At the transition to the new century, state DOTs and othertransportation organizations are in a transition from tryingto understand and cope with change to managing change.

This is a theme that emerged in field visits by TRB staff in 2000, after adecade of change started by the Intermodal Surface Transportation Effi-ciency Act (ISTEA) and continued by the Transportation Equity Act forthe 21st Century (TEA-21), now at midpoint.

Managing SystemsApplying research from TRB and others, transportation departments areadopting business management techniques to manage and operate trans-portation resources as integrated systems. Transportation at all levels isfocusing not only on facilities but also on dealing with policy issues, sys-tem management and preservation, operation, performance, customerneeds and issues, financial and fiscal efficiency, the environment, and liv-ability. The systems management approach is evident in many areas:

◆ Many states are developing and implementing maintenance man-agement systems that incorporate customer input, record the conditionof assets, and forecast workloads in the context of outcomes.

◆ Transportation officials at all levels are applying new manage-ment techniques to a range of transportation assets in response to pub-lic, agency, and legislative expectations. These assets include thephysical infrastructure (e.g., pavements, bridges, and airports) and alsoan agency’s financial capacity, human resources, equipment and mate-rials, real estate, and corporate data and information.

◆ Several state DOTs are evaluating and implementing fleet man-agement systems to monitor maintenance operations and to supportdecision making with information on equipment downtime costs andcost-avoidance analyses.

◆ Several state DOTs are developing total storm management tech-niques for winter services, effectively and efficiently integrating andcoordinating workforce activities in response to changes in storm andtraffic conditions.

◆ Intelligent transportation system (ITS) technologies for transitare improving customer information systems and the management ofequipment and operations.

◆ State-of-the-art cargo-handling equipment and communicationstechnology are maximizing throughput and minimizing transloadingtimes and costs for intermodal freight.

Managing Change in

TRANSPORTATIONT H E T R A N S P O R T A T I O N R E S E A R C H B O A R D ’ S 2 0 0 0 F I E L D V I S I T P R O G R A M

Specialists in the Transportation ResearchBoard’s (TRB’s) Technical Activities Divisionidentify current concerns and learn aboutactivities in the transportation community. TheTRB Annual Meeting, Board-sponsoredconferences and workshops, standingcommittee meetings and communications,publications, and contact with thousands oforganizations and individuals provide TRB staffwith information from the public and privatesectors on all modes of transportation.

A major source of this information is theannual field visit program—TRB staff meet onsite with representatives of each statedepartment of transportation (DOT) and alsowith representatives of universities, transit andother modal agencies, and industry. Theobjectives of the field visit program are to

◆ Learn about the problems organizationsare facing and supply pertinent informationfrom states, industry, or educational institu-tions to help solve these problems;

◆ Learn about research in progress or inplanning and exchange information on similarefforts, preventing duplication;

◆ Identify new methods and proceduresthat also might apply elsewhere;

◆ Identify innovative or experimental worknot widely published but deserving attention;

◆ Describe TRB’s range of services to newstaff at the transportation agencies that sup-port TRB; and

◆ Identify potential candidates for TRBcommittees.

Through the 2000 field visits andinformation from other sources, the TRBTechnical Activities Division staff identifiedissues, concerns, and recent program changes intransportation.

Reprinted from TR News 212January-February 2001

◆ With freight railroads at near capacity in manycorridors, companies are seeking operational andtechnological solutions to facilitate joint operations.

◆ A national dialogue has begun on transporta-tion operations, “to manage and operate the trans-portation system so that its performance meets orexceeds customer expectations.” Led by the FederalHighway Administration (FHWA) and the Instituteof Transportation Engineers (ITE), the dialogue hasinvolved TRB, transportation agencies, universities,and the private sector.

Connecting with CustomersThese new management systems also rely on per-formance measures. As DOTs focus on continuousdelivery of services in addition to the implementa-tion of individual projects, effective performancemeasures are necessary for decision making. ANovember 2000 TRB conference sounded a keypoint—performance measures must be under-standable not only to DOTs but also to customers.

State DOTs are increasing emphasis on connect-ing with customers—the traveling public, the pri-vate sector, and elected officials. Some DOTs havehired public relations firms to improve communi-cation with customers. Several states are using mar-ket research to monitor progress and to inform andeducate the public.

Increased customer involvement has expandedtransportation department objectives beyond theimprovement of mobility and safety to consider liv-ability and environmental issues. Some examplesfollow:

◆ Transportation planning now comprisesland-use planning, economic development, andsocial equity.

◆ The federal government and many states areidentifying ways to improve efficiency and reducedelays in project development while ensuring envi-ronmental protection.

◆ More states are interested in context-sensitive design and are balancing flexible ap-proaches with the objectives of safety and efficiency.

◆ A new federal aviation law has increasedfunding for noise abatement projects, created a newenvironmental streamlining program similar toTEA-21, and is funding a program to encourage air-ports to use low-emission vehicles.

◆ The U.S. Army Corps of Engineers has re-quested the TRB Marine Board to explore the processfor determining “environmental windows”—thetime during which the ecological impacts of dredg-ing will be minimal.

Applying Research ResultsStates are applying research results to improve per-formance of traditional functions:

◆ By 2001, more than 80 percent of hot mixasphalt tonnage on state DOT projects will beSuperpave, a product of the Strategic HighwayResearch Program (SHRP).

◆ Another major SHRP product, High Perfor-mance Concrete (HPC), is gaining acceptance.

TRB has joined with state DOTs and other part-ners to lay the groundwork for research programsto help transportation departments address emerg-ing issues such as:

◆ Strains on the capacity and safety of thetransportation system due to demographic and eco-nomic trends;

◆ Workforce retention and recruitment;◆ Outsourcing and contracting, including

design-build projects and other innovative ap-proaches; and

◆ Partnering with city and county govern-ments.

On the highway side, TRB’s research-guidingefforts include the development of the FutureStrategic Highway Research Program (F-SHRP) andthe National Research and Technology PartnershipForum.1 These efforts will generate informationvaluable to Congress and other decision makerssetting the agenda for highway research. The TRBfield visit program has played an important role indeveloping proposals and in helping to set theresearch agenda for transit, rail, aviation, marine,freight, and other transportation modes.

Addressing Institutional IssuesKey institutional issues raised in field visits andrelated activities involved management and admin-istration, education, finance, environmental con-cerns, and planning.

Management and Administration

The 2000 field visits included interviews with thechief executives of state DOTs. A frequent topic wasthe environment of unprecedented change and theneed to adapt ways of doing business.

In June 2000, TRB conducted a workshop inMinneapolis, Minnesota, on Managing Change inState Departments of Transportation. Sponsored by

1For more information on the status and activities of F-SHRPand the partnership forum, see TRB’s website (www.national-academies.org).2

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TRB, AASHTO, FHWA, and the Minnesota DOT,the workshop offered a peer-to-peer exchangeamong senior management from 30 state DOTs.Three principal themes emerged: strategic plan-ning, workforce and reorganization, and processand program delivery.

Strategic Planning

Participants agreed on the importance of connect-ing strategic planning to the needs and expecta-tions of the customers—the traveling public, theprivate sector, and elected officials. Several DOTsare employing public relations firms to improvecommunication with customers.

In addition, strategic planning must include per-formance measurements linked to budget, workprogram design, and resource allocation. For exam-ple, if performance indicators show that mainte-nance is falling behind and that customers areunhappy, resources might be moved from new con-struction to maintenance.

Workforce Issues

Workforce issues are a concern at most DOTs,with several contributing causes: increasedresources and work as a result of TEA-21, short-ages of qualified specialists, downsizing, retire-ments, competition for staff from the privatesector, and legislative caps on staffing. Many DOTshave increased their outsourcing, raising ques-tions about what should be contracted out andwhat core competencies should be retained.Attracting and retaining employees might involveraising salaries or establishing other incentives.

As DOTs adopt new technologies and ways ofdoing business, training becomes a priority; buttraining sometimes enables departures for betterpaying jobs.

“Some ask, ‘Why are we training people who arejust going to leave?’” Tom Warne of Utah DOT

observed at the workshop. “We should also ask,‘What if we don’t train them and they stay?’”

Some DOTs have adopted succession-planningprograms to cope with the pending retirements oflarge numbers of key employees.

Innovative Practices

Workshop participants agreed that DOTs must findnew ways of doing business. Many are evolving intocontracting organizations and must create innova-tive contracting procedures, partnering practices,and incentives to ensure successful outcomes andthe best use of public funds. Others are gaining oper-ating efficiencies by partnering with city and countygovernments to share work and extend workforces.

