Young Professionals in Transportation http://ypt.transportation.org
Mobility Matters V o l u m e
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W i n t e r
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Chair’s perspective
YPT is one of Washington’s newest and most exciting young professional networking groups. As part of building a solid foundation for a premier organization, YPT is kicking-off its inaugural capital campaign in early 2009. Whether its at our leadership seminars, or in Mobility Matters, sponsoring a YPT event offers great opportunities to showcase your business or organization to a growing audience of transportation leaders. For information, contact Chris Smith, Vice Chair for Membership, at 202-624-5839 or csmith@aashto.org.
Inside this issue: Founding documents
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Member SPOTLIGHT
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Membership update
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Presidential transition
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Washington update
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Network rewind
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5 Midway privatization Calendar of events
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The preparation for the next surface transportation legislation following SAFETEA-LU, which will expire on September 30, 2009, has started much earlier in the reauthorization process than in the past, with greater scrutiny and participation by both traditional and new entrants into the transportation community. An area that has often lagged behind issues such as health care, the Iraq war, education, among others, this welcome attention to transportation has recently received a further boost thanks to what many are saying as a solution to the worst economic crisis since the Great Depression. Increasingly, in addition to eyeing infrastructure investment as a short-term stimulus vehicle for economic recovery, mainstream policymakers and the public are also looking to use infrastructure investment as a key federal policy platform
to drive long-term economic development. This expansion of infrastructure strategy can be seen in President-elect Obama call for “making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s.” Moving beyond the stimulus package and into the timeframe of the next transportation bill between 2010 and 2015, a number of industry groups and coalitions have articulated key principles to lay the foundation for future federal transportation policy. These groups have ranged from the Congressionally-chartered National Surface Transportation Policy and Revenue Study Commission and the National Surface Transportation Infrastructure Financing Commission to industry associations like the American Association of State Highway and Transportation
Officials to newly-formed groups such as the Bipartisan Policy Center, and to the current administration at the US Department of Transportation. The good news from this growing list of ideas for the upcoming authorization period is that it will foster an intense competition for the attention of Congress, which will have a wealth of policy directions and strategies to choose from. To this list, I would like to contribute the following elements that should be featured in the next bill. Before examining possible changes to the current program, we must first acknowledge that the current Federalaid Highway Program has served many generations of Americans as well as any federal program in US history, succeeding in its mission of continued, page 2
Attending TRB? Travelling to Washington, DC Jan. 10-15 to attend the Transportation Research Board’s (TRB) 88th Annual Meeting? If so, be sure to join YPT for a special TRB week Networking Happy Hour on Wednesday, Jan. 14, 4:30—7:00 PM at Timberlake’s, 1726 Connecticut Ave., NW (between R & S Streets, just south of the TRB Hilton site). Appetizers will be provided. Drop by to network with other members, meet members of the YPT Executive Committee, and get helpful insider tips on what to do and where to go in and around Washington from D.C.-area members. We look forward to meeting you and hope you enjoy Washington. YPT thanks SAIC for sponsoring this event.
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Volume 2, Issue 1
Founding documents ratified The Executive Committee of YPT has formally ratified Constitution and Bylaw documents. The Executive Committee has filed Articles of Incorporation as a non-profit entity within Washington, DC. The Articles of Incorporation, Bylaws, and Constitution can be viewed online at the YPT website. There are two important points we would like to point out to our members. First, the YPT Executive Committee must include a minimum of five members. Currently the committee has eight members (a list is included on the last page of this
newsletter). Executive Committee members serve for one year, October through September. To be eligible to run for an Executive Committee position, or to vote in the election of committee members, you need to be a “voting member” of the organization. There is a $20 annual membership fee to be a voting member. There are few restrictions on who can join YPT. For example, age or career experience is not important – only that members have an interest in transportation.
Constitution and Bylaws allow for the establishment of regional chapters or YPT. Regional chapters will allow for those outside of Washington, DC to become more involved with the organization and reach out to more members. For example, regional chapters can be formed across the United States and even in locations around the globe. The Executive Committee is presently working to allow for the establishment of regional chapters; more information will be included in a future edition of Mobility Matters.
