Infrastructure

A. Highway Transportation Bill

The 2009 rewrite of the SAFETEA-LU federal surface transportation law is occurring during a pivotal time for Memphis and the United States.  Memphis is positioned as a major logistics and distribution center having a tremendous impact on the U. S. economy. The number of vehicle miles traveled is increasing at a staggering rate and freight demands are expected to grow from 15 billion tons today to 29 billion tons in 2035, according to the American Association of State Highway and Transportation Officials (AASHTO), an increase of 89 percent. The members of the Greater Memphis Chamber respectfully encourage the Administration and Congress to support a modern, sustainable, and seamless surface transportation network by increasing federal investments in existing and new transportation initiatives.

Reform proposal recommendations call for:

• Significantly increasing the total funding to transportation
• Streamlining of the current number of federal programs and concentrating 90 percent of federal dollars on "core programs" distributed to the states
• Eliminate earmarks or at least cap them at no more than five percent of the Federal program
• Providing dedicated Federal funding for freight projects, inter-modal projects, and projects of national significance 

Position: The Greater Memphis Chamber supports the reauthorization of the Highway Transportation Bill with an increase in funding and other provisions to improve effectiveness.

B. Major Roads:

Memphis has been recognized as “America’s Distribution Center” and now as “America’s Aerotropolis” in large measure because of its transportation infrastructure including roads, airports, ports, and railroads. Additionally, Tennessee was recently recognized as one of the five best states for business. There is a connection between transportation, economic development, and prosperity.

• Every two years, the Major Roads Committee, which now also serves as the “Freight Committee” for the Metropolitan Planning Organization, reviews the list of the “top priorities” for the Tennessee Department of Transportation to design, fund and construct. The listing represents a consensus of the City and County governments, the business community and economic development officials.

TOP MAJOR ROAD PRIORITIES

Position: The Greater Memphis Chamber supports funding for the top major road priorities.

C. Projects of National Significance that will not progress without Federal funding

I-69 -  Interstate 69 has been identified as a “Highway of National Significance”, and one of the highest priority corridors in the United States.  It has been endorsed by the Departments of Transportation in eight states and the United States Department of Transportation. Congressional appropriations have allowed this significant interstate to begin implementation to various degrees in each of the contiguous states.

It is important to provide significant funding for this entire interstate corridor to alleviate congestion, reduce loss of life, stimulate economic development in rural and underserved communities, connect designated enterprise zones, serve military installations, and enhance our national competitiveness for exporting U.S. made goods. In fact, over 40% of all manufacturing in the country is accomplished in the states along the corridor, and the interstate connects our nation’s two largest trading partners, Canada and Mexico.

In addition to the benefits of the completed system, approved engineering studies indicate that the Segments of Independent Utility (SIU) are appropriate to construct separately. Tennessee has several segments that are ready to advance if funding were available. Many of the West Tennessee counties that would benefit from the completion of Interstate 69 are depressed and reflect high rates of unemployment and poverty.

The eight-state I-69 Coalition is a major proponent of dedicated Federal funding for projects that, because of shifts in trade patterns, freight movement and demographics, are necessary to serve the transportation needs of the 21st Century. I-69 has received almost $1.3 billion in Federal funds, including match. I-69 states have also used state-only funds and innovative financing. These funding mechanisms have generated another $1.2 billion.  However, the cost of completing I-69 is approximately $14 billion.

Position: The Greater Memphis Chamber recommends establishing a significant dedicated funding source for “Highways of National Significance” and allocating funding to I-69. 

U. S. Highway 78/Lamar Avenue/Interstate 22 –  This U. S. highway is one of the most heavily traveled freight corridors in the region and connects Memphis to Birmingham through Mississippi. The corridor is being completed as Interstate 22 and is essentially constructed in Mississippi and is funded in Alabama. The highway in Shelby County serves over 50 million square feet of industrial space as well as the new Burlington Northern Railroad intermodal terminal. The terminal at full capacity will handle 1.0 million lifts per year equating to 1.0 million truck trips.

TDOT has undertaken an analysis of this corridor and recommendations for improvements are forthcoming. However, this is a significant project for the region and the nation, and the funding will exceed the funds available through the normal allocation for Tennessee. The project will likely cost in excess of $100 million but can be phased. The first phase would require $25 million in federal funding.

Position: The Greater Memphis Chamber recommends allocating $25 million towards the improvement of this critical freight corridor.

Multi-Modal Mississippi River Bridge –  Memphis is one of only a handful of locations available to cross the Mississippi River, and the two rail and two interstate highway bridges that link Mid-America across the river at Memphis accommodate a huge amount of truck, rail, and passenger traffic.  Because Memphis is also recognized as one of the most sensitive areas in the U.S. for earthquakes, and neither the rail bridges nor the Interstate 55 Bridge were seismically designed (the I-40 Bridge has been retrofitted), the improvement of this linkage is of National importance.