Consequently, participants stressed that thequest for quality and performance in a rapidlychanging environment required receptivity tochange and also experimenting with new practicesand organizational concepts.

In a special session of the workshop, DOT chiefexecutive officers (CEOs) identified five areas forcontinued cooperation:

1. Knowledge,2. Research,3. Training,

State CEOs and othersenior managers of state DOTs participate in TRB workshop inMinneapolis, Minnesota,June 2000. AASHTOPresident Thomas R.Warne told the group,“There is no questionthat change is upon us.However, we have tomake a choice . . . it canhappen to us or we canlead it.”

Workforceretention andrecruitment aremajor concernsfor DOTs at alllevels.

4. Scans (i.e., site visits to view best practicesand innovations) and twinning (i.e., partnering formutual education), and

5. Coping with federal, state, and local regula-tory and statutory changes.

After the CEO session, staff from the states andFWHA, along with TRB committee members,drafted 22 priority research statements to assiststates in managing change. Of these, eight havebeen selected for immediate implementation, and AASHTO—through the National CooperativeHighway Research Program (NCHRP)—has hiredcontractors to produce scans for AASHTO’s AnnualMeeting in December 2000.

Finance

The dramatic increases in motor fuel prices in 2000were a major source of financial concerns for stateDOTs. Governors and legislators provided citizensrelief by cutting the state and federal fuel taxes thatprovide the bulk of revenues to support the man-agement, development, and operation of the trans-portation system. In Connecticut, for example, thestate fuel tax was cut by 12 cents, although themoney was restored to the DOT from the state’sgeneral fund.

The volatility in fuel prices probably will con-tinue, with additional impacts on the motor fueltax. Several state DOTs are exploring alternativemeans of financing their programs.

An Environmental Protection Agency require-ment prohibiting use of a fuel additive, MTBE, mayhave worsened the matter. The most likely replace-ment for this additive, ethanol, receives special taxtreatment that could reduce the revenues from fueltaxes substantially.

To study these emerging issues, TRB sponsoredthe Second National Conference on TransportationFinance in Scottsdale, Arizona, in August 2000, withFHWA, the Federal Railroad Administration (FRA),and the Federal Transit Administration (FTA) ascosponsors, along with six other cooperating spon-sors. More than 500 public and private sector trans-portation finance experts met to hear presentationson innovative practices and emerging issues and topropose and discuss financing solutions. A confer-ence proceedings will be available in March 2001.

Education

A shortage of qualified engineers—a problemraised in the CEO workshop—reechoed at many ofthe universities visited by TRB; civil engineeringprofessors and department heads report difficultyin attracting students—especially Americans—intograduate-level transportation engineering pro-

grams. One explanation is the attractiveness ofcareers in information technology, particularly thehigh salaries paid to entry-level professionals com-pared with engineers.

William A. Wulf, president of the NationalAcademy of Engineering, presented another per-spective in a recent interview (Science and Govern-ment Report, September 15, 2000). Dr. Wulf notedthat the total number of students enrolled in uni-versity engineering programs today is 20 percentless than in 1985; at the same time, the number ofinformation technology professionals is “fallingbehind by 200,000 per year.” According to Wulf,students decide at an early age to forgo core mathand science skills, precluding technical careers.

Wulf also noted that the percentage of women inengineering leveled off at just below 20 percent five years ago. In addition, he pointed to “a double-digit drop in the number of African Americans inengineering since 1993.”

These trends suggest that the engineeringprofession in general—and transportation inparticular—must undertake an organized effort toexpose primary and secondary school students tothe attractions and rewards of a technical career.

Planning

At the state level, transportation planning is chang-ing focus from facilities to policy issues, systemmanagement and preservation, systems operation,system performance, customer needs and issues,financial and fiscal efficiency, the environment, andlivability. Planning has expanded to include landuse, economic development, and social equity, andthe scope embraces rural areas, substate areas, mul-tistate initiatives, international corridors, and mul-tipurpose planning (see sidebar, page 23).

Environmental Concerns

Many state DOT environmental offices have ob-served scant progress on the TEA-21 requirementsfor streamlining environmental review. In response,NCHRP has started a project, “Monitoring, Analyz-ing, and Reporting on the Environmental Stream-lining Pilot Projects,” to evaluate 10 state DOTefforts. The study will identify ways to improve effi-ciency and reduce delays in project developmentwhile ensuring environmental protection.

State DOT concerns about environmental re-quirements coalesced during the comment periodon the planning and National Environmental Pol-icy Act (NEPA) regulations issued by FHWA andFTA in May 2000. AASHTO criticized the proposedrules for intertwining the requirements of Title VIof the Civil Rights Act and the Executive Order on4

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Trends in Statewide Transportation Planning1. Land-use considerations.

States are adopting many different approachesin considering the impact of land-use develop-ment, and state DOTs have different roles inthese efforts. Common to all, however, is anincrease in the dialogue among transportationagencies, land-use agencies at the state and locallevels, and the private sector.The two centralquestions are how do transportation and landuse interact and how can they interact?

2. Integrating environmental concernsinto the planning process.

National Environmental Policy Act (NEPA) con-siderations sometimes enter into planning andresource agencies must be involved.Developinga process that offers permitting agencies spe-cific time frames for input and that provides amechanism for conflict resolution has beenhelpful in projects that must meet multipleobjectives; this also has reduced project devel-opment schedules. Sharing, loaning, and hiringstaff in resource agencies has expedited productreview.

3. Goods movement and intermodalissues.

Although states have made progress in dealingwith goods movement, pressure continues for abetter understanding of the changing dimen-sions and impacts of freight demand and supply.However, the private sector also must under-stand federal and state policies, programs, andprocedures. There is a critical need forimproved tools for freight data and analysis.

4. Planning at different levels.

Planning in rural areas, integration with metro-politan planning organizations (MPOs), substateplanning in MPO areas, tribal national planning,multistate planning, international border andcorridor planning, and access to parks and pub-lic lands represent different levels or contextsfor many statewide planning programs. Becausethese planning efforts are expected to continue

and increase, the integration and coordinationof these efforts are a concern,.

5. Integration of management andoperations into statewide planning.

States have made progress in framing theissues—identifying the barriers and coordina-tion points;however, this continues to be a chal-lenge; institutional issues are the most difficultto reconcile.

6. Performance-based planning.

NCHRP Research Project 8-32(2)A, “Multi-modal Transportation Development on a Per-formance Based-Planning Process,” has helpedagencies move toward performance-based plan-ning.The issues continue to be outputs versusoutcomes, measuring multimodal outputs, andoutcomes for facilities not responsible to theDOT.

7. Safety issues.

TEA-21 requires statewide planning to considersafety issues.Several states are integrating safetyconsiderations into planning; some states aredeveloping safety management systems. Newconcepts are emerging, such as inherent safety,sustainable safety,and safety-conscious planning.

8. Environmental justice and relatedissues.

The federal regulation on environmental justicehas raised concern at the state and metropoli-tan levels for its effects on transportation plan-ning. Several test cases regarding environmentaljustice are being closely monitored.

9. Measuring the impacts of changingdemographics.

Many states are concerned about how to mea-sure the impacts of changing demographics—such as immigration, aging of the population,leisure travel, and temporal distribution—ontravel demand and integrate the results intostatewide planning.

Environmental Justice. According to AASHTO, theresult would “present major conceptual, practical,and legal problems that are likely to escalatedramatically.”

Other comments claimed that the proposed newrule for air quality conformity would make theprocess “less flexible and more bureaucratic.”Moreover, critics stated that the provisions forstreamlining the NEPA process would increase thesize and complexity of the environmental impactstatements for major projects.

AASHTO recommended temporarily retainingthe current planning, NEPA, and 4(f) regulations;calling on Congress for oversight hearings; andrequesting U.S. DOT to make comprehensive revi-sions and issue a revised notice of proposed rule-making.

HighwaysDesign

More states are interested in context-sensitivedesign. Introduced in a 1997 FHWA document,“Flexibility in Highway Design,” the concept fo-cuses on designing a facility with sensitivity to thecontext of the surrounding community and re-quires the early and continuous involvement ofstakeholders.

Some states are seeking the relaxation of strictstandards in the AASHTO “Green Book,” especiallyfor lower volume roadways. The states are question-ing whether the standards in the “Green Book” arevalid, tested, and required, or if there is flexibility—a reasonable and safe basis for narrower pavements,shorter sight distances, and steeper grades. However,many states prefer to adhere to the recognized “GreenBook” values, especially for legal accountability.

Pavement design has emphasized rehabilitation.Rapid, automated, and nondestructive testing ofpavement surface condition, structural support,and thickness is essential. The profession is movingtoward designing pavements through mechanisticprinciples, calibrated with local empirical data.

