EnoBrief INSIDE POLICY FOCUS THIS Front page: ISSUE
Aviation Security: Redefining Our Goals
Eno Transportation Foundation Cultivating Creative Leadership, Framing Emerging Issues
EXECUTIVE LEADERSHIP Page 3: Brad Underwood Named GM of the Year
BOARDROOM
Page 4: Eno Celebrates 90 Years with Presidents’ Reception
MARCH 2011
PARTNERS & FRIENDS Page 5: Transportation Funding and Planning in Uncertain Times
Policy Focus Aviation Security: Redefining Our Goals We have all become so accustomed to taking off our shoes, unloading our pockets, removing outer garments, and taking out liquids and laptops that it is hard to remember airport security was not always this way. Although the Transportation Security Administration (TSA) has made some notable improvements, it is only a matter of time before some other new, t i me- consu m i ng, or humiliating component is added to this already unpleasant experience. This is inevitable for two reasons: 1) terrorists will continue to be inventive about how they circumvent the system and thus create new things for us to do; and 2) TSA acts like a lawenforcement agency, not a transportation agency. Better intelligence is essential in tackling the first problem. We need real political leadership to tackle the second. When the TSA was organizationally moved out of the U.S. Department of Transportation and into the Department of Homeland Security (DHS) in 2006, it became that much more difficult to connect this agency’s functions to national transportation issues and goals. Thinking about security functions for transportation www.enotrans.com
– preventing terrorist attacks – as being separate from the national purposes of transportation – primarily economic benefits – is a mistake. Preventing terrorist attacks has a strong economic purpose. In terms of actual safety and human life, terrorist attacks on transportation pose a relatively small problem. For example,
according to the National Highway Traffic Safety Administration in 2009 there were 33,963 traffic fatalities in the U.S. During that same year, according to the U.S. Department of State, the number of U.S. citizens killed in terrorist attacks worldwide was nine. If our goal were to reduce overall needless fatalities related to transportation, we would probably put more resources into highway safety. But that is not the only goal. If there is a terrorist attack on the U.S. transportation system, especially on a national system like aviation, this can
have severe economic consequences even without large loss of human life. Fear of terrorist attacks is the real problem, rather than the attacks themselves. It is this fear that can potentially lead us to cancel trips, reduce human interaction, and cripple the economy. To counter this fear, it is essential to demonstrate both to potential terrorists and the traveling public that the security system in place is effective. Therefore, the economic consequences of terrorism – and the economic benefits of preventing terrorism – are what we need to examine when devising security policies. This is why TSA must take more of a transportation perspective. Such a perspective is essential because transportation should always be asking the question: “At what cost?” We might all agree it would be nice to have a subway station outside of our home that provides nonstop train service to our office. But how does that investment compare to other possible uses of those resources? The U.S. Travel Association (USTA) put out a report that speaks to these issues in aviation security. Because they have a Aviation Security continued on next page
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strong interest in how many people travel, they are able to look beyond the idea of “making the system as safe as possible” which is an impossible to define goal, and toward the issue of cost-effectiveness. They estimate that if the intrusive and time-consuming nature of airport security were eliminated, Americans would take two to three more trips per year resulting in $85 billion in additional consumer spending and 900,000 jobs. Now while it is wise to be skeptical of such numbers given that they are not coming from an entirely objective source, this is likely a matter of degree. It is clear that airport security is intrusive and time-consuming, highly likely that this discourages travel, and we know that reducing travel has serious economic consequences. The USTA report has some good suggestions, such as a voluntary Trusted Traveler program that could better focus resources on the highest-risk passengers. The idea of encouraging fewer carryon bags is also worth exploring. But the report unfortunately does not get to the root problem, which is that transportation security is being treated solely as a security function when it is much more. In fact, the economic aspect should probably have primacy. The evidence of treating transportation security like a security function is obvious. First of all, we think we can win it with manpower. We somehow think that if we inspect every person boarding a plane, an incredibly cumbersome and expensive activity, somehow we will find the terrorist. This despite the fact that the chances of actually finding a would-be terrorist in this manner are most certainly approaching zero. After spending weeks, months, years, and even decades not finding anything, how could TSA personnel possibly stay vigilant? And when something is found, it is invariably a mistake rather than an actual terrorist. Second, we are always fighting the
