t is no secret world economies need to recover after the global COVID-19 pandemic and the collateral devastation caused by the numerous lockdowns. How and where each nation places its priorities to spur such a recovery remains uncertain.
In the United States, the challenges to create a sustainable economic expansion, restore or replace jobs, and to meet global market competitors will most certainly flow through a crucial commitment to transportation related infrastructure investments. Construction Industry Round Table’s (CIRT) Q3/2020 Sentiment Index survey shows 73% of its members anticipate the U.S. recovery will be faster or on-par with other countries provided the design and construction industry plays a role.
An APCO Insight Survey, commissioned by CIRT, conducted during the first week of September 2020 found that the majority of the general U.S. public (58%)—and particularly the rural communities (64%)—agreed that they are affected by “outdated, crumbling or lack of infrastructure.” For solutions, the public largely looked to the government—specifically state (72%) and federal government (70%)—as most responsible for delivering quality infrastructure.
Long-term transportation spending can be leveraged and multiplied throughout the economy if expenditures are smartly targeted to create meaningful projects in all market sectors, communities, and business centers. Not surprisingly, the APCO survey found that 62% of the U.S. public believe such investments to be of importance or very high importance.
The U.S. transportation market has often served as a “laboratory” for innovative solutions related to design and construction methods, means, and technologies. Moreover, it has served as a testing ground for policy initiatives—such as streamlining regulations, One Federal Decision Point responsibility, concurrent environmental statement reports, and wide-spread use of Design/Build contracting, etc.—and alternative funding mechanisms and/or sources—including dedicated trust funds, tolling, mileage usage taxes, bonds, and infrastructure banks.
In addition, the U.S. can learn and apply policies from other countries, such as extensive application of standard Public-Private Partnership (PPP) procedures, capital budgeting, and expanded use of private equity funding mechanisms.
By combining these lessons with key elements from its own experiences, the U.S. can create a successful formula that should include:
Allocation of Resources: Bi-partisan political discipline must prioritize focused spending with an innovative commitment to transportation infrastructure expenditures, bringing the greatest return for the largest segment of the U.S. public and communities. The same APCO survey identified overwhelming support (87% agree) that “funds collected specifically for transportation, should be spent on those precise stated needs.”
Reliance on the Private Sector: Governments should rely on the private sector to provide the expertise, skills, and ingenuity necessary to plan, design, and construct infrastructure projects. The APCO survey discovered that more needs to be done to educate the U.S. public on the indispensable role private sector companies and staff play with respect to delivering critical infrastructure (only 36% of the public fully appreciated this aspect or role).
Efficient Processes: Streamlining steps and One Decision Point need to be codified to reduce and coordinate redundant, conflicting, inefficient, and competing jurisdictional regulations. Permanent procedural changes like these can have a major impact possibly as much (5.0%) or more on the timely completion and cost of infrastructure projects. CIRT Sentiment Index Report (4th Qtr./2018) found with respect to “streamlining” some of its members have seen cost savings of approximately (5.10%) composite weighted average and time savings at (5.35%).
Alternative Financing Approaches: As we witnessed during the pandemic an “all hands-on deck” attitude brought together public and private assets/abilities to achieve seemingly unimagined outcomes in record time. The same is essential when amassing the $1.5-$2.0 trillion being suggested in the U.S. for infrastructure. The combined allocation of public sector dollars (federal, state, and local) along with alternative financing models that tap into vast amounts of private sector equity can achieve the goal of renewing the U.S.
Expanded bonding levels, amounts, and uses, PPP financial models, and continue use of limited “user” taxes should be authorized without arbitrary limits. Combined with private equity alternatives, this would usher in a paradigm shift, seen in other countries, creating a sustainable funding mechanism for the future. While still a relatively new concept in the U.S., (51%) of the American public are open to alternative funding approaches as identified by the APCO Insight survey.
In the past, transportation expenditures in the U.S. have been widely embraced in a non-divisive manner. Cooperation and mutual interest around these types of infrastructure investments on land, sea, and air can achieve sustainable long-term positive results.
More importantly, the public seems to understand this critical role or aspect of transportation spending with respect to rebooting or restoring jobs and a robust economy. The APCO Insight Survey found that a stunning (61%) saw funding of transportation infrastructure, etc. was “most vital” or vital even in the face of other potential budgetary reductions or contractions.
The road ahead needs bridges, tunnels, locks, rail, and ports, for the world’s or America’s societal and economic health.
a global affairs media network
Revitalizing Transport Infrastructure for the Post-COVID-19 World
November 12, 2020
Our global transport infrastructure needs innovative solutions and funding mechanisms to meet the challenges we will face in the post-COVID-19 world.