The long-term pavement performance databasefrom SHRP and information from state pavementmanagement systems are providing data not onlyfor calibrating analytical tools, but also for improv-ing predictions of pavement performance. Statesare looking forward to the revised 2002 AASHTOguide for pavement design (NCHRP Project 1-37).

In bridge design, states are slowly adopting theload and resistance factor design (LRFD) specifica-tions, developed under an NCHRP project andadopted by AASHTO’s Highway Subcommittee onBridges and Structures. Training has been ongoingbut often is not followed by LRFD projects, de-

creasing its effectiveness. In addition, states needimproved computer programs to facilitate LRFDdesign—for example, to provide 3-D visualization.Most states have completed investigations of scoursusceptibility and have adopted mitigation tech-niques at bridge piers and foundations.

The trend of outsourcing design work to the pri-vate sector often is accompanied by—or resultsfrom—staff reductions at the agencies. States reportconcern about the quality control of consultantwork. Design-build projects are gaining promi-nence in states that do not have laws restricting thepractice; many states have achieved successfulresults.

States generally are using criteria in NCHRPReport 350, “Recommended Procedures for theSafety Performance Evaluation of Highway Fea-tures,” in selecting roadside safety appurtenances.However, there is concern about the magnitude ofthe effort to upgrade the hardware as well as aboutlegal aspects and future revisions. FHWA is work-ing toward the international harmonization of test-ing and evaluation for roadside safety features. Theway of the future in certifying roadside safety hard-ware probably involves computer simulation ofimpacts, which is attracting widespread interest.

More states are changing from metric units backto U.S. customary units of measure. Some state leg-islatures have passed laws directing agencies tocontinue to use U.S. customary units; often this is in response contractors’ and suppliers’ resistanceto metric units. A few states, however, are proceed-ing with metric units in construction plans andspecifications.

Materials and Construction

Highway construction is surging in many states dueto TEA-21 and state bond issues. South Carolina,for example, has launched one of the most aggres-sive state construction programs, compressing 200 projects—which normally would take 27 yearsto complete—into 7 years at a cost of $5 billion.The U.S. House of Representatives recently passedan appropriations measure recommending a 7 per-cent increase in federal highway funding for 2001($30.7 billion).

Many states do not have adequate staff to han-dle the increased workload and most cannot hirenew employees. As a result, states increasingly arecontracting with consultants for construction in-spection and with private laboratories for testing;reducing the frequency of sampling and testing;shifting quality control to contractors; increasingthe use of materials certification; and hiring tem-porary employees. To avoid hiring several hundredemployees for a seven-year period, South Carolina6

DOT contracted with two construction manage-ment firms to oversee its ambitious program.

Design-build road and bridge projects are gain-ing acceptance, particularly among states repre-sented in the Western Association of State Highwayand Transportation Officials. Colorado’s $1.6 bil-lion Southeast Corridor Project involving Inter-states 25 and 225 in Denver is one of the latest touse design-build.

Most states comply with FHWA’s Code of Fed-eral Regulations 637, which requires that all qual-ity control and quality assurance personnel onNational Highway System projects be trained andqualified. All but six states completed the techni-cian qualification requirements by the June 29,2000, target date. All but a handful of states saw theneed for reciprocity, forming five regional trainingand certification groups: the Western Alliance forQuality Transportation Construction, the Multi-state Training and Certification Group, the NewEngland Transportation Technician CertificationProgram, the Mid-Atlantic Region Technician Cer-tification Program, and the Southeast Task Forcefor Technician Training and Certification.

Speeding Up Construction

Practically all states, whether urbanized or rural,are concerned with rapid construction, since delayto motorists is related to local traffic volumes.States look to pertinent NCHRP projects for guid-ance and assistance.

◆ NCHRP Project 10-49, nearing completion,is drafting technical provisions for improved con-tracting methods—such as cost-plus-time bidding,lane rental, warranties, incentive and disincentiveprovisions, and nighttime construction—for statesto consider for use in their bidding documents.

◆ A recently initiated NCHRP 20-24 project isstudying ways to avoid delays during the construc-tion phase of highway projects.

◆ A follow-up project to NCHRP Reports 390and 391, “Constructibility Review Process for Trans-portation Facilities,” is developing a procedure forstates to determine the costs and benefits of con-structibility reviews. This project could provideincentive for more states to use constructibilityreviews—only about 25 percent now do.

SHRP Products

The implementation of Superpave is on schedule.All but four states had implemented the binderspecification by the end of 2000, and most stateshad adopted the mixture specifications by 2000 orshortly after. The Superpave lead states project thatby 2001 more than 80 percent of the hot-mixasphalt tonnage on state DOT projects will be 7

TRB field visitrepresentatives viewedthe Interstate 85 projectthrough the center ofSalt Lake City, Utah. Theproject involves researchto test concretestructures as they aretorn down forreplacement.

Superpave. Several NCHRP projects are working tobring Superpave research to a close by 2005.

Another major SHRP product, HPC, is gainingstate acceptance, particularly for bridge projects.Many states now use either conventional-strengthHPC with improved durability for bridge decks orhigh-strength HPC for girders. A few use HPC forboth superstructures and substructures. Approxi-mately one-third of the states are engaged in HPCbridge projects sponsored by FHWA; however, onlyeight states have FHWA-sponsored projects involv-ing HPC in pavements.

Soils, Geology, and Foundations

Monitoring and repair of landslides along majortransportation corridors is a major task for manystate DOTs. Excessive water in the embankmentand cut slope material is the cause of the majorityof these landslides. An innovative approach to alle-viate the pore water pressure uses wick drains ashorizontal drains; the results are promising.

Other materials under investigation for stabiliz-ing slopes and controlling surface erosion are quicklime, kiln dust, portland cement, fly ash, and postsmade of recycled plastic. Another emerging tech-nique uses time domain reflectometry to quantifythe depth and magnitude of slope movements.

To reinforce and strengthen the ground, closelyspaced steel bars are installed into slopes or excava-tions during construction. This technique, known assoil nailing, has gained interest among state DOTs.Most states have completed or are in the process ofdesigning and constructing at least one soil nailingproject. Although a temporary measure, soil nailingin recent years has become a cost-effective, long-term solution for unstable slopes. In such cases,shotcrete generally is used as facing.

State DOTs have worked hard to meet the fed-eral requirement for qualified technicians to con-duct soil and aggregate sampling and testing.Regional state DOT organizations have developedtechnician training and certification programs.

Several state DOTs are evaluating in situ testdevices—such as the dynamic cone penetrometer,the falling weight deflectometer, and the stiffnessgauge—to determine the modulus of subgradematerials. The objective is to use the modulus as acontrol for compaction of embankment fills, deter-mine the density of subsurface material, and spec-ify in-place quality control of cement or fly-ashtreated base material. FHWA has support frommore than 20 states for a pooled-fund study to eval-uate the stiffness gauge. If it proves satisfactory, thisgauge could become an alternative to the nucleargauge for measuring density.

Databases that support geotechnical activitiesare gaining favor. For example, there are efforts tocreate such databases as a geographic informationsystem landslide inventory, a storage of informationfrom boreholes and cone penetrometer tests, bridgescour data, and more. FHWA is developing a com-prehensive database on deep foundations load tests.

Maintenance

Maintenance of the transportation infrastructurehas gained importance in the new millennium, withemphases on work zone safety, maintenance andfleet management, recruitment and retention ofmaintenance workers, outsourcing, performancemeasures, bridge management, pavement preser-vation, and total storm management for winterservices.

The safety of the traveling public and roadwayworkers remains the highest priority. Several statesare using quality initiatives to improve work zonesafety, increasing enforcement of speed limits, usingraised pavement markers to improve guidance,communicating with drivers through variable mes-sage signs, and evaluating “smart road” technolo-gies that improve safety. Many states have enactedlegislation to double fines for speeding in workzones; excessive speed and aggressive behavior aresignificant factors in high accident rates.

Many states are developing and implementingmaintenance management systems that incorporatecustomer input, record the condition of assets, andforecast workloads within the context of outcomesand asset management. To support these activities,agencies are updating their inventories of infra-structure features and implementing quality assur-ance statistical sampling to evaluate maintenancestatewide.

Several state DOTs are implementing new fleetmanagement systems to monitor operations andsupport decision making with such information asthe total cost of equipment downtime as well ascost-avoidance analyses. Agencies are reportingsavings through engine oil analysis programs.

Recruiting and retaining maintenance employ-ees are problems for state DOTs and contribute tothe outsourcing of work. In other countries, theoutsourcing of maintenance work through long-term contracts has offered the potential to achieveconsistent funding, to develop and apply ad-vanced engineering systems and tools, and toemploy business management techniques in thetransition from a reactionary to a preventive main-tenance program.