The bridge feasibility study funded by the U. S. Department of Transportation was completed in March, 2006 by Wilbur Smith and Associates under the direction of the Tennessee Department of Transportation. This study concluded that there is compelling documentation on the feasibility for this bridge, and that it is of national significance.

The negative economic impacts of losing the Mississippi River bridges in Memphis due to an earthquake are estimated at $2.3 billion on the region and $11.3-$15.3 billion on freight movements in the U. S.

The Tennessee Department of Transportation (TDOT) was authorized to undertake a tolling study on a bridge in the state and selected the Mississippi River Bridge. The analysis was favorable and indicated that as much as 65% of the new bridge costs could be supported by tolls. While this has not been authorized by the state, it indicates the demand for the new bridge and the potential capacity to cost share the construction cost. 

Additionally, TDOT allocated $7.0 million to conduct the Environmental Impact Statement (EIS) of the two primary location alternatives. The consultant has been selected and the final recommendation for a location will be provided with impacts within about 18 months. 

The next step would be to begin preliminary engineering design of the bridge on the preferred alternative location. This is estimated to be $45 million. 

Because there are two states involved and because of its significance to the national economy and logistics systems, it is appropriate for the Federal government to continue funding this multi-modal bridge.

Position: The Greater Memphis Chamber requests that $45 million be appropriated to undertake the next phase of the project, preliminary design, to continue making progress on the project for the nation’s infrastructure system.

D. Port of Memphis - Harbor Dredging

The Port of Memphis created a harbor and dock to serve Frank Pidgeon Industrial Park and stimulate economic development in southwest Memphis.  One of the first projects attracted was originally Birmingham Steel that was later acquired by Nucor Steel. Nucor Steel-Memphis has worked closely with local and state officials in developing a new facility, and is well on the way to investing $230 million toward a world class steel recycling mill that will eventually produce over 800,000 tons of high quality steel bars per year for use in the automotive and heavy industrial equipment markets. It will employ over 230 people with an average salary of $65,000 per year.

However, an integral part of the business is the ability to ship and receive materials by barge through the Pidgeon Industrial Harbor. Other companies considering locating to this harbor, including Metal Management - a world leader in metal recycling - will also depend upon an operational harbor. If not quickly remedied, the current condition of the harbor could hurt the promising economic development of this great area.

Position: The Greater Memphis Chamber recommends amending the Water Resources Development Act to authorize the Secretary to perform maintenance dredging of the harbor at the Pidgeon Industrial Park, located in the Memphis Harbor area.

Live Search Maps:  Public Harbor at Pigeon Industrial Par - Memphis, TN

E. Railroads

Freight railroads are a vital component of the transportation system, particularly with the massive importation of consumer goods from Asia to the West Coast and then to the population centers of the country.  Containerization and the growing challenge of the trucking industry to accommodate the demand have contributed to the resurgence of freight railroads in the national economy.

Memphis is one the most significant rail centers in the country being one of only three cities served by five Class I railroads. Inter-modal facilities serving the national marketplace are being constructed by every railroad serving Memphis. Growth in the use of freight rail contributes to fewer trucks on the highways, less vehicular congestion, less air pollution, and lower freight costs, thereby reducing costs to consumers.

Freight Rail Infrastructure Capacity Expansion Act

The Freight Rail Infrastructure Capacity Expansion Act (FRICEA, S. 1125 / H.R. 2116) would substantially boost investment in new rail capacity by giving a 25 percent tax credit for investments in new freight rail infrastructure that expands rail capacity. This would give railroads, shippers, and others the incentive to lay “track where no track has gone before."

Position: The Greater Memphis Chamber recommends supporting this legislation authorizing a tax credit for rail investments.

Preserve Balanced Regulation

Prior to 1980, government control nearly killed U.S. railroads. Federal bureaucrats decided everything from the services railroads could offer to the rates they could charge. Because of this, bankrupt railroads operated more than 20 percent of the country’s railroad miles and rail rates rose faster than inflation. More shippers turned to trucks, putting more trucks on our roads.

In 1980, Congress passed the Staggers Rail Act, which created a balanced regulatory system that still exists today. It protects shippers against anticompetitive railroad conduct and lets railroads manage their operations efficiently.

Since the Staggers Act passed, rail rates have dropped by half, productivity is up, and railroads are growing. In fact, trucks are now among rail’s best customers. Over 12 million trailers and containers travel by rail each year.

Some rail shippers think that rail rates are too high and support legislation that would re-impose government control of railroads. Even though the Surface Transportation Board already regulates railroads, these companies want the government to decide where railroads operate and the prices they charge.

According to the U.S. Department of Transportation, demand for freight movement will increase 92 percent by 2035. If railroads cannot expand to keep up with that increase, more freight will travel our highways. That means more polluting trucks, more wasted gas, more traffic jams, and more angry drivers.

