Jan-Feb 2011 TB by ARTBA

The official publication of the American Road & Transportation Builders Association

January-February 2011 www.artba.org

2011 ARTBA Federal Issues Program & Transportation Construction Coalition Fly-in

57 33 Ce nt ra Vi l H sit al us l • ins Bo ide ot H

The Four #1 brands For road consTrucTion and mineral processing – From a single source.

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The market-leading brands Wirtgen, Vögele, Hamm and Kleemann offer strong technologies for road construction and for the mining and processing of mineral raw materials. Wirtgen America provides best-in-class, professional consulting and customer service. We are “Close to our customers”. www.wirtgen-group.com Wirtgen America 6030 Dana Way · Antioch TN 37013 Telephone: 615-501-0600 · Fax: 615-501-0691 www.wirtgenamerica.com

The official publication of the American Road & Transportation Builders Association

2011 ARTBA Federal Issues Program & Transportation Construction Coalition Fly-In

VOL. 23, NO. 1 JANUARY-FEBRUARY 2011

features

16 High Speed Rail: Consider the Underground Vincent Jue, Soilmec North America

19 Public-Private Partnerships: Lessons from Europe

Robert Bain, RBconsult

23 Finding Competitive Advantage in Adversity: Part Two

Another in a Series on Innovation

26 Glimpses of Surface Transportation Reauthorization

Proposal Emerge in FY 2012 Obama Budget 28 The Story Behind a Decade of Market Insights from Transportation Contractors Alison Premo Black, ARTBA

columns

6 From the Chairman 10 President’s Desk 11 Editor’s Note 15 ARTBA Foundation News 31 Product of the Month 34 ARTBA News 36 AEM Corner 38 Index to Advertisers

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TransportationBuilder

January-February 2011

Transportation Builder® (TB) is the official publication of the American Road & Transportation Builders Association, a federation whose primary goal is to aggressively grow and protect transportation infrastructure investment to meet the public and business demand for safe and efficient travel. In support of this mission, ARTBA also provides programs and services designed to give its members a global competitive edge. As the only national publication specifically geared toward transportation development professionals, TB represents the primary source of business, legislative and regulatory news critical to the success and future of the transportation construction industry. Publisher: T. Peter Ruane, transportationbuilder@artba.org Editorial Director: Matt Jeanneret, mjeanneret@artba.org Editor: Jaime Mahoney, jmahoney@artba.org Contributing Writers: Robert Bain, RBconsult; Alison Premo Black, ARTBA vice president of policy, ablack@artba.org; William Buechner, ARTBA vice president of economics & research, wbuechner@artba.org; Bhaskar Chakravorti, McKinsey & Company; Matthew Jeanneret, ARTBA senior vice president of communications & marketing, mjeanneret@artba.org;Vincent Jue, Soilmec North America; Rich Juliano, ARTBA vice president of federal & state relations, rjuliano@artba.org; Jeffrey Solsby, ARTBA director of public affairs, jsolsby@artba.org Transportation Builder® (ISSN 1043-4054) is published bi-monthly by the American Road & Transportation Builders Association (ARTBA). Postmaster: Send change of address to Transportation Builder®, c/o ARTBA, The ARTBA Building, 1219 28th Street, N.W., Washington, D.C. 20007. Telephone: 202-289-4434, Fax: 202-289-4435, Internet: www.artba.org; E-mail: artbadc@aol.com. Periodicals postage paid at Washington, D.C., and additional mailing offices. Subscriptions are $120/year for ARTBA members, which is included in the dues; $105/year for non-members; and $200/year non-U.S. mailing addresses. Copyright ©2011 ARTBA. All rights reserved. Material may not be reproduced in any form without written permission from the publisher. Reg. U.S. Patent & Trademark Office. Executive Committee Chairman: Bill Cox, Corman Construction, Inc., Annapolis Junction, Md. Senior Vice Chairman: Paul Yarossi, HNTB Corporation, New York, N.Y. First Vice Chairman: Steve Wright, Wright Brothers Construction Company, Charleston, Tenn. Northeastern Region Vice Chairman: Nick Ivanoff, Ammann & Whitney, New York, N.Y. Central Region Vice Chairman: Kenneth Aldridge, Aldridge Electric, Inc., Libertyville, Ill. Southern Region Vice Chairman: Thomas S. Elmore, Eutaw Construction Co., Inc., Aberdeen, MS Western Region Vice Chairman: Jim Andoga, Austin Bridge & Road, Irving, Texas Vice Chairman At–Large: Doug Black, Oldcastle Materials, Inc., Atlanta, Ga. Vice Chairman At–Large: Robert Close, Parsons Brinckerhoff, Orange, Calif. Vice Chairman At–Large: John Houle, 3M Traffic Safety Systems Division, St. Paul, Minn. Vice Chairman At–Large: John Kulka, HRI, Inc., State College, Pa. Vice Chairman At–Large: Robert H. Luffy, American Bridge Company, Corapolis, Pa. Vice Chairman At–Large: David S. Zachry, Zachry Construction Corporation, San Antonio, Texas ARTBA–TDF Board of Trustees Chairman: Leo Vecellio, Jr., Vecellio Group, Inc., West Palm Beach, Fla. Young Executive Leadership Council Chairman: Christopher Fronheiser, AECOM, Baltimore, Md. Treasurer: Tom Hill, Summit Materials LLC, Washington, D.C. Secretary and President/CEO: T. Peter Ruane, ARTBA, Washington, D.C. Contractors: Thomas Iovino, Judlau Contracting, Inc., College Point, N.Y. Contractors First Vice President: Jeffrey F. Nelson, David Nelson Construction Co., Palm Harbor, Fla. Research & Education: Robert J. Plymale, Marshall University, Huntington,W.V. AEM: Ronald M. DeFeo,TEREX Corporation,Westport, Conn. Materials & Services: Aaron Ozinga, Ozinga Materials, Inc., Mokena, Ill. Planning & Design: Michael P. Hoff, P.E., AECOM, Middleton, Wis. Public–Private Partnerships: D.J. Gribbon, Macquarie Securities (USA), Inc., Infrastructure Group, New York, N.Y. Traffic Safety Industry: Joy Shamay, Evonik Degussa Corp., Bluffton, S.C. Transportation Officials: Darren Kettle,Ventura County Transportation Commission, Ventura, Calif. Council of State Executives Chairman: Robert A. Briant, Jr., UTCA of New Jersey, Allenwood, N.J. Immediate Past ARTBA Chairman: Larry Tate, Caterpillar Inc., Decatur, Ill. Past Chairmen’s Council Representative: James R. Madara, P.E., Gannett Fleming, Inc., Allentown, Pa.

We surveyed you last fall, and you responded clearly that you wanted a better, more efficient way to stay current on industry news and all of ARTBA’s programs and services. We’ve heard you loud and clear and coming February 28, be on the lookout for the interactive digital “ARTBA Washington Newsline.” It will be your one-stop resource for all of the transportation policy, economic and safety stories you’ve come to expect, plus value-added content, more member and industry “news nuggets,” better graphics and an easy-to-read format—all improvements aimed at better serving you.

Advertising Sales—Liz Cavallaro Tel: 202-289-4434 • Fax: 202-289-4437

TransportationBuilder January-February 2011

www.artba.org

LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGES GOOD PARTNERS ARE STRONGER TOGETHER. www.cna.com

CNA AND ARTBA: DRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARS. CNA claim adjusters know the road and transportation building industry. That means we can process claims quickly and fairly, and help injured workers return to work sooner. In addition, our Special Investigations Unit (SIU) and CNA Staff Counsel attorneys partner with you to help keep your costs low. If you’re looking for a partner who can help you get better mileage handling claim exposures … we can show you more.

For more information, contact your independent insurance agent or visit www.cna.com. Use of the term "partnership" and/or "partner" should not be construed to represent a legally binding partnership. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2010 CNA. All rights reserved.

fromthechairman

Building the Next Generation Nominate a “Rising Star” for ARTBA’s May Young Executive Program

William G. Cox Corman Construction Inc. Annapolis Junction, Md.

t’s simple, but true: Our ability to engage the next generation of leaders is critical for ARTBA’s success and ensuring the transportation construction industry has a stronger voice in Washington. One of my goals as chairman is to provide opportunities to get industry “rising stars” more involved. And I am asking for your help in achieving it. Please refer candidates for the 2011 ARTBA Young Executive Development Program (YEDP), held May 2326 in the Nation’s Capital.

Three Days in Washington The YEDP is a three-day, immersion course designed to introduce attendees to the federal legislative and regulatory policies, and explore ARTBA’s pivotal role in shaping them. It features sessions on highway/transit financing, economics, environmental and legal issues, public-private partnerships and industry innovation. It is purposely held in conjunction with the ARTBA Federal Issues Program and Transportation Construction Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues. With the highway/transit bill slated for congressional consideration in 2011, it’s more important than ever for industry professionals to urge law-

Graduates of the 2010 ARTBA-TDF Young Executive Development Program

makers for timely action on a robustlyfinanced measure.

Improvements for 2011 We’ve made some enhancements to this year’s YEDP. First, a high-profile industry firm CEO will be on hand to share his career experiences, offer his perspective on leadership and answer questions. Second, we’ve added additional opportunities for YEDP fellows to interact with ARTBA members, federal agencies officials, and members of Congress and their staffs. Finally, there will be a fascinating tour at FHWA’s Turner-Fairbank Highway Research Center. The facility houses more than 20 laboratories and data centers, and conducts advanced research in vehicle-highway interaction, nanotechnology, and a host of other types of research in safety, pave-

TransportationBuilder January-February 2011

ments, materials, highway structures and bridges, and intelligent transportation systems.

