so bea since a those orecast disasters have not happenedand sette on a simpe bottom

ine: We have no interest in paying more.

So now what?

A signs point to a period when we wont invest sucienty in inrastructure on any eveedera, state,

and oca, says an interviewee. There is no impetus and no money. The idea o energizing the economy

and creating jobs around rebuiding America nds itte support despite some presidentia jawboning.

Instead, Americans beieve it is better to avoid boondogges, eep taxes ow, and reduce decits. And itte

momentum exists or creating a nationa inrastructure agenda and poicy to inorm how imited unds can

be invested more ecienty and productivey, or can hep wean the country o oreign oi.

The consensus view o interviewees or this report is that the United States iey wi waow in this

what-me-worry hiatus unti disaster stries or our decine becomes too obvious to ignore. So ar,

Hurricane katrina and the New Oreans evee breach have not been a big enough waeup ca; neither

was the 2007 Minneapois bridge coapse. Perhaps higher gasoine and energy prices resuting rom

Midde East turmoi wi do the tric and gavanize more support or mass transit systems and rai ines.

Ony time wi te what gets the countrys coective attention to orce action. Its amazing how hard

everyone is maing it in the U.S., a Brit observes. And meanwhie, the condition gets worse and worse.

In the meantime, its the same od story: Congress perenniay reuses to hie gasoine taxes even in

the ace o growing transportation capita and maintenance needs. The edera gas tax has anguished

at 18.4 cents per gaon since 1993 whie improving ue eciency standards promise to depete its

revenue-raising power urther and weaen the aready-drained edera Highway Trust Fund, which pro-

vides unding to states or roads and mass transit.

Ater a Dip during the Economic Recession, Oil Use WillClimb Again rom 2011 on, Putting Pressure on PricesWorld Use o Liquid Fuels

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

QUAD

RILLION

BTU

150

155

160

165

170

175

180

185

Source: U.S. Energy Inormation Administration, International Energy Outlook 2010, 2010.Note: Most iquid ue use is oi.


37/90


More Responsibility Falls to Broke Statesand CitiesCongresss apparent incination to curtai edera inrastructure unding wi eectivey push more o the

cost burden onto aready budget-busted states and oca governments, which cant aord to do much

without edera hep. Avaiabe edera unding, meanwhie, continues to avor capita projects rather

than operations and maintenance.

As a resut:

n Road systems and water treatment pans buit with edera grants 40 or 50 years ago reach the end

o their ie cyces, and now many counties and towns do not have the wherewitha to repair or

repace them.

n loca governments oten are et to grab or dwinding avaiabe edera capita project doars when

starved or maintenance and operationa unding on existing systems.

n More states reject avaiabe edera capita unding, earing uture ununded operating burdens.

n Some innovative pans to expand transit systems in car-dependent metro areas strugge to move

orward; oca governments and agencies cannot mae up the dierence as edera unds peter out.

Despite high hopes among proponents eager or the United States to catch up with the rest o the

word, the nations recenty energized high-speed rai poicy oers a case study o what is wrong with

the current edera approach to spreading imited inrastructure unding across states and congres-

siona districts or one one-o projects. A precious $8 biion in stimuus seed money or high-speed

rai ines was geographicay aotted to ey eectora states so that no region was ignored, rather than

ocused on two or three ines with proven economic beneits and we-conceived ie-cyce operations

budgets, and ocated in areas with mutimoda regiona transport pans. At this point, many o the

origina 11 targeted systems are not easibe because o prohibitive capita and operating costs, as

U.S. Car Travel Ranks among Worlds Highest, EvenWhen Compared with Other Wealthy CountriesPer Capita Annual Vehicle Travel by Country, OECD Countries, 2009

UnitedStates

Italy

Canada

Denmark

France

Finland

Switzerland

Norway

Sweden U.K

.

Germany

Netherlands

Spain

Japan

Poland

ANNUALVEHICLE-KMSPERCAPITA

0

5,000

10,000

15,000

20,000

25,000

Source: Victorian Transport Poicy Institute.Note: OECD is the Organization or Economic Cooperation and Deveopment.


38/90


State and Local Governments Pick Up Most o the Tab orInrastructure, Especially Maintenance and OperationsPublic Capital and Operations and Maintenance Spending or Transportation and Water

Inrastructure, by Level o Government


BILLIONSOF2009DOLLARS STATE & LOCAL CAPITAL SPENDING

STATE & LOCAL OPERATIONS & MAINTENANCE

FEDERAL CAPITAL SPENDING

FEDERAL OPERATIONS & MAINTENANCE

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180$200

State and Local Spending on Transportation and WaterInrastructure Dwars Federal Spending; Federal SharePeaked in the Late 1970sShare o Total Spending on Transportation and Water Inrastructure

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

PERCENTAGEOFTOTALSPENDING

0

10

20

30

40

50

60

70

80

90

100

STATE & LOCAL SHARE

FEDERAL SHARE



39/90


we as a ac o integrated transit systems to unne enough riders into them. The most viabe ine

through the we-estabished Northeast passenger train corridorwoud cost upwards o $120 biion

aone to buid, according to new Amtra estimates.