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last war. Someone put a bomb in their shoes, so now we have to take our shoes off. Someone had an idea to use liquids to create a bomb on-board, so now we have to put our liquids in a plastic bag. Someone had the idea to sneak a bomb on-board using an unwitting accomplice, so now blue-haired grandmothers must be treated
as possible terrorist threats. Most other developed nations have already moved beyond some of these most intrusive policies. Meanwhile we are stuck fighting the last battle because our objective is not to maximize security while minimizing economic costs – it is to make sure that we are never fooled twice by the same strategy. This is a reactive strategy for something that must be proactive in order to be effective. Treating security like a transportation function means balancing search procedures (benefits) with delayed travel time (costs). We would not build a costly new highway to carry nine people faster while 30,000 remain stuck in traffic, but this is essentially what we are doing with security. We need to get past this
mentality if we are going to improve airport security meaningfully. This is why the USTA recommendations, while helpful, are only part of the solution. Without question we need to make marginal improvements to the current system that can increase economic benefits. It is a great sign that DHS has finally gotten rid of a threat level code system that was always on “orange.” But without real Congressional oversight, and a wholesale reconsideration of our objectives and strategy, we will never really fix this severe economic problem. Our existing security system has evolved broadly and rapidly in the wake of 9/11. We can understand why something of a “lawenforcement” approach was warranted at that time, because we did not yet understand the scope of the problem in a post-9/11 world. But a decade later we should have a much better understanding of the rationale for “transportation security.” Also, the economy currently needs any boost it can get. It is time for our political leaders, both in the Administration and Congress, to show some courage and recognize the need for wholesale change. Joshua Schank is the President and CEO of the Eno Transportation Foundation
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Cultivating Creative Leadership, Framing Emerging Issues
Brad Underwood Named GM of the Year Brad Underwood, Executive Director of First Transit’s Texoma Area Paratransit System (TAPS), was recently named Outstanding General Manager of the Year by the Texas Transit Association. He received the honor for his contributions to the public transportation industry. “This recognition is very humbling for me and one which I share with my staff,” Underwood said. “This award lends itself to a greater responsibility for us all and gives us the opportunity to talk about public transportation as a whole and make a difference.” Underwood has been involved in transportation since 2007 when he was named Chairman of the Board for TAPS; he became Executive Director in 2009. He is also a 2010 alum of Eno’s Transit
Executive Seminar which he credits for helping him to rearrange his priorities and be a more effective leader. “Before coming to Eno, I was trying to be everything to everyone and it wasn’t working. Eno helped me find that balance,” he said. “I felt so good in how Eno helped me that I wanted to share it with others throughout the state. I was adamant in bringing Eno to Texas and have seen dramatic changes in my employees who have gone to Eno’s Texas Transit Leadership Seminar.” In addition to his duties with First Transit and TAPS, Underwood serves as the mayor-protem for the City of Bonham, is a member of the Public Transit Advisory Committee, sits on the board of directors for Grayson County College and is active in many other local organizations.
Transit Executive Seminar Accepting Applications Senior transit leaders are invited to apply for the 2011 Eno Transit Executive Seminar course to be held July 10 – 15 in Washington, DC. General Managers and senior staff of transit organizations, private sector companies and the Federal Transit Administration are invited to apply. The intensive week-
long program is taught by industry leaders and designed to examine the industry, the organization and the individual leader. Course tuition is $3,300. To download an application, click here. For details contact Lindsey Robertson, Director Center for Transportation Leadership, at lrobertson@ enotrans.com.
Eno Alumni Career Advances Selene Faer Dalton-Kumins was recently promoted to be the Deputy Director of Civil Rights at the Federal Transit Administration. She previously served as the Director of the Washington Metropolitan Area Transit Authority’s paratransit system, MetroAccess. She attended Eno’s Transit Executive Seminar in 2009. *** Kate Mattice was recently selected as the Deputy Associate Selene Faer Dalton-Kumins www.enotrans.com
Administrator for the Office of Budget and Policy at the Federal Transit Administration (FTA). She previously served as head of the Office of Policy Review and Development where she led FTA’s efforts on surface transportation authorizationandother policy initiatives, as well as managed the FTA Policy Council Kate Mattice and Policy Team. She attended Eno’s Transit Executive Seminar in 2010.