Nominate Today! Additional YEDP information is on pages 7 of this issue and online at www.artbatdf.org. Contact ARTBA’s Jeff Solsby at 202.289.4434 or jsolsby@artba.org with any questions. I have previously sent several of my firm’s employees to the YEDP, and can tell you from personal experience that it is an investment that pays dividends over the long-term. We look forward to receiving your referrals and working with you to build a brighter future for our industry. 

www.artba.org

2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders

he ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Program (YEDP) May 23-26, 2011, in Washington, D.C. Designed to develop future transportation design and construction industry leaders, it gives top young executives an intensive introduction to the legislative and regulatory processes that affect the industry. During the first 15 years of the program, nearly 400 YEDP fellows have come from over 160 companies, public agencies and state contractor organizations in 40 states and the District of Columbia. The YEDP curriculum consists of intensive sessions on the legislative, budget and appropriations processes, rulemaking by the federal regulatory agencies and an overview of environmental, health and safety regulations.. Participants are introduced to the role of trade associations in the policy-making process and how leadership in their trade association can benefit their industry, and their careers. The 2011 YEDP is held in conjunction with the ARTBA Federal Issues Program and Transportation Construction Coalition’s Fly-In. YEDP fellows will visit with their members of Congress about transportation development issues. Applications are welcome from any sector of the transportation design and construction industry, including private sector firms, government transportation agencies, and colleges and universities. ARTBA membership is not required to participate.

ELIGIBILITY Admission is competitive. Applicants should be under 40 years of age, although exceptions may be made on a case-by-case basis. Applicants also should have at least three years of industry experience, have made a significant contribution to the work of

their firm or organization, and shown evidence of strong leadership potential for the industry. YEDP participants are expected to attend the 2011 ARTBA National Convention, held October 2-5, in Monterey, Calif.

APPLICATION/NOMINATION & SELECTION PROCESS Candidates must be nominated by a sponsor and submit a completed application form, and one-to-two page statement describing their reasons for applying, focusing on how the executive would utilize this training to further their goals to become an industry leader. Each application form must be accompanied by a detailed letter of nomination and recommendation from a principal of the firm, senior executive within the governmental agency or senior-

level faculty member/administrator at the university which employs the applicant. Applications must be either mailed to The ARTBA Building, 1219 28th Street., N.W., Washington, D.C., 20007, faxed to 202289-4435, or e-mailed to Jeff Solsby at jsolsby@artba.org by April 1, 2011. The application form is available at www.artbatdf.org.

VENUE, DATES & COSTS The YEDP will be held May 23-26, in Washington, D.C. The $795 registration fee, which is due upon notice of acceptance, covers the cost of speakers, training materials and most meals.

Applicants are responsible for transportation, accommodations and related costs.

A fEw wORDS fROM PROGRAM GRADUATES: “The ARTBA YEDP provided a thorough insight into the legislative process concerning our industry. The diversity and quality of participants added great perspective and value to the program.” “Absolute eye-opener. Great investment of time and money.” “YEDP made me aware of [industry government relations] needs and gave me clear direction as to how to contribute to our common objective.”

Major support for the YEDP is provided by Volvo Construction Equipment.

2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline: April 1, 2011 Application can be downloaded: www.artbatdf.org. Please type or print clearly. Name: ____________________________________________________ Job Title: _____________________________ Employer: _______________________________________________________________________________________ Business Phone: _____________________________________________Fax Number: ___________________________ Email: ___________________________________________________________________________________________ Business Address: __________________________________________________________________________________ Date of Birth: ____________________________________________________________________________________ Job Description (include responsibilities and important achievements): ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ Trade or Professional Association Membership (include offices held and important achievements): ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ Community/Service Organization Membership (include offices held and important achievements): ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ Education (start with highest level attained): School City State Degree Earned Year ________________________________________________________________________________________________ School City State Degree Earned Year ________________________________________________________________________________________________

Type of License Year Earned Professional/Vocational License: _______________________________________________________________________

Academic/Professional/Service Awards: _________________________________________________________________

Please also include a one to two page statement (500 words or less) stating your reasons for seeking admission, plus a detailed letter of recommendation. Please include why you wish to participate in the program, how you believe this program will benefit you as an executive, and how you plan to contribute to the industry as a future leader.

Send the completed application by April 1 to: Jeff Solsby,Young Executive Development Program,The ARTBA Building, 1219 28th Street., N.W., Washington, D.C., 20007, faxed to 202-289-4435, or e-mailed to jsolsby@artba.org.

DO YOU KNOW SHELDON G. HAYES? IF NOT, LET US INTRODUCE YOU. Seven of the last eight winners of the Sheldon G. Hayes Award used Cat® Asphalt Pavers. Coincidence? The prestigious Sheldon G. Hayes Award is presented annually by the National Asphalt Pavement Association (NAPA) to recognize excellence in asphalt pavement construction. The winning contractors have completed projects that are deemed superior in terms of quality and smoothness. These results can only be achieved by exceptional planning and execution on the part of the contractor and their crews. Of course, it helps to have reliable equipment as well. Cat Asphalt Pavers are well-known for consistently helping outstanding paving crews produce outstanding results. Imagine how they can help your crews earn those bonus dollars.

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. © 2011 Caterpillar All Rights Reserved

So, the question remains: is it a coincidence that seven of the last eight Sheldon G. Hayes Award winners have used Cat Asphalt Pavers? Well, we can’t speak for the winners. But, as they say, results don’t lie. Caterpillar is the market leader because we offer proven technology that makes building quality and turning a profit easier. Isn’t that what technology is supposed to do? To learn more about our range of Cat Asphalt Pavers, visit your Cat® Dealer today. www.cat.com/paving-solutions SAFELY HOME. EVERYONE. EVERYDAY. SAFETY.CAT.COM™

president’sdesk

Truthful Answers to FAQs from the Nation’s Capital

T. Peter Ruane ARTBA President & CEO

RTBA prides itself on always providing the unvarnished “truth.” So as we assess the prospects and strategies for passing a multi-year federal surface transportation reauthorization bill, we must remain objective and clear-eyed. Herein I’ll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs): Question: “I read in [fill-in-the-blank newsletter] that reauthorization prospects are bleak. So why should I even bother to engage in the process?” Answer: Unfortunately, we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an “insider.” Many of these folks get their information third-hand (at best) and have agendas of their own, which comes out in their “analysis.” No one is saying that passing a surface transportation reauthorization bill will be easy. Without new funding, we are looking at steep program cuts! Yet the leaders of committees with primary jurisdiction—House Transportation & Infrastructure Committee Chairman John Mica (R-Fla.) and

Senate Environment & Public Works Committee Chairman Barbara Boxer (D-Calif.)—have publicly reaffirmed their respective commitments to getting a multi-year bill done in 2011. So now is the time to get involved in the process all the way – both to help create some momentum for a bill and to influence what is in it. Question: “Some of the recent reauthorization proposals in Congress have been troubling. Wouldn’t we be better off with nothing happening instead of those bad ideas moving forward?” Answer: No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are released, nor should we. You can be assured, as always, ARTBA will provide the most rigorous analysis of any proposed legislation. Moreover, we will continue to meet with committee staff and members in both chambers to provide our feedback, based on years of experience that is respected within both parties because of our policy expertise, not our political partisanship. However, a stalled process, in which no bill—however flawed— moves anywhere, provides no oppor-

TransportationBuilder January-February 2011

tunity for any of these efforts. And it’s well-documented that we won’t see robust multi-year construction plans in many states, nor significant new investments in human capital and equipment by ARTBA members, until we see a multi-year bill. Short-term extensions and continuing resolutions will do little to bring down 20+ percent unemployment in the industry or prepare the economy for a more competitive future. So ARTBA says: get the process started, introduce a bill, and let’s get to work on it. Question: “I’m busy running my business. Isn’t it ARTBA’s job to visit with Congress?” Answer: ARTBA is focused on those 535 U.S. senators and representatives every day. We meet with them and their staff, provide authoritative data, and share information from the industry’s standpoint on a continuous basis. So ARTBA staff can frame the issues, but we are not constituents of those elected representatives. Only you can put a face on the industry by showing the economic progress that more transportation infrastructure in-

www.artba.org

vestment can make in your area—or the catastrophe that cuts will cause. It’s easy for a member of Congress to go on a rant about “too much government spending” and budget cutting. But let’s see him or her look into the eyes of a constituent whose business or job is on the line if Congress cuts federal transportation investment, and see if they still waffle. That’s how you and your industry colleagues can make a difference. Question: “Then what can I do to help?” Answer: Get out and meet with your U.S. senators and representatives locally, especially the new ones. In-

vite them to your office or on a tour of a project site. ARTBA can provide any background information you may need. Also make plans to attend ARTBA’s annual Federal Issues Program and Transportation Construction Coalition Fly-in on May 23-25 in Washington, D.C. You can learn more about the event on pages 12-13. Both houses will hopefully be working on reauthorization bills at that point. It will be the perfect time for you to bring them another dose of reality from home. You can also join with colleagues from around the country, hear briefings from high profile speakers, and meet with officials from

federal agencies who shape your business environment. As always, it will be a wise investment of your time and money—never more so than now! “The truth shall set you free.” Don’t be misled by the din out there. We can pass a good surface transportation reauthorization bill in 2011— but we need your help to do it. 