In the absence o edera poicy guideines and merit-based direction, many state and oca agencies

naturay gravitate to wherever they can atch on to edera doars, which more oten than not means

going ater pots o money or ad hoc capita projects. Despite widespread shortas in budgets or main-

taining existing systems, Caiornia has snatched $4.5 biion in seed money to hep und a high-speed

rai ine through its reativey underpopuated Centra Vaey (the rst in in a San FranciscotoSan

Diego ine via the los Angees corridor); New Yor City is pushing orward with the on-again/o-again

$3 biion Moynihan Raiway Station and the $17 biion Second Avenue subway; and Chicago is pursu-

ing a $1.4 biion South Side extension to its heaviy used Red line eevated train. The way you get

edera doars is to pan something new and sexy, says an interviewee. We begin to see a compete

unding disconnect with maintaining existing systems, and no panning or how to operate new systems

ater construction. States ie Caiornia are veering on the edge o a sca abyss and have no money to

operate new aciities.

The Federal Gasoline Tax Has Been Stuck at 18.4 Cents per Gallon since1993, but States and Local Governments Generally Charge Much MoreGasoline TaxesCombined Local, State, and Federal (Cents per Gallon)

55.9

LESS THAN 40.0

GREATER THAN 48.1

40.0-48.1

U.S. AVERAGE: 48.1

49.4

66.1

51.5

46.2

43.4

32.4

40.442.9

37.4 37.2

41.4

45.740.4

42.4

45.6

56.1

51.3

40.2

38.438.4

35.4

43.435.7

38.1

51.2

50.6

39.8

40.9

46.455.661.2

50.7

65.6

35.2

39.239.337.2

52.8

49.4

64.2

41.9 (D.C.)

41.9

41.4

32.9

51.4

41.9

63.6

43.4

38.0

26.4

Source: American Petroeum Institute, January 2011.

State and local

gasoline taxes

average a total

o 29.7 cents

per gallon.


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Short Term versus Long TermSome state and oca ocias egitimatey worry about unding inrastructure bac hoes and reuse to

chase avaiabe edera doars. They wiingy sacrice ong-term investments or baancing this years

budget and protect against uture burdens or which they say they cannot ris taing responsibiity.

Newy eected governors in Ohio, Wisconsin, and Forida oreited $3.5 biion in edera stimuus

unds or high-speed rai, contending that their states coud not aord the subsidies necessary to oper-

ate the projects once buit. New Jerseys governor torpedoed a new commuter-rai tunne into Manhattan

and ost $4.5 biion in edera unding over apprehensions about potentia cost overruns, which the

state woud have to pay.

Many governors and state egisatures ace a choice between etting roads and bridges deteriorate

urther and acing expected poitica storms over enacting user ee propositions. Ater gauging constitu-

ent appetites or paying more, many eected ocias choose more pothoes and corrosioneven though

costs wi mount or inevitabe uture overhaus.

For many oca eaders acing a cash between immediate needs and uture benets, the poitica ca-

cuus discourages taing any ris on expensive projects that wi not be competed or have potentia

payos unti years ater they eave oce.

Stimulus: Setbacks and GainsInterviewees ament how recent experience with the checered edera stimuus programs inrastruc-

ture components proved to be an opportunity ost and probaby urther damaged the poitica optics

o the inrastructure brand.

Competed projectsquic-x stimuus-unded maintenance ie standard street paving, subway trac

repacement, and wastewater system improvementsmight have been worthy and necessary, but they

Despite Stimulus Inusions, State Budgets Declined

Sharply in 2009 and 2010, Though Modest IncreasesAre Expected in 2011Annual Percentage State Budget Increases, Fiscal 1979 to 2011

PERCENTAG

EBUDGETINCREASE

-10

-5

0

5

10

15

20

25

FISCAL YEAR

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

Source: Nationa Association o State Budget Ocers, The Fiscal Survey of States, Fa 2010.


41/90


Many States Were Forced to Slash Funding Midyear:K-12 Education Hardest Hit, Transportation FaredSomewhat BetterFiscal 2010 Midyear Program Area Cuts

Source: Nationa Association o State Budget Ocers, The Fiscal Survey of States, Fa 2010.