State DOTs are working together to developcommon performance measures for roadway main-8

tenance, primarily for roadway surface, signing andpavement marking, shoulders and roadsides, safetyfeatures and appurtenances, snow and ice control,and roadside drainage. The results will provide abenchmark for continuous quality improvementsin maintenance activities. Several states are usingmarket research to monitor progress and to informand educate the public.

State DOTs are implementing bridge manage-ment systems; PONTIS is the preferred software.Several DOTs have computerized bridge inspectionprocedures and have numbers of inspection cyclessufficient to develop deterioration models. Severalstates are digitizing design and construction draw-ings for placement in a computer database and areinvestigating the use of management software toaccess and manipulate bridge data.

Fiber-reinforced plastic (FRP) wrap is beingevaluated for concrete bridge elements; FRP mightprovide lightweight replacements for elements.Several DOTs implemented scour countermeasuresafter detecting problems in their bridge evaluationprograms. Bridge health assessments; evaluation ofbridge deck replacement alternatives; and installa-tion of sensors to gather, display, and analyze real-time bridge performance measures also were noted.

Many states are developing and implementingpavement preservation programs to reduce theinventory of deficient pavements, extend the pave-ment life cycle, and gain consistent and adequatefunding. One state DOT’s preservation program hasa goal of resurfacing 10 percent of its pavementseach year, following the basic philosophy thatexcellent pavements are products of periodic main-tenance even before signs of distress. To minimizedisruptions to the traveling public, much of thepavement and shoulder maintenance is performedat night and during off-peak hours.

Several state DOTs have developed total stormmanagement techniques for winter services, inte-grating and coordinating workforce activities inresponse to changing storms and traffic conditions.Snow Belt states expend 20 to 30 percent of theirmaintenance budget on winter services. Improvedtechniques, materials, equipment, and manage-ment can provide savings in lives, property, andexpenses, and minimize impacts on the environ-ment. Road weather information systems are a keyto total storm management, providing real-timeinformation about driving surface conditions.

Several DOTs are experimenting with devices tomeasure the coefficient of friction on driving sur-faces. The impact of winter maintenance chemicalson the environment is a major issue, and many stateDOTs are working with other agencies to developemergency response procedures and programs. 9

Field visits in 2000 tookTRB staff far into theU.S. hinterland—forexample, to Alaska’sDalton Highway (above),the “haul road” or “iceroad” between Fairbanksand Prudhoe Bay. Built asthe access and serviceroad for the AlaskaPipeline (below), thecompacted gravel roadfreezes solid in winter—and the speed limitremains frozen forhundreds of miles (left).

Safety

Reducing Fatalities

After slight declines in crash fatalities on the high-ways for 1997 and 1998, the nation recordedanother relatively small change. With traffic volumeever increasing, the fatality rate fell to another low—1.5 fatalities per 100 million miles driven. However,the costs of injury and death, as well as of conges-tion and associated conditions, remain dismayinglyhigh—totaling more than $175 billion per year.

Several states are implementing the AASHTOHighway Safety Strategic Plan, which has a goal ofreducing the number of deaths by 4,000 to 7,000 by2004. An NCHRP project and a pooled fund pro-vide support for guidance to states in several safetyareas. Several interested states are pilot-testing theguidelines.

The AASHTO plan also identified several mainlyshort-term research needs. With that as a base, theSafety Working Group of the National Research andTechnology Partnership Forum developed a draftagenda for short- and long-term safety research. Iffunded, the National Safety Research Agenda wouldproduce information, ideas, techniques, and meth-ods that would reduce precipitously the numbers ofhighway crashes, injuries, and fatalities.2

Pavement Marking

Removal of pavement markings, particularly in workzones, has been a safety concern for many years, butsuccessful removal techniques have been elusive.Research conducted by the University of Florida forthe Florida DOT evaluated three promising meth-ods. Ultrahigh-pressure water blasting efficientlyremoved even the most durable thermoplastic mark-ings without significant scarring of the pavementsurface. Operator skill was crucial for these results,but training provided the needed proficiency.

Preventing Drunk Driving

Legislative solutions to traffic safety problems areoften controversial and opportunities to evaluatethe solutions together are rare. Several states andthe federal government passed laws to addressdriving while intoxicated (DWI).

After the signing of the transportation appropri-ations bill for FY 2001, U.S. DOT Secretary RodneyE. Slater emphasized the provision requiring statesto adopt a standard of .08 blood alcohol content(BAC) to determine driver intoxication. States haveuntil October 1, 2003, to pass a .08 BAC “per se”law to meet the provisions for a federal incentivegrant; otherwise, 2 percent of their federal highway

construction funds will be withheld. States that donot pass a .08 BAC law by October 1, 2004, will lose4 percent of their federal highway constructionfunds; 6 percent after October 1, 2005, and 8 per-cent per year after October 1, 2006. States that lose funding in 2003 can regain it if they pass the .08 BAC law by 2007.3

According to the National Highway Traffic SafetyAdministration, a 170-pound man can consumeapproximately four drinks in an hour on an emptystomach before reaching a .08 BAC. A 137-poundwoman could drink three drinks in one hour on anempty stomach before reaching a .08 level. Studiesshow that the fatal crash risk at .08 BAC is at least 11 times that of a sober driver and that at .10 BACthe risk rises sharply to at least 29 times that of anondrinking driver.

New Mexico passed an omnibus bill tostrengthen its DWI laws and create a stronger anti-DWI environment. The bill included a lower BAClevel (from .10 to .08) and zero tolerance (.02 BAC)for those under 21 years of age; created a newaggravated DWI offense (more than .15 BAC); in-creased penalties for driving on a revoked license;increased taxes on alcoholic beverages; increasedpenalties for service to minors; implementedstatewide sobriety checkpoint blitzes; and created aDWI program fund.

An interrupted time series analysis of the effectof the omnibus bill found a 19.25 percent decreasein drunk-driving fatal crashes. Five surroundingstates concurrently experienced a 3.52 percentincrease, lending support to the hypothesis that theNew Mexico reduction was due in part to the newlegislation and enforcement programs.

Ohio passed laws for both administrativelicense suspension and vehicle sanction (i.e.,immobilizing the vehicle for up to 90 days). Eval-uation suggests that both laws are effective inreducing the occurrence of driving under theinfluence (DUI). For example, 99 percent of first-and second-time DUI offenders received licensesuspensions; recidivism rates dropped from 12.28to 5.9 percent; DUI offenses declined 60 percentfor offenders during vehicle impoundment and 56percent afterward.

Licensing

An evaluation of the Nova Scotia graduated driverlicensing (GDL) program, started in 1994, found a

102The draft agenda is available on the Internet at http://gulliver.nationalacademies.org/~R&T

3To date, 18 states and the District of Columbia have enacted.08 BAC laws (Alabama, California, Florida, Hawaii, Idaho,Illinois, Kansas, Kentucky, Maine, New Hampshire, NewMexico, North Carolina, Oregon, Texas, Utah, Vermont, Vir-ginia, and Washington); 31 states define intoxicated drivingas .10 BAC; and Massachusetts does not have an illegal perse law.

37 percent drop in crashes involving 16 year olds;currently 24 U.S. states and 6 Canadian provincesare implementing GDL programs. In Nova Scotia,the effect was consistent for each of the three years;at the same time, the crash rate for all novicedrivers declined by 19 percent. GDL is a two-stageprogram (6-month learner and 24-month newlylicensed driver phases), with several driving restric-tions during both phases—for example, supervi-sion by an experienced driver during the learningphase and a night-driving restriction from midnightto 5 a.m.

Documenting Crashes

Crash scene data collectors are under pressure towork quickly to reopen roads or lanes but still col-lect accurate, comprehensive data. The MarylandState Police have tested an electronic station sys-tem to document crashes. The device is a standardsurvey instrument that measures vertical and hor-izontal distances and angles; the physical evidenceand roadway design information are stored fordownloading and analysis.

The six-month pilot project improved the speedand efficiency of the crash investigation; reducedrelated congestion; increased accuracy (from 0.5 to0.01 inch); decreased diagramming time (from 8 or10 hours to about 2 hours per forensic map); andimproved measures for collision reconstruction.The technology appears to have the potential toimprove crash data collection and reduce time forboth on-site collection and report preparation.

Although many safety countermeasures andtechniques require long periods for evaluation, the results are often worth the investment. Negativeresults can curtail ineffective programs; positiveresults can guide decision makers and programmanagers to focus on proven safety efforts. Adopt-ing and implementing techniques with knownvalue promises significant decreases in crashes,injuries, and fatalities.