Editor’s Note: I’m very excited for 2011. What a great year to be (or become) an ARTBA member. In addition to all of the tremendous networking and professional development opportunities that we host every year, we are adding new programs and improving existing ones. New this year, ARTBA is hosting a “TransOvation” workshop on September 7-9 in Landsdowne, Va. New details of the event are available on page 23, which precedes the second half of the latest article in our innovation series: “Finding Competitive Advantage in Adversity.” The first part of the article can be found in the NovemberDecember 2010 issue of “Transportation Builder” magazine. More event details will be coming in future issues. You can also contact my colleague Jeff Solsby at jsolsby@artba.org. He is managing the event. Beginning on page 10, learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) & Transportation Construction Coalition Fly-In—one of our most popular annual events. As always, our yearly “Young Executive Development Program,” which educates the transportation design and construction industry’s “rising stars,” will take place during the FIP. It features expanded sessions and speakers. The YEDP application is available on page 8. Finally, make sure to read ARTBA’s expert analysis of the President’s FY 2012 transportation budget and highway/ transit reauthorization proposal, which you can find on page 26. As always, please feel free to contact me by phone (202–289–4434) or e-mail (jmahoney@artba.org) with any comments on this issue or ideas for an upcoming issue. Jaime N. Mahoney, Editor Transportation Builder

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TransportationBuilder

January-February 2011

2011 ARTBA Federal Issues Program & TCC Fly-In Program of Events & Hotel Information May 23-25 • Mandarin Oriental Hotel

Monday, May 23 11:00 a.m. – 1:00 p.m. Executive Committee Council of University Transportation Centers Transportation Development Foundation Trustees 1:00 p.m. – 2:00 p.m. 1:00 p.m. – 4:00 p.m. Contract Administration Committee Meeting with Federal Highway Administration Environmental Committee Meeting with Federal Officials 1:30 p.m. – 3:30 p.m. 2:00 p.m. – 3:30 p.m. High Speed Rail Development Council Meeting Division Meetings: • Research & Education • Public Private Partnerships Transportation Safety Advisory Council 2:30 p.m. – 4:00 p.m. 2:00 p.m. – 4:00 p.m. ARTBA Nominating Committee 3:30 p.m. – 5:00 p.m. Transportation Officials Division Young Executive Development Program Welcome Briefing 4:00 p.m. – 4:30 p.m. 4:00 p.m. – 5:30 p.m. Women Leaders in Transportation Design and Construction Council Council of State Executives 4:00 p.m. – 6:00 p.m. Young Executive Leadership Council 6:00 p.m. - 9:00 p.m. Dinner on your own

Hotel Information:

Tuesday, May 24 7:30 a.m. – 9:30 a.m. Division Meetings: • Contractors • Planning & Design • Materials & Services 8:30 a.m. – 9:30 a.m. Young Executive Development Program Welcome Overview Networking Break 9:30 a.m. – 9:45 a.m. 9:45 a.m. – 11:00 a.m. General Session Legislative & Regulatory Update Transportation Construction Market Report 11:00 a.m. – 12:15 p.m. General Session: Highway/Transit Reauthorization Congressional Staff Panel 12:30 p.m. – 2:00 p.m. Transportation Development Foundation Awards Lunch

Make your room reservations directly with the Mandarin Oriental Hotel by calling 888.888.1778 or 202.787.6140. Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22. The Mandarin Oriental Hotel is located at 1300 Maryland Avenue, N.E., Washington, D.C., 20024.

TCC Washington Fly-In Schedule Tuesday, May 24 2:00 p.m. – 4:30 p.m. 6:00 p.m. – 7:30 p.m.

TCC Legislative Briefing TCC Capitol Hill Reception

Wednesday, May 25 7:00 a.m. – 7:45 a.m. 8:00 a.m. – 5:00 p.m.

TCC Breakfast Congressional Visits

TransportationBuilder January-February 2011

www.artba.org

Federal Issues Program Sponsorship Opportunities & Benefits Platinum: $10,000 • Three complimentary registrations • Premier sponsorship of the ARTBA-TDF Awards lunch • Corporate logo projected on screen during lunch event • Full-page ad in event program • Special recognition signage on site • Listing in post-event “Transportation Builder” magazine

Gold: $7,500 • Two complimentary registrations • Corporate logo projected on screen during an ARTBA General Session • Special recognition signage on site • Listing in post-event “Transportation Builder” magazine • Full-page ad in event program

Silver: $5,000 • One complimentary registration • Corporate name projected on screen during the ARTBA General Sessions • Special recognition signage on site • Half-page ad in event program

Bronze: $2,500 • One complimentary registration • Quarter-page ad in event program

Indicate Type of Sponsorship: Platinum ____ Gold_____ Silver____ Bronze___ Name of Individual: _______________________________________________________________ Company Name: _________________________________________________________________ Address: _______________________________________________________________________ City, State, Zip: ___________________________________________________________________ Phone: _________________________________ Fax: _____________________________________ Method of Payment: Please circle one: Bill me Visa Mastercard Amex Cardholders Name: _______________________________________________________________ Card #: ________________________________________________________________________ Exp. Date: ______________________________________________________________________ Cardholders Signature: ____________________________________________________________

To become a sponsor, please fax this form to ARTBA’s Ed Tarrant at 202-289-4435. For any additional sponsorship questions, contact Ed at 202-289-4434, ext. 204.

www.artba.org

TransportationBuilder

January-February 2011

Save the date!

2011 ARTBA FedeRAl Issues PRogRAm & Transportation Construction Coalition Fly-In

May 23 - 24: ARTBA Federal Issues Program May 24 - 25: TCC Fly-In Mandarin Oriental, Washington D.C. www.mandarinoriental.com/washington/ 888.888.1778

 Be an industry leader & lobby members of the 112th Congress on transportation policy issues.  Meet face-to-face with top federal agency officials to discuss the real-world impacts of existing and proposed regulations.  Get in-depth legislative, economic & market reports from ARTBA staff & industry experts.

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ARTBA Foundation News

From Hall of Fame to Industry Awards, ARTBA Foundation Showcases Your Success Stories

f you are looking for ways to salute groundbreaking innovators, support education for the children of our industry’s fallen workers, promote project environmental success or share positive community relations programs, the solution is as easy as T-D-F. ARTBA’s Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firm’s good work and earn widespread attention.

PRIDE Awards Now in their 12th year, the PRIDE Awards honor excellence in community relations and public education for programs that “enhance the image of the U.S. transportation construction industry.” Public and private sector groups are recognized. Application deadline: March 11.

Highway Worker Scholarship The “Lanford Family Highway Worker Memorial Scholarship Program” provides financial assistance to help children of industry workers killed or permanently disabled on the job pursue higher education. It was launched more than a decade ago with seed money from Past ARTBA Chairmen Jack and Stan Lanford of Roanoke, Va. The scholarships have a value of up to $5,000, and the fund

www.artba.org

By Matt Jeanneret

is supported annually by contributions from industry and labor groups, firms and executives. Application deadline: April 1.

Environmental Excellence The “Globe Awards” recognize: 1) private-sector firms and public-sector transportation agencies that do an outstanding job in protecting and/or enhancing the natural environment in the planning, design and construction of U.S. transportation infrastructure projects; and 2) transportation construction-related product manufacturers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment. Application deadline: April 1.

Hall of Fame Launched in 2010, the Transportation Development “Hall of Fame”— the highest place of honor for industry professionals—was created to recognize individuals and families from the public and private sectors who have made extraordinary contributions to U.S. transportation development or demonstrated exceptional leadership over a lifetime. Nominations for 2011 are accepted in two categories: “Industry Innovators” and “Industry Leaders”

TransportationBuilder

(individuals or families) and are due by Wednesday, June 1. Inductees for the 2010 and 2011 classes will be honored September 7 during ARTBA’s “TransOvation” Workshop to be held in Landsdowne, Va. Information about the Hall, and the scholarship and awards programs are available at www.artbatdf.org or by contacting ARTBA’s Holly Bolton at 202-289-4434 or hbolton@artba.org.

Nominate Today! These Foundation programs are designed to help your firm earn the national recognition it deserves, and in turn, allow ARTBA to share your “success stories” with the elected officials who make transportation investment policy decisions. Take advantage of these opportunities by submitting your nominations today! O Matt Jeanneret is the executive director of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing. He can be reached at mjeanneret@artba.org.

January-February 2011

Feature Story

High Speed Rail: Consider the Underground By Vincent Jue

n January 2010, U.S. Department of Transportation awarded $8 billion in stimulus funding from the American Recovery and Reinvestment Act to multiple states to develop highspeed rail service. While the November 2010 elections may have put highspeed rail projects in jeopardy some states, as of October 2010, California had secured approximately $4.3 billion to fund construction of a system between northern and southern California. California is now in the preliminary engineering and permitting phases of the rail line. Construction might seem off in the distant future, but it’s not too early to consider the big picture—and how construction might play out when the system is eventually built. Why not take a cue from a nearly identical system that was recently completed in Italy?

La Dolce Vita Italia

The first European high-speed train was an Italian line launched in 1978, which connected Rome with Florence. Since then, Italy has been at the forefront of high-speed rail innovation. Just one year ago, the new Alta Velocità (AV) line opened from Turin, near the French border, to Salerno, south of Naples. Beautiful weather, vibrant cities, great food and wine, and a gorgeous countryside are not the only things California and Italy share in common. Seismicity, stringent environmental standards, and concerns about noise,

vibration, safety, and visual impacts rank high between the two countries. These major drivers have lead to complex engineering challenges—and major construction opportunities.