I
t is no secret world economies need to recover after the global COVID-19 pandemic and the collateral devastation caused by the numerous lockdowns. How and where each nation places its priorities to spur such a recovery remains uncertain.
In the United States, the challenges to create a sustainable economic expansion, restore or replace jobs, and to meet global market competitors will most certainly flow through a crucial commitment to transportation related infrastructure investments. Construction Industry Round Table’s (CIRT) Q3/2020 Sentiment Index survey shows 73% of its members anticipate the U.S. recovery will be faster or on-par with other countries provided the design and construction industry plays a role.
An APCO Insight Survey, commissioned by CIRT, conducted during the first week of September 2020 found that the majority of the general U.S. public (58%)—and particularly the rural communities (64%)—agreed that they are affected by “outdated, crumbling or lack of infrastructure.” For solutions, the public largely looked to the government—specifically state (72%) and federal government (70%)—as most responsible for delivering quality infrastructure.
Long-term transportation spending can be leveraged and multiplied throughout the economy if expenditures are smartly targeted to create meaningful projects in all market sectors, communities, and business centers. Not surprisingly, the APCO survey found that 62% of the U.S. public believe such investments to be of importance or very high importance.
The U.S. transportation market has often served as a “laboratory” for innovative solutions related to design and construction methods, means, and technologies. Moreover, it has served as a testing ground for policy initiatives—such as streamlining regulations, One Federal Decision Point responsibility, concurrent environmental statement reports, and wide-spread use of Design/Build contracting, etc.—and alternative funding mechanisms and/or sources—including dedicated trust funds, tolling, mileage usage taxes, bonds, and infrastructure banks.
In addition, the U.S. can learn and apply policies from other countries, such as extensive application of standard Public-Private Partnership (PPP) procedures, capital budgeting, and expanded use of private equity funding mechanisms.
By combining these lessons with key elements from its own experiences, the U.S. can create a successful formula that should include:
Allocation of Resources: Bi-partisan political discipline must prioritize focused spending with an innovative commitment to transportation infrastructure expenditures, bringing the greatest return for the largest segment of the U.S. public and communities. The same APCO survey identified overwhelming support (87% agree) that “funds collected specifically for transportation, should be spent on those precise stated needs.”
Reliance on the Private Sector: Governments should rely on the private sector to provide the expertise, skills, and ingenuity necessary to plan, design, and construct infrastructure projects. The APCO survey discovered that more needs to be done to educate the U.S. public on the indispensable role private sector companies and staff play with respect to delivering critical infrastructure (only 36% of the public fully appreciated this aspect or role).
Efficient Processes: Streamlining steps and One Decision Point need to be codified to reduce and coordinate redundant, conflicting, inefficient, and competing jurisdictional regulations. Permanent procedural changes like these can have a major impact possibly as much (5.0%) or more on the timely completion and cost of infrastructure projects. CIRT Sentiment Index Report (4th Qtr./2018) found with respect to “streamlining” some of its members have seen cost savings of approximately (5.10%) composite weighted average and time savings at (5.35%).
Alternative Financing Approaches: As we witnessed during the pandemic an “all hands-on deck” attitude brought together public and private assets/abilities to achieve seemingly unimagined outcomes in record time. The same is essential when amassing the $1.5-$2.0 trillion being suggested in the U.S. for infrastructure. The combined allocation of public sector dollars (federal, state, and local) along with alternative financing models that tap into vast amounts of private sector equity can achieve the goal of renewing the U.S.
Expanded bonding levels, amounts, and uses, PPP financial models, and continue use of limited “user” taxes should be authorized without arbitrary limits. Combined with private equity alternatives, this would usher in a paradigm shift, seen in other countries, creating a sustainable funding mechanism for the future. While still a relatively new concept in the U.S., (51%) of the American public are open to alternative funding approaches as identified by the APCO Insight survey.
In the past, transportation expenditures in the U.S. have been widely embraced in a non-divisive manner. Cooperation and mutual interest around these types of infrastructure investments on land, sea, and air can achieve sustainable long-term positive results.
More importantly, the public seems to understand this critical role or aspect of transportation spending with respect to rebooting or restoring jobs and a robust economy. The APCO Insight Survey found that a stunning (61%) saw funding of transportation infrastructure, etc. was “most vital” or vital even in the face of other potential budgetary reductions or contractions.
The road ahead needs bridges, tunnels, locks, rail, and ports, for the world’s or America’s societal and economic health.