StateK-12

EucationHihe

EucationPulic

Assistance Meicai Coections Tansp. Othe

Aabama n n n n nAasaArizona n n n n nAransasCaiorniaCoorado n n n n nConnecticut n n n nDeawareForidaGeorgia n n n n n n nHawaii n n n nIdaho n n n n nIinois n n n n n nIndiana n n n nIowa n n n n n nkansas n n n n n n nkentucy n n n nlouisiana n n n nMaine n n n n nMaryand n n n n n n nMassachusettsMichiganMinnesota n n n n n nMississippi n n n n nMissouri n n n n n n nMontana n n n n nNebrasa n n n n nNevada n n n nNew Hampshire n n n nNew Jersey n n n n n nNew Mexico n n n n nNew Yor n n n n n n nNorth Caroina n n n n nNorth DaotaOhioOahoma n n n n nOregonPennsyvania n n n n n nRhode Isand n n n n nSouth Caroina n n n n n n nSouth Daota n n n n nTennesseeTexas n n n n nUtah n n n n nVermont n n n nVirginia n n n n n nWashington n n n n n nWest Virginia n n n n n n nWisconsinWyomingTOTAL 35 32 20 28 31 15 37


42/90


did not meet the pubics infated expectations or game-changing economic improvements. The unem-

poyment rate remained uncomortaby high, and tangibe benets were hard to gauge. Taxpayers

might have noticed a newy bactopped street, but wondered what happened to the new bridge, high-

speed rai ine, or airport expansion they were expecting. Naysayers gained new ammunition over

another unued promise by big government.

lost in stimuus piata bashing, inrastructure spending probaby ept unempoyment rom rising

higher, sustained some capita projects, enabed important repairs, and provided a ieine to strugging

pubic wors agencies.

Business on the SidelinesSurprisingy, many American corporations and oca business groups aso noticeaby stand on the sideines

even though increasing congestion and ris o disocation rom deteriorating networs coud hobbe pro-

ductivity, decrease revenues, and raise operating costs. A short-term ocus on immediate sharehoder

returns and owering corporate tax burdens apparenty taes precedence over ensuring the country has

adequate transport systems, energy networs, and ogistics aciities or businesses to compete eectivey

in the decades to come. At some point, more companies may reaize that participating in rebuiding

eorts and deveoping new systems coud be a tremendous economic driver and prots generator. Its

time or businesspeope to become partners and ead. Citizens and poiticians need to hear rom them.

U.S. Stimulus Spending Peaked in 2010 andWill Decline in Future YearsActual and Estimated Spending or Transportation and Water Inrastructure under the

American Recovery and Reinvestment Act

BILLIONSOFNOMINALDOLLARS

0

$5

$10

$15

$20

$25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

HIGHWAYS

AVIATION, MASS TRANSIT, & RAIL

WATER TRANSPORTATION & WATER RESOURCES

WATER SUPPLY & WASTEWATER TREATMENT

Source: Congressiona Budget Oce, Public Spending on Transportation and Water Infrastructure, November 2010.


43/90

32


44/90

The oowing appraisa o U.S. metropoitan areas highights howsca exigencies during 2011 coud short-circuit government eorts to repair aging inra-

structure, especiay in oder 24-hour cities, and deay construction o transit in Sunbet

suburban aggomerations just as poitica support had begun to gavanize or ight-rai

projects as essentia or sustaining uture growth. These centers concentrate U.S. eco-

nomic activity and attract a signicant majority o the nations growing popuation.

MetroOutlook3

Since 1950, Most Americans Have Lived in Metropolitan

Regions, and the Metro Share o the U.S. PopulationContinues to GrowPopulation in Metropolitan and Nonmetropolitan Areas, 19102000

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

POPULATION(MILLIONS)

0

50

100

150

200

250

300

66

26

70

36

55

226

56

193

57

169

63

140

66

114

66

85

69

63

68

55

METROPOLITAN

NONMETROPOLITAN

Source: U.S. Census Bureau, Demographic Trends in the 20th Century, November 2002.

The Washaba Street Bridge in St. Paul, Minnesota, lights up the skyline at dusk.

(Walter Bibikow/Stone/Getty Images)

CHAPTER 3 / METRO OUTlOOk 3


45/90


I transportation, water, and power systems become urther compromised in meeting burgeoning

demand, business expansion and productivity coud be severey aected. Ocias are scrambing or

doars to shortas and grudgingy sowing down or postponing projects where necessary.

Among the evident trends:

n LESS FEdErAL FUNdINg THrEATENS PrOjECTS. As stimuus unds run dry and Congress pans

budget cuts, many inrastructure capita projects on the drawing boards coud be stopped in their

tracs or deayed. Federa unding accounts or neary 40 percent o capita spending or road and

transit projects. loca ocias are eeping their ngers crossed about edera unding commitments

and must become more resourceu in hoding deas together.

n LOwEr SALES TAx rEVENUES CONTrIbUTE TO TrANSIT TrOU bLES. High unempoyment and

anemic economic recovery crimp saes tax revenues, which many oca governmentsincuding

Seatte, Denver, and Charottehad targeted or buiding out rai corridors. Cities in states that do

not provide gasoine tax revenues or genera und support or mass transit reay ee the pinch.