Italian & Californian Similarities

Let’s see how those issues in Italy played out when it came to constructing the AV line—and the similarities between Italy and California. First, expect a sizable portion of the line to be built on structures, as opposed to at-grade. In Italy from Turin to Milan for example, due to

noise and land use concerns, the AV Corridor was constructed alongside the existing A4 Autostrada highway, although the track is completely isolated and grade-separated from all roadways. As a result, about a fifth of that segment is on raised viaducts and bridges. Second, the structures will be subject to huge lateral forces. The AV train has a maximum running speed of 180 mph and weighs 600 metric tons. At speed, the train has the momentum of a fully loaded Airbus A380 at takeoff. Deep foundations are mandatory to absorb the lateral forces from

ARTBA High Speed Rail Development Council: 2011 Agenda The ARTBA High Speed Rail Development Council (HSRDC) is planning a number of meetings and forums in 2011. HSRDC leadership has a strategy conference call scheduled for early March to discuss ways to promote true high speed rail in the U.S. and a dedicated robust funding source outside of the federal Highway Trust Fund. The council is planning several key meetings with the Federal Railroad Administration and high speed rail advocates on Capitol Hill during the May 23-25 ARTBA Federal Issues Program (FIP) and TCC Fly-In. The HSRDC is hosting a joint forum with the ARTBA Bridge Policy & Promotion Council and the Ports & Waterways Council during CONEXPOCON/AGG 2011 in March. The keynote speaker will be Al Engel, vice president of high speed rail for Amtrak. HSRDC sessions are also on the agenda during the ARTBA FIP, the Public-Private Partnerships Conference and during the National Convention in Monterey, Calif., this fall. Contact ARTBA’s Larry Russell at lrussell@artba.org to learn more about how you can get involved with the HSRDC.

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Design-Build

Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence, Italy.

the train’s momentum and to maintain alignment and control deflection. Third, California’s high speed rail will cross a number of major rivers and streams as they flow from the Sierras into the Central Valley. Ditto in Italy, where special piers and cofferdams were required to resist scour concerns. Fourth, sound and vibration issues will necessitate many miles of noise barrier construction. In Italy on the Milan-to-Bologna segment for example, approximately 230 km (140 miles) of noise barriers were constructed on the 1000-km (620-mile) AV line. In urban areas and on elevated structures and embankments, soundwalls were used due to space constraints. In the countryside, earthen berms were used for compatibility with the landscape. Fifth, tunneling will be required. The Bologna-to-Florence segment of the AV line is almost completely underground through the Apennine Mountains. Additionally, a number of short tunnels were built to minimize

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visual impacts and to reduce noise and vibration. And finally, in urban areas, construction of new stations, tunnels, and track structures will need to be integrated into the existing built environment with confined rights-of-way, without disturbing existing structures.

All Routes Lead Underground

More than 20 percent of the Italian high speed rail network costs were spent on ground engineering, including foundations, major earthwork, and ground improvement for over 150 km (90 miles) of tunnels, 200 km (120 miles) of viaducts and bridges, and 650 km (400 miles) of embankments and trenches. The successful contractors on the California high speed rail project will also need to apply innovative ground engineering solutions. For example, this could include deep foundations along very long segments of soundwalls. It could include jet grouting for ground improvement to soft soils below the rail embankments. It could include large-diameter

TransportationBuilder

Soundwalls along the Italian high speed rail alignment required deep foundations. Sound and vibration issues will necessitate many miles of noise barrier construction.

drilled shafts for bridge foundations, and permanent cofferdams for bridge scour protection. It could include grouting or micro-piling to stabilize tunnel faces. As with any large construction project, time is money, and the right construction techniques—with the right equipment, high production rates, and adequate capacity—can make or break a project. Our recommendation is to be ready to board the train when it arrives at the station. O Vincent Jue is a vice president with Soilmec North America, manufacturers of drilling and geotechnical construction equipment: vjue@champion-equipment.com.

January-February 2011

ARTBA’s 3rd Annual

Transportation Construction Law & Regulatory Forum April 6 - 7, 2011 | The ArTBA Building, WAshingTon, d.C.

Who should Attend? » in-house counsel » Company leadership/project managers » hr managers

For more information and sponsorship opportunities, contact ARTBA Staff Attorney Allison Wenograd at awenograd@artba.org or 202.289.4434.

A-16 *ARTBA is not liable for any information provided by instructors or attorneys during the forum. This forum is intended for general informational purposes only, and not as a substitute for particular advice from a qualified professional. No warranty is made regarding the forum.

Public-Private Partnerships

P3 Lessons from Europe By Robert Bain

ifty semi-structured interviews were conducted with senior professionals involved in publicprivate partnerships (P3s) across Europe. Interviewees included bankers, equity providers, financial advisors, economic consultants, credit rating analysts, concessionaires and senior government officials. A variety of opinions were expressed yet recurring themes, or “lessons learned,” soon emerged. These lessons derive, not from theory or any particular political ideology, or from judiciously selected case-studies—often the case with P3 “research”—but from the collective experience of seasoned practitioners who have been working on P3s in various roles for nearly two decades. Space constraints limit the detail that can be reported here. For the full survey results, see my website at www.robbain.com.

P3s & Rail The European experience of P3s in the rail sector—on high speed rail projects, airport links and underground metros—is one of mixed success. A number of high-profile projects have encountered problems or have failed to deliver the expected benefits. Interviewees felt that rail projects simply incorporated more risk than other asset classes, not all of which can be

anticipated at financial close. Risks that have beset the European P3 rail sector have resulted from the sheer size (capital intensity) and complexity (technical intensity) of some deals. Large projects ($1 billion+) may be attractive to a restricted number of bidders—limiting competition—and questions were asked about the ability of fixed-price contracts to deliver best value on highly complex projects when bidders respond by pricing-in significant contingency provisions. Interviewees also pointed to the multitude of interfaces with third parties that rail projects entail—over which the private sector partner may have little control—and the difficulties associated with accurate demand projections for services or passengers. High speed rail in particular requires low gradients, leading to more structures (bridges and tunnels—with increased geological risk exposure) and involves stringent engineering tolerances with low error margins. In a number of jurisdictions, the approvals processes associated with rail—for licences, consents and permits—were reported to be unduly onerous; again exposing projects to the whims of parties disassociated with P3s (or possibly opposed to them). Additionally, resistance from within the sector was noted, from an ingrained

railway culture with traditional operating practices fighting against what it regards as creeping privatization. Finally, political risk loomed large as these projects feature prominently on politicians’ radar screens—such is their size, visibility and importance, and the fact that they typically require sizeable financial commitments from public sector budgets over many years.

P3s & Roads Road projects on the other hand— highways, bridges and tunnels—were reported to “sit” much more comfortably with the P3 procurement philoso-

Interviewees felt that rail projects simply incorporated more risk than other asset classes, not all of which can be anticipated at financial close. (Continued on page 20)

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TransportationBuilder

January-February 2011

P3s Work Best When:

• Projects have a strong policy rationale, retain characteristics of essentiality, and enjoy broad public support and political commitment. • Service outputs can be clearly defined and specified contractually. • The integration of various project and financing contracts makes sense. • They are applied in mature, stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable. • Real competitive tension can be maintained throughout the procurement phase. • Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations. • Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involving major technical challenges). • Risk allocation appropriately reflects stakeholders’ capabilities and capacity. • Private finance (real ‘hurt money’) is at risk. • They are selected because of efficiency and their value-for-money benefits (rather than being off-balance sheet, fashionable or the only game in town). • The procuring agency commits to a long-term active partnership, is commercially literate, has strong negotiating skills and responsive decision-making processes. • The procuring agency selects a sustainable private sector partner, not necessarily the cheapest provider. • Used for separate, stand-alone projects with minimal interface risks.

Warning:

A project that does not make sense—or a contract that cannot be let to the market on a sensible basis under a traditional procurement model—is unlikely to be transformed by making it a public-private partnership. phy, characteristics and requirements. Interviewees reported positive experiences with on-time and withinbudget asset delivery. There were clear design/build (and build/operate) synergies to be exploited and good examples of private sector innovation with construction design, techniques and materials were noted. Projects tend to be relatively straightforward in this mature, stable asset class—factors contrasted with sectors such as health care (about which the P3 interviewees were much less enthusiastic). Acknowledging the readiness of politicians to cut maintenance budgets during times of fiscal stress, interviewees highlighted the benefits of P3 roads in terms of ring-fencing future

maintenance expenditure. The corollary of this, however, is that during economic downturns politicians may seek to renegotiate or terminate P3 contracts if they want to scale-back pre-committed investment aspirations. This was undoubtedly one of the reasons why the remaining London Underground P3 was recently bought-out and brought back under public sector control. A variety of payment mechanisms are employed on P3 roads throughout Europe. Talking specifically about user-paid tolls, interviewees pointed to the widely-acknowledged problems associated with over-optimistic traffic and revenue forecasts. One leading P3 lender noted that half of the toll

roads they were exposed to were underperforming; some by as much as 50 percent. Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and transitioning economies, especially when toll tariffs were relatively expensive. However availability and performancebased payment mechanisms—and shadow tolls—incurred problems of their own. Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road concessionaires. The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obligations. Concerns were expressed by interviewees that extended use of

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payment mechanisms which simply re-profiled government commitments could cause similar long-term affordability problems in other countries. Despite this, the use of P3s in the European road sector was reported to be largely successful. Roads have been at the forefront of many countries’ P3 programs and this trend looks set to continue.

Closing Comments

Interviewees reported positive experiences with on-time and within-budget asset delivery, when related to road projects. There were clear design/build (and build/operate) synergies to be exploited and good examples of private sector innovation with construction design, techniques and materials were noted.

2011 ARTBA Media Kit Now Available! Featuring advertising options for: • “Transportation Builder” magazine • Transportation Officials & Engineers Database • 2012 Membership Directory & Buyers’ Guide

Also, new advertising options for: • Digital “Transportation Builder” magazine • Digital “Washington Newsline” • Web advertising

View and download at www.artba.org!