Operations

Highway Congestion

In the United States highway congestion occursdaily in large metropolitan areas and is a constantsource of frustration for millions of commuters andtravelers. Once an urban problem, congestion nowaffects all areas of the country. In 1981, 25 percentof urban highways were classified as congested; bythe mid-1990s the number had risen above 45 per-cent, with more than 4 billion hours lost to delay inthe top 70 metropolitan areas. Rural travel is grow-ing almost as rapidly.

Highway congestion is becoming a burden tothe U.S. economy, productivity, and quality of life.Since the mid-1960s, the total of urban Interstate

vehicle-miles traveled has increased three timesfaster than the construction of highway miles. A 50 percent growth in vehicle miles of travel isexpected for urban areas by 2020.

However, environmental concerns, land use, andbudget constraints make building new roads diffi-cult. Many transportation leaders are encouragingagencies to emphasize management of roadwaycapacity, and many transportation departments arefocusing on ways to operate networks of streets andhighways more efficiently, maximizing the safemovement of people and goods.

Although the United States has invested signifi-cantly in capital improvements to the transporta-tion infrastructure, the processes, personnel, andequipment for the operation of the system have notreceived the necessary funding. Inadequate num-bers of personnel, deficient training, and insuffi-cient equipment to manage and operate thehighway system have been the results.

To provide leadership and support for a newfocus on operations, FHWA recently implementeda major reorganization, establishing a core businessunit on operations. TRB, U.S. DOT, AASHTO, ITE,and other highway-related organizations and con-stituencies are cooperating in a national researchand technical partnership to identify researchissues critical to the success of the operations ini-tiative. A TRB working group is developing a strate-gic national research agenda for operations andmobility. Although still under way, this effort hasidentified the major research theme areas:

◆ Customers, customer expectations, and cus-tomer needs; 11

Demographic andeconomic trends arestraining capacity andsafety of entiretransportation system.

◆ Maximizing efficiency and minimizing con-gestion;

◆ Information needs and requirements;◆ Transportation safety;◆ Environmental impacts;◆ Intermodal interfaces and efficiency; and◆ Cross-cutting issues.

Interest in the development and use of perfor-mance measures to quantify the results of operationsactivities and improve communication with deci-sion makers and the public is increasing dramat-ically. Performance measures provide a means of focusing programs, comparing projects, commu-nicating results, and improving customer under-standing and awareness of the role of operations.

Incident Management

Incident management is one of the tools availablefor efficient and effective management of roadwaycapacity, providing a planned and coordinatedprocess to detect and remove highway traffic dis-ruptions and restore capacity as safely and asquickly as possible. Incident management pro-grams are in place in more than 50 locationsnationwide. These programs have shown thatimproving the management of incidents benefitsmotorists by reducing vehicle delays and enhanc-ing safety. These delay savings and the resultantdecreased travel times also can reduce vehicleemissions.

A comprehensive incident management effort,with service patrols and major incident responseteams, can yield benefit-cost ratios as high as 17 to 1. Some agencies are installing portable videosurveillance systems in work zones to monitorcongestion and identify incidents for more rapidclearance.

Calming Traffic

Road rage and aggressive driving are new terms thatdescribe driver dissatisfaction with congestion anddelays. Reports of aggressive driving accidents or aroad rage altercation are commonly in the news. Toremedy the problem, public agencies are imple-menting countermeasures such as enforcement tar-geted at aggressive drivers and roadway designmodifications that “calm” the traffic.

Several European countries and Australia haveused photo enforcement of red-light runners andspeeders for many years. The technology detectstraffic violations without a law enforcement officerpresent. Some U.S. communities recently haveimplemented photo enforcement, primarily for red-light running. Red-light cameras are gaining in useas evaluations show their effectiveness in deterringviolations at locations with cameras, and many cit-

izen and safety groups see them as an effectivedeterrent to red-light running.

A similar technology, photo enforcement ofspeeding violations, has met with citizen opposi-tion. A few communities, however, are planningtrial implementations.

Traffic calming is gaining popularity in the UnitedStates, typically by placing a variety of physical fea-tures within the roadway to slow drivers and encour-age acceptable behavior. Common measures includespeed humps, chicanes, chokers, small traffic circles,and others. Advocates of traffic calming measures citethe benefits of improving the safety and quality of lifein residential areas, but opponents are concernedabout increased response times for emergency vehi-cles, snow removal problems, and potential liability.

Used extensively in other countries, round-abouts are receiving considerable interest in theUnited States. The modern roundabout success-fully has replaced signalized intersections and dia-mond interchanges in several areas of the UnitedStates. When selected and designed properly,roundabouts have proved effective in reducingdelay and improving safety.

Traffic Control

Light emitting diode (LED) devices are gainingrapid introduction in traffic control products assemiconductor technology makes LEDs technicallyand financially feasible for public agencies seekingalternative illumination and reduced life-cyclecosts. Although relatively new, LED technologyalready appears in traffic signal lamps and change-able message signs. The principal benefits arereduced power consumption and improved dura-bility with solid-state design.

The flexibility of LEDs has allowed alternativedesigns for traffic control devices—for example,some communities are implementing pedestriansignals with a “countdown” timer to show pedes-trians the time for crossing; the countdown timersare gaining public support. However, since the LEDtechnology is relatively new, there are gaps ofknowledge regarding long-term durability and con-formance to color and intensity standards.

The Internet has provided a means for trafficengineers to supply a range of services to the pub-lic. For example, many agencies now feed the videofrom their surveillance cameras directly to theirwebsite to provide “real time” travel information tothe public. Other Internet applications by highwayagencies include maps and information on con-struction projects, warnings on road and weatherconditions, bridge clearance information fortrucks, contact information for reporting problems,accident records, and analysis systems.

Traffic control at highway–rail grade crossings isreceiving attention, with high-profile accidents and12

the advent of high-speed passenger rail. Some majorissues relate to interconnecting highway and rail sig-nals, preempting signals, storing vehicles betweenrail and highway intersections, and providingadequate clearance. FHWA has issued recommen-dations for traffic operations that include the devel-opment of consistent terminology and definitionsfor the rail and highway industries; a new traffic sig-nal warrant based on railroad preemption; andguidelines for evaluating and designing safe pre-emption and interconnection of highway–rail warn-ing devices and signals.

Some agencies are installing video surveillanceat highway–rail grade crossings to detect vehiclesand trains. The surveillance identifies potentialvehicle–train conflicts and facilitates the use of spe-cial timing plans to manage traffic so that the tracksare clear for the approaching train.

Some areas are changing speed limits to reflectconditions and improve speed management. Vari-able speed limits inform motorists of reasonableand safe operating speeds based on the weather andvisibility, construction or maintenance activities, orreal-time traffic speed and flow. Transportationauthorities in several European countries have usedvariable speed limits successfully to achieve con-siderable traffic flow and safety benefits.

Capacity Analysis

In December 2000, TRB released a new edition of theHighway Capacity Manual—HCM 2000—in sepa-rate metric and U.S. customary unit versions; theCD-ROM versions are scheduled for release earlythis year (see sidebar, page 32). HCM 2000 is theresult of a multiyear, multimillion dollar investmentby NCHRP, FHWA, the Transit Cooperative Research

Program, and TRB. TRB’s Committee on HighwayCapacity and Quality of Service oversaw the devel-opment of the new edition of the manual.

Although the methodologies are identical forthe metric and U.S. customary unit versions, allparameters, level-of-service thresholds, and othervalues were converted from the metric of the orig-inal research into U.S. customary unit measures.Because of approximations in conversion, analysisresults calculated using the metric version of HCM2000 may differ slightly from calculations based onthe U.S. customary version. Transportation agen-cies, therefore, should specify a measurement sys-tem for exclusive use by their employees andconsultants in conjunction with HCM 2000.

TransitA strong national economy, job growth, low infla-tion, new technology and more public investmenthave affected and benefited transit. Ridership rose4.8 percent in the first quarter of 2000 comparedwith the same period in 1999. The overall increaseof 4.5 percent for 1999 helped account for the high-est number of transit trips—9 billion—since 1960.All modes recorded higher ridership, especially bussystems serving urban areas of 50,000 to 100, 000(up 12.1 percent).

Rail Transit

Many cities are considering light rail transit systemstart-ups or expansions. Proposed full-funding fed-eral grant agreements would support projects in Baltimore, Maryland (LRT); Chicago, Illinois(Chicago Transit Authority Blue Line; METRA); 13

The NationalTransportation ResearchCenter, Knoxville,Tennessee, opened in2000; construction wasstill in progress whenTRB staff visited inspring. A public–privatepartnership of OakRidge NationalLaboratory and theUniversity of Tennessee,the center will develop“technologies for cost-effective, advancedtransportation systems.”