Phoenix, Daas, and Atanta are taing urther hits.

n AgINg INFrASTrUCTUrE CHALLENgES OLdEr CITIES. Oder citiesincuding Boston, Phia-

dephia, Chicago, and San Franciscoretrench on new projects and sti come up short on budgeting

or necessary repairs. They must mae dicut triage decisions, incuding service cutbacs and are

increases or transit systems.

n SHArEd APPrOACHES rEAP SOME dIVIdENdS. Metropoitan areas where oca governments poo

resources and gain consensus in panning and spending strategiesincuding Denver, Minneapois,

Seatte, and Sat lae Cityhave a better chance o achieving at east some o their objectives and

can better prioritize projects.

n MULTIPLE AgENCIES CrEATE CONFLICTS. Mutistate regions with mutipe agencies in contro o

inrastructure budgets typicay have more troube prioritizing initiatives and wor at cross-purposes.

Schisms become more probematic in paces ie the New Yor metropoitan area.

n PUbLIC/PrIVATE PArTNErSHI P NUMbErS rISE. More states atch on to PPP modes to nance

new projects and raise revenues, oowing the ead o Virginia, Forida, and Texas on roads and

Denver or ight-rai investments. More cities can be expected to try to oow Indianapoiss ead in

The Public Has Voted in Support o the Majority oTransportation Measures on BallotsPercentage o Transportation Ballot Measures Approved by Voters

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AVG.

PERCENTAGE

0

10

20

30

40

50

60

70

80

90

68

4651

71

82 83

65 66

77

73

77

71

Source: Center or Transportation Exceence.


46/90


guring out how to se paring concessions and to generate revenues rom other assets such as

government buidings and ports. To roads and high-occupancy to (HOT) anes wi become more

amiiar aong the interstate andscape.

n CONSTITUENTS MUST bE CONVINCEd. States, counties, and cities can benet when their eaders

and constituents determine they have more to gain through a concerted eort to pan and pay or

inrastructure improvements, either through higher user ees, saes taxes, or creative unding sou-

tions with private operators. Voters usuay pass reerendums or new projects, though some initia-

tives rey on pushing out costs to uture taxpayers through bond issues.

ATLANTA | Good IntentionsThis high-growth region, which or decades ueed its expansion with edera road subsidies, now wres-

tes with how to reurbish its iebood aging highways and reaize aspirations or augmented mass tran-

sit despite dwinding resources. Ocias have appied or any avaiabe state and edera unding, and

oo to add managed to anes on seect area highways to increase revenues. But ie many other met-

ropoitan areas, Atanta, hampered by stove-piped unding sources, is straining to ashion mutimoda

soutions to remedy congestion and sustain continued popuation growth.

late in 2010, the city won a $47 miion edera stimuus grant to deveop a downtown streetcar route,connecting with the Metropoitan Atanta Rapid Transit Authority (MARTA) subway system, just as

Transit Systems across the Country Face Challenging Times2009 Fare Increases, Service Reductions, and Sta Reductions (Enacted and Proposed)

Fare Increases

Service and/or

Staff Reductions

Source: Transportation or America, Stranded at the Station: The Impact of the Financial Crisis in Public Transportation , August 2009.


47/90


MARTA was orced to reduce subway and bus service and increase ares to cose a $100 miion decit

in its $450 miion operating budget. As oten happens with service cutbacs and are hies, MARTA

ridership eves decined immediatey, threatening to exacerbate revenue shortas and depete the sys-

tems reserves by 2013. Transit-averse rura egisators, meanwhie, are compicating eorts to nd sou-

tions by bocing state unding or MARTA and spreading transportation doars to bacwater counties,

imiting Atantas tae despite the citys over-

arching economic importance to the state

and region.

MARTAs probems wi not hep aeviate

the areas signicant highway congestion,

which is made worse by necessary repairs to

roads and overpasses reaching the end o

their ie expectancies. A ortuitous edera

rebate ets Georgia und repaving o the

heaviy pitted Interstate 285 ring road north

o the city, but in winning the streetcar

grant, Georgia ost out on edera monies

or two proposed HOT ane additions to

Atanta interstates. Ocias are pinning their

hopes on these managed ane strategies to

reduce trac and raise money to hep oset

osses rom more severey imited edera

highway programs. In a vicious circe, pay-

ing or ane construction becomes more di-

cut without the edera aid, so the state

oos to become a eader in attracting pri-

vate operators through PPP deas.

The city is aso in procurement or a mas-sive $320 miion mutimoda passenger ter-

mina to serve as a hub or bus and rai ser-

vice around the city. The aciity wi have room or 400 buses and eight tracs or MARTA, as we as

commuter and intercity passenger trains.

The city continues to assembe a proposed networ o pars, trais, and transit ines to connect 45

neighborhoods in a 22-mie Betine corridor oop. The ambitious 20-year project promises to recast the

metropoitan core into a more pedestrian-riendy environment with enhanced pubic green space and

mass transit aternatives to ower car dependency.