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Throughout the interviews, comments were made about the strengths and weaknesses of P3s in different circumstances. The key lessons learned from the survey are summarized in the panel that accompanies this article. Other frequent observations included the fact that P3s are not just about procurement—they’re about long-term relationships; active partnerships between the public and private sectors. And the partnership model continues to evolve as different countries test the traditional boundaries between state provision and private enterprise. However, one issue above others stood out from the survey. P3s deliver best value when applied to distinct, stand-alone projects that can be separated operationally, institutionally and economically from other activities. Interviewees remained skeptical about the value-for-money benefits which could be realized from projects artificially carved-out simply to make them “P3-able.” O Robert Bain is the head of his own independent consultancy, United Kingdombased RBconsult, conducting infrastructure investment analysis for banks, institutional investors and infrastructure funds. He is the author of several books, including “Toll Road Traffic & Revenue Forecasts: An Interpreter’s Guide,” available for purchase at www.artbastore.org. He can be reach at info@robbain.com.

January-February 2011

TransOvation 2011 Save the date

SEPTEMBER 7-9 Lansdowne Resort Leesburg,Va. www.lansdowneresort.com

What makes MacArthur “Genius” Award Winner Ted Zoli & ENR Award of Excellence Winner John Hillman tick? How do they innovate to solve problems? How can you better innovate in your work? Learn how by attending the inaugural TransOvation workshop!

TransOvation 2011—Fostering Innovation in Transportation Design & Construction is a ﬁrst of it’s kind edu-

cational workshop designed to celebrate and foster innovation in our ﬁeld. And it is designed to appeal speciﬁcally to young executives—leaders that will need management and innovation skills as they rise in their careers. Plan to attend this educational networking and career development workshop to learn from the industry’s best innovators. For sponsorship, presentation or program information, contact ARTBA’s Jim Colleton at 202-289-4434 or by email at jcolleton@artba.org.

TRANSOVATION 2011: FOSTERING INNOVATION A-20 IN TRANSPORTATION DESIGN & CONSTRUCTION

Innovation

Finding Competitive Advantage in Adversity By Bhaskar Chakravorti Part Two

Editor’s Note: In the last issue of “Transportation Builder,” Harvard’s Bhaskar Chakravorti outlined how adversity and obstacles can offer unique opportunities for innovation. The first part of this article is available in the November-December 2010 issue, which is available in the “publications & advertising” section of www.artba.org.

pportunity 3: Find Small Solution to Big Problems

The more severe the adversity, the harder it is to change the status quo. Comprehensive solutions that require many changes can appear to be dead on arrival, leaving only tiny cracks as points of entry to break the mold. The message for the intrepid entrepreneur: small innovations can be huge. First, they are potentially more affordable and can be produced with less initial outlay. Second, they economize on features and complexity and may be just good enough to fulfill an unmet need. Third, their size can help minimize environmental effects or other negative externalities. Finally, they may be easier to integrate into the current model, with only minimal adjustments. In fact, four characteristics that, according to Trendwatching.com, define future consumer priorities may be the tiny cracks to look for: affordability, simplicity/convenience, sustainability, and design informed by local knowledge about product usage. Small solutions that fit within these tiny cracks represent major opportunities. A case in point is Cameron Powell, an obstetrician in San Antonio, Texas, who faced a common problem in his field: potential liability related to failures in communication between the physician and the nursing staff at the expecting mother’s bedside. The

TransOvation 2011—Fostering Innovation in Transportation Design and Construction One of ARTBA’s top goals in the year ahead is fostering innovation in our marketplace—not just showcasing it, but incubating it…teaching our members and future leaders how they can innovate in their own work. Our TransOvation workshop will be held September 7-9 at By Jeff Solsby the Landsdowne Resort near Dulles Airport in Virginia. This “can’t-miss program” will help arm industry leaders with the tools and skills they need to innovate their way to success. It’s an opportunity to hear from leading innovators, to showcase your own innovations, and to learn new practices and processes that you can apply in your firm and on your projects. We’re also working to better share stories of our industry’s good work. You may have read the recent press coverage of high profile projects like the Hoover Dam Bypass Bridge in PARADE magazine and the “New York Times” or seen “USA Today’s” prominent full-page story on the Dulles Metrorail extension program. Unfortunately, these stories are the exception not the rule. We are circulating these articles with the new members of Congress and their staffs. Another of our goals in 2011 is to encourage all member firms to seek local-level media coverage and public engagement opportunities to showcase their own innovations. We’ll be glad to showcase your results here in “Transportation Builder” and online. If you’d like help implementing a campaign of this nature, or to become involved in our Innovation Advisory Committee and the TransOvation workshop, please contact me at jsolsby@ artba.org or 202-289-4434. O structural obstacle was that obstetricians are usually on the move—from the office, to the ER, to various hospitals—making continuous bedside coverage cost-prohibitive. When software engineer Trey Moore asked Powell to wish for his

fantasy smartphone application, Powell realized that being able to see the baby’s heart tracing and the mother’s contractions anytime, anywhere would be a huge help to him and his staff. Powell and Moore figured that avoiding even a single lawsuit, with a me(Continued on page 24)

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January-February 2011

dian $2.5 million award, could make the investment worthwhile to a health care provider. Together they founded AirStrip Technologies, whose first product was a smartphone app called “AirStrip OB.” The app was easy to install on devices that physicians were already carrying, required very little behavioral change from users, and would be offered to hospitals on a softwareas-a-service model, thereby minimizing their monetary commitment. In short, Powell had found a small solution to a very big problem. “AirStrip OB” was celebrated by attendees at the Apple Worldwide Developers Conference in 2009, where only eight apps were chosen to be presented. Since then, more than 100 hospitals have adopted it. Among a highly select handful of inventions in wireless health care, it has been lauded by “rock star cardiologist” Eric Topol and David Pogue, technology columnist for the “New York Times.” Small innovations such as “AirStrip OB” aim for major breakthroughs in contexts of extreme adversity. They are not designed simply to make incremental change and are proving to be part of a broad global trend. We now have, for example, cheap and spaceefficient sachet packaging of consumer goods in developing markets; microfinance or software-as-a-service to fit limited business budgets; smartphone apps and Twitter for mobile consumers with fragmented attention capacity; and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing markets, which still face much adversity.

Opportunity 4: Think Platform, Not Just Product In general, the underlying factors that constrain one situation of adversity also constrain others. This offers

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an opportunity to invest in a meta-solution that can address several unmet needs simultaneously, either in multiple market segments or various product markets. The multifaceted character of the opportunity also hedges the entrepreneur’s risk and helps the venture grow beyond the initial point of entry. Clearly, entrepreneurs can expect varying levels of success, but the broader the venture’s reach is, the greater the value to be unlocked. The profit potential comes from the capacity to enhance the business model at three possible leverage points: customer value, cost management, and growth-vector creation. Fred Khosravi and Amar Sawhney are an excellent example of a team who thought creatively about platform. Described by “In Vivo” as the “dynamic device development

TransportationBuilder January-February 2011

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duo,” these biomedical entrepreneurs banded together to create Incept. They wanted the company to have no physical offices, only two or three employees, and an annual budget of less than $1 million. But Incept was a powerhouse. It held the rights to a “secret sauce” that would be responsible for nine start-ups in 11 years (none of them failed). Of the three spin-offs from these companies, the first, Confluent Surgical, was sold to Covidien for $245 million. The sauce was hydrogel, a harmless and highly versatile biodegradable polymer. Sawhney, the inventor of hydrogel technology, foresaw many applications, each solving a dilemma for physicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology, gynecology, neurology, and ophthalmol-

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“To ground your thinking about the benefits that adversity can offer, go back to Michael E. Porter in ‘The Competitive Advantage of Nations’: ‘Competitive advantage emerges from pressure, challenge, and adversity, rarely from an easy life.’ Necessity, coupled with four key opportunities, can indeed be the mother of some serious inventions.” ogy. Current uses now include sealing organs and other parts of the anatomy (such as the lungs, brain, spinal cord, and blood vessels) that are at risk for leakage during surgery. Hydrogels can also be used to separate a damaged organ from an adjacent organ in order to avoid interference with healing. The duo had clearly tapped into an opportunity with long-term potential for improving surgical procedures. Hydrogel technology was a true platform that could be applied to many parts of the human anatomy and, therefore, in multiple surgical “markets.” Ordinarily, venture capitalists and acquiring companies invest in a business whose core technologies are bundled with the products they sell in specific markets. Sawhney and Khosravi resisted convention, however, and focused on keeping the platform—and a stream of applications to address multiple problems—alive. They knew that bundling the hydrogel technology with its application could allow an acquiring company to own it, apply it only in a narrow market segment, and not use its full potential. Instead, they organized Incept so that it would own the patents on the hydrogel technology and license them to independent spin-off companies that Incept would incubate. It was a novel risk-management plan: an entire portfolio of application in-offs targeting different markets but centered on a common core technology. The notion of platforms need not be limited, though, to technologies and

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processes. Consider the case of the performance act “Blue Man Group.” As artists, they found the 1980s to be a particularly depressing decade. In New York City’s Central Park in 1988, they performed “Funeral for the ‘80s,” during which they buried a Rambo doll and a piece of the Berlin Wall. For two decades since that unique debut, they have drummed, splashed paint, caught gumballs with their teeth, and smothered their audiences in toilet paper. The formula for the act was nothing short of a creative mission. Now that they are older and have children, the members of the group have turned their creative attention to another institution they find depressing: primary school education. They founded an alternative elementary school, called the Blue School, predicated on the same mission-driven platform as that of their original entertainment business: “to inspire creativity and connect people with their primal exuberance.”