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Glenn Barrington to Receive Frank Litchanski Scholarship Linda Bohlinger, Chair of the American Public Transportation Foundation, announced that Glenn Barrington, Operations Manager at UMass Transit Services, was selected as the 2011 recipient of the Frank Lichtanski Scholarship. “I am both humbled and honored to benefit from the FrankLichtanski scholarship and think the Eno course will allow me the oppor t unity to become a visionary for my organization,” he said. “I hope to better understand the nuances of leading a transit operation and I hope to become a more effective leader.” Barrington began his career at UMass Transit Services as a bus driver. He worked as a contract manager for Ryder Student Transportation Services and has served as operations manager at UMass Transit since 1992. Frank J. Lichtanski was a longtime transit leader at Monterey Salinas Transit in California and strong advocate for leadership development. The scholarship established in his memory provides $2,500 tuition support for an eligible candidate from small and medium-sized transit agencies to attend a session of the Eno Center for Transportation Leadership Transit Executive Seminar.
ENO DATA FACT: Congestion costs the U.S. economy a record $115 billion annually, including five billion hours of lost time and four billion gallons of wasted fuel. Source: Texas Transportation Institute’s Annual “Urban Mobility”
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FROM THE BOARDROOM
Celebrating 90 Years of Eno
Board of Directors Notes The Honorable Norman Y. Mineta, former United States Secretary of Transportation and an Emeritus member of Eno’s Board of Directors, was recently named a full member of the Board. *** Mort Downey, a member of the Eno Board of Directors and Senior Advisor with Parsons Brinckerhoff, was recently reappointed to a three-year term as a member of the Comptroller General Advisory Committee which reports to the Controller General of the U.S. Government Accountability Office. He was also elected as Second Vice Chairman of the Washington Metropolitan Area Transit Authority Board.
John Larkin Participates in Wall Street Panel The Eno Transportation Foundation officially kicked off its 90th anniversary year of celebration with a Presidents’ Reception on March 15. The event honored past leaders, the Foundation’s growth, accomplishments and outreach since its inception in 1941, and formally introduced Joshua L. Schank as Eno’s 12th President and CEO. The event was attended by members of the Eno Board of Directors and Eno Board of Advisors, former Eno President Stephen D. Van Beek, several Eno alumni, transportation organization leaders, Assistant Secretary for Transportation Policy at the Department of Transportation Polly Trottenberg, and United States Deputy Secretary of Transportation John Porcari (pictured with Eno Chairman Lillian Borrone and Eno President Joshua Schank).
Eno Newsmakers Recent news features on Eno staff and board members. Michael Burns, Eno Board of Directors Palo Alto Online: March 4 VTA Approves Caltrain Funding Reccs Petra Todorovich, Eno Board of Advisors WMNF 88.5 FM: March 4 Prospects For Success of HSR in Florida Ed Wytkind, Eno Board of Advisors Journal of Commerce Online: March 4 Trnsptn Unions Adopt Job Creation Agenda Lillian Borrone, Eno Chairman THINK: March 11 Transportation Policy Must Focus On Clear Goals, Measured Performance Geraldine Knatz, Eno Board of Advisors CNBC: March 15 Global Economic Ripples of Disaster in Japan
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Aaron Gellman, Eno Board of Advisors BusinessWeek: March 15 Chicago, Carriers Reach Nearly $1.2B O’Hare Deal Jay Walder, Eno Board of Advisors Newsday: March 18 MTA Boss Touts LIRR Expansion to East Side Joshua Schank, President and CEO Jacksonville Business Journal: March 22 Politics Hurt Transportation Funding Rosemarie Andolino, Eno Board of Advisors Chicago Sun Times: March 24 City to Issue $1B in Bonds to Fund O’Hare Expansion
John Larkin, a member of Eno’s Board of Advisors and Managing Director of Stifel, Nicolaus & Company, recently participated in a Wall Street Transcript Transportation and Logistics interview where he discussed the current state of the industry—the supply, demand, and pricing outlook for the industry—and which segments of the transportation space are currently most attractive for investors. “[Companies] have implemented new systems to be even more efficient than they were before, and they are set up well for an environment like we may have in 2011, with slightly more than 3% GDP growth and maybe close to 4% manufacturing growth,” he said. “That level of growth should create a pretty interesting environment for all the transportation companies once we get beyond the first couple months of the year, which are always challenging. I think the transportation companies are probably in better shape than the overall economy.” Throughout the discussion Larkin provided an overview of the transportation sector and issues affecting truckload, barges, rail and intermodal. He also predicted that the leaner cost structures rolled out by management over the past five years, coupled with tightened supply and demand, will result in a two-to three-year period of pricing increases and thus, widened margins and earnings for growth. Click here to read the transcript. MARCH 2011