Another important point is that the
Stay tuned…
Chairman’s update, continued from page 1
bringing us an era of unprecedented mobility in this country. There are some elegant features such as the establishment of the Highway Trust Fund to shield highway funding from the annual federal appropriations battle and a state-driven, federally-guided process which meant that states and localities have enjoyed great flexibility to implement the projects reflective of their unique needs while still serving the overall national interest. However, like all good ideas, the federal highway program has finally reached the point for a significant makeover to better suit America’s needs in the 21st century. A Truly Multimodal Federal Program – The Intermodal Surface Transportation Efficiency Act in 1991 brought the era of Metropolitan Planning Organizations and intermodalism. However, both of these policy elements have yet to accomplish their original objectives. While ISTEA provided a symbolic shift to intermodal program delivery, we still have the trappings of the old Federal-aid Highway Acts evident in the various modal administrations at the USDOT, while funding has been siloed into highway and mass transit accounts in the Highway Trust Fund. We must take the next step to implement a truly intermodal federal program where needs are addressed at a decision point prior to where modal assignment occurs. In many cases, such needs should be addressed in a way that integrates a number of multimodal elements. And of course, all modes, beyond highways and transit, should be part of the next bill. This includes developing a strong federal policy on intercity passenger rail, freight, bicycle, pedestrian, and other means of moving people and goods. A Robust Federal Investment – Historically, the Federal government has provided about 45 percent of all capital investment funds for highways and transit in the US. This level of extensive Federal involvement must continue in the next program. The difficult part will be to balance the need for Federal interest through oversight and regulation while preserving the flexibility for states, which has increasingly become dysfunctional as evidenced in recent battles between “donor” and “donee” states contributing to the Highway Trust Fund. The competition for best ideas in the next bill must look beyond this narrow-minded approach and address true objectives of national interest.
Merit-based Project Selection – The existing federal highway and transit projects currently go through an extensive planning process, where they originate from long range transportation plans at both the state and regional levels and get programmed through the statewide and metropolitan transportation improvement programs. Ideally, this process is reflective of regional and statewide consensus based on mutual understanding of needs and ratified through active public participation, while not spending beyond the means by the use of fiscal constraint. However, this project selection process, intended to be based on merit, has been diluted both at the federal level through earmarks and at the local and state levels through intense political bargaining. While many groups are calling for wholesale reform of the federal program to bring greater accountability, the existing setup has the potential to instill public confidence in the transportation investment process—but only if it is implemented as originally intended. Implementation of Next Generation of User Fees – The demise of the fossil fuel economy has been long predicted since the US reached its peak oil production levels in the 1970s, without reducing America’s addiction to oil. Increasingly, however, we are getting close to the point where worldwide production of petroleum will reach the point of permanent decline. Coupled with greenhouse gas reduction efforts through impending major climate change legislations, the gas tax that sustained the surface transportation program for the last fifty-plus years is nearing its expiration date. While the gas tax still possesses two qualities that no other revenue mechanisms currently have—namely high yield and low administrative cost—we need to begin the transition in earnest to a fully-developed user charge that account for miles traveled, roads used, time-of-day, vehicle weight and emissions, and other factors that reflect the full cost of service. Because transitioning out of the gas tax will take many years due to time required for technology development and vehicle fleet turnover necessary to ensure full implementation, a strong national commitment to this transition must be made now. We welcome your thoughts on the shape and focus of the next transportation authorization bill. Send your thoughts to ypt@transportation.org for publication in the next issue of Mobility Matters. You can also join this dialogue in YPT’s active LinkedIn group discussion board.
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Volume 2, Issue 1
Member SPOTLIGHT Transportation waves on the high sea By Mary McCarthy As an avid swimmer, I’ve always loved the water, but I never saw myself working for the maritime industry until I answered a classified ad for a Public Affairs job with the American Waterways Operators. I landed an interview, but was skeptical that I would enjoy working for the national tugboat, towboat and barge industry, an industry I’d barely heard of and definitely knew nothing about. However, I was surprised to learn that the towing industry deals with many of the same important issues that other industries are faced with, such as compliance with environmental regulations, protection of homeland security, tax bills, a shrinking job pool, and workplace safety. Also, I learned that I would be spending time on Capitol Hill meeting with legislators and their staff, at Coast Guard Headquarters to collaborate with the agency that regulates us, and in state capitals where bills that affect our members crop up quickly. I was sold, and a year after I started I moved over from the Public Affairs department to the Government Advocacy section. While it may sound cliché, the best part about working for the towing industry is the people. My colleagues are bright beltway insiders who have the challenging job of teaching DC power players, many who have never seen a tugboat or barge, about the maritime towing industry while also learning from our members about how bills and regulations affect their day-to-day operations. The members themselves are savvy businessmen and women who hail from all over the country; Seattle to St. Louis and New Orleans to New York. Most of them grew up working on the boats and now run generations-old family-owned businesses. The towing industry is critical to the U.S. economy and our goal is to keep the economy moving while keeping mariners, the environment, and Americans safe. One major issue we’re faced with today is the regulation of discharges from vessels. That may not sound like a very interesting issue, but this topic has its roots in the ground-breaking Clean Water Act of 1972. Vessel discharge involves the judicial, executive, and legislative branches, and is one of the most controversial and wide-reaching regulations the industry has ever had to face.