A New Twist on Adverse Selection To ground your thinking about the benefits that adversity can offer, go back to Michael E. Porter in “The Competitive Advantage of Nations”: “Competitive advantage emerges from pressure, challenge, and adversity, rarely from an easy life.” Necessity, coupled with four key opportunities, can indeed be the mother of some serious inventions. During the 20th century, many breakthroughs took us to uncharted and unimagined territory. But now we

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are discovering their unintended consequences: unbalanced growth and self-limiting orthodoxies, which may well be the predominant features of the decades ahead. For example, the once-booming high-tech and auto industries are now in search of radically new business models to avoid obsolescence. Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences. Health care innovations bred unsustainable cost structures, demographic imbalances, and limitations in pharmaceutical and health care delivery. Globalization has created myriad challenges of rapid growth in unevenly developed economies (such as Brazil, China, and India) and the potential that regional crises will spread throughout the world. And financial innovations led to uncontrolled speculative bubbles in some sectors. In the past few years alone, we have experienced some of the effects, including the Great Recession and its still-uncertain recovery, an unprecedented crisis with the euro, and the largest accidental oil spill in history. Clearly, the “new normal” is not short on adversity. None of this will weaken entrepreneurship and innovation. The “new abnormals”—the entrepreneurs who survive—will be those who harness the competitive advantage of adversity. The present century holds a treasure trove of bottlenecks, constraints, and other major difficulties that will be with us for a long time. It would be a shame if—as entrepreneurs, managers, and investors—we were to let such an abundance of serious crises go to waste. O Bhaskar Chakravorti is a partner at McKinsey & Company and a distinguished scholar at MIT’s Legatum Center for Development and Entrepreneurship. He recently joined the faculty of Harvard Business School.

January-February 2011

Legislative News

$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama Budget By Bill Toohey, Bill Buechner, Dean Franks, Hank Webster

he Obama Administration February 14 placed its markers on the table for a multi-year reauthorization of the federal surface transportation programs. As part of its FY 2012 budget submission, the Administration outlined a six-year, $556 billion surface transportation program—one that would radically change the program’s scope and structure. Unfortunately, the budget did not address the key question— how the proposed six-year program would be funded. Nonetheless, on a positive note, the Obama plan does provide the grist necessary to begin a legislative debate with the Congress on the

future direction of federal investments in transportation. The Obama surface transportation program reauthorization plan would include:

New Trust Fund

It would create a new “Transportation Trust Fund,” replacing the Highway Trust Fund, and establish four accounts—one for highways, one for transit, one for high-speed rail, and one for the National Infrastructure Bank.

Off-Budget

The transportation programs would be moved “off-budget” and become “mandatory spending” with spending strictly aligned with revenues into the trust fund.

TransportationBuilder January-February 2011

Passenger Rail

For the first time, passenger rail would be a major component of the surface transportation bill, directly receiving $53 billion, or just over 10 percent, of the total six-year authorization. This funding would include “High Speed Rail” initiatives, but the budget made clear that the Administration’s plan to connect “80 percent of Americans with access to High Speed Rail,” means largely “higher than current speed” Amtrak, not “bullet train,” service.

Redirected Highway Program

More than four dozen existing federal highway program categories would be shrunk to five, with six-year funding of $332.8 billion, 60.2 percent of the six-year authorization total. Of this, $257 billion dollars would be directed to investments in an enlarged, 220,000-mile “National Highway System (NHS).” The NHS investment would be split nearly in half—one for a “fix-it-first” program to rehab existing NHS road surfaces and bridges; the other for a “flexible” program allowing states to direct funds to projects on any eligible federal-aid road. The remaining 20-some percent funding in the Highway Program would be directed to safety ($17 billion), a “livable communities” program ($28 billion), federal lands, tribal roads, emergency relief and workforce development ($10 billion) and research ($4 billion).

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Bold Transportation Proposals in President’s Budget In one of the boldest budgets in memory, the Obama Administration has proposed investing a total of $128 billion in transportation in FY 2012, a $53 billion increase over the amount enacted for FY 20101. The increase is based largely on a proposal to frontload in FY 2012 $50 billion of a six-year $556 billion infrastructure investment bill to spur job growth and allow states to initiate “sound multi-year investments” in roads, railways and runways. The President’s budget lacked details on project selection requirements for the “up-front” investment. It also did not provide any recommendations for generating new revenues to support the increased investments. More than half of the $50 billion “up front” investment would boost funding for the federal highway program to a record $70.5 billion, a 70 percent increase over the amount enacted for FY 2010. The rest of the “economic boost” would provide for the following program levels: • $22.4 billion for public transportation in FY 2012, up 85 percent from $12.1 billion in FY 2010; • $8.3 billion for passenger rail including investments in high-speed rail, up 93 percent from $4.3 billion in FY 2010; • $18.7 billion for the Federal Aviation Administration, up 19 percent from $15.7 billion in FY 2010, including a one time $3 billion pool of funds going to the Airport Improvement Program for investment in airport runways; and • $5.0 billion for the proposed National Infrastructure Bank. Although the President’s budget recommends a significant increase in federal transportation investment in FY 2012, it only represents the first step in the annual budget process. It will face hard going in the Congress. In particular, the new majority in the House of Representatives has made spending cuts, not increases, the core of their legislative platform for FY 2012. Federal transportation investment decisions are not finalized until Congress enacts the transportation appropriations bill. ————— 1 Congress has not yet enacted final appropriations bills for FY 2011, so all comparisons are to amounts enacted for FY 2010. An additional $17 billion would be available for a new “Transportation Leadership Awards” program of U.S. DOT directed earmarks.

billion. A new “Transit Leadership Award” program would provide an additional $14.7 billion for U.S. DOT earmarks over six-years.

Transit Investments

National “I-Bank”

Almost 22 percent of the six-year program’s total funding, $119 billion, would go to the transit program. The formula program would receive $46 billion for transit expansion and the New Starts program would receive $20.6 billion. A new “Bus & Rail State of Good Repair Program” would be created and funded with $35.5 billion to repair and purchase buses, rail cars and rail transit stations. Transit research, operations and safety programs would receive just over $2

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The authorization would create a “National Infrastructure Bank” operating under the umbrella of the U.S. DOT for major infrastructure projects of all types. It would receive $5 billion annually in federal funds to leverage over the six-year authorization.

FY 2012 “Jump Start”

Under the proposal, transportation programs would receive a onetime, $50 billion jump start, elevating FY 2012 investments to $128 billion

TransportationBuilder

for highway, transit, rail and airport activities. This would be $53 billion more than was authorized for FY 2010. Further details on the Administration’s proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the “government affairs” section of www.artba.org. O The budget stories were written by a team that includes: ARTBA Executive Vice President Bill Toohey, ARTBA Vice President of Economics & Research Bill Buechner, ARTBA Director of Congressional Affairs Dean Franks, and ARTBA P3 Managing Director Hank Webster. They can be reached at 202.289.4434.

January-February 2011

Economic News

The Story Behind a Decade of Market Insights from Transportation Contractors By Alison Black

en years ago, ARTBA’s Economics & Research team introduced a new product that was designed to engage its contractor members and gain a “real world” perspective on the market that was not available anywhere else. During this time, you have responded! Nearly 1,500 ARTBA member companies representing all 50 states have participated in what is commonly known today as the “Transportation Construction Industry Conditions Survey.” The survey responses have helped ARTBA better understand market trends, and allowed us to aggregate

well as historical results for the industry as a whole. Respondents also have the opportunity to share their own comments—which provides a glimpse into what contractors are dealing with in their day-to-day businesses.

the results in a format that we share with association members and industry analysts as well as with the Executive Branch officials and members of Congress and their staffs who are involved in transportation policymaking. In short, the survey helps ARTBA be even more effective in advancing the industry’s agenda.

“The Survey Says” The survey results helped predict the rampant increase in material prices several years ago and the current recession. Recently, ARTBA used the survey widely to provide context in the debate on the American Recovery and Reinvestment Act (ARRA) and its impact on job creation. Although

13 Simple Questions Each quarter, participants answer 13 simple questions about general market conditions and receive a free copy of the results broken out into the highway, bridge and airport sectors, as

Construction Work Performed Net Rising Index* 1Q 2001 to 4Q 2010

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ARRA has been a lifeline to industry firms by saving thousands of jobs, there are many critics who point to the lack of new job creation. We have been able to use the ARTBA survey and the questions related to capacity. Approximately 40 to 60 percent of survey respondents have been operating at 75 percent capacity or below for the past two years. This means they have the ability to absorb additional work for some projects and may not be hiring as many workers. This key piece of information is absolutely crucial to explaining the current market, and it is only available in the ARTBA survey. We also know from the historical data that anywhere from 10 to 25 percent of companies may be operating at such a low capacity—the current high levels are a reflection of the difficult economy.

Looking Forward in 2011 and Beyond What’s ahead for 2011? Nearly half of contractors who participated in the most recent ARTBA survey are

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2003

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expecting the recession to continue, although this outlook has improved over previous quarters. Another 39 percent are expecting sluggish growth. Overall, contractors still did less work in 2010 compared to previous quarters, but there have been signs of improvement throughout the year. Most companies are still eating into their backlogs, are not hiring new workers and are spending less on capital and equipment. As is the case with any economic downturn, there are fewer shortages, but there continue to be project delays related to owner issues and permits. From the comments we receive as part of the survey, contractors are extremely concerned about the federal reauthorization of the surface transportation program and the slowdown in state and local spending. One contractor, who is a fourth generation family business owner, said the current situation is the worst he has seen in years. Other comments have provided insights into the high levels of competition in the marketplace, given

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the downturn in general construction. Most contractors share ARTBA’s view that completion of a robust, multi-year highway and transit authorization bill is critical to the market’s future. Rest assured, this legislation remains ARTBA’s top priority in the year ahead.