Ater reservoirs amost ran dry in a 2007 drought, Georgia has become a nationa eader in water con-

servation measures, and per capita water use has decined 10 percent, according to oca ocias. The

state recenty passed egisation enabing water PPPs. The metropoitan water authority pans to mandateinstaation o meters with point-o-use ea detection to aow residents to monitor water use amost to the

drop and give utiities eary notice o eas. Conservation certainy heps, but Atanta aso needs to gain

access to new reservoirs to sustain its growing popuation. These expanded water systems wi cost hun-

dreds o miions o doars; not surprisingy, water bis are increasing to hep pay or a the necessary

improvementsrom meters to and acquisition.

In Atlanta, trac congestion is severe and may increase as the regions population grows. (Dennis Flaherty/

Photographers Choice/Getty Images)


48/90


bOSTON | Living Off Good FortuneBoston got ucy: the $14.6 biion Big Dig project wi go down in history not ony or its notorious cost

overruns, but aso as the ast vestige o the nations ampy unded interstate highway buiding boom.

locas may debate whether the networ o underground tunnes around the citys nancia district improves

trac fow: studies show bottenecs have moved away rom downtown to now-jammed connectors into

the new underground arteries that aso in to logan Airport. Nevertheess, no one misses the unsighty

highway overpasses that once bisected the citys harbor area. And because o the massive project, com-

peted in 2007, Bostons primary inner-city highways are probaby in better condition than those o any

other metropoitan area in the country. Without the Big Dig, Bostons roads woud be in a bigger hoe: the

Massachusetts Turnpie and other major interstates eading into the city require ie-cyce overhaus.

Bostons biggest concern invoves mass transit and how to aocate resources increasingy imited by

edera cutbacs. The choice bois down to investing as much as possibe in new systems to hep reduce

congestion and car dependency, or shoring up the citys T subway/rai system, the nations odest under-

ground, which began operating in 1897. A 2009 report ound that the Massachusetts Bay Transportation

Authority (MBTA), the Ts operator, conronts a $230 miion structura decit and $543 miion in

ununded saety-critica projects. lie other underresourced metropoitan transit authorities, the MBTA

wi be hard pressed to mae a necessary upgrades and repairs, even whie sharpy scaing bac pans

to expand service.

On MBTA drawing boards since 1995, a $2.6 biion Urban Ring bus networ, designed to convert

upwards o 41,000 daiy car trips to transit aternatives, was scaed bac dramaticay ast year. Certain

bus rapid transit routes wi be impemented, but the remainder o the panto create a circumerentia

transit corridor around the citygot tabed when the edera government signaed unding cuts rom

the depeted Highway Trust Fund. Ocias say that without the Urban Ring, existing Boston transit ines

wi be seriousy over capacity by 2030. Another high priority, a $1 biion bus tunne extension or the

Green ine, oos more probematic, and extension o the Siver ine has been sideined.

With a price tag o $14.6 billion, Bostons Big Dig project will go down as one o the most expensive urban

highway projects in U.S. history.


49/90


CHArLOTTE | Shortfalls Derail Transit Planslie many other sprawing Sunbet cities, Charotte recognizes the need or mass transit aternatives in

order to overcome mounting congestion in its rapidy growing car-dependent environs. In 2007, the

city opened its rst and ony ight-rai ine, nanced by a ha-cent saes tax, and projected adding six

other transit corridorsight rai, bus rapid transit, commuter rai, and streetcarsthat woud radiate

rom a downtown hub into sprawing suburbs. But the grand pan hit the sids in ate 2010 when theregiona transit agency tabed two projectsa BRT corridor and a $450 miion airport streetcar ine

whie sending two others, a $1.2 biion extension o the existing ight-rai route and a new $375 miion

commuter-rai corridor, into underunded imbo.

I Congress comes up with sucient monies or a private partner suraces, the ight-rai extension may

be abe to proceed in an abridged orm, but prospects oo more doubtu or the commuter-rai proj-

ect, which does not meet edera ridership requirements. Meanwhie, bus service expansions were aso

canceed. Not to oo a git horse in the mouth, the city won a $25 miion edera grant or a 1.5-mie

uptown circuator streetcar ine that was much ower on its transit priority ist. The ost momentum on

the 2030 Transit Corridor system ironicay coincided with the rise o passenger numbers on existing

ines to over 100,000 rides daiy, more than doube 2000 eves.

In another oca setbac, a high-occupancy-vehice (HOV) ane conversion to managed to anes on

I-77 struc out on a edera stimuus grant, jeopardizing the $50 miion project.

Charlottes light-rail system began operation in 2007 with daily ridership o 21,000 passengersa gure that

exceeded the systems ridership projection or 2025.


50/90


CHICAgO | Taking a PPP BreatherUnder ormer mayor Richard Daey, Chicago ed the nascent movement by some U.S. cities into priva-

tizing inrastructure assets but received decidedy mixed reviews. The Syway To Bridge concession

raised $1.8 biion or a 99-year ease, but the city was criticized or using proceeds to current und-

ing decits instead o or ong-term inrastructure improvements. A $2.5 biion privatization o Midway

Airport e through when the proposed operators coud not nance the transaction during the 2009

credit crisis. And the highy controversia sae in 2008 o the citys paring meter concession or $1.2

biion over a 75-year term ed to widespread pubic rebue over sudden rate increases and more short-

term budget seight o hand. For 2011, oca ocias are retreating rom urther privatization eorts and

are hunering down to ensure that a range o improvement projects get competed in the setchy

unding cimate.