Position: The Greater Memphis Chamber supports retaining the balanced regulation for railroads that already exists.

F. High Speed Rail

The Passenger Rail Investment and Improvement Act of 2008 authorized $1.5 billion over a five year period to finance the construction and equipment for eleven high speed rail corridors. It provides billions of dollars in both tax-exempt and tax credit bonds and provides assistance for rail projects of various speeds. The bill creates the Office of High-Speed Passenger Rail to oversee development of high-speed rail and provides for a consistent source of funding.

Tennessee is one of the only southeastern states without a rail corridor in the current eleven corridor network. In 2008, Congressmen Berry of Arkansas and Cohen of Tennessee sponsored an amendment to H. R. 6003 requiring the Federal Railroad Administration to study the feasibility of expanding the corridor to Memphis from the current terminus in Little Rock. The corridor currently extends from San Antonio through Dallas-Ft. Worth to Little Rock.

Position: The Greater Memphis encourages the timely completion of the analysis for the corridor from Memphis to Little Rock Corridor and inclusion of Memphis into the eleven corridor federal network. 

G. Next Generation Federal Aviation Legislation

The U. S. House of Representatives on May 21 approved the FAA Reauthorization Act of 2009, appropriating funds for the Federal Aviation Administration through fiscal 2012. Still awaiting a companion bill from the U. S. Senate, the House legislation earmarks about $10 billion in funding for a NextGeneration Air Transportation System, and includes various provisions related to safety, security and airspace congestion. The legislation also includes a proposed increase in the maximum passenger facility charge that airports can levy, a host of customer service items and controversial measures on airline alliance antitrust immunity and foreign ownership interests in U. S. airlines.

The House bill calls on the FAA, the National Aeronautics and Space Administration, and the U. S. Departments of Defense, Homeland Security, Commerce and Transportation, to work cooperatively and make “transformational improvements to the United States air transportation infrastructure a priority.”

The bill establishes an office and a director to oversee NextGen implementation and monitor “specific quantitative goals.” The DOT secretary would issue annual progress reports to Congress. The bill also directs the Comptroller General to, within 18 months of the final legislation, submit a report to Congress on cutting congestion “in the national airspace at airports during peak travel times, by evaluating the effectiveness of reducing flight schedules and staggering flights, developing incentives for airlines to reduce the number of flights offered, and instituting slots and quotas at airports.”

Position: In light of the fact that the Memphis International Airport has been the busiest cargo airport in the world for the past 18 years, and is a first class passenger airport, The Greater Memphis Chamber supports the appropriation of funds to eliminate airspace congestion, improve safety and provide high quality security at this regional airport. 

H. Increased Truck Weight Limits

Freight hauled by trucks in the U.S. is expected to nearly double by 2035, and truck traffic is growing 11 times faster than road capacity. If current vehicle weight limitations remain in place, even more trucks will have to take to the road to ship these goods. Raising the interstate weight limit would make roads safer and less congested as America's needs grow - allowing for more efficient shipping with reduced environmental impact.

The Safe and Efficient Transportation Act of 2009 (H.R. 1799) would safely raise truck weight limits without making trucks larger.

• The federal vehicle weight limit would be 97,000 pounds—but only for vehicles equipped with an additional (sixth) axle.
• The required sixth axle would maintain braking capacity and the current distribution of weight per tire without changing the size of the truck.
• While the additional axle maintains vehicle safety performance and minimizes pavement wear, a user fee for six-axle units would fund vital bridge repair.

According to the U.S. Department of Transportation one of the driving forces behind the pitch to increase federal truck weight limits is the desire to "match up" with the rest of the world, as the 80,000-lb. (36.3 tons), tractortrailer weight limit in the U.S. is below Europe's limit of 97,000 lbs. (44 tons); Canada's average of 103,000 lbs. (46.5 tons); and Mexico's limit of 107,000 lbs. (48.5 tons).

This disconnect leads to a whole host of problems at land border crossings and seaports, where regular 40-ft. marine containers loaded within international ISO weight limits are overweight on most U.S. roads without special permits and paperwork. Shipping containers are coming into ports that are legal on European roads but are overweight when they arrive in the U. S. This can create a logistical and competitive disadvantage for the U.S.

Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related accident rates have declined by 35 percent. More freight has been shipped while the vehicle miles traveled to deliver a ton of freight has declined.

Six-axle trucks carrying 97,000 pounds get 17 percent more ton-miles per gallon than five-axle trucks carrying 80,000 pounds, according to a 2008 study by the American Transportation Research Institute.

The U.S. DOT estimates that raising the federal weight limit would save 2 billion gallons of diesel fuel annually and result in a 19 percent decrease in fuel consumption and emissions per ton-mile.

Position: The Greater Memphis Chamber supports the increase in truck weight to 97,000 with restrictions for a sixth axle, ensuring related safety and road maintenance issues are fully vetted.