Participate in the Next Survey We look forward to another decade of telling the industry story through the responses and words of our contractors. I would encourage all ARTBA contractors to participate in our survey throughout 2011. The value of the information will only improve as we have more respondents. Our first quarter 2011 survey will be available March 18—look for it on the homepage of www.artba.org and in the “Washington Newsline.”  Alison Black is ARTBA vice president of policy, senior economist, and managing director of the Research and Education division. She can be reached at ablack@artba.org.

January-February 2011

Highway contractor Bill Cox wants all his employees on the road to safety.

That’s why Corman Construction relies on the National Work Zone Safety Information Clearinghouse to ensure employee and motorist safety and health in road construction zones. The world’s largest cyber library of educational webinars, best practices, laws and regulations, statistics, training information and more is available at www.workzonesafety.org.

Use It…Save Lives!

Information provided by the National Work Zone Safety Information Clearinghouse, award #DTFH61-06-H-00015, does not necessarily reflect the views of the U.S. Federal Highway Administration, (FHWA) or the American Road & Transportation Builders Association-Transportation Development Foundation. References to specific products and services do not imply endorsement by the Clearinghouse or FHWA.

PRODUCT OF THE MONTH

ARTBA Work Zone Safety Awareness Products Order Today! April 4-8 is National Work Zone Awareness Week. In preparation, the American Road & Transportation Builders Association is offering two unique products, so that you, your company or firm, can easily and readily highlight the importance of work zone safety while on the jobsite.

Work Zone Awareness Safety Ribbons Help promote safety and support the ARTBA Foundation’s “Lanford Family Highway Worker Memorial Scholarship Fund” with Work Zone Awareness Safety Ribbons: One inch by three inch ribbons made from retroreflective orange tape. Just peel off the backing and show your support. Wear them on the jobsite or at your out-of-town meetings. Order a sheet of 15 ribbons for $15.

Work Zone Awareness Safety Wristbands Help promote safety and support the “Lanford Family Highway Worker Memorial Scholarship Fund” with Work Zone Awareness Safety Wristbands. Lance Armstrong’s yellow “Live Strong” bracelet made wristbands popular. Now, ARTBA has one for transportation construction professionals. These bright orange wristbands raise awareness of work zone safety. Order 20 wristbands per bag for $40.

To order, visit www.artbastore.org or fax this form to: 202-289-4437 (Attention: Liz Cavallaro). Orders can also be placed by calling 1-888-821-9653, ext. 308, or by mailing this form to: The ARTBA Building, 1219 28th Street, N.W. Washington, D.C. 20007.

_____Quantity _____Quantity

_____ Work Zone Awareness Safety Ribbons _____ Work Zone Awareness Safety Wristbands

$15/sheet of 15 $40/20 wristbands

Name______________________________________________________Title______________________________ Company_____________________________________________________________________________________ Address______________________________________________________City/State/Zip_____________________ Telephone__________________________Fax__________________________E-mail_________________________ Check one: ____Check Enclosed ____Visa ____MasterCard ____American Express Credit Card #________________________________Expiration Date___________________ Security Code______ Name on card_____________________________________Signature_____________________________________ Total Due_____________________________________________________________________________________ (Multiply the number of units ordered by the unit price, and add 9.5% for shipping and handling)

To Order: Call 1-888-821-9653 or Visit www.artbastore.org

ARTBA Leaders

In Memoriam: Past ARTBA Chairman Richard Stander Leaves Enduring Legacy

t is with great sadness that ARTBA shares the February 4 passing of an industry titan—1978 ARTBA Chairman Dick Stander, Sr., the retired chairman of Mansfield Asphalt Paving Company in Ohio. Dick, a registered engineer and life-long “student” of transportation history, had recently celebrated his 92nd birthday. Throughout a career that spanned more than half a century, he was an inventor and industry pioneer. He began his first industry job in 1940 as a bituminous test inspector with the Ohio Department of Highways. In World War II, he championed research that led to a new type of floating bridge to accommodate larger and heavier armored vehicles. After the war, Dick built the Mansfield Asphalt Paving into one of Ohio’s leading contractors and was an early adopter of automatic paver screeds, pneumatic and vibratory rollers and state-of-theart asphalt plant production. He sold the firm in 1988.

Early Involvement

“My first recollection of ARTBA was when my father, Carl Stander, went up to the [association’s] Road Show in Cleveland in 1927 or 1928, and bought a concrete mixer,” Dick said in an ARTBA 100th anniversary publication in 2002. “That was used to pour a substantial amount of Ohio concrete pavement during the 30s. In fact, at one time our company did a great deal of the concrete paving in Ohio.” Dick’s first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field. “I

took a train up there and met a number of people,” he said. “I followed up by going to an ARTBA annual meeting a few years after that.” As a result, Dick became a distinguished ARTBA leader for the next 50+ years. In 2004, he was named one of the “America’s Top 100 Private Sector Transportation Design & Construction Professionals of the 20th Century” by the ARTBA Transportation Development Foundation.

A Key Player

In addition to serving as ARTBA chairman, he was a key player on the association’s 100th Anniversary Committee, and helped develop a multimillion dollar program of work that was aimed at educating Congress and the public about the many benefits of American transportation investment. The centennial celebration capstone was a 2002 black-tie dinner for more than 500 industry leaders, Executive Branch officials and members of Congress at the Ronald Reagan Building in Washington, D.C., that was, at the time, the largest one-night fundraising record in ARTBA history. Dick was actively involved in other industry groups, serving as the fourth president of the National Asphalt Pavement Association, as chairman of The Road Information Program from 1984-86, and as chairman of ARTBA’s state chapter affiliate—the Ohio Contractors Association. He was a life member and fellow at the American Society of Civil Engineers, and a life member of the Association of Asphalt Paving Technologies and the National Society of Professional Engineers.

TransportationBuilder January-February 2011

Dick was the 2004 winner of the George S. Bartlett Award, 1995 recipient of the “ARTBA Award,” the association’s highest honor; ARTBA’s “Nello L. Teer Jr., Contractors Division Award; and the 1986 CIT Group/ Equipment Finance “Rebuilding America Award.” From 1950-2002, he attended every annual meeting of the Transportation Research Board, save one, when he was nobly called to see his beloved Ohio State Buckeyes play in the Rose Bowl. In lieu of flowers, the Stander family has requested that donations in Dick’s memory be made to help the Engineering Support Fund at The Ohio State University, Mansfield Development Office, 1760 University Drive, Mansfield, Ohio, 44906, or at www.giveto.osu.edu, using fund number 313576. O

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ARTBA MEMBER & STAFF NEWS

Gannett Fleming Celebrates Anniversary Milestone

Gannett Fleming, an international planning, design, and construction management firm, celebrated its 95th anniversary in 2010. Founded on August 1, 1915, the firm has grown from a two-person office in Harrisburg, Pa., that specialized in water resources, to an international, ISO 9001:2008 Certified company with more than 2,100 professionals. The firm’s planners, engineers, designers, construction managers, information technology specialists, program managers, and other professionals furnish professional services from more than 60 offices worldwide. Since its founding, the firm has completed projects in every U.S. state and more than 50 countries. Gannett Fleming’s highway practice boasts more than 200 professionals in 17 offices nationwide and has demonstrated leadership in the full array of highway engineering and design services. The firm has completed location studies and preliminary design for more than 1,500 miles of multilane and split-level roadways for interstate highways, primary highways, toll roads traversing mountains, coastal areas, midwestern plains, and wetlands, as well as final design of more than 1,000 miles of multilevel and divided highways in both rural and urban locations. It is consistently ranked among the country’s top engineering firms, as demonstrated by these 2010 rankings by “Engineering News-Record,” based on 2009 revenues. Gannett Fleming

is ranked #17 out of the top 25 firms in highways, #14 out of the top 25 in bridges, and #16 out of the top 50 in transportation. Its clients’ projects are also recognized with both regional and national awards. In addition, Gannett Fleming is committed to incorporating contextsensitive solutions, LEED®-recognized initiatives, and sustainable designs into its projects. Its sustainable techniques include: addressing congestion with innovative traffic controls, utilizing compensatory mitigation techniques and recycled materials, incorporating innovative rehabilitation techniques, and mitigating roadway impacts with watershed-based stormwater management and stream restorations as part of the national green highways solutions.

ARTBA Executive Reelected Chairman of National Safety Group ARTBA Vice President of Safety & Education Brad Sant has been elected to his second term as chairman of the Safety Equipment Institute (SEI). The SEI is a private, non-profit organization that administers an independent, third party certification program and tests a broad Brad Sant range of safety and protective products used by workers throughout the materials, construction and transportation sectors. Its board of directors is comprised of executives

TransportationBuilder January-February 2011

representing firms including Bechtel, the Maryland Fire and Rescue Institute, Mine Safety Appliances Company, and the International Brotherhood of Electrical Workers, among others. Sant, an internationally recognized roadway safety expert, manages the safety training, professional academies and education programs for ARTBA and its Transportation Development Foundation. A native of Logan, Utah, Sant joined ARTBA in 1998. Prior to joining the association, he served as the director of hazardous materials training for the International Association of Fire Fighters. From 1990-1996, Sant was assistant director and director of safety and health for the Building and Construction Trades Department, AFL-CIO. Sant is a graduate of Utah State University with B.A. degrees in Political Science and Spanish and holds a law degree from Georgetown University.