Denver, Colorado (Southeast Corridor LRT); Mem-phis, Tennessee (LRT); Minneapolis– St. Paul, Min-nesota (LRT); North New Jersey (Hudson-BergenLRT); Pittsburgh, Pennsylvania (LRT); Portland,Oregon (LRT); Salt Lake City, Utah (LRT); Seattle,Washington (Central Link LRT); and Washington,D.C. (Metrorail).

Other cities recently have expanded rail service;these include the Los Angeles–Hollywood exten-sion, Seattle Sounder, and the Dallas–Ft. WorthTrinity Railway Express. Yet others are studying thepossibility of expansion, like Anchorage, Alaska;Charlotte, North Carolina; Houston, Texas; Juneau,Alaska; Nashville, Tennessee; Omaha, Nebraska;Phoenix, Arizona; and Portland, Maine.

Federal TEA-21 funds seed much of this activ-ity; some cities have voted to support new rail tran-sit (e.g., Denver, Colorado; and Phoenix, Arizona)but voters were hesitant in other areas (e.g., Miami,Florida; Kansas City, Missouri; Norfolk, Virginia;

Columbus, Ohio; and San Antonio, Texas). In oneinstance, the Village of Rosemont, Illinois, discon-tinued a project, the Personal Rapid Transit Systemfunded by the Chicago Regional TransportationAuthority.

Bus Transit

Bus systems are replacing aging rolling stock withlow-floor, high-tech vehicles and are enhancingcustomer information systems. Energy issues aretaking on a higher profile with changes in thepetroleum and natural gas markets. Oil now costsabout $30 a barrel and shortages of natural gas arepredicted for this winter. In addition, operators areattempting to shift to alternative fuels, improvedtechnology, and hybrid propulsion systems to meetenvironmental goals—all of which should lead tosubstantial energy savings.

Promising developments for buses include thenew express-bus service, or bus rapid transit (BRT),14

HCM 2000 HighlightsPresenting state-of-the-art improvements incapacity analysis methods, the newest HighwayCapacity Manual (HCM 2000)—released inDecember—has added chapters on interchangeramp terminals and on the appropriate use ofsimulation models; it also has expanded severalchapters with instructions on the planning appli-cations of the information.

The HCM 2000 CD-ROMs include not onlythe text and exhibits in the print editions, butalso interactive tutorials, narrated sample prob-lems, explanatory videos, navigation tools, andhyperlinks from section to section.

Other highlights of the HCM 2000 print andelectronic products include

◆ More than 1,100 pages of information in alooseleaf binder, including ready-to-copy-and-use worksheets for analyzing field data;

◆ First edition with analyses in metric units;

◆ Edition in U.S. customary units also available;

◆ Multimedia CD-ROM in both metricand U.S. customary versions in a single,

two-disc package;

◆ CD-ROM compatibility withuser-installed capacity analysis soft-ware from independent vendors;

◆ Extended scope of contentbeyond individual points (signals) and

segments (freeways) to facility, corridor,and areawide analyses;

◆ Coverage of more facility types and conges-tion levels; and

◆ Description of the role of simulation models.

See order form on page 56 for further information on HCM 2000.

under study in major cities; Los Angeles has initi-ated a modified BRT system. The national parkshave become a significant potential customer fortransit service, with record-breaking numbers ofvisitors each summer at Yosemite, Grand Canyon,Yellowstone, and Zion national parks. Large-scalebus and LRT systems will ameliorate park access aswell as internal circulation.

Agenda for Transit

ITS technologies are improving customer informa-tion systems and the management of equipmentand operations. A new national traveler informa-tion system would consolidate 300 local numbersinto one number, allowing a customer to dial 511to receive multimodal information for the area.

Transit is working to address several concernsthat require proactive management, funds, and pub-lic official support. For example, the lease, purchase,or shared use of freight track by commuter rail orLRT—as in Atlanta, Georgia; Orlando, Florida; andSeattle, Washington—may create conflicts with localrail freight operators. Aging transit infrastructure(structures, rolling stock, escalators, and electricalsystems) requires $16 billion annually for mainte-nance and upgrades. Transit human resources mustcope with retirements and private-sector competi-tion for employees. Moreover, transit customers areaging and may require different services; transit sys-tems will have to fill the special needs of the baby-boom generation of senior citizens.

Conditions are favorable for improving transit,preserving transit investments, and meeting newrequirements.

Freight IntermodalismAssessing Readiness

In February 2000, TRB hosted a national conferencein Long Beach, California, on Global IntermodalFreight: State of Readiness for the 21st Century. Par-ticipants assessed how the nation has addressed thefindings and recommendations of the National Com-mission on Intermodal Transportation.

The U.S. DOT highlighted the work of its agen-cies in improving intermodal connections. Ship-pers presented their needs and requirements, andcarriers discussed service and facility advances.State and local agencies showcased projects and ini-tiatives, focusing on public–private partnershipsand financing options. The proceedings of the con-ference will be published later this year.

Intermodal Projects

Intermodal connections for freight range from roadand rail access routes to state-of-the-art cargo-handling equipment and communications tech-

nology that maximize throughput and minimizetransloading time and costs. Landside infrastruc-ture planning and investments must ensure thatfreight and passengers have sufficient access toports, waterways, and airports to sustain currentand projected traffic and operations.

State and local agencies have undertaken numer-ous intermodal projects, some in partnership withthe private sector. In July 2000, New Jersey brokeground on the “Portway International-IntermodalCorridor” designed to improve freight movement at the airport–seaport complex in Newark andElizabeth.

In Houston, Burlington Northern Santa Fe hasintroduced direct intermodal container service toBarbours Cut Terminal. With support from theHouston-Galveston Area Council and the TexasDOT, the Houston Port Authority used matchingfunds to build the facility, which will reduce truckemissions and congestion in the region.

In Pennsylvania, Norfolk Southern opened thenew Rutherford Intermodal Terminal near Harris-burg. Originally a Reading Railroad switching yard,the new terminal is at the junction of six routes andwill serve intermodal traffic to and from the northand south (primarily domestic freight) and fromthe east and west (primarily imports from Asia onthe landbridge route across the United States).

In Illinois, a portion of the Joliet Arsenal wastransferred from the ownership of the U.S. Army toa development authority for the Deer Run Indus-trial Park. Burlington Northern and Santa Fe Rail-way Co. will build a full-service intermodalterminal, container railyard, and automotive facil-ity adjacent to the industrial park. Illinois DOT willprovide an estimated $50 million to upgrade arearoads, bridges, and other project components.

Another former military facility, RickenbackerInternational Airport in Columbus, Ohio, is addingtwo new cargo terminals, with hopes of anexpanded role as an international distribution cen-ter. In Denver, Colorado, backers are promoting theTransport project at Front Range Airport, whereaccess to Union Pacific rail lines and interstatetruck routes offers the potential for a multimodalproject similar to the Alliance project near Dallas,Texas.

Many state and local officials are seeking sharedresponsibility—cooperation, coordination, timelydecision making, and action—to ensure an inte-grated multimodal transportation system that canmeet the current and future needs of users and theexpectations of the public.

E-Commerce

E-commerce is challenging public-sector plannersand decision makers at all levels as well as military 15

transportation and logistics personnel and the com-mercial freight transportation and logistics. De-mand is increasing for fast, reliable tracking offreight shipments across all transport modes. Real-time information on shipments from origin to des-tination, both domestically and internationally, isessential for the new logistics processes and formarket competitiveness.

The impact of e-commerce on personal travel isalso an issue for public-sector planners.

AviationDemand and Capacity

Demand encroaches on—and at times exceeds—capacity in many critical areas, with governmentand industry under pressure to reconcile the twoforces. The typical airline passenger perceives thatoverall service has deteriorated, despite industryefforts to respond to last year’s record delays andcancellations and to the ensuing congressionalattention and criticism.

Several factors may change or impede projectedlevels of demand for the U.S. aviation infrastruc-ture, including

◆ The constraints on airfield capacity;◆ The effects of compliance with noise, air

quality, and other environmental complications;◆ The role of regional jet service; and◆ The effect of changes such as code sharing,

mergers, and new large aircraft; the spread of frac-tional ownership beyond business aviation; thedemise of privately owned airports; and restrictionson access to major hubs.

Airline Mergers

A year ago, mergers seemed likely to continue.Today, some of the proposed mergers between majorcarriers (e.g., United–US Airways and American-Northwest) are coming under scrutiny. Regardless ofthe business advantages or disadvantages of mergers,real or perceived problems of quality and depend-ability of service are making the public, and its con-gressional representatives, cautious about mergers.Add the potentially monopolistic results of the merg-ers to concerns about quality of service and to thedifficulties engendered by weather, air traffic control,airport capacity, and airline labor difficulties, andboth Congress and the public are wary.