The Chicago Transit Authority spared riders are increases and service cuts, but pared bac immedi-

ate pans or major capita improvement projects. A top priority remains the $1.4 biion, six-mie exten-

sion o its Red ine l train to underserved ar South Side communities; the agency secured $285,000 in

edera panning money or an environmenta impact study to eep the project moving orward.

The transit authority aso won an $11 miion edera grant to hep restart a widey touted bus rapid

transit program that deraied in 2008 when the city ost $153 miion in edera monies or missing a

deadine. The agency aso needs a tota o $193 miion to ro out its u-bore, our-corridor BRT pan as

prospects dim or hep rom Washington.

A $300 miion restoration and rebuiding o heaviy traced Wacer Driveboth street-eve and

underground sectionsbegan in January, with competion schedued by 2012. The 55-year od roadway

at the heart o the downtown loop carries 60,000 vehices daiy.

With money running out and acing chaenges rom airines that do not want to pay higher anding

ees, the city counci approved a $1 biion bond issue to eep the OHare Airport expansion and

renovation on trac. Begun in 2005, the $6 biion project adds and reconigures runways and deve-

ops new termina space with an objective o increasing airport capacity by 60 percent and decreasing

deays by 80 percent. OHare, one o the words busiest airports, anchors Chicagos status as a gate-

way destination.

Major Chicago PPP Deals, Completed and Attempted

deal desciption

Chicao Skyay Tollbie

In 2006, the city signed a ong-term, mutibiion-doar contract to privatize management o the ChicagoSyway To Bridge. The Syway Concession Company received a 99-year operating ease or the towayrom the city or $1.8 biion. In return, the company received the right to to and concession revenues and is

responsibe or operations and maintenance costs.

Chicao ontonpakin system

In 2006, $563 miion was paid to the city by Morgan Staney in a 99-year concession ease dea to operateparing garages containing more than 9,100 spaces under two city pars.

Pakin meteconcession

In 2008, the city partnered with Chicago Paring Meter llC, a consortium managed by Morgan Staney, tohande the operations and maintenance o Chicagos paring meters or 75 years. The consortium made anupront, ump-sum payment o $1.2 biion to the city. Meter prices rose sharpy ater the dea was competed,sparing pubic outrage.

Miay IntenationalAipot

In 2009, the city attempted to execute a dea to privatize operations and management o Midway Airport viaa 99-year ease. Midway Investment and Deveopment Company llC had oered the city $2.5 biion butaied to raise enough unds to compete the dea due to the wordwide economic crisis. Ater retiring existingdebt on the airport, the city woud have netted $1 biion. The city did manage to eep $126 miion paid bythe investors. The city continues to pursue privatization o the airport.


51/90


The region has been pagued by reight bottenecs and reight/passenger conficts or decades.

A $3 biion eciency program bundes together dozens o projects in a major regiona initiative

designed to address reight chaenges.

The city is continuing two monumenta water district programsrepacement o about 70 mies o

water mains and pipes annuay, and the 30-year buidout o a giant sewer overfow system with compi-

cated connections o reservoirs and tunnes or storing 17.5 biion gaons o waste. The sewer project

has cost about $3 biion so ar and wi not be competed unti 2019.

dALLAS |Big Projects,FOrT wOrTH |Some Private DollarsInteraced by highways with spaghetti-junction interchanges, the DaasFort Worth Metropex serves as

the Texas transportation hub, boasting one o the words busiest airports. But in a big energy state

rued by the car, Daas is trying to reashion itse, becoming a Sunbet eader in retrotting ight rai

onto its expansive suburban aggomeration and using managed to anes to temper roadway conges-

tion. Projects underway coud neary doube the oca rai systems reach to 90 mies o tracs over the

next three years, incuding a panned extension to Daas/Fort Worth Internationa Airport. At the end o

2010, the oca transit authority opened the na eg o the 28-mie, 20-station Green line, connecting

southeast and northwest Daas, unded by a 1 percent saes tax coected in 13 jurisdictions throughout

the Metropex. Texas aso is maing strides as a nationa eader in PPPs, nancing and buiding man-

aged to anes in the Daas area. In 2010, two managed ane deas or the lyndon B. Johnson Freeway

and the North Tarrant Expressway cosed with projected deveopment costs totaing $7 biion.

Tractors demolish Chicagos Wacker Drive as part o a $300 million restoration project to rebuild the busy

street. (Rick Sinkuler)


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Starting with projects ong on their wish ists, oca ocias want to untange the ined reeway web

and apty named Mixmaster interchange, which bottenecs access to the center o Daas. They aso

want to rebuid atering evees aong 20 mies o the Trinity River south o the city, transorming area

road systems and creating a word-cass urban recreationa par with hiing trais, bie paths, and a

restored hardwood orest.