When I say discharge from vessels, I mean everything… rain and wave water that runs off the deck (see the picture at the center of this article), water from the kitchen sink and crew showers, water that accumulates in the hull of the vessel, water in ballast tanks that keeps the vessel upright, and so on… all water that needs to be pumped off the vessel so that it won’t sink. Just after the Clean Water Act passed, EPA exempted vessel discharges from its purview because it wasn’t designed to regulate discharges from vessels that are constantly mobile; it was designed for stationary sources of discharges, such as factories on river banks. However, in the late 1990’s, an environmental group sued EPA over this exemption and recently won the case. As a result, vessel discharges will be regulated under the Clean Water Act after December 19, 2008. However, each state must certify that this new regulatory framework will not harm its waters before the December 19 deadline, and in doing so can add additional requirements on top of what the Clean Water Act will require. That poses a problem to us for two reasons: one, our vessels move through the waters of multiple states, sometimes many in one day, so they’ll have to comply with a confusing patchwork of constantly changing requirements; and two, not all of the states will certify by December 19, leaving any vessel that has rain washing off its deck as discharging water without a permit, and therefore open to citizen lawsuits. Congress recognizes that this is a bad way to regulate vessel discharges (and have already exempted recreational boats from it) so we’re working with legislators to craft a bill that would regulate discharges in a way that makes more sense for our operations. The maritime industry is one of the smaller segments of the transportation world, but that’s what makes it such a great industry to get started in: it’s a microcosm of the global logistics machine that has allowed me to learn how broad national and international policies affect the American economy and businesses. Plus, getting to drive a tugboat every once and a while can be pretty fun.
- - Mary McCarthy is a YPT member and Government Affairs Associate with the American Waterways Operators Association. Contact Mary at mmccarthy@vesselalliance.com. If you would like to be featured in a Member Spotlight article, contact Nick Perfili, Vice Chair for Communications, at ypt@transportation.org, Subject: Member Spotlight.
Join YPT Did your budding career as an engineer end in high school algebra? Does your idea of planning mean making your weekly grocery list? Noticing a few more gray hairs when you look in the mirror? No worries…Young Professionals in Transportation is open to anyone interested in the field of transportation. YPT let’s you network with fellow professionals, learn about hot transportation topics from industry leaders, and get involved in Washington DC’s newest and most exciting young professional organization. The best part? Joining is easy. Simply register online at http://ypt.transportation.org.
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Volume 2, Issue 1
network rewind On a sunny September 17th, YPT hosted an end of summer rooftop Networking Happy Hour at the Beacon Hotel Bar & Grill, 1615 Rhode Island Ave NW, overlooking downtown Washington, DC. Members discussed transportation topics while enjoying the great weather and view. In November, we hosted another downtown DC event at Panache Restaurant, 1725 DeSales St., NW. Despite the rain and cold, this event was one of YPT’s largest networking events to date. Be sure to join YPT at one of our next Networking Happy Hour events.
YPT in the Presidential transition Presidential Transition and Future Expectations for Transportation Young Professionals in Transportation is proud to announce the selection of two members of the YPT Board of Advisors to President-elect Barack Obama’s transportation transition team. Mortimer L. Downey, featured speaker of YPT’s October Leadership Seminar, is the head of the transition team’s effort for transportation. Peter “Jack” Basso, who as AASHTO’s Chief Operating Officer spoke at YPT’s April Leadership Seminar, has been appointed as an Agency Review Team member for transportation. Like President-elect Obama’s overall transition effort, the transportation transition team has been moving at great speed, holding a number of
meetings with both internal USDOT members and external transportation stakeholders during November and December to set up the incoming departmental policy foundation and to search for the next Secretary of Transportation. Jack Basso
For the full list of the Obama transition team, please refer to President-Elect Obama’s transition website available at http://change.gov/ learn/transition. Log on to the YPT website for more information on the YPT Board of Advisors.