Regional airlines have been growing at faster ratesthan the major airlines and this is expected to con-tinue. The mergers of regional airlines with majorairlines have been less problematic than mergersbetween majors. This growth, plus the increasedcosts of pilot recruiting and training, has keptregional airline personnel departments busy. Region-

als have been expanding rapidly and also supplyingpilots to major airlines. Expansion at all levels, alongwith revised crew rest regulations, has raised con-cern about the future availability of qualified pilots.

Aircraft: Large or Small?

Commercial aviation presents some seemingly con-tradictory trends that some have termed comple-mentary. The capacity of individual airliners (e.g.,the Airbus A3XX and Boeing supersized 747) isincreasing, yet simultaneously the industry is mov-ing to smaller aircraft with higher frequencies ofservice (e.g., smaller regional jets). Both trendsmeet changing demands, and both present majorchallenges to the infrastructure.

Other Pressures

The rapid growth of the air cargo industry in recentyears continues unabated—with implications fordemand on aircraft, airspace, and terminals.

Environmental policy can have major impactson the aviation industry. Increased restrictions onaircraft and equipment noise and emissions canaffect operating and business costs. Restrictionscould have an impact on all aspects of commercialand general aviation, such as air carriers, cargo car-riers, and business aircraft.

The enactment of the Wendell Ford AviationInvestment and Reform Act of the 21st Century(FAIR-21) was welcome, but the ultimate impactremains to be seen (see sidebar, page 35).

Business Aviation

Business aviation has been booming along with theU.S. economy and the boom is expected to con-tinue. This optimistic forecast, however, stipulatesno dramatic regulatory changes but continuedproduct improvement and a positive impact fromthe availability of fractional ownership options.

Business aviation and general aviation are likelyto benefit from the new advanced aircraft, some ofwhich are already available; others are in thepipeline. The new aircraft promise major advancesin speed, efficiency, ease of operation, and safety—as well as lower initial and operating costs for givenlevels of performance.

RailU.S. railroads had a record-breaking 1999, with fourmeasures of traffic higher than ever before in themodern era. Class I revenue ton-miles rose to 1.43trillion, a 4.1 percent increase from 1998. Tons orig-inated also rose 4.1 percent, to 1.72 billion, and car-loads originated rose 5.4 percent to 27.1 million.Intermodal volume rose to 9.04 million trailers andcontainers in 1999, a 3.1 percent increase over 1998.16

Interpreting Aviation Investment ReformsAccording to a Congressional staff inter-pretation, the Wendell Ford AviationInvestment and Reform Act of the 21stCentury (FAIR-21) offers the followingbenefits:

◆ Safety

– Provides more money for runwaysand equipment that will enhancesafety;

– Ensures Federal Aviation Adminis-tration (FAA) funding to hire andretain air traffic controllers, main-tenance technicians, and safetyinspectors;

– Increases FAA facilities and equip-ment funding to modernize the airtraffic control system;

– Authorizes funding to improve thetraining of airport screeners;

– Designates wind-sheer detectionand runway incursion preventiondevices as eligible for AirportImprovement Program (AIP)funding;

– Requires cargo aircraft to installcollision avoidance devices;

– Provides whistleblower protectionfor FAA and airline employeeswho reveal safety problems;and

– Ensures funding to raise safetystandards at small airports.

◆ Competition

– Provides substantially more fund-ing to build terminals, gates, andother infrastructure to allow addi-tional competition;

– Abolishes slots at Chicago andNew York to enhance competi-tion; and

– Requires medium and large hubairports to file a plan for the useof resources to spur competition.

◆ Environment

– Increases the money available fornoise abatement projects;

– Creates a new environmentalstreamlining program similar toTEA-21;

– Establishes a regulatory regime toquiet air tours over nationalparks; and

– Funds a program to encourageairports to use low-emissionvehicles.

◆ Small Airports

– Triples the amount of the mini-mum entitlement for nonhub air-ports to $1.5 million;

– For the first time, provides entitle-ment money for general aviationairports;

– Triples the small airport fund;

– Authorizes a contract tower costsharing program so that small air-ports can receive the benefits ofair traffic control services;

– Creates a loan guarantee programto help airlines buy regional jets toserve small airports; and

– Creates a new funding program to help small underserved air-ports market and promoteservices.

◆ Large Airports

– Triples the amount of annual pas-senger entitlement for primaryairports;

– Lifts the $22 million cap on theamount of annual entitlementmoney that a large airport canreceive;

– More than doubles the amount of entitlement money for cargoairports;

– Increases the discretionary fundso that FAA can fund high-priorityairport improvement projects;

– Protects funding for letters ofintent (LOIs) and makes clear thatit is not necessary for an airportto assess a passenger facilitycharge (PFC) to qualify for an LOI; and

– Raises the cap on PFCs so thatairports may proceed withimprovement projects that can-not be funded through the federalAIP.

◆ Pilots and Passengers

– Reforms the management of FAA’sair traffic control system, creatingan oversight board similar to theone established in the recentreform of the Internal RevenueService;

– Strengthens the provisions of theAviation Disaster Family Assis-tance Act, created after the ValuJetand TWA 800 accidents;

– For the first time, explicitly pro-hibits racial discrimination in airtravel;

– Allows pilots to appeal an emer-gency license revocations to thesafety board; and

– Ensures that taxes paid by pilotsand passengers will fund neededsafety, security, and infrastructure.

Financial Overview

The extremely competitive environment, however,prevented rail revenues from keeping pace with traf-fic. In 1999, Class I operating revenue rose 1.1 per-cent, but operating expenses rose 0.3 percent.Despite an increase in net income to $3.0 billion in1999 from $2.8 billion in 1998, the industry’s rate ofreturn on net investment fell from 7.0 percent in1998 to 6.9 percent in 1999. Meanwhile, the indus-try’s cost of capital rose in 1999 from 10.7 percent to10.8 percent.

With the slightly greater gap between return oninvestment and cost of capital in 1999, the railindustry took a small step away from its long-sought goal of achieving revenue adequacy. Rev-enue per ton-mile, a useful surrogate for railroadrates, continued a steady, nearly 20-year decline in1999, falling to 2.28 cents—a 28 percent declinesince 1981, the equivalent of a 57 percent declinewhen adjusted for inflation.

Railroads invested heavily in equipment, road-way, and structures in 1999, with capital invest-ments totaling $6.6 billion—the second highestever, since totaling $7.2 billion in 1998. Railroadsare investing more revenue in capital expendituresthan any other major industrial sector.

Rail Mergers

In recent years, mergers and acquisitions to enhanceproductivity and service among the dwindling num-ber of North American Class 1 railroads haveattracted attention and raised questions about howfar the trend would reach. In 1999, CSX Corporationand Norfolk Southern completed acquisition of Con-rail, approved by the Surface Transportation Board(STB) in 1998. The two carriers took over most ofConrail’s operations on June 1, 1999, while Conrailcontinues to operate three “shared asset areas.” Inaddition, Canadian National Railway (CN) com-

pleted its acquisition of Illinois Central (IC) as ofJuly 1, 1999.

However, noting the service disruptions thathave followed all recent mergers (except for CN-IC), STB chose not to approve a proposed merger ofBurlington Northern Santa Fe and CN. Instead, inMarch 2000, STB issued a 15-month moratoriumon major railroad merger proposals. The morato-rium allows the STB to reexamine and revise its railmerger policies and procedures in the context ofcurrent industry conditions. A formal rulemakingon modifications to the regulations is scheduled forcompletion by June 11, 2001.

Local Rail Freight

The number of common-carrier freight railroads inthe United States remained relatively steady in 1999at approximately 560. Many communities dependon regional and shortline railroads, some of whichreceive state support.

States sponsoring programs to maintain short-line railroads base the investments on the benefitsto local and state economies from the industriesand businesses that rely on freight service. Manystates fund infrastructure improvements—and insome cases, rail line purchases—through grantsand loans, but many have difficulty keeping upwith the needs for improvements, particularly inproviding capacity for 286,000-lb cars.

Rail Passenger Developments

Thirty-two states are investing in improvements tointercity rail passenger services. In partnership withAmtrak, states are investing in the infrastructureand equipment for incremental high-speed ser-vices. For example, since 1998, the state of Califor-nia has committed a total of $466 million for capitalimprovements to railroad infrastructure to improveservice, add capacity, and reduce trip times for pas-senger services. Other states making significantinvestments include Washington, New York, Penn-sylvania, North Carolina, Virginia, and the statessupporting the Midwest Regional Rail Initiative.

