INDUSTRY TODAY BRIDGE Act introduced to leverage private transportation investment A coalition of 10 senators introduced legislation, The Building and Renewing Infrastructure for Development and Growth in Employment (BRIDGE) Act, to establish a new infrastructure financing authority to help states and localities better leverage private funds to build and maintain the nation’s outdated infrastructure. The coalition said America currently spends roughly two percent of its GDP on infrastructure, about half what it did 50 years ago. By comparison, Europe spends around five percent and China spends nine percent of GDP on infrastructure. According to the World Economic Forum’s Global Competitiveness Report, the United States currently ranks 19th among 148 developed countries in overall infrastructure compared to global competitors. To begin addressing this shortfall,
the BRIDGE Act will establish an independent, nonpartisan financing authority to complement existing U.S. infrastructure funding. The authority would provide loans and loan guarantees to help states and localities fund the most economically viable road, bridge, rail, port, water, sewer and other significant infrastructure projects. The authority would receive initial seed funding of up to $10 billion, which could incentivize private sector investment and make possible up to $300 billion in total project investment. The authority is structured in a way to make it self-sustaining over time. Projects would have to be at least $50 million in size and be of national or regional significance to qualify. Five percent of the authority’s overall funding would be dedicated to projects in rural regions and rural projects would be required to be $10
million in size. The authority would finance no more than 49 percent of the total costs of the project in order to avoid crowding out private capital. Loans and loan guarantees would be subject to modest additional fees, which will allow the authority to quickly become self-sustaining over time. The coalition said having project finance experts in-house will help states and localities go toe-to-toe with private sector partners to ensure that taxpayers are getting good value for their investments through public-private partnerships. The authority would operate independently of existing federal agencies, led by a board of directors with seven voting members and a CEO, all of whom would be required to demonstrate proven expertise in financial management and be confirmed by a vote of the Senate.
BNSF awards shortline honors BNSF selected Montana Rail Link, Inc. (MRL), as its 2013 Shortline of the Year for its significant growth and continued emphasis on a strong safety record. In addition, Bighorn Divide & Wyoming Railroad (BDW) won the Special Recognition Award. The awards were presented during the annual BNSF Shortline Conference on October 21 in Irving, Texas. “MRL is an important BNSF business partner committed to enhance service to customers by focusing on network and terminal velocity initiatives, responding to changes in traffic volume and investing in infrastructure while always emphasizing the safety of employees,” said Dean Wise, vice president of network strategy for BNSF. BNSF selected BDW for the Special Recognition Award because of its commitment to growth, customer service and efficiency. BNSF said BDW has provided great customer service and has aggressively invested in capacity for new customers. BDW has grown at an annual growth rate of 14 percent over the past 10 years, nearly quadrupling its volume since 2003. www.rtands.com
Railway Track & Structures
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