Membership update YPT Introduces Two Tiers of Membership
Becoming a YPT member is simple. We offer two categories of membership. General Member: Anyone can opt-in to General Membership by signing up for the YPT email list at http://ypt.transportation.org. Benefits of free General Membership include:
♦ Updates on all YPT matters ♦ Subscription to Mobility Matters, our quarterly newsletter ♦ Opportunities to interact with leading minds in the transportation field through our Leadership Seminars
♦ Opportunities to get to know other fellow young professionals in transportation through our regular Networking Happy Hours Voting Member: After signing up as a General Member, you can show your commitment to YPT's mission by becoming a Voting Member by paying the annual membership due of $20. The features of Voting Membership include:
♦ Discounts to YPT events ♦ Eligibility to run for a YPT Executive Committee position ♦ Eligibility to vote in YPT elections ♦ Many other Voting Member benefits will come soon! Join YPT or upgrade your membership online at http://ypt.transportation.org, click on Membership.
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Mort Downey
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Volume 2, Issue 1
Private investment in infrastructure Privatization takes off at Midway The privatization of the city of Chicago's Midway International Airport marks a landmark transaction as the first major airport to be completely privatized in the United States. Although outside of the US many airports are operated by private companies, only Stewart-Newberg in New York has a prior track record with privatization but is currently controlled by the NYNJ Port Authority, however, the Midway transaction should help to open other US airports to the kind of privatization seen throughout the world. A consortium led by Citi Infrastructure Investors, Vancouver Airport Authority, and John Hancock Life Insurance -named Midway Investment and Development Corporation (MIDCo) -- offered the City of Chicago an upfront payment of just over $2.5 billion dollars in exchange for the rights to a 99-year lease to operate the airport. Even among the very volatile financial markets, the transaction was wellreceived with global investors and is set to close around the end of the year. Six teams originally were in the running to acquire the lease from the City, truly representing the 'who's who' of global airport ownership and operations. Investors from the North America, Europe, and Australia were eagerly after the airport, which continues to show the strong interest from domestic and foreign investors in US-based infrastructure. Midway Airport is located on Chicago's southwest side, less than 10 miles from the downtown Loop, and primarily serves low-cost carriers such as Southwest Airlines. Midway has direct heavy rail access via the Chicago Transit Authority's Orange Line to downtown. While Midway is the second largest airport in Chicago behind O'Hare International Airport, the facility serves nearly 20 million passengers per year and recently underwent a complete makeover of the landside and airside terminal facilities. The Concession & Lease Agreement covers all aspects of Midway's operations, including commercial and aeronautical. MIDCo hopes to improve the efficiency of the airport's services and improve the growth potential of the airport. MIDCo's execution of the Concession & Lease Agreement also ties the company to the airlines operating
at Midway and sets out rates and charges payable from the airlines to MIDCo and also defines improvements and levels of service that MIDCo agrees to provide to the airlines. Chicago’s City Council has approved the transaction; however, the
Southwest Airlines serves many locations with flights from Chicago’s Midway Airport.
USDOT and FAA still need to grant an approval, which is expected by the end of the year. Of the $2.5 billion payment, the City will use $1.2 billion to retire debt associated with the airport, and it is expected that another $900 million will be used for infrastructure and pension funding, along with about $225 million being set aside for the City to use to pay for police and fire services at the airport; with other monies being unrestricted in use. The FAA's pilot privatization program currently allows for up to five US airports to pursue privatization through leases to private operators, with Midway taking the only slot currently reserved for a large-hub
airport. The City's success with Midway could prompt a change in federal law to allow more airports to consider privatization. Several other US airports recently have been openly discussing the possibility of privatizing, including Milwaukee, New Orleans, Austin, and Gary, Indiana. Other airports “Chicago has throughout the US do operate with private quickly companies at the helm, but more in become the the role of operating leader in or management contracts, none of which infrastructure are as all-inclusive as privatization the Midway lease. Chicago has quickly become the leader in infrastructure privatization in the U.S.
in the U.S.”
In 2005 the City entered into another long-term lease with an international consortium for the Chicago Skyway generating $1.8 billion, also a landmark transaction being the transaction that sparked the strong national interest in public-private partnerships and concession projects here in the United States. The City has also privatized some downtown parking garages which generated $563 million, and is currently finalizing transactions to privatize the operation of downtown parking meters and solid-waste recycling facilities.
Privatization collaboration In early March 2009, the Japan International Transport Institute will host an event in Washington, DC to facilitate the sharing of information between the United States and Japan regarding privatization of transportation infrastructure in all modes. The seminar will feature the CEO of Tokyo Metro—the world’s busiest subway system—which was privatized in 2004. Also, a former CEO of Narita International Airport—the 7th busiest airport in the world for international travel—will attend. Keynote speakers from the US are in the process of being finalized. The one day seminar will examine the benefits of privatization, methods of attracting more investment, and discussion about ensuring protection of public interests. YPT Deputy Chair Marcus Bowman is assisting in arranging the event. If you would like additional information about this event please contact Marcus Bowman at marcus.bowman@iacdc.com.