Some o these Texas-sized, mutibiion-doar pans wi run into amiiar new-age unding obstaces

edera budget cuts, a sizabe state budget decit, and depeted saes tax revenues. In a state with no

income tax and a prohibition against using gasoine taxes or transit, awmaers oo to appy gas tax

revenues to schoos and other expenses when the state highway und cannot eep up with road und-

ing needs. light-rai projects in deveopment count on edera matches, whie road and evee projects

wi go nowhere ast without hety edera assistance. The areas bod retooing coud run short o ue

or a whie.

dENVEr| FasTracks Hits Speed BumpsIn the vanguard o Americas ast-growth, car-dependent regions, the Denver area reaized the impor-

tance o deveoping a transit networ to mitigate uture congestion and promote urban vibrancy.

Beginning a decade ago, the city joined with surrounding suburban governments to orm a regionatransportation district that is buiding out a panned 122-mie commuter- and ight-rai system with a

downtown Denver hub ocated at the citys historic Union Station. The $710 miion rst eg o the

FasTracs systema 12-mie, 12-station West Corridor ineis schedued or competion in 2013, and the

$500 miion Union Station renovation and expansion project is progressing toward a 2014 nish date.

Denvers Union Station is poised to become the regions transportation hub, linking new FasTracks bus and

rail lines, bicycle acilities, Amtrak, and more. (Courtesy o Denver RTD)


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Prospects or the rest o the bod $6.7 biion project hang in the baance o maing up an estimated

$2 biion shorta and eeping costs rom escaating urther; the systems origina price tag was under

$5 biion. Cost overruns create odder or critics who sash at FasTracs boondogges, but specuators

have not heped either, bidding up and prices around rights-o-way. A $2.4 biion train ine to Denver

Internationa Airport has unding with the hep o a PPP consortium, but other ines, incuding the North

Metro commuter train, do not.

Regiona cooperation has buttressed FasTracs. Suburban districts see opportunities to increase tax

revenues around transit-oriented deveopment at station sites, and oca eaders promote the environ-

menta benets and convenience o providing aternatives to car-ony transportation in a state with a

heavy green conscience. Utimatey, voters may need to decide whether to extend and increase oca

saes taxes dedicated to und the entire system. The region aso hopes or additiona edera contribu-

tions on top o the $1.4 biion aready committed. Attracting additiona private partners oers another

possibe soution. Under any circumstances, competion o the u networ is deayed, currenty to 2018,

and some egs may be mothbaed unti unding becomes avaiabe.

dETrOIT | Two Projects Offer HopeBeore year-end, beeaguered Motown coud brea ground on a 3.4-mie ight-rai project aong itsmain drag, Woodward Avenue. Thans to $125 miion in bacing rom oca phianthropists, this

irst stage o a proposed $450 miion transit corridor is attracting provisiona support rom the

state and edera unders ooing to extend a ieine to Detroit, which separatey is pondering

The Detroit skyline is refected in the Detroit River. (Joseph Stevenson/Flickr/Getty Images)


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eiminating basic services to vast underinhabited swaths o the city. leaders hope deveopment

around stations aong the ine can eventuay attract more midde- and higher-income residents to

neighborhoods around downtown, which remains the headquarters o major empoyers ie Ford

and Genera Motors. Prospectivey, the ine woud reach 8 Mie Road, the citys northern boundary.

Not surprisingy, the project aces amiiar 2011-stye hurdes: the states yawning budget deicit,

which sacens the appetite or unding capita projects, and diminished prospects or additiona

edera inusions.

At $5.3 biion, Detroits other inrastructure prioritya second bridge to accommodate growing truc

trac moving across the Canadian borderis causing sticer shoc in the state egisature but has the

support o the new governor. Canada has begun buiding a $1 biion to road connection into the pro-

posed bridge site on its side o the border and has even oered $550 miion in nancing to hep

Michigan und its share o the project. The DetroitWindsor, Ontario, border is the busiest vehice

crossing between the United States and Canada, serving both countries primary manuacturing regions,

and poweru oca unions caim the project woud create thousands o jobs in an empoyment-starved

state. But wheres the money?

The new bridge initiative highights what can happen when a private operator o a monopoy road

concession conronts the possibiity o a competing project. Not surprisingy, the Detroit Internationa

Bridge Company, which manages and coects tos on the existing Ambassador Bridge and does not

want any competition, is using its ega and poitica musce to sideine the government pan and obby

or its own proposa to buid a second bridge. The onger the deays, the onger the company can main-

tain its monopoy on the vauabe border ranchise.

HOUSTON | Light-Rail Plans Try to GetBack on Track

Despite an eary history o crashes and continuing oca opposition rom antitransit groups, Houstons

initia oray into ight rai has proved a reative success. The citys 7.5-mie Main Street corridor rai ine

attracts about 40,000 passengers daiy, the second-highest ridership per trac mie in the country ater

Bostons Green line.