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Transportation Funding and Planning In Uncertain Times Funding for surface transportation will face substantial challenges in the near future. Last week at the American Public Transportation Association’s annual legislative conference, House Transportation and Infrastructure Committee Chairman John Mica (R-Fla.) said he understands the needs of transit riders but will not support increased transit funding in the next federal transportation bill. “Funding for transit is going to have to stay about the same,” the Wall Street Journal reported of Mica’s speech. The newspaper also reported Mica said transit agencies across the country will “have to be much more creative and look at consolidation of some of their operations.” Mort Downey, a member of Eno’s Board of Directors and Senior Advisor with Parsons Brinckerhoff, said transportation organizations are not coping well during this budget crisis due to a holding pattern on the federal level, and that this action proposed by Mica would cause problems for the industry. “The test will be if Mica is correct and can’t find new resources and then wants to fill the plate with ‘innovative financing’,” Downey said. “Will he seek to make the changes in federal law that would further encourage creative projects?” While the state and local levels had an
Follow-Up
Authority, the Bay Area is pondering a regional gas tax with a comprehensive review of the cost and governance structure of the multiple transit systems in the area. “The goal is to achieve efficiencies in current operations, including consolidations and control over cost drivers (labor, healthcare and pensions) before looking for new revenues,” Burns said. “The business community, which has been very supportive of funding public transportation, wants to see it become more efficient before agreeing to support any kind of a revenue measure.” Downey said there are few new ideas for transportation funding but a renewed interest in old ideas. Transit operators are being more conservative with their funds and realize that change must happen in order to evolve with the population that relies on them. Burns believes that change includes the migration of suburbanites to urban areas where they can rent, be closer to work and use public transportation. “These trend changes will necessitate higher densities, walkability and increase transit options,” Burns said. Knowing that change and demand will continue across the industry, transportation agencies will need to learn from their succesful counterparts in order to be more creative with funding and planning.
Safe Teen Driver Legislation Introduced
Teenage drivers have been a concern to both parents and lawmakers for generations. While many see obtaining their driver’s license at age 16 as a rite of passage, it is linked to an increase of deaths in accidents due to distractions such as talking on cell phones and texting. According to the Allstate Foundation, more than 3,400 teens were killed in motor vehicle accidents in 2009, which represents 10 percent of all vehicle fatalities. To address the problem and reduce deaths, a new teen driving act was recently reintroduced in Congress after it stalled last year. Judith Stone, a member of Eno’s Board of Advisors and President of the Advocates for Highway and Auto Safety, was on hand to help announce S. 528, The Safe Teen and Novice Driver Uniform Protection Act (STANDUP). The March 8 press conference was a joint effort with Sen. Kirsten Gillibrand (D-NY), Sen. Amy Klobuchar (D-
