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Warning signals on infrastructure investment
March/April 2002
Development of the global economy has done much to underline importance of building and maintaining an efficient transport system. Without it, goods and commodities not only rise in price but do not reach their markets on time - and in a highly competitive world, that is the quickest way to lose contracts.
In the US where international cargo movements are worth $US 1.5 trillion annually, any hold-ups in the system can be costly. The US Transportation Research Board (a branch of the National Research Council) has just completed a major review of the country's long-term transport problems and the future looks far from assured.
While many of the problems are similar to those facing countries like Australia, the sheer scale adds significantly to the complexities. Nonetheless, the Board's report, "Critical Issues in Transportation 2002" provides a useful perspective. TransScan has already covered some of the issues - like the difficulties US transportation agencies are having in attracting staff with sufficient skills.
According to the report, the problem is now being compounded by the fact that the transport industry itself is having similar problems. At the same time, university enrolments for engineering and other technical programs are on the decline. The potential impact of such shortages are compounded when it is realised that much of the future capacity of the transport system is likely to depend on the efficient implementation of ITS (intelligent transport systems).
In fact both the board's report and a separate one commissioned by the US Department of Transportation, show the US will be putting heavy reliance on ITS to reduce accidents, increase road capacity, improve transport efficiency - and create a more secure network post-September 11.
The board's report makes much of the fact that, compared to other sectors of the economy, research into transport issues is considerably under funded.
While transportation represents 11% of the GDP (roughly equivalent to food and health care) it attracts only a fraction of the research funds. (Health care R&D is ten times as high.) Adding to the problem, spending on transport system infrastructure is now falling well below that needed to maintain it.