Now, the Metropoitan Transit Authority hopes to buid the nations rst non-hub-and-spoe ight-rai

conguration, with our new ines and an extended Main Street corridor crossing and interconnecting

with each other. The design refects mobiity patterns in this mutiurban node suburban aggomeration

and coud serve as a mode or simiar metropoitan areas ie Phoenix, parts o southern Caiornia,

Atanta, and Daas that have no predominant city centers. But potentiay costy missteps have deayed

the start o construction and eariest competion unti 2014; the agency ost $900 miion in edera

grants by not compying with Buy American guideines or the systems roing stoc. Poitica eaders,

incuding the citys congressiona deegation, are obbying to regain unding in a much ess hospitabe,

post-stimuus budget environment. And, in a bid to raise unds to suppement ares and saes tax reve-

nues, the city is considering converting 84 mies o existing HOV anes into managed to anes.When the pubic experiences the impacts o deteriorating inrastructure directy, they are more wiing

to dig into their pocets to correct probems. That happened in Houston ast November. Street fooding

heped convince enough voters to narrowy pass a drainage ee reerendum that wi und repairs on

the citys deteriorating sewer and roadway inrastructure. Over a 20-year period, the new monthy

taxes, averaging about $5 per homeowner, woud raise about $8 biion or new storm drains and

reated food contro systems. By some estimates, 65 percent o the citys drainage and street inrastruc-

ture has passed its useu ie.


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INdIANAPOLIS | A Boost for PPP ProponentsChicagos controversia 2008 paring concession agreement gave Indianapois pause, but the city

entered into a 50-year dea at the end o 2010 with a private operator anyway, having absorbed vau-

abe essons rom the Chicago experience. Instead o taing a arge upront ump-sum payment

(Chicagos was $1.2 biion or a 75-year ease), Indianapois receives ony $20 miion initiay and wi

share in revenues over the ie o the contract, putting the estimated potentia tae at $360 miion to asmuch as $620 miion.

Critics had argued that the Chicago transaction essentiay eiminated any chance or the city to

share in possibe winda proits and gave up revenues needed to cover the cost or uture inrastruc-

ture repairs, which the next generation o taxpayers wi bear. Whie that wi not be the case in

Indianapois, opponents cacuate that the private operator coud tae in more than twice as much

revenue as the city over the contract term, with the burden aing on city parers. Proponents argue

that the private operation wi mae more or the city than woud a municipay run system, whie it

aso upgrades and repaces 35-year-od meters with state-o-the-art equipment. Time wi te how

we the partnership wors.

For PPP operators and investors, the Indianapois transaction provides a wecome breathrough and

oers a more paatabe approach or partners to share in gains. Chicago et a bad taste in everyones

mouth, says one interviewee, and staed other potentia deas. Ony a ew wees beore approva o

the Indianapois dea, Pittsburgh rejected a private paring concession in a proposed $450 miion trans-

action designed a Chicago to und the citys immediate pubic pension shortas. Notaby, though,

the Indianapois agreement, aong with other deas being considered around the country, provided a

new mode or a paring concessions.

The city aso has competed the Indianapois Cutura Trai, a downtown bie and pedestrian path that

connects neighborhoods and entertainment amenities into the entire centra Indiana greenway system.

A pubic/private coaboration o the city, oca oundations, and not-or-prot organizations unded the

$50 miion project.

LOS ANgELES | Moving Beyond the CarPeope easiy orget that los Angees once had one o the most extensive pubic transport systems in

the countrya crisscross o troey cars and eectric raiwaysbeore reeway mania too hod in the

1950s and dismanted the networ. Now embodened and ortied by a ha-cent saes tax surcharge

approved by los Angees County voters in 2008, the region is moving ahead with deveopment o a

modern networ o subways, ight rai, and bus rapid transit that coud hep transorm iestye choices

and and use patterns over the next two decades in this trac-cogged West Coast gateway.

Four major projects have begun or wi start soon, setting the stage or dramaticay expanding l.A.s

existing 79-mie system o subways and ight rai ines. They incude:

n a nine-mie extension o the Purpe line subway west o downtown aong heaviy traveed Wishire

Bouevard, the commercia heart o west los Angees;n an 8.5-mie ight-rai route, which wi hep in downtown to los Angees Internationa Airport and

neighborhoods in between;

n an 11-mie extension o the God line subway east o Pasadena; and

n a ight-rai ine rom Santa Monica on the coast, running east to Cuver City and tying into a in

rom downtown.

Ocias project that the saes tax increase coud raise $40 biion between now and 2038, sustaining

urther transit expansion and eventuay buiding out the system to reach neighborhoods and business


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districts throughout the sprawing region. A reiance on more above-ground ight-rai and BRT ines

wi hep doars go urther than woud expensive tunneing or subways. Using anticipated saes tax

revenues as coa

infrastructure 2011

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