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influx of funding under the American Recovery and Reinvestment Act in 2009 and 2010, which allowed them to sustain and increase the level of projects in highways and transit, those projects are coming to a halt as funds have been exhausted. Until now the response from transit companies to the lack of funding has been service reduction and fare increases. While there are only a few pockets where state or local initiatives are being taken, there are a fair number of ideas where organizations are using their existing tools and trying to do the best with them. One of the most aggressive is the 30/10 Plan in which Los Angeles County voters recently approved a ½ cent sales tax that will raise nearly $40 billion for local transportation over 30 years. The 30/10 Plan will accelerate the delivery of transit projects from their current 30-year schedule to 10 years. Another proactive plan comes from Gov. Bob McDonnell (R-Va.) who included $32.7 million in the State’s new budget to create a State Infrastructure Bank (SIB). The SIB will provide local agencies and private entities low interest loans to fund important and merit-based rail, road, transit and port projects. According to Michael Burns, a member of Eno’s Board of Directors and General Manager of the Santa Clara Valley Transportation
Minn.) and Rep. Tim Bishop (D-NY), as well as other safety advocacy group members and many who have lost loves ones in teen-related vehicle accidents. The STANDUP Act establishes a national minimum requirement for graduated drivers’ license (GDL) laws. States that adopt these requirements would receive grants to help with enforcement and education. In order to incentivize states to pass the minimum GDL law, the states that fail to comply in the first three years would lose federal highway funds. A similar approach was used in the past to push states to pass laws establishing 21 as the legal drinking age, a .08 percent legal blood alcohol level, and a zero tolerance policy for underage drinking and driving. “In addition to the coalition strength, every poll indicates extremely high levels of support for the provisions of STANDUP, even among
teens themselves,” Stone said. Bill specifics include: • Three stages of licensing (learner’s permit, intermediate stage, and full licensure); • 16 is the earliest age to get a learner’s permit; • No unsupervised nighttime driving during learner’s permit and intermediate stages; • No driving while using a cell phone; • Full licensure no earlier than age 18; and • No more than one non-family passenger under age 21, unless a licensed driver 21 is in the vehicle. Opponents want the states to continue to determine teen licensing regulations alone, arguing that driving in urban states like New Jersey is much different than driving in rural states such as North Dakota. For more information on the STANDUP Act, click here.
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Eno CALENDAR APRIL
MAY
JUNE
4-7
1-14
5-8
10-12
2-6
ACI-NA Public Safety & Security Conference Kansas City, MO http://www.aci-na.org/2011/pss-spring/welcome.html IBTTA Organizational Management Workshop Jersey City, NJ http://www.ibtta.org/Events/EventDetailwithvideo.cfm?ItemNumber=4731&token=2 0822&userID=
18-22
NTPEP Annual Meeting San Antonio, TX http://www.transportation.org/meetings/281.aspx
30-3
ASLRRA Annual Convention San Antonio, TX http://www.aslrra.org/meetings___seminars/ annual_convention/
About Eno
AASHTO/NTI Leadership Institute Indianapolis, IN http://www.transportation.org/meetings/320.aspx
ESWP International Bridge Conference Pittsburgh, PA http://www.eswp.com/bridge/
6-10
AAPA Executive Management Conference Biloxi, MS http://www.aapa-ports.org/Programs/seminarschedule.cfm?itemnumber=17557
Eno Leadership Development Conference Washington, DC http://www.enotrans.com/index. asp?Type=B_BASIC&SEC={627C9B16-F81B4ACC-A02B-702731CF67F9}
15-18
8
RAA 36th Annual Convention Nashville, TN http://www.raa.org/AnnualConvention/tabid/171/Default.aspx
18-20
WTS Annual Conference San Francisco, CA http://www.wtsinternational.org/SecondaryTemplate.aspx?id=5378
Eno Board of Directors Meeting Washington, DC
8
Eno Fundraising Dinner Washington, DC
Eno Brief Moving to Electronic Format
The inaugural issue of the Eno Brief, published in July 2008, established that the monthly newsletter would “discuss policy and leadership issues, inform readers of Eno’s policy forums and professional activities, and present information about Eno’s transportation partners and opportunities for involvement.” While maintaining that charge, the Eno
Transportation Foundation recognizes the multiple advances in technology, from the iPad to smart phones, which have changed the way our readers obtain information. Soon Eno Brief will arrive in your inbox with a dramatically different look. You will still receive the same quality policy, news and information Eno is known for producing, it will just be delivered is an
easier-to-read format. We hope you like the change and welcome questions, comments and suggestions in order to improve the utility of Eno Brief. For more information contact Pamela Shepherd, Senior Director of Communications, at pshepherd@enotrans.com.