ARTBA Helps Educate State Legislators on Attracting Private Financing for Transportation Projects With transportation infrastructure needs across the nation dwarfing available public resources, bringing private financing to the table in the form of public-private partnerships (P3s) is an option many state governments need to consider. Understanding the myriad complex financing options available, however, and their policy implications, is not an easy task. To help state legislators navigate the P3 field, in partnership with ARTBA, the National Conference of State Legislatures (NCSL) Foundation

www.artba.org

has developed and made available a first-of-its-kind P3 resource guide. ARTBA, whose P3 membership division has been working with the Congress and federal government for almost two decades to open doors for private investment in state and local transportation projects, approached the NCSL Foundation in 2007 about creating a P3 educational program for state legislators and key staff. ARTBA provided seed money to the foundation to get the project moving forward. The final product, developed by the NCSL staff working with a committee of state legislators and experts in the transportation financing arena, is now being distributed. As a next step, ARTBA’s P3 members and staff will be working with the NCSL to conduct webinars on the subject, as well as workshops held in state capitols. The NCSL resource guide is available on www.artba.org.

ARTBA’s Forsythe Promoted to V.P. of Finance Michael Forsythe has been promoted to ARTBA vice president of finance. Forsythe, a certified public accountant, leads all association accounting, internal/external audit, human resource management, budgeting and financial reporting activities. He also has primary responsibility for financial administration of several federal government contracts operated by ARTBA’s Transportation Development Foundation. Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associaMike Forsythe tion. During this

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G.A. & F.C. Wagman Voted Best Places to Work in PA for 6th Time G.A. & F.C. Wagman, Inc., was named among the “Best Places to Work in PA” in the large-sized company category for 2010. The company was ranked #21 of the top 50 best places to work in Pa., in their category. This is the sixth time in which G.A. & F.C. Wagman, Inc., made the list. The company’s CEO, Rich Wagman, was 2004 ARTBA chairman. Wagman provides many ways to keep employees involved and informed as well as offering opportunities for development. Wagman partners with Penn State York to offer the Wagman Institute for Professional Development to provide additional resources and training opportunities for Wagman employees. Wagman has an award-winning program to keep employees safe on the jobsites. Wagman works to keep employees happy and healthy in other ways too, with various wellness programs and multiple opportunities for employees to volunteer to support the community. Picnic lunches, project dinners and employee nights at the local baseball stadium are some of the ways Wagman is celebrating milestones with employees. G.A. & F.C. Wagman also hosted a “red carpet” themed event in May to celebrate successes and accomplishments with all employees and their spouses. time, he assumed increasing levels of responsibility and was promoted to accounting manager, controller and director of finance. He rejoined ARTBA in 2010. Previously, Forsythe was the chief financial officer for Richmond, Va.based NXL, a professional construction management and surveying firm specializing in transportation projects. He established and maintained the company’s accounting principles, practices, procedures and initiatives and was also responsible for reporting the firm’s financial performance to senior executives. He also worked as an agent for the Internal Revenue Service’s Large and Mid-Size Business Division, where he conducted examinations of returns

TransportationBuilder

filed by businesses, corporations and organizations. He developed an expertise on complex tax issues such as tax shelters, mergers and acquisitions, transfer pricing and cost segregation schedules. Forsythe began his career working for Avalon Bay Communities, a publicly-traded real estate investment trust and Verestar Corporation, an international telecommunications company. A native of the Washington, D.C., area, he earned an M.B.A. from Virginia Commonwealth University and a bachelor’s degree in accounting from York College of Pennsylvania. O

January-February 2011

AEM CORNER America’s Equipment Manufacturers Call for Immediate Bipartisan Action Association of Equipment Manufacturers (AEM) President Dennis Slater issued the following statement in response to President Obama’s State of the Union address: “The State of the Union address was the first in more than a decade to address America’s broken transportation system. To compete globally, America’s farmers and manufacturers need the White House and Congress to cooperate on new policies that repair and modernize transDennis Slater portation infrastructure—an issue American voters agree is an essential investment in our country and an immediate means to job creation. “The stark reality of the U.S. economy is that it cannot survive without a thriving agriculture and manufacturing base. Our nation’s infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts America’s farmers and manufacturers. The need to repair and modernize the nation’s roads is urgent. AEM will hold President Obama accountable to, and looks forward to working with him to achieve, his promise of redoubling the efforts to rebuild our nation’s infrastructure and ‘put Americans to work repairing crumbling roads and bridges.’ We support the president’s proposal to ‘make sure this is fully paid for, attract private investment, and pick projects based on what’s best for the economy, not politicians.’

“After urgently making the case for years that rebuilding and modernizing America’s infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness, America’s manufacturers now look to Congress to pass a surface transportation bill that will put thousands of Americans back to work repairing and rebuilding our crumbling roads and bridges.”

Caterpillar Inc., Supports Regional Rallies of AEM’s 2011 Construction Challenge

Caterpillar Inc., was a major sponsor of the 2011 AEM Construction Challenge presented by Volvo Construction Equipment. As part of its commitment to engage young people in construction careers, Caterpillar Inc., sponsored four of the nine regional rallies that took place January 15. Caterpillar Inc., sponsored AEM Construction Challenge regional rallies in Atlanta, Ga., Chicago, Ill., Cincinnati, Ohio, and Seattle, Wash. Thousands of students competed for the opportunity to advance to the final competition in Las Vegas, Nev. The top 24 student teams were chosen from the nine regional rallies held across the United States and in Canada to compete in the finals in front of the estimated 100,000-plus audience at CONEXPO-CON/AGG, to be held March 22-26, in Las Vegas, Nev. “Caterpillar is proud to support AEM’s Construction Challenge again this year,” said Tana Utley, chief technology officer of Caterpillar Inc. “The 2011 projects—transportation and water infrastructure development—

TransportationBuilder January-February 2011

will introduce students to many of the issues our industry faces as we endeavor to improve quality of life in global communities. What better way to get young people excited about the opportunities that exist in construction and engineering than to provide them with hands-on experience.” Since its inception, the AEM Construction Challenge has directly engaged over 10,000 middle and high school students across North America, and the program and its messages have made an impression on more than 18 million students on a global level. Nearly 70 percent of participants said they are now considering a construction career. For the Challenge, AEM partners with the global creativity organization Destination ImagiNation (DI), known for programs that foster creative problem solving through hands-on teamwork. A construction-themed program is an integral part of DI’s core program, culminating in a yearly global finals competition. The triennial CONEXPOCON/AGG exposition hosts a special edition of the AEM Construction Challenge in show years, to provide students with even more exposure to the construction industry. AEM is show producer and a show owner. O

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Enhancing Transportation for Over 25 Years Federal Highway Administration’s (FHWA) Local and Tribal Technical Assistance Program (LTAP/TTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300,000 bridges in the United States. The LTAP/TTAP network consists of 58 Centers; one in each state, Puerto Rico and regional Centers that serve tribal governments. These Centers may also be known by many other names such as T2, T3 or Technology Transfer Centers. Most LTAP/TTAP Centers are housed at state DOT offices, colleges or universities. All Centers share a common goal; to bring transportation technology, services, products, and educational resources to the local level. The program’s mission is to foster a safe, efficient, and environmentally sound surface transportation system by improving skills and increasing knowledge of the transportation workforce and decision makers.

To find the LTAP/TTAP Center in your area visit www.ltapt2.org.

The FHWA LTAP/TTAP Clearinghouse, managed by the American Road & Transportation Builders AssociationTransportation Development Foundation (ARTBA-TDF), provides program support for LTAP and TTAP centers.

ADVERTISER INDEX

AGGREGATE ASPHALT PRODUCTS Wirtgen America............................................................www.wirtgenamerica.com............... Inside Front Cover

CONSTRUCTION EQUIPMENT Caterpillar Inc..................................................................www.cat.com....................................................................... 9 Wirtgen America............................................................www.wirtgenamerica.com............... Inside Front Cover

HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse..............................www.workzonesafety.org............................................... 30

INDUSTRY MEETINGS & EVENTS CONEXPO-CON/AGG 2011......................................www.conexpoconagg.com............................................. 33

INSURANCE CNA...................................................................................www.cna.com...................................................................... 5 Travelers...........................................................................www.travelers.com......................................... Back Cover

SAFETY PRODUCTS Local Technical Assistance Program..........................www.ltapt2.org.................................................................. 37 Work Zone Safety Clearinghouse..............................www.workzonesafety.org............................................... 30

SAFETY RESOURCES Local Technical Assistance Program..........................www.ltapt2.org.................................................................. 37 Work Zone Safety Clearinghouse..............................www.workzonesafety.org............................................... 30

SOFTWARE HCSS...................................................................................www.hcss.com.................................................................. 24

Advertise in “Transportation Builder!” Contact ARTBA’s Liz Cavallaro at 202-289-4434 or lcavallaro@artba.org

ARTBA Board, Contractors Division & Council Meetings at CONEXPO-CON/AGG 2011 Las Vegas, Nevada • March 21-23 • The Venetian Resort

For more information or to view the agenda, visit the “meetings & events” section of www.artba.org. Contact ARTBA’s Director of Meetings Ed Tarrant at etarrant@artba.org or 202-289-4434 with any questions.

Whether your construction company is large, small or something in between, we cover it. Small construction companies are different from mid-size companies. And they’re both different from the big guys. That’s why, at Travelers, we have dedicated account executives, risk control and claim specialists with an in-depth knowledge of construction companies of every size. So, whether we’re talking about one employee or one thousand, we’ll build insurance and surety programs to meet your needs. Contact your Travelers representative to learn more. No matter what size the construction company, we think you’ll see a big difference. ©2011 The Travelers Indemnity Company. All rights reserved. The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

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