However, joint operations with the freight rail-roads at or near capacity in many of these corridorsrequire both operational and technological solu-tions. Several demonstrations of new train controltechnology may help to improve capacity utilization.

For example, the Michigan Incremental TrainControl System, the result of a partnership amongFRA, Michigan DOT, Amtrak, and Harmon In-dustries, is operating on a 20-mile line in revenueservice. Testing at 90 mph is expected to beginsoon. The North American Joint Positive TrainControl Initiative, sponsored by FRA, the IllinoisDOT, and the Association of American Railroads, ismoving on an ambitious schedule towards comple-tion by the end of 2002.18

Freight rail drawing oiltank cars past DenaliNational Park, Alaska.For U.S. railroads, 1999was a record-breakingyear. The extremelycompetitiveenvironment in whichrailroads operate,however, prevented railrevenue growth fromkeeping pace withgrowth in traffic.

The major development in the introduction ofhigh-speed rail comes with Amtrak’s introductionof the Acela trains in the Northeast Corridor. Withhigher-quality service in terms of comfort and con-venience, Amtrak is pinning its financial hopes onthe success of this service.

Commuter rail growth in many areas of thecountry has increased local and regional serviceswithout the construction of new infrastructure. Forexample, the Atlanta, Georgia, area has an ambi-tious 11-year rail plan, approved by the GeorgiaRegional Transportation Authority and the GeorgiaRail Passenger Association, to relieve highway con-gestion. When completed, the railway will connect70 percent of the state’s population.

Grade Crossings

Grade crossing issues are paramount concerns forsafety and mobility in many areas. Several states areexploring low-cost technology to improve safety atcrossings, particularly on lines with increasing vol-umes of passenger trains. Many areas also faceincreased rail traffic volumes that tie up crossingsand cause substantial delays for street and highwaytraffic.

Ohio DOT has launched a major rail crossingsafety initiative—a planned 10-year, $200 millionprogram—drawing on federal, state, and industrysources to address safety, mobility, and economicdevelopment concerns.

Marine TransportationMarine transportation received increased attentionin the past year, with the formation of the MarineTransportation System National Advisory Council,a private-sector and stakeholder counterpart to thefederal interagency committee on the MarineTransportation System (MTS), formerly the inter-agency committee on Waterways Management. Aseries of regional dialogue sessions on the MTS ini-tiative complemented meetings of the two groups.

The U.S. Army Corps of Engineers (USACE)also conducted regional dialogues on “America’sWater Resources Challenges for the 21st Century,”encompassing water transportation infrastructureas well as water systems, water treatment, floodprotection, and multipurpose projects. Among themajor topics of discussion were environmentalissues—particularly air emissions from marine andport operations—and safety issues, as the numberand type of users on the MTS increases. TRB andthe Marine Board (MB) are working on severalMTS-related initiatives, including efforts to quan-tify and measure the system’s capacity performanceand to encourage research and innovation.

Channel Deepening

Channel deepening projects are a major MTS com-ponent, as ports seek to accommodate newer andlarger commercial cargo ships. For example, thePort of Houston Authority is issuing more than $20 million in bonds for widening and deepeningthe Houston Ship Channel by 2003. The projectwill ensure safe passage for larger ocean vessels andwill include additional lanes for barges on bothsides.

Near the end of 2000 the U.S. Congress passedtwo important pieces of legislation. In October, Pres-ident Bill Clinton signed the Energy and WaterAppropriations Bill, which includes funding forports—Oakland, California, for example, will re-ceive $14 million for harbor deepening operations—and for maintenance dredging. Final passage of theWater Resources and Development Act 2000 came inNovember; it authorizes deepening and modificationof federal navigation projects at ports such as NewYork–New Jersey and Los Angeles. The legislativeactions also gave the go-ahead and funding for proj-ects at Wilmington, North Carolina; Baltimore,Maryland; Jacksonville, Florida; Gulfport, Missis-sippi; and Brunswick, Georgia; and for maintenancedredging on the Great Lakes–Seaway system.

USACE has contracted with the National Re-search Council (NRC) to explore the process fordetermining “environmental windows”—the timeperiod during which the ecological impacts ofdredging will be at a minimum, as determined byregulatory agencies. Early this year, TRB-MB andthe NRC Ocean Studies Board will convene a work-shop of experts to establish a dialogue on

◆ The degree to which environmental windowsare based on scientific evidence;

◆ The current level of consistency in the regu-latory process for establishing these windows; and

◆ The institutional process utilized by regula-tory agencies to create these windows.

Port Projects and Services

States, ports, and private entities are considering avariety of new projects and initiatives. The PortAuthority of New York and New Jersey (PANYNJ)is contemplating a Port Inland Distribution Net-work, a system of satellite facilities in New York,New Jersey, Pennsylvania, Connecticut, and Mass-achusetts for the PANYNJ’s container operations. Astudy by the New York City Economic Develop-ment Corporation has concluded that two freight-rail tunnels under New York Harbor could beself-financing, linking points east of the HudsonRiver with the northern New Jersey mainline trackof CSX and Norfolk Southern. 19

There have been considerable discussions andanalyses of expanding coastal waterborne services;studies by the U.S. Department of Defense and theMaritime Administration support a coastal networkof low-cost domestic terminals servicing a fleet ofhigh-speed cargo ferries on established coastalroutes. Proponents maintain that such serviceswould decrease the number of trucks on congestedInterstate systems, improving highway safety andhelping the environment. Suggested services in-clude a barge feeder route between Port Elizabeth,New Jersey, and the Connecticut port of NewHaven to alleviate congestion on the I-95 corridor.

Other concepts studied in the past are now com-ing on line, such as FastShip’s plans to establish aterminal in Philadelphia for a high-speed 7-day ser-vice between the United States and Europe, using asimilar terminal in Cherbourg, France. While manyestablished ports look for ways to market theirfacilities, Rhode Island is developing a new port atDavisville and Quonset Point, a former U.S. Navybase.

In a November 2000 statewide referendum,Alabama voted to approve a constitutional amend-ment to provide $100 million for port investmentsduring the next five years. The projects will includea new container facility connected to a rail inter-modal facility, a forest products warehouse, a metalproducts terminal, upgraded bulk facilities, newrailway tracks, and open storage. Ballot measurerequires that more than one-fourth of all new oiland gas royalties go to a fund for the new port facil-

ities as well as for road and bridge improvements.A study by the Alabama Commerce Commissionhad found that the Alabama State Docks and thePort of Mobile could play bigger roles in the state’seconomic development efforts.

Inland Waterways

On the inland waterways, Inland Rivers, Ports &Terminals, Inc., an association of inland waterwayport and terminal operators, organized a trip inearly 2000 to investigate inland port developmentsand barge technologies in Europe. The Port of Pitts-burgh Commission, with a $400,000 grant underTEA-21 and $100,000 from its own operating bud-get, is undertaking a SmartBarge initiative to pro-mote waterway exports through technologyinnovation.

USACE faces increased pressure over plans toexpand locks on the Upper Mississippi and Illinoisrivers. The Pentagon requested that a National Acad-emies study panel—assembled by TRB and the WaterScience and Technology Board—evaluate the Corps’Upper Mississippi River–Illinois Waterway Naviga-tion System Feasibility Study by December 2000.

A major debate concerns the breaching of damsto restore depleted salmon runs on the Columbia–Snake River system. The dams provide hydroelectricpower and irrigation to agricultural lands and are afactor in the 465-mile marine transportation net-work of ports and tug-and-barge operations for bulkand container shipments to coastal ports. Althoughseveral studies have examined the economic andenvironmental impacts, a near-term resolution is notlikely.

Ferry Renaissance

Ferry transportation garnered considerable atten-tion in the past year, with the U.S. DOT hosting anational ferry conference in Seattle, Washington.Major themes included regulatory and safety issues,expansion of ferry services, ferry operations, newtechnology, and financing.

The National Ferry Study, authorized underTEA-21 and scheduled for completion before theend of 2000, was one of several ferry topics featuredin the July–August 2000 ferry theme issue of TRNews. The special issue reflected the efforts andinterest of TRB and MB to increase awareness of themany aspects of ferry transportation—both pas-senger and freight—and the desire to integrate fer-ries into regional and national transportationsystems. Several new ferry services, terminal im-provements, and vessel purchases have resultedfrom the TEA-21 legislation.

Active heavy ferry trafficin harbor, Juneau, Alaska.Ferry transportationgained attention in thepast year. The NationalFerry Study, authorizedunder TEA-21, wascompleted at the end of2000.