STAFF EDITOR Pamela A. Shepherd Senior Director, Communications pshepherd@enotrans.com
ENO BRIEF CONTRIBUTORS Joshua L. Schank President and CEO jschank@enotrans.com
Barbara K. Gannon Executive Vice President bgannon@enotrans.com
Thank you for your interest in Eno Brief, a publication of the Eno Transportation Foundation. Eno Brief is published monthly and distributed electronically (past editions can be accessed at: www.enotrans.com/enobrief). To subscribe, send your
Karen Dingler Senior Director, Finance kdingler@enotrans.com
Lindsey Robertson Director, Center for Transportation Leadership lindsey@enotrans.com
name, all contact details and your email address with the subject “request to subscribe to Eno Brief” to publicaffairs@enotrans.com. To be removed from our distribution list, send an email to publicaffairs@enotrans.com and include “request for removal from Eno Brief distribution list” in the subject field. For comments or to include content, contact Pamela Shepherd at pshepherd@enotrans.com.
Melissa Paradis Program Coordinator mparadis@enotrans.com
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ENO BOARDS BOARD OF DIRECTORS Lillian C. Borrone, Chairman Michael T. Burns General Manager Santa Clara Valley Transportation Authority Mortimer L. Downey Senior Advisor Parsons Brinckerhoff
Thomas J. O’Bryant Bank of America, N.A. (retired) Norman Y. Mineta Vice Chairman Hill & Knowlton
David Z. Plavin President dzp Consult Inc. Jerry Premo Executive Vice President AECOM
Eugene K. Pentimonti Maersk (retired)
BOARD OF ADVISORS Rosemarie S. Andolino Commissioner, Chicago Department of Aviation Cynthia J. Burbank Vice President and National Planning and Environment Practice Leader Parsons Brinckerhoff Kevin Carney Managing Partner, Infrastructure Capital Advisors LLC Julie A. Cunningham President and CEO Conference Of Minority Transportation Officials
Aaron Gellman Professor of Transportation and Engineering Kellogg School of Management Northwestern University Fred Hansen Consultant JayEtta Hecker Senior Adviser, National Transportation Policy Project Bipartisan Policy Center Geraldine Knatz Executive Director, The Port of Los Angeles
Elaine Dezenski Senior Director and Head of Risk Initiatives World Economic Forum
John G. Larkin Managing Director Stifel, Nicolaus & Company
Ronald Freeland Vice President and Mid-Atlantic District Director T.Y. Lin International
Craig Lentzsch Consultant National Surface Transportation Infrastructure Financing Commission
Ray Melleady Vice President, Corporate Development Neopart, LLC Meredith Neizer President, Alliant Logistics U.S. Foodservice Judith Stone President, Advocates for Highway and Auto Safety Petra Todorovich Director, America 2050, Regional Plan Association Jay Walder Chairman and Chief Executive Officer Metropolitan Transportation Authority Edward Wytkind President Transportation Trades Department, AFL-CIO
BOARD OF REGENTS Michael D. Meyer (Chairman) Professor School of Civil and Environmental Engineering Georgia Institute of Technology Dr. Maria Boile Assistant Professor Civil and Environmental Engineering Rutgers University Stephen Lockwood Senior Vice President PB Consult
Dr. Peter Haas Education Director Mineta Transportation Institute
Dr. Melissa S. Tooley Director, University Transportation Center Texas Transportation Institute
Jennifer Mitchell Deputy Project Director for Finance - Dulles Corridor Metrorail Project Metropolitan Washington Airports Authority
Michael Townes President and Chief Executive Officer Hampton Roads Transit
Joe Toole Associate Administrator for Safety Office of Safety Federal Highway Administration
CTL ADVISORY BOARD Michael Burns General Manager Santa Clara Valley Transportation Authority
William Millar President American Public Transportation Association
Linda Watson Executive Director LYNX
Nathaniel P. Ford, Sr. Executive Director & CEO San Francisco Municipal Transportation Agency
Jerry Premo Executive Vice President AECOM
Susan Borinsky (ex-officio member) Federal Transit Administration (retired)
Stephen Kingsberry Executive Director Delaware Transit
Stephanie Pinson President & Chief Operating Officer Gilbert Tweed Associates, Inc.
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