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U PCOMING 2009 T RANSPORTATION E VENTS
YPT Events ♦ Thursday, Jan. 8—Executive Committee Meeting. 6:00-7:30 PM at AASHTO; 444 N. Capitol St., Ste. 249, Washington, DC. Metrorail: Red to Union Station. ♦ Wednesday, Jan. 14—Special TRB Networking Happy Hour. 4:30 PM at Timberlake’s; 1726 Connecticut Ave NW, Washington, DC (between R & S Sts, near the TRB Hilton). Metrorail: Red to Dupont Circle. ♦ Mid-February, 2009—YPT Leadership Seminar featuring Donna McLean with Amtrak. Mid-February. ♦ Thursday, Feb. 12—Executive Committee Meeting. 6:00-7:30 PM at AASHTO; 444 N. Capitol St., Ste. 249, Washington, DC. Metrorail: Red to Union Station. ♦ Thursday, Mar. 12—Executive Committee Meeting. 6:00-7:30 PM at AASHTO; 444 N. Capitol St., Ste. 249, Washington, DC. Metrorail: Red to Union Station.
TRB 88th Annual Meeting
Washington, DC
Jan 11-15
TCM—2 (Construction Management)
Orlando, FL
Feb 10-12
AASHTO Washington Briefing
Washington, DC
Feb 22
Railroad Day on Capitol Hill
Washington, DC
Feb 22
AGCs 9th Annual Convention
San Diego, CA
Mar 4-7
APTA Legislative Conference
Washington, DC
Mar 8-10
World of Asphalt 2009
Orlando, FL
Mar 9-12
FAA Aviation Forecast Conference
Washington, DC
Mar 10-11
5th Annual Pub.-Pvt. Partnership USA Summit
Washington, DC
Mar 11-13
Shipping Conference & Exhibition
Stamford, CT
Mar 23-25
International Bus Roadeo & Bus Rapid Transit
Seattle, WA
May 1-6
Young Executive Development Program
Washington, DC
May 19-21
ITS America Annual Meeting
Nat’l Harbor, MD
Jun 1-3
The Future of Tolling
Tampa, FL
Jun 14-16
International Bridge Conference
Pittsburgh, PA
Jun 14-17
GHSA Annual Meeting
Savannah, GA
Aug 30-Sep 2
IBTTA Annual Meeting
Chicago, IL
Sep 13-16
AASHTO Annual Meeting
Palm Desert, CA
Oct 22-27
Contact YPT to have an event added to the events calendar
YPT Executive Committee YOUNG PROFESSIONALS IN TRANSPORTATION http://ypt.transportation.org YPT is a Washington, DC-based organization. General membership in YPT is open to anyone engaged or interested in transportation regardless of age. All are welcome to participate in the organization and activities. Mobility Matters is the official publication of YPT. If you have questions about this newsletter or wish to contribute material, please contact Nick Perfili, Vice Chair for Communications, at ypt@transportation.org, Subject: Mobility Matters. For additional information, visit our website. Mobility Matters © 2008 Young Professionals in Transportation
Chair — Joung Lee, American Association of State Highway & Transportation Officials (AASHTO) Deputy Chair — Marcus Bowman, IAC Transportation Vice Chair for Administration — Susan Howard, North Carolina Department of Transportation Vice Chair for Communications — Nick Perfili, Fairfax County (Virginia) Department of Transportation Vice Chair for Finance — Laura Feast, Science Applications International Corporation Vice Chair for Membership — Chris Smith, American Association of State Highway & Transportation Officials Vice Chair for Programs — Matt Bieschke, PB Consult Deputy Vice Chair for Programs — Steve Pinkus
YPT Board of Advisors Jack Basso, Chief Operating Officer, AASHTO
Mortimer Downey, Chairman, PB Consult
Robert Flanagan, Senior Vice President, First Southwest Company
Emil Frankel, Bipartisan Policy Center
John Horsley, Executive Director, AASHTO
Tony Kane, Director of Engineering & Technical Services, AASHTO
Janet Friedl Kavinoky, Director of Transportation Infrastructure, U.S. Chamber of Commerce
Emeka Moneme, Chief Administrative Officer, Washington Metropolitan Area Transit Authority
Gloria Shepard, Associate Administrator for Planning, Environment & Realty, Federal Highway Administration
Stephen Van Beek, President & CEO, Eno Transportation Foundation
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